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A growing number of Canadian companies are opting to teach existing employees new skills rather than make new hires, according to a recent survey by job staffing company Express Employment Professionals.

More than half (52 per cent) of the companies surveyed said they planned to “re-skill” employees this year, up from 43 per cent in 2021, according to the Aug. 28 report.

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The companies have open positions to fill, but instead of acquiring the needed skills by adding to their headcount, they are training existing employees for new positions or teaching them new skills to add to their current role.

The report said 41 per cent of companies had no plans to increase their workforce this year, and eight per cent said they planned to reduce it.

The survey cited budget constraints as the leading reason for the lack of hiring, apparently hindering growth for many businesses. Of the companies planning to reduce their workforce, 73 per cent said they were doing so in order to lower their operating costs.

“Reskilling current employees may be the key to balancing the desire to strengthen workforces and fill skills gaps while keeping costs in line,” the report said.

Sixty-seven per cent of companies opting to “re-skill” employees plan to offer company-led training sessions, either during or outside work hours.

Other approaches to expanding people’s skills include: providing on-the-job training by fellow employees (61 per cent), using third-party training or courses (38 per cent), and covering the cost of their employees’ education to earn additional degrees or certifications (30 per cent). Ten per cent say they plan to use artificial intelligence (AI) to help train employees.

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The survey was conducted online by The Harris Poll, on behalf of Express Employment Professionals, between May 16 and June 3, and involved 504 Canadian hiring decision-makers.

Brent Pollington, one of Express Employment’s franchise owners in Vancouver, said the rising costs of doing business is weighing heavily on companies.

Higher costs include payroll, whether in the form of wages or increased mandates for statutory holidays, sick time or benefits, and the rising cost of training, development and onboarding, Pollington said.

“These costs have made companies scrutinize more during the interview process, ensuring that if they’re going to make the investment, it’s with the right person,” he said.

He added that one of the main reasons more companies are “re-skilling” employees is that they can’t find applicants with the abilities required for open positions.

While “there’s definitely demand” and some businesses are hiring every day, Pollington said the market is full of people applying to jobs without the necessary skills or qualifications.

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With traditional job roles rapidly evolving or disappearing altogether, the workforce is at a crossroads, where “re-skilling” and upskilling employees now could create the necessary talent of the future, said Bill Stoller, chief executive of Express Employment International.

“As we’ve seen over the past several years, there is no quick fix for the skills gap,” Stoller said. “However, companies investing in their greatest assets — people — will see the most success in recruiting, retention and their bottom line.”

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