Employees stress out as companies plan to grow without hiring

Most Canadian employers expect to grow their business in 2015, but the majority plan to do it without hiring new workers, according to an annual survey from Hays Canada.

The other key finding of the survey — Canadian employees are suffering increased levels of sinking morale, burnout and stress-related absences.

• Dire jobs prospects for youth can't be solved with education alone

• Temporary foreign workers: Businesses needing skilled workers sideswiped by changes

Hays, a recruiting company that annually studies hiring plans and pay scales, based its findings on an online survey of 3,691 Canadian companies of varying sizes conducted in November.

It found that 70 per cent of Canadian employers anticipate increased business activity in 2015, an optimistic outlook that speaks to Canada’s growth potential for the year. 

About 49 believe Canada’s economy will strengthen in the coming year, a 10 percentage point increase from 2013. That’s the highest in years, said Rowan O’Grady, president of Hays Canada.

But there is a "hangover from the recession" in their hiring plans, he told CBC News.

"They think we can deal with this withoug having to raise our permanent headcount, especially given that the recession is so recent," O'Grady said.

38% plan to hire

Only 38 per cent plan to add new permanent staff. And only 36 per cent had created permanent jobs within the last year.

At the same time, 31 per cent say there has been a spike in employee stress leaves and 34 per cent say staff morale is low.

Employees have experienced years of downsizing and reduced resources, including a shortage of talent, Hays found.

Potential growth could prove difficult to achieve as employers try to stretch current workforces to do more, according to O’Grady.

“It’s a bit of a conundrum. They don’t want to invest in raising the headcount, but that has a negative effect on productivity,” he said.

On the question of salaries, more companies are reporting more generous plans to raise pay rates.

Skills shortages

About 32 per cent of employers plan to increase salary levels between three and six per cent, up from 29 per cent of employers in 2014.

After a year when the controversy over temporary foreign workers made headlines, Hay asked employers about skills shortages in their workplace.

Among those surveyed, 40 per cent said the absence of training and professional development is the reason for skills shortages in their own industry.

Many acknowledged they themselves could take steps to address the talent shortage, including measures such as promoting their industries at the post-secondary level and improving training options.

O’Grady said Hays Group's work in different industries shows there is an absolute shortage of certain skill sets and at the same time a lot of unemployed people who don’t have jobs.

Canada has to address that problem, but so must individual companies, he said.

“They have to make a long-term plan and start developing their own people,” he said.

O’Grady urged companies to invest in skills development and in recruitment to reduce the stress on their employees and improve the morale in the workforce.