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Labour shortages remain the persistent challenge for both the corporate sector as well as small business owners who insist the lack of skilled and unskilled workers is the biggest impediment to increasing sales.

These shortages are expected to get worse as baby boomers retire, despite the fact the participation rate in the labour market appears to be higher. According to an analysis piece last month in the Globe & Mail, as of February, that participation rate – the proportion of the population 15 or older that is working or looking for a job – was 65.7% which is the same as it was in April 2018.

But when it comes to finding people to take on leadership roles, the outlook is much more positive, says leadership coach and expert Julie Dupont, Principal Strategist and Owner of Cambridge-based Reimagine Leadership.

“Filling leadership roles hasn’t been a struggle as much as trying to fill the technical or skilled talent roles,” she said. “People are usually happy to step up into a higher pay cheque.”

However, with that promotion also comes immense responsibilities which Julie says not all people are able to handle.

“Being a leader requires a different set of skills and mindset,” she says, noting some organizations often struggle to get the right people to fill the right roles. “And when they have them, there’s always this fear they are going to leave.”

To mitigate that fear, Julie says personal development is imperative and investing in leadership training will benefit the organization.

“You want to spend the money where it counts and that is on your people right now because they need to see there is a future for them,” she says.  “Leadership skills are an investment in long-term success. If an organization makes you feel unvalued, it hurts.”

Among the most important skills are the ones centred around emotional intelligence, which includes self-awareness, self-management, social awareness, and relationship management.

“These skills are so crucial right now because people need to understand themselves and discover what their triggers are and if they’re going to be resilient,” says Julie. “They need to be able to figure out if what they do works, or if what they do gets in the way of them being successful.”

She says an employee can be great at the technical side of their job, but as a leader may not be much of a ‘people person’ and will struggle.

“It’s about creating that employee-centred approach and is about valuing each and every person in your care,” says Julie, noting that mindset shift can be very difficult for many people but that times are changing. “We are moving slowly in that direction but it’s a big ship and doesn’t turn on a dime.”

In terms of making that change, she says identifying your strengths as a leader is key and reiterates the value of training to create a foundation to help leaders succeed.

“When people feel a little more positive in their abilities, they’re likely to give themselves the grace of making better decisions,” says Julie.

Five skills to developing good leaders:

• Communication: Great leaders must be great communicators. We need people who can learn when to listen, ask the right questions, and speak words of encouragement and motivation to their staff. These skills can be taught.
• Accountability: Not only do we need to keep emerging leaders accountable we also need to teach them how to hold their team members accountable. Many emerging leaders have never been taught the skills necessary to manage staff and earn their respect.
• Time management: Moving people up in our organizations without giving them the skills to manage all the projects, paper and people in a timely manner will lead to burnout or, worse, a broken home life.
• Servitude: Great leaders serve their people by removing roadblocks to their staff’s success. We need to teach our leaders strategies to empower their people by supporting their efforts.
• Mentorship: Great leaders mentor and coach their team members so they can be successful. This isn’t a skill that comes naturally for many people. It needs to be taught.

•    Source Troy Media

The concept of a four-day work week has been gaining attention in Ontario, thanks in part to the decision by at least seven municipalities that are now offering their staff the flexibility of that option.

But the merits of such a system, which has become commonplace in many European countries including Denmark, Germany, Norway, and the Netherlands, is the subject of much debate among critics and advocates in North America.

While there are those who believe implementing a shorter work week is impossible in many sectors resulting in additional costs for overtime or hiring more staff, not to mention placing more stress on employees to get their work done in a shorter time frame, others insist such a system creates a better life balance and overall sense of wellbeing that can inspire increased productivity.

“There has been a lot of upheaval in workplaces which has opened the doors to rethinking arrangements,” says Ellen Russell, Associate Professor of Digital Media & Journalism at Wilfrid Laurier University and a labour market and economics expert.

She believes the next generation of employees may not understand the need to have arbitrary time limits placed on their work hours. “If there is not a reason then my guess is these future workers would really find it strange to be so arbitrary for no apparent reason,” says Ellen.

This is a subject Joe O’Connor, Director and Co-founder of the Work Time Reduction Center of Excellence (WTRCE), is more than familiar.

As the former CEO of 4 Day Week Global, which has been leading four-day work week trial programs with businesses worldwide, including 10 in Canada, he is a strong believer in the concept and through the WTRCE has been partnering with organizations to support their transformation to a shorter work week.

His organization is a proponent of reduced work hours schedules, not just a compressed model where employees are required to work 10-hour days four days a week.

“Arguably, post COVID-19 quality of life is now the new frontier of competition,” says Joe, adding for many workers it means more than compensation. “One of the things I have observed is the shift towards embracing shorter work weeks has happened at all three traditional layers of the organization.”

He believes business leaders have become more ‘open’ to it because they see the potential benefits in terms of attracting and retaining talent, and that many managers are more comfortable with this type of system because they are now familiar with measuring outputs rather the length of time people spend at their desk.

“For the employees, it’s really the demand effect. The value people have placed on time as a benefit has greatly increased because of what people experienced during the pandemic,” says Joe.

But he is quick to point out there is no ‘one size fits all’ solution when it comes to implementing a shorter work week.

“This is not something that should be implemented the same way from business to business, and industry to industry,” he says, adding in larger organizations work models could even vary between departments. “There will still be a need to facilitate different kinds of irregular work patterns based on business needs and employee preferences.”

