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New Survey: 40% of Canadian Companies Say They Won’t Survive if Inflation Remains High

Forty percent of Canadian companies say they won’t be able to survive much longer if inflation remains high, according to a new survey from The Harris Poll commissioned by Express Employment Professionals.

Cost of hiring increases with inflation

The increased cost of hiring is one of the major impacts of inflation on companies according to Vancouver, B.C., Express franchise owner Brent Pollington.

“What we are seeing in the market right now is candidates, including those who are unskilled, asking for higher entry rates,” said Pollington. “Clients have had to increase base pay to combat inflation. But with inflation so high right now, some of those wage increases haven’t made up for the rising costs of living.”

Cambridge, ON, Express franchise owner Bradley Jenkins agrees and says that high inflation has created an even greater desire for employees to work from home or as close to home as possible.

“With the cost of gas so high and the cost of services like daycare and preschool increasing, companies that are able to provide the ability to work from home or that have flexible work hours have a significant advantage when it comes to hiring top talent,” said Jenkins. “Unfortunately, sectors that were hardest hit by pandemic lockdowns, such as restaurant and hospitality, continue to have the hardest time hiring because they are not easily able to provide the perks and flexibility job seekers want.”

Employers need to step up

Jenkins’ advice to employers, including smaller businesses that may not be able to compete with larger companies when it comes to wage increases, is to figure out what their employees value.

“Not every employee wants the same perk or benefit, so it is very important to sit down and speak with each one of your employees individually,” recommends Jenkins. “One employee may want to change their hours so they can make it to school drop-off or pick-up, one might want the ability to work from home, and another might want more vacation time. Wages, while important, aren’t the only way to make a company stand out_making employees feel heard, valued and appreciated is always a good retention strategy.”

High inflation is here to stay

Both Pollington and Jenkins say that high inflation is not going away soon.

“I don’t think the full effects have been felt enough yet for businesses to understand all of the impacts,” said Pollington. “As with the COVID-19 pandemic, companies that adapt and innovate are the ones that will survive and thrive.”

“The next several months are critical for business owners waiting for market conditions to somewhat stabilize,” said Express Employment International CEO Bill Stoller.

“From labour and supply shortages to high gas prices and soaring inflation, Canadian business owners are understandably frustrated right now,” he added. “Without some relief, I fear the impact of current conditions could affect the economy for years to come.”