Hospitality businesses across Nova Scotia are facing unprecedented staff shortages.
Across the province, restaurants, cafes, hotels, and bars are chronically understaffed, and few can find enough people to fill the gaps.
Statistics Canada has said there are 14,000 fewer people in Nova Scotia’s tourism-industry labour force than there were two years ago.
Now, ever-more-desperate businesses are being forced to get creative to lure in potential hires.
This week, one Nova Scotia café became so frustrated with the situation it started offering a $500 signing bonus to entice new staff.
In an ad posted this week, The Barn Coffee and Social House says it will give the bonus cash to anyone hired by September 15 who sticks around until the end of a trial period.
Mike Bishop co-owns the Barn, along with his partner Amelia. He says he’s never seen a worker shortage this bad in the industry.
The Barn prides itself on being a good place to work. Mike and Amelia try to be patient with staff dealing with personal issues and not treat their employees as a simple means to an end.
“We’ve always tried to be a place where it was okay to not feel like you’re having the greatest day… and have people around you understand that. We try to not just have it be about like, this is your job, so do it,” Bishop says.
Because of that, Bishop says he usually has a steady stream of resumes from people eager for a position, even when he’s not actively hiring.
Things couldn’t be more different now.
“It’s just a totally different atmosphere and environment. It’s like crickets,” Bishop says.
Half Of Their Staff Have Left
The Barn has locations in Mahone Bay and Lunenburg. Normally, the Bishops need about 20 staff to keep things running.
Not long ago, they realized they would lose about half of their employees when the school year started.
They began trying to hire in July but had little success. As the fall school year drew nearer, they realized they needed to “take pretty significant action to try to fill those spots.”
The $500 signing bonus was their way of doing that.
“This was a way to kind of set ourselves apart, to send a message that we are willing to do more, or whatever it takes, to show people that we are a great place to work—that we go above and beyond,” Bishop says.
The plan worked.
The Barn’s offer quickly made the rounds on social media and Bishop says resumes began pouring in. They are now in the middle of interviews to find their new staff.
Why not just pay more?
One argument often levelled at businesses complaining about staffing shortages is that they should simply pay their employees more. Raise pay to match a living wage, and a business would have no trouble attracting good people.
Bishop understands the argument but says it can still frustrate him.
The Barn pays minimum wage to some employees, such as new hires or people without much experience. However, Bishop says more experienced staff get paid “pretty darn good.”
“It’s more than what I’ve seen thrown out for living wages: more than 15 (dollars and hour), more than 17,” he says.
Bishop guesses that with the tips that come in at The Barn, “there’s pretty much nobody here … that doesn’t get $20 an hour.”
Bishop argues it’s not as easy for small businesses to raise wages as people might assume.
He says the first couple of years he and Amelia ran The Barn they took home less than minimum wage, and that they’re by no means making bank now.
“Some people think business, even a successful business, owners are getting rich. And that’s just not the case,” he says.
He argues that if they raise wages “it has to come from somewhere.” First, it will be out of owners’ pockets, “and if we can’t afford that we have to raise prices,” he says.
Minimum wage might not be enough
Bishop says he sees the pressure he and other hospitality industry businesses are under to make their jobs more attractive.
Recently, Restaurant Association of Nova Scotia’s Gordon Stewart told Huddle labour shortages in the industry would force businesses to up the ante in their search for workers.
Along with perks like better benefits and training opportunities, Stewart said there’s “no question” pay in the industry will go up.
“No question about it, it’s going to push wages up,” he says. “I don’t even think minimum wage is an issue anymore.”
Bishop says he’s already feeling that pressure.
“There certainly is pressure for businesses right now,” he says. “What employers are going to have to offer to get more employees is going to have to go up.”
Trevor Nichols is a reporter with HuddleToday.ca. Huddle Today Limited and Acadia Broadcasting Limited are each part of the Ocean Capital Group