Employee support is key says Joe when it comes to implementing such a drastic change, which means taking a hard look at how an organization operates, noting that introducing a shorter work week could be met with fear and skepticism.

“This is something that really works in organizations with very strong work cultures,” he says, adding going through a thorough evaluation process can galvanize a team as efficiencies are found so they can accommodate that addtional time off. “There is a real collectiveness at the heart of this and it relies on a commitment within teams and departments to find ways to change how they do things together to make it a success.”

Joe is confident within the next few years shorter work weeks will be the norm in sectors like information and communication technologies, software companies, and financial services. He also notes that two Canadian law firms, YLaw in B.C. and The Ross Firm in Ontario, have both switched to a four-day work week, something many in the legal industry deemed would be impossible due their current billing systems.

Joe says YLaw accomplished this shift by finding efficiencies in its operations and the latter firm did it by implementing a fixed fee billing system.

“My prediction is that in five years’ time, this is going to be the norm in some sectors and in 10 years it’s going to be more common than a five-day week,” says Joe, adding the potential is there to implement this concept in many sectors, including manufacturing. “I think there is an opportunity here for proactive leaders and strong organizations. Now is the time to really set yourself apart from the competition.”

Pros of a four-day work week

• Productivity may increase
• Workers can take care of medical and other appointments on their days off
• Recruitment and retention may be easier by offering flexible work hours
• Reduced stress and a better life-work balance, allowing employees more time for other activities and hobbies
• Commuting less by employees could have environmental benefits

Cons of a four-day work week

• For hourly paid jobs, employers should check if they will need to pay overtime if staff work 10 hours a day
• If may be difficult to find daycare open for a 10-hour day to meet childcare needs
• Working longer days or trying to complete tasks in a shorter timeframe could have health impacts
• This may not work for all industries, such as farming, customer service and restaurants
• Ensuring customer and client coverage can require scheduling employees over different workdays

A tidal wave of business ownership change is coming, and many business owners should be preparing now, urges Carson O’Neill, Managing Principal of Rincroft Inc., a Waterloo Region-based company which facilitates the sale of small and medium-sized businesses.

His firm has completed the sale of more than 50 family-owned businesses, many of them in Waterloo Region.

Carson most recently penned a book for business owners entitled The Road to Enterprise Value.

He confirms that most owners of Canada’s 1.2 million SMEs are now in their 50s and 60s and looking to sell their businesses over the next five years to fund their retirement.

“The owners are capable in running the operation. They’re down to earth, salt of the earth people and smart,” says Carson. “But most have never been down this path before. For many of them, it’s unchartered water with a lot of money on the table.”

Carson adds that the process is complicated and can last six to nine months.

“There are many issues above and beyond agreement on purchase price. Who’s going to pick up the employees? What about the future of the manufacturing facility? What about the leases? What about the intellectual property? It can be complex and multi-dimensional.”

As entrepreneurs, he says business owners often are often inclined do everything themselves which runs the risk of them receiving much less than what their business is worth, in turn resulting in a less comfortable ‘nest egg’ for retirement.

“The buyers are typically aggressive and want to get the price down,” says Carson. “They’re professional buyers, many of whom who’ve bought many businesses before, so they want to work with a business owner who unfamiliar with the process.”

To better understand the process of selling a business and some of the factors that drive business owners to sell, we discussed several questions:

Q. What would you recommend be the first steps a business owner should take when it comes to selling?

Carson: Delay if you possibly can and get the business in good shape. The business owner should step back, assess the state of the operation, and take steps to strengthen it any way possible. They should not be in a hurry to go to market; our company sometimes takes months working with owners to build the business up before the divestiture process even begins. The best defense is a good offense. Don’t go into this defensively, thinking ‘oh, we have to retire now’. You need to make sure the business is fundamentally strong to secure top dollar.

Q. What are some of the misconceptions a business owner may have when it comes to the process of selling?

Carson: Having never been through the process before, many owners think selling a business is like selling a house. The process is far more complicated and takes much longer. The valuation is far more complex, the information package is far more extensive and there are multiple conditions which need to be met before the funds are wired. Is there inherent value in the business? Does the business have unique capabilities so it can be sold? Where is the ‘secret sauce’?

Q. Other than impending retirement, what are some other reasons a business owner may decide to sell?

Carson: There are usually three other reasons: health problems with one of the owners; shareholders issues with at least one shareholder in need of cash; or the business has plateaued and is going south and that is never a good time to sell a business. Other reasons can include major players are entering the market with vast resources to spend to build market share and the owners are justifiably concerned they will have difficulty competing. They may not yet have reached retirement age, but they are concerned that the value of the business may well go down in the years ahead, so they are better off to sell now.

There is also the possibility of a pre-emptive offer. It is not uncommon for a buyer to approach an owner to buy even if the business is not being sold. This happens with very strong businesses. Sometimes millions are put forth, well over the assessed value. Owners may not have ‘planned’ to sell but many will seriously consider if the price is right.

Finally, the next generation has made it clear they have no interest in the family business. The owners may be in their late-40s with the second generation in their early-20s but that serves as a valuable wake-up call that it is inevitable the business will change ownership. With the emergence of the digital economy, at an early age, many in the next generation have absolutely no interest in ever taking ownership of the established family business.

