This text is part of the special section Professions and careers
More than a third of hiring managers report an increase in the number of candidates demanding to negotiate their compensation, according to the firm Robert Half.
Interest rate increases are starting to slow down the Quebec economy. The unemployment rate is slowly increasing, but not enough for us to stop talking about labor scarcity. The challenge therefore remains significant for employers.
From TVA which cuts more than 500 positions to Rona and Eidos Montreal which eliminate 180 and 97 respectively, we have been witnessing a wave of layoffs in recent months. Announcements which had become rarer since 2020. Their number has almost doubled in 2023 compared to the previous year. The quantity of vacant positions has fallen by 30% in one year, according to the Institute of Statistics of Quebec (ISQ).
Unsurprisingly, the unemployment rate in Quebec therefore increased, going from 4.3% to 4.5% between 2022 and 2023, again according to the ISQ. For the last three months of 2023, it amounted to 5% on average. However, the regions experience very different realities.
In fact, the unemployment rate exceeded 6% in Montreal and 7.5% in Gaspésie–Îles-de-la-Madeleine in 2023, but remained less than 3% in several regions, including the Capitale-Nationale, the Center- du-Québec and Chaudière-Appalaches. In several corners of Quebec, the job market therefore remains under strong tension.
“Despite the economic slowdown and a rise in the unemployment rate, demand remains robust on the labor market in several sectors of activity, such as accounting and finance, and several employers are still struggling to recruit qualified personnel,” says Michael O’Leary, regional vice president of recruitment agency Robert Half.
How much does it pay?
Salary remains a strong argument for hiring and retaining staff, particularly given the constant rise in the cost of living over the past three years. In its most recent labor market outlook report, Robert Half reveals that more than a third of hiring managers report an increase in the number of candidates demanding to negotiate their compensation. A similar proportion of existing workers say they will look for a new job if they do not get a pay increase.
Nearly four in ten job seekers say their biggest frustration is being offered a compensation package they find disappointing. Aware of this dynamic, no less than four in ten employers plan to increase their starting salaries in 2024 and a similar proportion plan to add new fringe and fringe benefits.
“Among these benefits, we find, for example, retirement savings plans, employee assistance programs (EAP), paid leave or the possibility of saving part of one’s salary to take paid leave later,” quotes Michael O’Leary. Since 2019, the proportion of employers surveyed by Robert Half that offer retirement plans has increased by 26% and that of those offering an EAP, by 57%.
Employers would also benefit from understanding what their teams really want, in order to avoid offering unpopular benefits. In Robert Half’s report on the outlook for the job market, we note that only one worker in ten wants life insurance or disability insurance, even though it is offered by more than seven employers in ten. Unpaid sabbaticals, matching gift programs, volunteer time off, and subsidized meals are also not widely expected, although they are widely offered.
Flexibility continues to appeal
Transparency is also essential. Nearly two-thirds of applicants would withdraw their application if an employer refused to provide salary information. As a result, 80% of managers surveyed by Robert Half now include salary ranges in the job postings they post, whether to attract the best candidates or to save time in the hiring process.
“Salary matters a lot, but workers place a high value on flexible hours and the ability to telecommute where possible,” adds Michael O’Leary.
According to the Robert Half report, three in four employees outright cite flexible schedules as the top benefit they seek in a job, and nearly half say a hybrid schedule is the ideal work structure. According to another study by the same firm, six in ten workers would prefer to stay in a job with flexible work options, rather than accept a position with higher pay but requiring more office work.
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