The world of work has changed—and it’s not going back.

The pandemic didn’t create the labour shortage. It simply accelerated trends that were already underway: declining birth rates, delayed immigration, and shifting workplace expectations. What was projected to happen over the next 6–7 years is now our everyday reality.

To attract and retain top talent in today’s competitive market, employers must understand the forces at play—and respond with intention.


The Evolving Talent Pyramid

Traditionally, the labour market functioned like a pyramid: people entered at the base, moved into management, and eventually retired from the top. Today, that pyramid is inverted:

Top (largest group): Retiring Baby Boomers

Middle: Gen X and older Millennials

Base (smallest group): New entrants to the workforce

With lower birth rates, reduced immigration, and a growing number of retirements, there are simply fewer people entering the job market—not just in Canada, but worldwide.

And with the rise of remote work, Canadian workers are now being recruited by global employers. In fact:

Canada has a 5% unemployment rate

The U.S. has a 3.5% unemployment rate

There are 1 million job openings in Canada and 10.5 million in the U.S.

Translation? Canadian talent is in high demand—and American companies are actively targeting it.


Employee Attraction Starts with Flexibility

One of the most impactful shifts has been the rise of remote and hybrid work.

After the world went virtual, 70% of workers returned to on-site roles once restrictions eased. But 237,000 people left industries where work-from-home or flexible shifts weren’t an option.

Today, if you don’t offer remote or hybrid work, you’re reducing your candidate pool by up to 50%.

This doesn’t mean every job can or should be done remotely—but employers must rethink how work is structured, communicated, and supported to stay competitive.


Employee Retention = Employee Engagement

Attracting talent is one thing. Keeping them is another.

Engagement is the single most powerful driver of retention. If you want to know where you stand, start with an employee engagement survey—even a basic one using a tool like SurveyMonkey. Then measure annually to track progress and trends.


What Drives Engagement?

Your approach to leadership matters—especially when managing a multigenerational team. Today’s top leaders are:

Empathetic

Flexible

Trustworthy and transparent

Clear and consistent in their communication

(If you think you’re communicating enough—double it.)

Strong leaders develop, motivate, and support their people. They focus on recognizing strengths rather than rigid job titles.


Gallup Poll Snapshot: How Engaged Are Your People?

According to a Gallup employee engagement poll:

27% are engaged

These are your rockstars

They do ~60% of the work

They’re worth ~$0.90 on the dollar

59% are not engaged

Doing their jobs—but nothing more

Also doing ~60% of the work

Worth ~$0.70 on the dollar

14% are actively disengaged

Disruptive, unmotivated, or even harmful

Only contributing ~20% of the work

Worth ~$0.50 on the dollar

The mistake many employers make?
They write policies aimed at the 14%—and in doing so, alienate the top 27%, causing them to disengage or leave altogether.


Retention Tip: Keep the Door Open

If an engaged employee decides to leave, don’t just offer a counteroffer. Instead:

Acknowledge their value

Let them know the door is open if they experience buyer’s remorse

Keep in touch post-departure—check in, stay supportive

Former employees who return often become some of your most loyal and productive team members.


Why People Join, Stay, and Leave

Employee engagement starts with understanding what truly matters to your team.

Why People Join

Geography

Industry/vocation

Compensation

Perceived value of the role

Why People Stay

Colleagues and company culture

Their boss and leadership team

Strong relationships with clients/customers

Why People Leave

The job isn’t what was promised

Misalignment with the role or job description

Lack of purpose or enjoyment in daily tasks


Final Thought

The future of work is already here. If you want to compete for top talent—attraction and retention must go hand in hand. Focus on culture, communication, and flexibility, and you’ll stand out in a crowded, competitive market.

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