Q. How has the pandemic affected the sale of businesses?

Carson: Not really. In the early months of the virus there was a period of adjustment, but people realized there was very little need to meet to complete the transaction. Our business did not miss a beat; actually, it got stronger. The change in ownership in Canada will continue relatively unaffected by the ebb and flow of the economy.

The reality is many owners have too much money locked in their business – they usually need it for a comfortable retirement. That has remained the primary reason why they sell, whether the pandemic is here or not. Canadian business owners are getting older. You can’t stop ‘Father Time’.

Q. How has the process of selling a business changed?

Carson: It is now more complicated due, in part because due diligence has become much more rigorous. We live in an age of increasing importance of transparency and full disclosure. No stone will be left unturned. Buyers will look at everything.

Did someone slip on the ice outside your business? What insecticides do you use on the grass and plants? Do you have an alleged harassment situation happening? If one is pending, it must be dealt with because the buyer doesn’t want any liabilities and will walk away. Due diligence and purchase agreements alone can now take three months.

Throughout much of last year, economics firms predicted Canada and other western nations would fall into recession by the end of 2022 or early 2023.

However, even though the latest data shows these economies have been somewhat more resilient than expected, finance experts are expecting a recession will begin a little later than originally thought.

We reached out to Chamber Members Jason Kingston and Kris Yungblut, partners at the accounting firm Grant Thornton LLP, to get their input on how to run or buy a business during a recession:

Q. Is buying a business during a recession something worth pursuing and what are some of the factors that need to be considered?

A. There are always good businesses out there, and some are even, ‘recession proof’. The key is to understand the fundamentals of the business, in relation to what is driving the recession. Looking to acquire a business during a recession can in some cases present attractive pricing opportunities.

There are a number of factors to consider:

• Proper purchase price structuring and availability/cost of financing the acquisition.
• Generally, value multiples will come down during a recession. It is important to consider if the multiple adequately reflects the company’s ability to generate sustainable positive cashflow.
• The macro issues driving the recession, and how they impact the business need to be reviewed and understood.
• The fundamentals of the business, and how the recession pressures impact them.
• The impacts of the recessionary environment on the company’s suppliers/customers. Will customers keep buying or delay their orders? Will customers be able to pay on time? Will suppliers have products available?
• The company’s ability to generate adequate cash flow to make payments, as needed (i.e. protect the company) OR to take advantages of opportunities that come up because of the recession (i.e. grow the company).
• Are there opportunities to do things more efficiently and/or take costs out of the business?

Q. What kind of strategies are needed when it comes to operating a business during a recession?

A. There are several strategies business owners and senior management can look to during uncertain economic times. Some of these would be different depending on where in the business lifecycle (start-up, mature, etc) the particular business is, but many are common to all businesses. Examples of these would include:

• Improve cashflow of the business. This can be through reducing cash going out, such as not ordering large quantities of unnecessary supplies to have on hand or cancelling unnecessary subscriptions or getting additional cash in the door through the sale of redundant assets. The important thing to remember is that expenses should only be reduced if doing so does not harm the business and its ability to operate.
• Review larger strategy initiatives and the actions needed to meet the strategies. Ensure that only those activities which will have a clear impact on the achievement of key strategies are invested in, taking a less is more approach. For example, if pursuing multiple new product offerings, take the time to realistically project the potential sales volume of each product and its contribution to the gross margin of the business and focus on those which generate the best return on investment.
• Prepare budgets and financial forecasts. Cash forecasting can allow a business to better understand how and when cash is received, as well as the impact of investing in new equipment and machinery. Strong budgets and forecasts give the business owner the ability to engage in scenario planning and adjust quickly as cash needs and opportunities change.

Q. Are there any steps a business owner can take in advance of a recession?

A. Before the onset of a recession there are several things a business owner can do. Some of these would be good business strategy regardless of economic conditions, while others are more situational.

One planning exercise that can be done is creating a cost adjustment checklist. This would be an analysis of costs which can be reduced should times get tough. During good times there is no imperative to act on the checklist, however, when the tides are turning having already performed the exercise the owner will be better prepared to act and follow through with the cost adjustments they need to implement.

Other items which should be considered is looking at debt load being carried and renegotiating, if possible, to reduce strain on cashflow. Proactively reaching out to key customers and ensuring a strong relationship exists is a must. If you are a key supplier to another business this can give them peace of mind that you yourself are taking steps to prepare for a recession and are less likely to disappear than others who are not planning appropriately.

Q. Can a recession ever be a positive thing for a business?

A. While I don’t think I would ever make a blanket statement that a recession can be a positive thing for a business, there are clearly some opportunities and positives that can come out of a recession.

To survive a recession, most businesses will need to look at cost cutting measures as well as how to improve operational efficiency.

These actions can have longer term positive impact on the business, as the efficiency gains will continue as the economy improves, and while previously curtailed spending may be reintroduced, there will almost inevitably be spending that was eliminated that will end up not being missed and therefore won’t be reintroduced.

There can also be other opportunities to take advantage of during a recession. An example would be discretionary spending on customer acquisition, which is a commonly cut expense. Companies who have or develop a low-cost marketing plan to get potential customers attention may be able to grab market share while their competitors cut their advertising dollars.

