WHAT IS THE LABOR SHORTAGE?
The labor shortage is not only characterized by a lack of manpower, but also by a lack of alignment between the positions posted and the manpower available on the labor market. Although this issue has long affected mainly "skilled" type positions, it is now a societal reality that is expanding in all employment sectors. According to several experts, because of the current demographic reality, this situation should last a good ten years.
WHAT ARE THE CAUSES OF THE LABOR SHORTAGE?
The labor shortage problem can be explained by a combination of several factors.
From a demographic point of view, Quebec experienced a very marked “baby boom” phenomenon during the post-war period, followed by a steep drop in the birth rate. This means that the departure of baby boomers for retirement causes a significant outflow of workers that subsequent cohorts are struggling to fill.
However, this shortage is also a sign that the economy is doing well and therefore generating new jobs. For the entire employment chain, needs are increasing and therefore require more labor to support growth.
We also note that entry-level and low-paying positions are experiencing a severe shortage. This is due to the fact that individuals are more and more educated and therefore demand better working conditions (salary, holidays, work-life balance).
The combination of these factors means that the problem persists, despite the phenomenon of increased productivity. Thus, the number of positions preserved or generated is greater than the number of positions eliminated.
WHAT IS THE IMPACT ON COMPANIES AND ORGANIZATIONS IN QUEBEC?
The shortage of labor can have significant consequences on the health of the organization. All organizations in Quebec are affected, including government institutions and agencies. Regardless of the sector, this is a key issue in the current and future Quebec economy.
Indeed, without having the full necessary staff, the staff in place may prove to be insufficient to support the activities of the organization. For the company, it could find itself forced to refuse customers if it is unable to adjust its production and respond appropriately to demand. For the institution or organization, it could find itself out of service and unable to fully accomplish its basic mission.
This problem can therefore prevent the company from fully optimizing its assets and can have a significant impact on its profitability, the growth of various markets, the acceleration of innovation and the digital shift, efficiency gains, productivity, and overall business performance. The impact can also be felt in the bidding process, reduced opening hours, impact on the growth rate, financial pressure, or difficulty in implementing new technologies so that the company can find itself blocked in its development. This can also have an effect on training and integration costs, due to a higher turnover rate due to the increasing mobility of employees in the labor market.
For all organizations, and from a human resources perspective, labor shortages can have a significant effect on employees. Indeed, the maximum use of available resources can lead to professional burnout and an increase in absences and illnesses due to an excessively heavy workload. It is therefore essential that organizations be equipped to optimize their processes and resources, without exhausting them.
HOW SPACE STRATEGIES CAN HELP YOU
Faced with this problem, organizations must be more and more attractive in order to ensure the retention of the workforce. To do this, they must have, among other things, a clear strategic vision of the organization's future, thus making it possible to share a stimulating and mobilizing mission with all employees.
Strategic thinking allows the organization to develop a strong differential vision that will allow it to stand out to potential candidates. It should be noted that today it is the organizations that are in competition for the recruitment and retention of the best employees because it is the latter who now select their employers, and no longer the reverse.
Job seekers will choose organizations that have a clear strategic vision of their development, that have included innovative and modern management practices, that have adopted technologies that facilitate work, including practices related to telecommuting, that have put in place an efficient and flexible governance structure, and has integrated a work recognition system.
Espace Stratégies can support organizations on two fronts: support organizations in clearly defining their strategic vision through inclusive strategic thinking or as part of a complete strategic plan; rethink the organizational development structure in line with the organization's objectives and strategic vision.
It should be noted that Espace Strategies has developed a new branch in organizational development as a natural complement to the strategic approach, which makes it possible to respond to a wide range of issues affecting these issues in organizations.
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