Although most of Canada’s C-suite is well aware of escalating labour shortage implications, many are still struggling with knowing even where to start in managing the issues amidst a number of misconceptions and myths, according to a study by Deloitte & Touche LLP.

The impact of the labour shortage is real, both immediate and longer-term. In Canada, 83% of medium-to-large companies are already experiencing shortage of skilled labour, more than 60% expect the problem to become more pronounced in the future (according to recent Deloitte study).

Three common market misconceptions include:

-The impending labour shortage will have a huge impact on everyone. But the reality is that different industries and job sectors will be affected in very different ways. For example, the financial services and information tech sectors will be hit less than the public, manufacturing and construction sectors.

– The greatest challenge will be finding highly educated professionals. The reality here is that there will also be a chronic shortage in blue-collar and skilled trades.

– The only way to deal with the labour shortage is to fight aggressively for talent when the time comes. The reality is that the key to success is cultivating talent now.

So how can this impending shortage be dealt with most effectively? There is no “one-size-fits-all” solution but Deloitte points to the following six issues every CEO needs to address:

1. Workforce value: Which segments of the workforce create value for which the organization is most rewarded? What measures are in place to protect those segments?

2. Impact of retirement: Which areas of the business will be most impacted by impending waves of retirement? What is the organization doing to prepare successors? What is the impact of retirement on skills and productivity necessary to meet future demand?

3. Demand for talent: In what areas is the talent issue heating up most? Where is pressure for demand outpacing supply the most? Which segments of the organization’s workforce will be impacted and what are potential implications?

4. Skills gap: What skills will the organization need over the next five years not already possessed? How can this capacity be created? Consequences if they are not?

5. Turnover: What is the turnover within critical areas? What is the cost to the organization in customers, productivity, innovation and quality? What actions can be taken to resolve the root of the cause?

6. Understand and communicate financial consequences: Is the organization actively developing talent portfolios or workforce plans to help understand and communicate the financial consequences of talent decisions (both internally and to external stakeholders)?