According To Experts, Many Canadian Businesses’ Hiring Processes Are “Broken.” What Is The Solution?

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hr tech

As Canada continues to face a statewide labor crisis, some experts claim that the recruiting process in a variety of organizations and industries is “broken.”

They claim that the problem has been there for a long time owing to firms’ reliance on recommendations and that it has been aggravated by workplace changes brought by the COVID-19 epidemic.

According to Nita Chhinzer, a professor of human resources and business consulting at the University of Guelph in Ontario, the problem with some organizations’ current hiring processes is that many small or medium-sized businesses lack a human resources department that is up to date with the current technology or knowledge of where to find labor.

“Without in-house HR experience, firms rely on owners and managers who assume they know employment regulations, employment practices, (employee) selection, and job description,” Chhinzer explained.

She argues that, in actuality, these individuals are good in sales and company development, but instead of depending on an HR professional, they rely on referrals and word of mouth, which she says is the most often utilized recruiting method among small and medium Canadian firms.

“When you rely on referrals, you end up with a tiny applicant pool, and frequently that candidate pool lacks diversity because individuals like to network with others who are like-minded or from similar demographics,” Chinzer explained. “They may also lack the necessary abilities.”

Chhinzer said that some firms’ dependence on recommendations or word of mouth is creating a “barrier” for many job searchers who rely on Indeed, LinkedIn, or neighborhood career centers to find work.

She stated that “it’s a job hunters’ market right now,” referring to the strong demand for filling positions created by the pandemic-induced “great resignation.”

According to the World Economic Forum website, the phrase “great resignation” was coined in May 2021 to describe the unprecedented number of individuals who have left their employment since the outbreak began. Many people believed that their work-life balance was more essential after working from home for a lengthy period of time with no commute.

“Employers must provide more than just pay. Employers must provide workers with the chance to grow as individuals, a healthy work atmosphere, and freedom in how and what job they do if they want to take greater control of their employment relationship, according to Chhinzer.