It’s no secret that Canada’s labour market has undergone a transformation over the past 2 years. 

The impact of COVID-19 has caused a lot of people to re-evaluate not only their work but also their place within the workplace.  

This is reflected in Statistic Canada’s and Ontario Nonprofit Network’s latest reports: the August Labour Force Survey Report and The State of the Sector During Uncertain Times Report respectively, where many intriguing and shocking findings were outlined. 

From early retirements to increased job switching, here are the: 

  1. Major findings from each report.
  2. What it means for Canadian nonprofits. 
  3. Methods to attract and retain talent.

Statistic Canada’s notable findings 

#1 – Employment falling for the young and old 

  • In August 2022, employment fell across workers aged 15-24 and older workers aged 55-64. 

#2 – The Great Resignation continues 

  • In August, 11.9% of permanent employees, or 1 in 10 Canadian workers, were planning on leaving their role over the next year. This is up 5.5% from January 2022*. 

#3 – Unprecedented retirement increasing 

  • The number of Canadians retiring in August 2022 is staggeringly high at 307,000, especially when compared to August 2021 (233,000) and August 2019 (273,000)*. 

#4 – Challenges to fill vacant roles 

  • In June 2022, there were fewer unemployed Canadians (989,000) than vacant roles (1,038,000)*. This is a first since 2015 when the Job Vacancy Wage Survey data became available. 

*not seasonally adjusted 

The Ontario Nonprofit Network’s major findings 

#1 – Continued Demand for Services and Not Enough Funding 

  • In 2022, nearly 3 in 4 Ontario Nonprofits (74%) reported more demand for services. However, financial strain from inadequate government funding, inflation, and higher operational costs has caused 1 in 3 organizations to project that continuing operations for over 1 year is unlikely. This is especially prevalent among smaller and volunteer-run nonprofits. 

#2 – Alarming Nonprofit Staff HR Crisis 

  • Staff burnout, workplace stress, and skill shortages are why 2 out of 3 nonprofits report to be experiencing talent attraction and retention challenges. Because of this, 86% of respondents say they have had to reduce or cancel programs.  

#3 – A Concerning Volunteer Crisis 

  • 62% of organizations report having lost volunteers in some regard, 50% reported challenges recruiting volunteers, and 40% have found it difficult to persuade past volunteers to return. 

What this means for the nonprofit sector 

The most pressing concern for Canadian nonprofits based on these reports is that now, more than ever, there is more demand for services, and not enough workers, either staff or volunteers, and/or funding able to provide adequate support for Canadian communities. 

How nonprofit employers can manage these HR concerns 

While the HR crisis has sector-wide impacts, there are several ways nonprofits can try to address these issues, especially since the typical “increase wages” rhetoric may not be possible for many organizations, nor is it always the number one thing job seekers are looking for in a new opportunity. 

  1. Create open communication with employees regarding retirement. Employees will not stay at your organization forever and, at some point, some will retire. So, foster a workplace where discussions about retirement and succession planning can be ongoing and honest. This will allow for a smooth role transition and decrease burnout among staff who might unexpectedly take on the retiree’s duties. 
  2. Attract and retain employees through non-monetary means. Because nonprofits are strained for funding now more than ever, ask your employees what non-monetary arrangements would be attractive to them, then decide on what might be mutually beneficial or possible to provide. For example: 
    • Flexible hours 
    • Work-from-home opportunities 
    • Career growth 
    • Work-life balance 
    • Value on employee’s mental health
  3. Re-evaluate your job descriptions to see if you are unintentionally excluding talent. For example, if your posting says the role has a requirement of a post-secondary degree or access to a car, ask yourself, does the role really need that?
  4. Encourage internal promotions and role changes. For employees who might want a role change, see if internal job transfers or promotions are possible. 
  5. Prioritize employees’ physical and mental safety. Encourage work-life balance, show empathy, keep workloads manageable, follow health and safety guidelines, and listen to the needs of your workers. 

Final thoughts 

So, “is the nonprofit sector in an HR crisis”?  

Yes. 

This is the time for nonprofit employers to take note and become proactive, not reactive. 

Be aware of your employee’s needs and find the tools and means to support them. They are one of your biggest assets when it comes to continuing your organization’s work.