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Canada Hiring: How to Get it Right

By June 6, 2017March 12th, 2021No Comments
Canada Hiring: How to Get it Right

Though Canada may be a thriving economy with positive leadership and healthy global relationships, businesses in the country still suffer to find and hold on to quality talent. The struggle to find talent is a common theme in many markets across the world, including the United States where labor shortages are a real, detrimental problem. Despite the concern, companies that can conquer Canada hiring and make it work find tremendous success in-market and benefit from the growing business landscape.

International-payroll

If you’re planning to go global and take your business into Canada, follow our tips for Canada hiring to help your team build a successful operation in North America.

Canada Hiring Starts with an Effective Recruiting Plan

To give you an idea of the struggle Canadian companies face, let’s take a look at the tech space. In Silicon Valley, there are more than 350,000 Canadians living and working for startups and global IT powerhouses. Canadian-based companies, like Hootsuite, think this is a big problem. They want their Canadian talent to stay in Canada.

Despite the attraction of tech hot spots in the U.S, there are still a number of talented, skilled workers living and looking for opportunities in Canada. There is also an attraction for foreign nationals looking for global assignments.

To attract top talent for your Canadian operation, follow the trends. According to LinkedIn’s recruiting report, Canadian employers are finding increased success with online professional networks and websites for attracting new talent.

In addition, employers are finding success attracting talent by increasing their brand awareness. Nearly 46% of employers stated that when they contribute to their brand marketing, they see an increase in talent attraction.

During the recruiting process, ensure that your team is measuring success by tracking quality of hire and sources for hire. When your team starts paying attention to Canada hiring data such as employment dates, roles, sources of hire and promotion, you can begin to determine the common traits between top performers, which can help with your recruitment strategy.

Options for Canada Hiring

Once you’re past the hard part — recruiting — you can begin the Canada hiring process. You have a few options for hiring team members overseas. You can opt for the once traditional method of establishing a permanent foreign subsidiary and managing compliance internally. Despite what you may have heard or believe, this isn’t your only option and you should actually avoid creating a foreign subsidiary if possible. It is an expensive, time-consuming process, and can be extremely risky when it comes to taking care of compliance for your new employees.

Here are a few alternative options for hiring talent in Canada.

Independent Contractors

Some companies choose to engage with freelance team members to avoid establishing a legal contract. While this is a popular method of hiring internationally, it also comes with its own set of compliance risks.

When working with contractors in Canada, make sure they’re working autonomously. This means that the person has to have the independence to perform work and is not subordinate to your company’s directives and regulations. Also, there must be no exclusivity in the relationship between both parties.

Partner with Experts

In Canada, employers must pay attention to different provincial regulations, termination notices, and overtime limitations. Each province may have their own rules regarding employment regulations. This can start to become a huge hassle when trying to navigate compliance in multiple territories.

For example, when it comes to overtime, Canadian employees receive additional pay based on the type of position or industry they work in, not how they are paid. Make sure you check the classification for each employee to ensure you’re paying them properly. Just because an employee is on salary does not mean they are exempt from overtime.

We suggest working with an International PEO (Professional Employer Organization) to help you navigate Canada hiring regulations. This Employer of Record service can also help your team maintain compliance and manage payroll. It can also help with:

  • Hiring & Firing
  • Work Permits & Visas
  • Contracts

If you’re considering global expansion to Canada, get in touch with Velocity Global to learn more about International PEO and how it can help you hire fully compliant, talented team members in Canada.