COVID-19 kicked off a workplace cultural shift, making it hard to fill positions, says employers

Economist Tony Fang says one solution to the labour shortage is to hire immigrants, who are highly motivated and reliable. (Submitted by Tony Fang)

The COVID-19 pandemic has shaken up how people work — including by requiring people to work from home, exacerbating labour shortages, and leaving some people seeking a better work-life balance — says a new report.

Memorial University economist Tony Fang has researched the changes the pandemic has had on businesses across Atlantic Canada and has released a paper detailing his findings.

"During this pandemic but also the aftermath of the global pandemic, we asked tough questions; how we as a community — especially the business sector, and also the government, the policy makers — responded to this unprecedented crisis," Fang told CBC News.

"How businesses actually changed their operations, workplace practices. And also how to prepare for [the] future in case such events would occur again."

Some businesses have suffered — with some closing down — while others prospered, Fang noted. Some businesses introduced artificial intelligence and automation technology to streamline practices and reduce costs, he said, which meant high upfront costs without knowing if the investment would pay off.

His research found labour shortages were deepest felt in skilled and general trade positions. He also determined that in the face of labour shortages, employers increased wages and adjusted hours and scheduling, as well as hired people who weren't qualified for jobs.

Fang said his team surveyed 800 organizations across Atlantic Canada about their experiences and conducted in-depth interviews with managers, owners and CEOs. In 2022 his team also did site visits where participants were asked to reflect on their experiences.

Employers weigh in on shift

Rhonda Tulk-Lane, Atlantic Chamber of Commerce CEO, said when she talks to the organization's members, she hears concerns about finding the right people for jobs that employers need to be filled.

"The biggest thing we're hearing is: talent. And the mismatch, I would say," said Tulk-Lane.

She hears lots of people are looking for work and then there are businesses trying to find that work. "And finding that right balance has been challenging," said Tulk-Lane.

Rhonda Tulk-Lane, Atlantic Chamber of Commerce CEO, says she's hearing from members who are unable to find employees with the skills needed to fill positions. (CBC)

Ivy Hanley, owner and operator Urban Market 1919, said they struggle to fill spots now more than they did at the height of the pandemic.

There has also been a cultural shift when it comes to the employer-employee relationship, Hanley said. A lot of people are applying to work part time so they have time for their hobbies — and they dictate the hours they want to work.

She said that's different from when she was younger, when the attitude was, "'Please take me, I want to work.'", Today, Hanley said during interviews they are trying to sell themselves to the potential employee.

She said she's proud to offer more than the minimum wage, plus a health plan, adding that some employees have cellphones covered.

"But it has been difficult," said Hanley.

Tulk-Lane has also seen how work culture has changed. She said her mother has worked at the same business for decades but younger workers are more interested in their own pursuits rather than dedicating their life to an organization.

"So I've noticed that big shift."

Ivy Hanley says she started her family business Urban Market 1919 during the pandemic and now has 15 to 20 employees. (CBC)

Sean Stack, an executive of the Business Association Newfoundland and Labrador, said different members of his organization have had different experiences during the pandemic.

"Some people now are talking of the struggle of; they were never busier than they'd been in 2021 and 2022, with how frothy certain retail environments were," said Stack.

"And now they're struggling a little bit with the idea, how do they staff appropriately as things come back to pre-pandemic levels, and buying the right amount of inventory and supplies and things."

Stack said it's an adjustment business owners are starting to face.

Going forward

Fang said government policies are needed to address ongoing problems, including the pressure people and businesses are under due to the high costs of living.

"Our solution here is that we need appropriate investment in our critical sectors. We need to put investments into future skills to support productivity growth to contain inflation. And we need change in organizational culture," said Fang.

Immigration is an "innovative solution," he said, and his research found the vast majority of employers are willing to hire immigrants but are hindered by roadblocks like paperwork or a lack of awareness of available programs.

Other policy options from his research include helping businesses determine whether it's valuable to adopt automation and other technologies for "hard-to-get low-skilled labour" while still ensuring good wages for employees.

His research also suggests businesses should be incentivized to offer better access to mental health support for staff.

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