Canada’s economic growth may be looking slow according to the latest numbers from the Bank of Canada—bringing with it the expectation that job growth will also be modest for the remainder of the year—but those already in the workforce should be able to rest easy, according to a survey by Right Management.
The survey of more than 1,000 companies found that the majority of Canadian employers anticipate there will be no layoffs at their organization for the rest of 2012.
Of those surveyed, 82% indicated that there would be “no layoffs at all” in the next six months, and 11% predicted layoffs at a normal level, which means selectively.
Just 8% of respondents said they expect significantly more staff cutbacks.
Globally, the trend also looks positive, with a global average of 78% of respondents saying they anticipate no layoffs at all for the rest of the year.
The study on layoff trends was conducted as part of the Manpower Employment Outlook Survey.
Owen Sullivan, CEO with Right Management and president of ManpowerGroup Specialty Brands, says that the decline could be a reflection of recent moves many employers have taken to reduce headcount to what they believe is the appropriate level. As well, companies are continuously assessing their headcount requirements, resulting in less layoffs down the line.
This is good news not only for managing staffing levels, but also for employee engagement, as layoffs and restructuring efforts can lead to a loss of trust and disengagement among the remaining staff members.
Read: How to help employees during a layoff
To avoid cycling through periods of hiring and layoffs, and to maintain their competitive advantage, Sullivan recommends that organizations strategically manage their talent and recruitment efforts—especially in a volatile economic climate.
“They have to develop flexible talent sources, work models and people practices to ensure they’ll have in place what is needed to optimize their business and reach their goals,” he said.
“The pressure to drive productivity within volatile market conditions continues to intensify. Companies that cannot quickly tap the right talent to execute their strategy will inevitably lose their competitive edge.”