Canadian employers lack the financial flexibility to hire the right talent, according to a recent poll by global recruitment agency Robert Walters Inc.

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Employers report hiring 'underqualified' staff due to cuts in recruitment budgets Back to video

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The survey found that 71 per cent of employers have hired “underqualified” talent due to cost-cutting measures in their recruitment budgets. The employees lack the full set of ideal qualifications, skills or experience required for a job.

“These findings highlight a concerning trend where budget constraints are directly impacting the quality of talent that companies can hire,” said Martin Fox, managing director of Robert Walters Canada.

Poll results showed that nearly half or 48 per cent of respondents consider budget constraints as the primary obstacle to hiring the necessary skills and talent for growth, while 37 per cent pointed to a lack of qualified candidates, and 12 per cent cited competition from other companies.

The report, which surveyed surveyed 3,000 Canadian professionals during the month of July, suggested operating budget shortfalls create a challenging economic environment, which then affects business investments. This has led to reduced recruitment budgets, limiting companies’ ability to offer competitive salaries.

Nationally, salary growth has slowed, with planned increases of only 3.5 to 4 per cent in 2024, down from 4.1 per cent in 2023.

The poll also found that 81 per cent of employers need to hire better qualified candidates to relieve burnout for current employees. Those employers have noticed an increase in employee stress levels due to the additional workload created by hiring underqualified candidates, it said.

This is echoed by 73 per cent of employees who report an increase in their workload due to less experienced new hires. As a result, 46 per cent of employees feel their workload is only somewhat manageable, while nearly a quarter or 23 per cent feel they have too much work at one time.

Fox said that allocating budget towards hiring well-qualified talent from the outset could be a more strategic investment, potentially saving time and improving overall performance rather than investing in training underqualified hires, which 37 per cent of employers said they were willing to do.

Not only is training underqualified hires not the most efficient use of resources, but it also affects the overall performance and growth potential of the business.

“It’s crucial for employers to reassess their hiring budgets and strategies to ensure they can attract and retain the right talent,” said Fox.

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