Finally, once things improve, there may be less competition in a business’s market. If competitors were less prepared to survive a recession, they simply may not, and that leaves available market share for those who did survive.

Q. Are recessions just a natural part of the business cycle?

A. Recessions can be caused by several factors which impact the economy, such as a financial crisis like what was seen in and around 2008 and 2009 or the early 1990’s recession, the primary factors for which are believed to have been restrictive monetary policy and loss of consumer and business confidence.

Recessions do appear to follow periods of strong growth and are often viewed as inevitable, though there are some alternative theories into the causes of recessions which would argue against the inevitability of them.

However, history seems to be on the side of recessions occurring. As such, I think it only prudent for business owners to regard recessions as a regular part of the business lifecycle, to be aware of the indicators of recession, to have plans in place to help ensure their business survival during the recession and to set themselves up to thrive as the recession lifts.

Terms like ‘The Great Resignation’, ‘quiet quitting, ‘ghosting’ and ‘grey wave’, have become commonplace to describe trends creating upheaval for employers in their quest to attract and retain workers.

But finding a solution to Ontario’s job shortages will require a multi-pronged approach consisting of unique ideas that take into consideration the diversity of labour needs among various sectors.

In effort to find these potential ideas, the Cambridge Chamber recently brought together a group of business and community leaders – all Members - to discuss their concerns via our MasterMind Series.

“Our MasterMind sessions are a great way to get feedback on particular issues that can assist us in developing policies that we can advocate for change at the provincial and federal levels of government which in turn will benefit businesses,” says Cambridge Chamber of Commerce President and CEO Greg Durocher.

Changes to the immigration system was just one of several areas the group touched upon that would require legislative changes at both the provincial and federal levels. Others included a discussion about the need for potential curriculum changes and the costs surrounding WHMIS training.

This discussion inspired the Chamber to develop several recommendations in a draft policy it will present for approval at the Ontario of Chamber of Commerce’s AGM in April. Additional recommendations with a federal focus may be developed for another policy which the Chamber will present next fall at the Canadian Chamber of Commerce AGM.

If approved, these policies are then included in the advocacy ‘playbooks’ of both organizations as they lobby the government for changes that will benefit businesses.

Labour shortages remain a big concern

While the pandemic is often identified as the catalyst behind Canada’s continued employment issues, many experts believe our labour force growth rate has been trending downward since 2000 and has been exacerbated by the arrival of COVID-19.

In fact, according to Statistics Canada, in 2021 one in five Canadian workers were between the age of 55 to 64 – representing an all-time high of baby boomers (those born between 1946 and 1964). This translates into 1.4 million Canadians between 2016 to 2021 who are 55 or older and looking towards retirement.

Adding to this dilemma of a shrinking workforce, according to StatsCan, recruiting skilled workers was expected to be an obstacle for the first quarter of 2022 for 39.9% (approximately two-fifths) of all businesses.

The effects may be reflected in the results of an annual labour survey conducted in 2022 by the Canadian Manufacturers and Exporters’ (CME) of 563 manufacturers in 17 industries nationwide which outlined the impact labour shortages were having by indicating a nearly $13 billion loss in Canada’s economy over the course of a year.

While a job surge at the end of 2022 which saw the unemployment rate drop to 5% in December compared to 5.1% in November was welcomed news, StatsCan says a hike in illness-rated absences resulted in limited worker output. As well, while StatsCan says Canada’s employment rate increased to 61.8% in December, compared to 61.5% the month before, the projected trend shows a drop to 60.9% in 2024 – with the potential to rebound and hit 62.2% in 2025.

The effect these fluctuations will have as employers continue to seek employees to fill the nearly one million job vacancies in Canada has yet to be determined, considering the results of a recent poll conducted by the recruitment firm Robert Half indicating half of Canadian workers are planning to seek new jobs in 2023 – nearly double the amount from a year ago. That poll, conducted this past fall from among 1,100 workers from multiple sectors, showed that 50% of respondents would be seeking new employment in the next six months (up from 31% six months ago). The top reasons for this shift not only include higher salaries, better benefits, and perks, but greater flexibility to decide when and where they work.

Resources needed to improve immigration system

As current and potential employees weigh their options and re-valuate their priorities and goals when it pertains to employment, Canada continues its concentrated effort to reach its immigration target of 1.4 million in three years to fill these widening labour gaps.

While an influx of immigrants is welcomed news in hopes of easing labour shortages, the need to ensure resources are available to serve this growing population is imperative. Besides an adequate supply of housing, language training is just as important to provide them with a basic tool they need to enter the workforce even faster.

Providing necessary resources to assist newcomers was an issue raised during our MasterMind session, as well as extending the current hourly work limit permanently for international students. As well, it was suggested policy changes are needed when it comes ensuring foreign workers who do not hold management positions could bring their families to Canada more easily.

Recommendations going to OCC

The policy - entitled Opening Job Markets for Employers and Employees and co-sponsored by our colleagues at the Greater Kitchener Waterloo Chamber of Commerce – touches on several areas.

The Chamber has recommended the OCC urge the Ontario Government to:

1. Develop all potential partnerships within local municipalities and community organizations to ensure that language training is made available for new immigrants.
2. Allow those on ODSP (Ontario Disability Support Program) who can work full time to do so without risking loss of their provincially funded benefits (i.e., prescribed medications) if their employer does not provide those services.
3. Investigate a form of remuneration (i.e., tax credit) for employers when it comes to providing provincially regulated training, such as WHMIS, and their associated costs.

