Canadian businesses remain optimistic despite the impending
TORONTO, July 13 2022 (GLOBE NEWSWIRE) — Canadian businesses are optimistic about their future in the face of a looming recession, according to a recent new poll from The Harris Poll commissioned by Express Employment Professionals.
Half of Canadian businesses (48%) think a recession will hit in the next year, but most (62%) say they are confident they can survive.
Businesses don’t seem ready to curb hiring like in previous recessions, as 25% say they will continue to hire as expected, and 25% will continue to hire, but less than initially expected. A fifth (19%) say they would hire more part-time rather than full-time employees.
A recession would still have a significant impact on Canadian businesses. More than half (53%) say a recession would have a major/moderate impact on their business, and a fifth (20%) of companies say they would freeze all hiring efforts.
Niven Lee, owner of an Express franchise in Delta, British Columbia, thinks that if there is a recession, it will look more like an economic downturn than a traditional recession.
“Consumer savings and business liquidity remain high, so demand will continue, albeit declining,” Lee said. “In addition, many major capital projects that have been delayed due to the pandemic have secured funding and will proceed as planned even in the face of a downturn.”
James Norris, owner of an Express franchise in London, Ont., says unlike previous recessions, hiring is unlikely to be hit drastically.
“The job market is very different today than it was in previous recessions, because there have never been so many vacancies in Canada, and many companies are still struggling to fill these positions. “said Norris. “It really is a candidate market, which is why companies are seeing more and more people leaving their jobs for a more attractive position elsewhere. So whereas in previous recessions companies have always been very quick to let go or downsize, I think there will be a lot of hesitation to do so because of the difficulty in hiring over the past few month.
Norris adds that, unfortunately, it is workers in sectors hardest hit during the pandemic – such as travel, entertainment and hospitality – who would be hit the hardest in a recession, as Canadians would cut back on unpaid spending first. essential.
Lee says some companies have already started to slow down their hiring plans as they wait to see where the economy is heading in the coming months. Still, he agrees with Norris that companies will continue to hire.
“There is still a systemic long-term skills shortage, so although a recession may slow the process, companies will continue to hire as they still need to replace their aging workforce and hire workers who are better suited to an increasingly technological workforce,” Lee said.
Both advise employers to be prepared now for an impending recession.
“Companies need to make sure they take care of their own employees so they can retain the most talented and valuable people,” Norris said. “Companies should also consider investing in training their most valuable employees so they can get the most out of them, which will be extremely important in a recession.”
He adds that taking care of customers is also extremely important.
“Many businesses were understaffed during the pandemic. People generally accept less service as the norm, and some companies have yet to return to showing great customer care,” Norris said. “Companies that return to a true customer service model of treating all their customers with the utmost respect and honesty and providing a great product or service now, will be the ones customers remember when times get tough.”
Lee says companies need to consider how they plan to use automation.
“There is a tsunami of change when it comes to AI and automation, and companies need to automate more processes now so they can reduce one of their biggest headaches, which is the workforce. artwork,” Lee said. “That’s not to say there should be layoffs, but rather that companies should consider using automation for jobs that require routine tasks and duties, while re-training and reassigning staff whose they dispose of tasks that create greater value for the customer.”
According to Express Employment International CEO Bill Stoller, the increased talk around the possibility of a recession can be beneficial for workers and businesses, as it gives them time to prepare.
“Predictions for the duration and impact of a recession vary widely, reinforcing unusual hiring circumstances absent from previous economic downturns,” he said. “Regardless of the conditions, it is wise to plan now for a probable future recession.”
The survey was conducted online in Canada by The Harris Poll on behalf of Express Employment Professionals between May 3 and May 23, 2022 among 504 Canadian hiring decision makers (defined as adults aged 18 and over). more in Canada who are full-time or self-employed). , work in companies with more than one employee and participate fully/meaningfully in hiring decisions in their company). The data have been weighted, where appropriate, by company size to bring them into line with their actual proportions in the population.
If you would like to arrange an interview to discuss this topic, please contact Ana Curic at (613) 858-2622 or by email at [email protected]
About Bill Stoller
William H. “Bill” Stoller is President and CEO of Express Employment International. Founded in Oklahoma City, Oklahoma, the international recruitment franchisor supports the Express Employment Professionals franchise and associated brands. The Express franchise brand is an industry-leading international recruitment company with franchises in the United States, Canada, South Africa, Australia and New Zealand.
About Express Employment Professionals
At Express Employment Professionals, we’re in the people business. From job seekers to corporate clients, Express helps people thrive and businesses grow. Our international franchise network provides localized recruitment solutions to the communities they serve in the United States, Canada, South Africa, Australia and New Zealand, employing 586,000 people worldwide in 2021 and 10 million since its creation. For more information, visit ExpressPros.com/CA.
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