40% of Canadian companies doubt future with high inflation: Survey

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A new survey does not bode well for Canadian companies in a time of high inflation.

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The Harris Poll commissioned by Express Employment Professionals says 40% of Canadian companies say they will not survive for much longer if inflation continues to skyrocket.

The survey found about 91% have been impacted in some way by inflation’s rapid rise with 56% saying it had a major to moderate impact.

Among those impacts are price hikes (44%), absorbing additional costs (37%), cutting down on transportation costs (17%), the adoption of new technology for the automation of tasks / processes (16%), outsourcing some work ( 14%) and turning down work altogether (12%).

The poll also found that 84% say inflation will have long-term effects including an increase in prices of goods / services (46%), wage hikes ((38%), tax increases (33%), higher interest rates (28%) ) and drops in sales or revenue (24%).

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“What we are seeing in the market right now are candidates, including those who are unskilled, asking for higher entry rates,” Vancouver Express franchise owner Brent Pollington said in a statement.

“Clients have had to increase base pay to combat inflation. But with inflation so high right now, some of those wage increases have not made up for the rising costs of living. ”

Cambridge, Ont., Express franchise owner Bradley Jenkins says high inflation has led to an even greater demand by employees to work from home or as close as possible.

“With the cost of gas so high and the cost of services like daycare and preschool increasing, companies that are able to provide the ability to work from home or that have flexible working hours have a significant advantage when it comes to hiring top talent,” said Jenkins in a statement.

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Pollington and Jenkins say that high inflation is not going away soon.

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“As with the COVID-19 pandemic, companies that adapt and innovate are the ones that will survive and thrive,” Pollington said in a statement.

Added Express Employment International CEO Bill Stoller in a statement: “From labor and supply shortages to high gas prices and soaring inflation, Canadian business owners are understandably frustrated right now. Without some relief, I fear the impact of current conditions could affect the economy for years to come. ”

The survey was conducted online between May 3-23 among 504 Canadian hiring decision-makers aged 18 or older who are employed full-time or self-employed, work at companies with more than one employee and have significant involvement in their company hiring decisions.

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