Nine in 10 small and medium-sized businesses looking at major digital transformation initiatives such as modernizing tools, migrating to cloud-based platforms, or using AI
While Canadian organisations have their eyes set on digital transformation, many are struggling to find the talent they need to make that happen, according to a recent report.
Overall, 90% of small- and medium-sized businesses (SMBs) are looking to participate in a major digital transformation initiative such as modernising tools, migrating to cloud-based platforms, or using AI in the next two years.
Their biggest related priority is finding the right talent to execute these plans (37%).
However, 88% say it is challenging for them to find the skilled professionals they need to implement their strategies, finds a Robert Half survey.
Between now and the end of 2026, SMB leaders are most concerned about:
- retaining top talent (82%)
- finding talent quickly when it’s needed (75%)
- hiring skilled candidates (74%).
According to the Royal Bank of Canada (RBC), while unemployment has risen over the past three years, the country is on the verge of experiencing the most significant reduction in labour supply in decades as the final wave of boomers exits the workforce.
Hiring mistakes costly for employers
The hiring process itself is becoming more complex, according to Robert Half’s survey of 785 SMB hiring managers.
Nearly six in 10 say evaluating candidates’ applications and determining who to interview is the biggest challenge they face, and more than half of them say this step now takes longer than it did two years ago.
These challenges have led to costly mistakes. Over one in five (21%) SMB managers say they’ve made a bad hire in the last two years, primarily driven by failing to properly assess technical skills and qualifications (54%).
These bad hires have resulted in 14 weeks of wasted productivity on average for smaller employers.
The financial and cultural toll of rushed recruitment is far greater than many leaders care to admit, according to two experts from the University of Toronto.
Predictive analytics for recruitment
One thing that can help employers in the hiring process is predictive analytics, according to an article from Oracle.
“You can make highly educated guesses for who will be the best for any particular role. But predictive analytics puts data behind those decisions and helps you make even more informed estimates,” says Marc Holliday, senior product marketing manager for the Oracle NetSuite Global Business Unit.
Predictive analytics uses historic and current data to make predictions about the future, he says.
“In HR, predictive analytics takes data from your HRMS, résumés, job descriptions and other areas to predict outcomes about applicants. Some of the areas it might track would include the cultural fit, their likelihood to remain with the company, their ability to learn new skills and their ability to become and stay engaged.”
But the recruitment process relies on more than just advanced technology, he says.
Holliday advises employers: “Treat your recruitment like you might a marketing campaign. Consider breaking down your recruitment funnel or pipeline into awareness, interest, decision and action stages. Understand that just because someone isn’t the right fit for a particular role right now, that doesn’t mean she won’t be a valuable addition to the team later on. Treat all applicants with respect and build applicant pools.”