It has become an all too familiar scenario for many small businesses: a potential employee doesn’t show up for the interview or a new employee, perhaps after a single day or a few weeks, suddenly disappears, never to be heard from again.

For businesses already struggling with labour shortages, the phenomenon of ‘ghosting’ has grown into a real challenge as our economy continues to rebuild.

“The last time we checked, we had about 30% participation in live interviews,” says Mike Black, owner/operator of Valet Car Wash in Cambridge and eight other locations. “I’m also finding that many people go onto Indeed and apply to dozens of job postings and they have no idea why you are even contacting them because they have so many irons in the fire and are just picking and choosing.”

He’s not alone in this regard. According to a survey conducted by the Canadian Federation of Independent Business (CFIB), 37% of small business owners who responded said they have had potential hires suddenly disappear without explanation, while one out of three who’ve hired someone during the last year either had that employee not show up their first day or had them stop coming in shortly after being hired.

While salary is a clear motivator for many job seekers, Mike also believes there has been a cultural ‘shift’ as opposed to just an economic one in terms of how people currently look for work.

“There almost seems to be a complete lack of courtesy and respect for others,” he says, noting the adage ‘never burn a bridge’ no longer seems to apply.

Janice McVey, Manager Partner at the Dean Group which specializes in employment recruitment, says the fact there are so many jobs available and that accountability no longer seems to be there when it comes to referencing, are a few of the key factors.

“It used to be that having a good job reference was important and not having one used to be a real impediment,” she says. “Now, again with unemployment so low and good people hard to find, companies are lowering the bar. The job candidate understands that lack of investment from the client’s perspective, so it becomes a bit of a two-way street.”

Janice says conducting a short Zoom interview may not necessarily win over a potential employee and make them feel invested enough to sign on.  However, she acknowledges that most companies also no longer have the luxury due to staff shortages to properly acclimate a new employee –spending additional time on training or introducing them to all their co-workers - because they need them to start working immediately.

“As a result of tightening up the interview process, they actually lose that ability to truly engage somebody in the role and therefore they can lose them,” says Janice, noting ‘A list’ companies that offer higher salaries and benefits tend to have fewer ghosting issues. “I think what it boils down to is there are too many options out there and therefore people do not worry about not finding a job when they need one.”

To help combat this, she encourages her clients to really promote why a person should want to work for them.

“You have to make sure what you’ve got to offer is what the candidate is really looking for. You as an employer, have to be clear on why people want to work for your organization,” says Janice. “Because now, they’re interviewing you more than you’re interviewing them.”

And if the candidate accepts the job but there is a concern they could soon be looking elsewhere, she recommends reminding them why they accepted the job in the first place.

“What was their motivation; if money was the reason, you’re never going to keep those people because they’re going to go to the next guy who pays them more,” says Janice. “I think you’ve got to make sure you’re lining up what it is you’ve got to offer with what it is an individual is looking for.”

Mike agrees noting potential employees are paying much closer attention to a company’s core values and how it projects itself, especially online.

“You are definitely selling yourself more today,” he says, adding that communication is vital, especially during the initial interview process and explains how his company keeps in close touch with a potential employee once contact has been made.

“We stay in constant touch with that candidate, reminding them about the interview and confirming the date and time,” says Mike, adding they have had great success with video interviews which can also lead to an in-person meeting depending on the position they’re trying to fill.

Also, he says that close communication continues for the first few months after a new person has been hired.

“You really need to build a relationship that makes them feel welcomed and appreciated, and make sure they have everything they need,” says Mike. “You also have to be aware of how your employees are interacting with your new hires because they can play a major factor on whether they will stay or leave. It only takes a couple of bad apples to taint someone.”

Janice agrees, explaining leveraging your internal network can help an organization retain new employees.

“Your best salespeople as a good organization are your current employees,” she says, adding the pandemic has made the work of HR departments even harder. “I’m afraid the downside is they haven’t been able to do some of things that helped with engagement of candidates like they used to.”

When it comes to recruitment, Mike has purposely entrusted that responsibility to someone else in his organization.

“If it’s not something you’re comfortable with, you really have to delegate it to someone who is,” he says, adding each January his company also does an analysis of its turnover rate during the previous year. “We compare it with previous years to see if we’re getting better or worse. If we’re getting worse, then we really need to look at why and look at solutions as to why that rate when up.”

Employment turnover at a glance:

• More than one-third of Canadian companies (35%) say employee turnover has increased compared to last year, a significant rise from the nearly a quarter (24%) who said the same thing in 2021.
• According to the survey, employee turnover costs companies an average of over $41,000 each year (including the cost to rehire, lost productivity and more). Those costs are even higher for some employers, with more than 1 in 10 hiring managers (16%) reporting $100,000 or more per year in turnover expenses.
• For companies with increased turnover this year, the main causes identified include better pay and/or benefits offered elsewhere (36%), employees resigning (35%), employees feeling overworked (33%), retirements (30%), increased workplace demands (29%) and better perks elsewhere such as summer Fridays and unlimited vacation days (28%).
• Two-thirds of companies agree that employee turnover places a heavy burden on existing employees (64%). This is especially the case with large employers with 100 or more employees (75%) compared to small businesses with fewer than 10 employees (50%). With the added complexity of the current labour shortage, companies are having to lean heavily on their current employees.

