A skilled labor shortage is a significant challenge that can negatively impact industries on a global scale. The consequences can be far-reaching and detrimental to businesses of all sizes, and understanding these repercussions is essential for organizations and industry leaders. With a greater appreciation for the negative impacts, companies can proactively address a skills shortage before it becomes a more significant issue.
Unfilled positions can lead to decreased productivity, higher operational costs, and, ultimately, revenue loss. Employers can adopt various strategies to mitigate the impact of the labour shortage, such as:
1. Attractive Packages and Benefits
While increasing wages and offering bonuses can be a good strategy, however, not every employer can offer higher salaries, offering attractive benefits packages can be attractive to some candidates and also a great strategy to retain current employees.
According to the Peninsula survey, 55% of employers said their employees have asked for a raise in the past year because of the increase in the cost of living.
2. Flexible Work Arrangements
As workloads worsen and workers increasingly become discontent in their roles, hiring is being impacted since the demand for convenient, satisfying work is trending.
COVID showed many candidates that work can be done from home. It allows many people who weren’t able to work before in a traditional way due to disabilities or family commitments to find jobs and contribute to the community.
This means that remote and Flexible work options can attract a broader talent pool, including those who may not be able to work traditional hours or commute long distances.
While roughly 2% of global SMEs reported moving to a four-day workweek, with another 0.6% reporting it didn’t work for them. Half 50% of employers said all their employees are in the workplace full-time, while 15% noted they have flexible working hours, and 10% said they made hybrid working a permanent policy.
Remote work policies have allowed companies like Shopify and Twitter to hire talent from around the globe.
What are some of the obstacles? outdated policies and inflexible/old-fashioned management
3. Upskilling and Reskilling Current Employees
Can you develop your people to be the future workers you need? Investing in employee training can help bridge skill gaps and prepare the workforce for evolving job roles.
Companies like Amazon and AT&T have implemented robust upskilling initiatives, significantly improving employee capabilities and retention rates.
More than half 56 % said they’re offering financial remuneration to help retention, including 65 % of Canadian SMEs. Those unable to give financial incentives reported using reward and recognition to help retention a whopping 131 % year over year.
Nearly half 47 % of SMEs reported investing in upskilling and training existing staff, with apprenticeships seeing a 36 % increase globally. Canadian employers reported a massive 217 % increase in apprenticeships year over year.
By prioritizing their employees’ professional growth, businesses mitigate the effects of labour shortages, cultivate a skilled and motivated workforce, and fill gaps in the workplace.
Automation can handle repetitive tasks, allowing human workers to focus on more complex responsibilities.
While automation can enhance efficiency, it also requires careful implementation and consideration of its impact on the workforce.
4. Diversifying Talent
Leveraging immigration programs can bring skilled workers to Canada to fill critical gaps. Companies like Google and Microsoft have successfully tapped into international talent markets.
Seeking employees from commonly underemployed groups such as new Canadians, Indigenous, retired workers or veterans, people with different abilities, outsourced service providers, etc.
Some specialists also suggest to ease up the interview process and not to – to many unrequired qualifications. Some things can be learned on the job. According to the survey, 18% of employers mentioned that reducing qualification requirements helped them overcome the labour shortage.
What are some of the obstacles?
More diversity requires leaders who are better equipped with the skills, knowledge, training, and time to manage well and build diverse teams.
5. Explore new Partnering with organizations
Establishing partnerships with educational institutions can create pipelines of new graduates ready to enter the workforce.
Leveraging different employment processes, such as internships, Co-op programs, and job placements, has been successful in providing real-world experience to students while meeting employer needs.
Partnering with Career Edge organization to connect employers with a diverse talent pool, including recent graduates, internationally qualified professionals, and people with disabilities.
6. Automate & Adopt Technology
Automation and technology adoption play a critical role in helping employers navigate ongoing labour shortages. By integrating AI, digital tools, and automated systems, organizations can streamline operations and reduce their dependence on manual labour. Automation takes over repetitive administrative tasks—like scheduling, data entry, reporting, and routine customer inquiries—allowing employees to focus on strategic, high-value work that requires human judgment and creativity.
It also helps maintain operational continuity when staffing levels are low, as tools such as automated inventory systems, workflow management platforms, and digital productivity solutions keep processes running efficiently. Beyond reducing workload pressure, automation improves accuracy, minimizes human error, and reduces burnout by eliminating tasks that are physically or mentally exhausting.
Source: ManpowerGroup, LinkedIn