How many plan to boost staffing levels?
The latest Zoho Canada Business Outlook Report by Zoho Corporation reveals a decline in business optimism among Canadian business leaders due to ongoing economic challenges.
Compared to 74.1% in the previous Q4 2023, the report shows 61.2% of respondents expressed optimism about the rest of 2024. It also shows that one in three business leaders view the economy as their biggest challenge, with more than half reporting a decrease in customer spending.
Conducted in April, the study surveyed 1,000 Canadian business leaders, from C-level executives to managers, to look into business performance, staffing trends, economic impacts, and technology usage.
Economic challenges are significant, with 32.9% of companies citing the economy as their biggest issue. Cash flow issues and funding concerns were also noted by 19.7% and 14.0% of respondents, respectively. Of the respondents noting decreased customer spending to be a main business challenge, Ontario noted a higher decrease (53.5%) than Quebec (41.2%).
“Economic uncertainties are forcing Canadian businesses to be cautious and adapt,” said Chandrashekar LSP, managing director of Zoho Canada. “But even as businesses work to manage external challenges, they remain somewhat optimistic about growth and enhanced customer experiences.”
Staffing levels to hold steady
The report reveals that 63.1% of respondents anticipate growth of 1% to 20%, down from 74.1% in Q4 2023. Staffing levels are expected to hold steady, with 57.2% of companies planning to maintain their current workforce, compared to 64% in the previous quarter.
And further 34.5% are intending to hire more staff, while 8.3% are planning layoffs.
Concerns about AI replacing jobs are moderate, with 22.7% somewhat concerned and 18.3% not concerned at all. While AI is not considered the most critical technology by almost half of respondents, the adoption of AI has been attributed to productivity gains (49.2%), competitiveness (16.1%), and cost reduction (10.4%).
Additionally, 51.9% of respondents report decreased customer spending, while technological priorities include cybersecurity (24%), collaboration tools (21.1%), and CRM (20.9%).
Notably, 52.1% of respondents indicate a lack of employee wellness programs in their workplaces, finds Zoho.