•    Info provided by The Harris Poll commissioned by Express Employment Professionals

The weather may be colder, but things are heating up fast when it comes to the winter tourism season in Waterloo Region.

In fact, tourism spending in Canada in general is expected to recover quicker than anticipated according to Destination Canada’s latest tourism outlook which is predicting a return to 2019 levels by 2024, up from 2025 as predicted last spring. As well, the report indicates Canada’s tourism sector could generate more than $142 billion by 2030 which represents a 35% growth over the next decade.

This doesn’t come as a surprise to Explore Waterloo Region CEO Michele Saran, noting that domestic travel has recovered much quicker than international visits.

“When you’re talking about Waterloo Region, keeping in mind we receive 96% of our visitations from the GTA, we expect to be fully recovered here to 2019 levels by 2023,” she says. “In fact, we’re almost there now.”

Michele credits this local rebound not only on a growing pent-up demand for travel opportunities following pandemic lockdowns and restrictions, but the fact the region has so much to offer.

“When you talk about the winter season, in Waterloo Region we always do quite well,” she says. “Interestingly, I’ve never seen a destination that doesn’t take a hit at this time of year except for us, and Christmas really seems to be our ‘thing’.”

Michele credits the numerous holiday festivals and activities for providing a major boost to our local tourism and hospitality sector, including Cambridge’s ‘Winterfest’ which offers numerous events and displays until the end of the month, Kitchener’s recent ‘Christkindl Market’ and KWFamous ‘Holiday Pop-Shoppe’, as well as Bingemans’ ‘Jingle Bell Rock’ and ‘Gift of Lights’ events.

“Everybody (tourism operators) seems very positive about this season,” she says. “And we’ve been doing our Road Trip campaign for the last few months on social media, and we’ve been talking about winter and amplifying all the fabulous things you can do within an easy drive of our target market.”

Besides Christmas activities, Michele says Waterloo Region is loaded with a variety of winter attractions such as Chicopee which should be welcoming skiers and tubers soon, as well Shades Mills Conservation Area in Cambridge for walking and cross-country skiing.

As well, Toyota Motor Manufacturing Canada has once again started its plant tours, which provide an inside look at its Cambridge facility via a motorized tram.

“Also, St. Jacobs and Elmira are always beautiful and magical places to visit in the winter,” she says, adding Explore Waterloo Region has been encouraging people to utilize the Ontario Staycation Tax Credit. 

The credit, which expires at the end of the month, allows Ontario residents to claim 20% of their eligible 2022 accommodation (cottage, hotel, or campground) expenses up to $1,000 as an individual or $2,000 if you spouse, common-law partner, or children, to get back up to $200 as an individual or $400 as a family.

“We’re actually lobbying as an industry to keep the tax credit in place for next year as well,” says Michele. “As you know, we were the first industry hit and the hardest hit and the last to recover, so we would love to keep this value added as part of our marketing arsenal.”

In terms of any potential threat from what has been dubbed as the ‘tripledemic’ (Flu, RSV and COVID-19), she remains optimistic that local tourism operators are prepared.

“I think everyone in the tourism industry is really good at listening to public health recommendations, and because our industry was the first hit, we’ve had to create all different types of scenarios about how to open safely and serve the public,” says Michele. “We’ve become really good at it and have a lot of practice.”

Visit Explore Waterloo Region to learn more.

A few things to check out:

• Cambridge Winterfest – runs until Dec. 31 and features light installations and a variety of events in all three downtown cores.
• Bingemans - Jingle Bell Rock, runs until Jan. 7 and outdoor light displays, surrounding a 40-foot dancing tree illumination. Gift of Lights runs until Dec. 31. Drive through holiday light display featuring over 300 animated and static light displays.
• KWFamous Holiday Pop-Shoppe - Until Dec. 30 featuring more than 80 local makers and creators taking part at shop located across from Kitchener City Hall.
• Jakobstettel – Celebrates 170 Years of St. Jacobs, featuring a series of events until Dec. 18.
• The City of Waterloo hosts  Winterloo on Jan 28, 2023
• Toyota Plant Tour – a 90-minute tour of Toyota Motor Manufacturing Canada’s Cambridge facility. Tours currently run Monday to Wednesday.
• Chicopee 

*  With files from the Toronto Star    

Since the late 2000s, Black Friday has become a retail staple in Canada surpassing the traditional Boxing Day sales as the most popular annual sale in this country.

Initially, the term ‘Black Friday’ can be traced back to 1869 when two Wall Street financiers attempted to purchase all of America’s gold to pump up its value. Their play for the gold failed, however, the term stuck and eventually more than 100 years later became associated with sales when retailers began noting they were ‘in the black’ as soon as Christmas shopping started.

“It has become another one of those consumer ritual occasions and from a buyer/retailer perspective it is now a key point on the calendar we all start to strategize for leading up to and following,” says Brad Davis, Associate Professor at Wilfrid Laurier University’s Lazaridis School of Business and Economics, who specializes in consumer behaviour and trends.

However, despite the ‘ritual’ aspect of shopping on Black Friday (Nov. 25) and Cyber Monday (Nov. 28), experts expect sales this year won’t be as brisk as in years past.

