Small businesses scrambling
Small business owners are experiencing a return to labour shortages as workers get lured back to oil mega-projects that continue to ramp up in the Prairies and northern Alberta. The majority are finding themselves unprepared again, according to a recent survey.
Seven in 10 haven’t put a plan in place to deal with labour shortages that are intensifying.
Nearly three-quarters (74 per cent) of small business owners believe it is getting more difficult to find good employees, while 64 per cent say the demands on today’s job applicants exceed their qualifications, according to the quarterly American Express Small Business Monitor survey.
“The sucking sound that we hear from the draw of people into the resource sector is only going to become louder,” says Richard Truscott, the Alberta director of the Canadian Federation of Independent Business.
“Too often, a small-business owner finds a good employee, trains them up, has them for a short period of time and then they’re stolen away by larger corporations.”
One out of 10 entrepreneurs reported never finding the right person at all, while 28 per cent had the job open for three months before landing a new hire. Forty-six per cent of CFIB’S members, meanwhile, identify the labour shortage as their main operating concern.
Fabio Centini invests a lot of effort into hiring staff for his upscale restaurant in downtown Calgary, Centini Restaurant and Lounge.
“It’s still tough to find quality staff,” Centini says. “You invest a lot of time, energy and money into the younger people, but they don’t really stay.”
He recently sent two of his chefs to work at his friend’s restaurant in Montreal as a perk, a way for them to gain a broader range of culinary skills. He paid for their flights and hotel for two weeks. Three weeks after returning, one chef gave his notice and within three months, the other employee had left.
“From that investment, I have nothing to show for it,” he says.
To be competitive in hiring the best talent, he offers extended medical benefits through the Calgary Chamber of Commerce’s plan — as a small-business owner, he only has 30 employees — and even goes as far as taking staff on trips to Italy, France and Napa Valley. He also holds staff meals for his workers. It just never seems to be enough.
“I’ve tried to do a lot to retain good staff,” he says, adding the problem is most acute with some of the younger job seekers.
Flexible hours are on equal footing as higher pay, with 72 per cent of respondents ranking each as effective.
“The biggest draw of working for a small business is job independence and flexibility,” says Abhijeet Rege, director of small business services for American Express Canada.
The oil and gas industry continues to be the biggest source of pain for small business owners when competing for workers. Large oil companies typically have the ability to offer higher pay and more benefits, the CFIB’S Truscott says.
Unemployment levels remain low in Alberta and Saskatchewan, and while it’s not as bad as the height of the most recent boom between 200507, it’s still a problem, Centini says.
The hospitality industry always takes the brunt of the problem — it is notorious for high turnover.
Truscott says he’s amazed some small businesses can stay open as long as they do in Alberta communities such as Fort Mcmurray, Calgary and Medicine Hat, where the natural resource sector is strong and the competition for workers is “superheated.”