A majority of Canadian companies, 89%, expect to face hiring challenges this year, according to a report by Express Employment Professionals.

Top challenges Canadian companies expect to face include difficulty in finding qualified candidates, cited by 45% of respondents. In addition, 25% expect increased job market competition, while 24% anticipate uncompetitive pay as a challenge and 21% expect uncompetitive benefits.

Skills mismatch is also a major challenge to companies, according to the report. More than one-third of companies said they have open positions that they cannot fill. The main reason is a lack of qualified applicants — more specifically, a lack of applicants with the required hard skills (45%), relevant experience (36%) and soft skills (26%). Meanwhile, 56% of job seekers agree that one of the biggest challenges they face is finding job opportunities that match their qualifications.

“The optimism hiring managers feel heading into 2024 is encouraging, but the expected challenges can be daunting,” Bill Stoller, CEO of Express Employment International, said in a press statement.

“The key to solving most of these issues is for job seekers to gain skills for in-demand positions,” Stoller said. “With so many training resources readily available, this is the year for job seekers to invest in their future, which will ultimately create a more well-rounded workforce.”

The report also found that Canadian companies are facing increasing salary demands from their existing staff; 41% of employed job seekers asked for a pay raise in the past year, and 55% of companies said their employees have requested a raise in the past year because of the increase in the cost of living. In response, businesses are planning to raise wages; 72% of companies reported increasing wages this year. 

In addition, Canadian hiring managers are concerned about the effect of job-posting scams on talent acquisition. While 45% are concerned about their company name being illegitimately used for a job post scam, 41% fear candidates will avoid applying to legitimate postings because they mistake it for a scam.

The survey was conducted by The Harris Poll on behalf of Express Employment Professionals between Oct. 31 and Nov. 10, 2023, among 504 Canadian hiring decision makers.