“Most of the signs indicate kind of a suppression of general sales for Black Friday and Cyber Monday,” says Brad, adding sales in 2021 were down by about 7% compared to the previous year. “I think last year we had this post pandemic burst of saved money and a desire by consumers to let loose. But it’s sort of settling back now into more normalcy because people have got it out of their systems.”

Factor in supply chain issues and the cost of inflation affecting consumers’ decisions, and Brad says the outcome could hold some surprises.

“There’s a lot of interesting question marks about consumers’ mood and are they going to be naturally a little more reticent to do impulse purchases because of inflation, rising prices and just general worry,” he says. “However, the flipside of that is anything that states: ‘regular retail on sale’ and consumers respond to it. They may be more susceptible to respond to that kind of pitch because they are worried about rising prices and think this is an opportunity to get stuff ‘at a deal’.”

Brick-and-mortar stores versus online shopping

“We saw online sales trending up before the pandemic and I’ve always said the pandemic and the response to it didn’t change anything, it just dramatically sped up existing trends,” says Brad, noting how much more ‘comfortable’ people are with ordering online for many items.

Not surprisingly in 2020 when things were locked down, Black Friday sales grew by 31% compared to pre-pandemic 2019 levels. And even with stores being reopened in 2021, Black Friday and Cyber Monday ecommerce sales still rose by 11.9% the whole month of November.

“Cyber Monday was actually starting to encroach, if not beat, Black Friday anyway before the pandemic in terms of popularity,” says Brad, adding the concepts of ‘Black Friday Month’ or ‘Cyber Monday Week’ have become more of reality now that larger retailers like Amazon and Target have implemented earlier sales.

However, when it comes to in-person shopping he says the tactile experience of going into a store remains a social exercise many consumers will continue to crave.

“We are still, by nature, two million old hunters and gatherers. We just do it in malls now,” jokes Brad. “I think we’re always going to have the need for physical retail.”

Supply chain and demand

Fear of shipping delays last year prompted many consumers to start their holiday shopping earlier on, and experts believe that has continued this year fueled by soaring gas prices plus global shipping complications.

Anecdotally, Brad says he’s heard that some categories of electronics are now very difficult for retailers to have in their inventory in effort to pull off some of the major deals they once offered on Black Friday.

“If you can’t physically get the stuff, what is that going to do if you want provide longer hours at your store?”

At the same time, he says some retailers may have higher volumes of inventory they are trying to clear out.

“You may not be seeing deals across the board anymore but instead, seeing a weird patchwork effect of deals going on as a direct reflection of what we have been going through,” says Brad.

Advice for business owners

When it comes to navigating Black Friday and Cyber Monday, Brad urges business owners to not get caught up in the ‘hype’ surrounding these shopping events.

“Make sure you do your due diligence and make sure you are making smart decisions and not just for that day, but a period of time,” he says, explaining trying to clear out too much inventory may lead to cashflow trouble down the line as consumers stock up on items and wait several months before spending again. “Don’t get caught up in the hype. You need to sit down and rationally look at the numbers to see if you need to clear out that inventory.”

* With files from the National Post and Calashock Commerce

Quiet quitting, thanks to viral posts on social media, has become a term very familiar in workplaces worldwide.

It describes the phenomenon of employees who no longer go above and beyond by doing only what is expected in effort to maintain jobs that may no longer interest or inspire them.

This disengagement from work has grown exponentially since the pandemic. In fact, the 2022 State of the Global Workplace report from Gallup shows only 21% of employees are engaged at work.

“We’ve come through such a crisis over the last couple of years. To some extent, I think we’re over it now, but it has forced people to make different decisions about work, especially if they were burnt out already,” says Frank Newman, CEO of Newman Human Resources Consulting, who will explore quiet quitting at a Cambridge Chamber of Commerce webinar Dec. 1 entitled Is Your Team Quietly Quitting?

He will not only touch on some of the top reasons why employees quietly quit as well as the warning signs but provide insight on how employers can alter their work environment so they can not only attract but, more importantly, retain employees.

“You want to make sure you create the best work environment as possible,” says Frank, acknowledging the existence of an “employees’ market” due to labour shortages.  “That really means taking a very critical look at your work environment. Do you know what people need? Is it benefits? Is it better management? This is the ideal time to do an employee survey or workplace assessment to provide you with some sort of tool you can use to get a fix in terms of what are you going to fix first.”

He says this process may not prove to be a comfortable experience for some workplaces, however, insists this information can go a long way in assisting an organization set benchmarks regarding branding, image or even compensation.

“There are so many changes happening right now and if you don’t understand where you’re going or where you’re at, it’s pretty hard to make any progress,” says Frank.

He also recommends employers conduct exit interviews, formally or informally, to get a sense of why an employee has decided to leave.

“Make sure you understand what people are feeling. Also, spend some time with your newest employees and ask them what attracted them to your organization.”

Frank says in the age of social media, it’s important to encourage people who leave to remain an ambassador for the organization adding that bad reviews tend to get more traction than good ones.

“Organizations need to think about that as they manage those who are quietly quitting and those who suddenly walk out the door,” he says. “I always encourage my clients to search various job boards to see what’s being said about them.”

Frank admits it’s a tough time to be a manager right now, noting that employees have become much more critical on how their companies are managed than they were in the past.

