SMEs and Skills in Canada – Difficult for them to assess their skills needs, recruit talent and make plans

The impact of COVID-19 on small and medium-sized enterprises (SMEs) has been significant and severe. SMEs are the backbone of Canada’s economy, yet few have the resources to deal with the skills and labour shortages they face – shortages that the pandemic has only made worse. By combining preliminary data from an ongoing survey of SMEs, associated focus group discussions, and existing research, this report highlights opportunities to better support SMEs in the pandemic recovery and after. This includes a specific focus on embracing diversity and inclusion as a key way of addressing their skills needs.

Key Takeaways

1. The pandemic has hit many SMEs hard, especially SMEs owned and staffed by individuals from equity-seeking groups like Black Canadians and Indigenous Peoples which are experiencing disproportionately negative impacts.
2. SMEs’ limited human resources capacity and expertise make it difficult for them to assess their skills needs, recruit talent in new and more inclusive ways, and make skills development plans for their existing employees.
3. SME skills demands are highest for cognitive skills (such as problem-solving skills) and technical skills (the ability to accomplish complex actions, tasks, and processes related to computational and physical technology). Recruiting candidates with strong enough social skills, which includes skills like collaboration, also presents a challenge.

Source: Supporting Entrepreneurship and SMEs: A Post-Pandemic Skills and Training Agenda – Diversity Institute – Toronto Metropolitan University