“People looking for work have so many options out there now, and if you’re a hiring manager, it’s putting more pressure on management to get work done with less resources,” he says, noting the difficulty this causes employees who are now required to pick up the slack due to staffing shortages.

However, Frank says he’s optimistic as the economy continues to readjust following the pandemic there will be less quiet quitting.

“As companies get smarter in managing their businesses and people, I think you’ll see less of that," he says.

Work Trends Facts:

• Burnout is a big risk in the workplace, especially amongst younger Gen Z professionals aged in their 20s, research shows. A survey of 30,000 workers by Microsoft showed 54% of Gen Z workers are considering quitting their job.
• In its 2021 Global Risks Report, the World Economic Forum ranks “youth disillusionment” as eighth of 10 immediate risks. Findings include deteriorating mental health since the start of the pandemic, leaving 80% of young people worldwide vulnerable to depression, anxiety, and disappointment.
• Workforce data from organizations including McKinsey & Company suggests 40% of the global workforce are looking to quit their jobs in the next three to six months.

Source: World Economic Forum website

Following a barrage of pandemic lockdowns and closures, restaurants in Canada are still not out of the woods, despite the fact mask mandates have long since been lifted and life has seemingly returned to ‘normal’.

According to a recent report from Restaurants Canada, over the past year restaurant closures have outpaced openings by 43% and inflation-adjusted food service sales will be around 11% below 2019 levels by the end of this year. The report also indicates traffic in full-service outlets is down nine per cent, and approximately down five per cent for quick service ones. However, according to the report sales could still surpass the $100 billion mark, which is encouraging.

But getting to that level could be difficult say restaurant owners, taking into consideration ongoing labour shortages and supply chain issues.

“If I were to sum up state of the industry in one word, it would be ‘tired’, especially for independently owned and operated restaurants like my location,” says David Kroeker, owner of Zoup! on Hespeler Road in Cambridge. “It’s been a struggle and it’s kind of come in waves as well.”

Matt Rolleman, co-owner of Thirteen at the corner of Water and Main streets in Galt, agrees and wonders what the impact COVID-19 will have in the next few months, especially for the Christmas bookings he already has in place.

“In the back of my mind and for a lot of business owners in general is we’re hoping there won’t be another wave like before,” says Matt, noting he’s optimistic vaccines and boosters will lessen the severity of any potential impact. “But it might be a wave of staffing issues with staff getting sick with COVID. I think we’re still in this really precarious situation and are worried about COVID-19, even though people are treating things like it’s all back to normal.”

Staffing levels an issue

When it comes to current staffing levels, restaurants nationwide are finding that retaining staff continues to be a major hurdle. Restaurants Canada estimates the sector has had between 150,000 and 170,000 vacant positions for some time and currently employs 271,000 fewer people prior to when the pandemic hit in 2019. This has resulted in many restaurants to alter the way they operate, perhaps opening fewer days a week or closing earlier.

“Staffing retention is a huge thing right now that all businesses, and especially restaurants, have to look at,” says Matt. “But restaurants are pretty much drawing from a very similar pool of people and there’s all these restaurants vying for the limited staff that’s available.”

David agrees and says even the recent minimum wage hike to $15.50 won’t really help the situation.

“At the end of the day we’re not helping our employees because everyone is jacking up their prices and everything is costing more,” he says. “It’s a vicious circle.”

Supply chain problems

Like most restaurant operators, David says supply chain issues also remain a big concern. As prices on the menu increase with inflation, the number of food choices has decreased in some restaurants resulting in them offering only a few dishes on any given day to provide more predictability for the back-of-house staff.

“The supply chain has essentially fallen apart in my opinion,” says David. “I spend at least five to 10 hours a week just looking for alternative products so we can keep a full menu.”

He says customers service has remained his No. 1 priority and says it can be difficult having to explain to patrons about the challenges he faces if something they order is not available.

“I’m so grateful for our client base because 99% of our customers are absolutely fantastic and they get it,” says David, adding the solution needs to come from all levels of government, especially when it comes to custom issues at the border.

“At our distribution centre there is so much backlog right now they have to make reservations for trucks to show up to receive goods,” he says, noting the Bank of Canada’s decision to increase the prime lending rate to combat rising inflation and the Province of Ontario’s minimum wage increase are working against businesses.

“It’s different levels of government not working together, and they are actually impacting the long-term situation in Ontario,” says David.

Impacted by loans

Like many restaurant operators, both he and Matt utilized the Canada Emergency Business Account during COVID-19 and while that may have assisted during the cycle of lockdowns and re-openings, they worry about the overall financial impact.

“We took on some stuff that we never would have done before,” says Matt, adding business was ‘rolling’ before the pandemic. “I had never planned on taking those extra loans. There’s a lot of businesses that have taken on loans so hopefully when winter hits we don’t see a big recession because it’s going to be hard on a lot of businesses.”

He says having Main Street closed to traffic during the summer was great for his outdoor patio and is optimistic that come next year people will continue to look at staying closer home due to higher costs.

However, Matt expects that people’s dining habits will change.

“Restaurants are a luxury. I’m anticipating that people who dine out once a week may switch to once a month, and those who come once a month might switch to once every two or three months,” he says, adding there is little that restaurant operators can do when it comes to combatting supply chain issues and rising interest rates. “It’s a little daunting for sure.”

•  With files from Troy Media