Canadian Hiring and Workplace Insights: Trends in 2023

Since the COVID-19 pandemic, Canadian workplace standards have changed for both the employer and the worker. It can be difficult to adapt existing Canadian hiring trends to the new wave of workplace attitudes as a recruiting leader in the post-pandemic era. With a competitive talent pool, an exhausted workforce, and increasing pressure to minimize costs, recruiters must act strategically.

To find what lies ahead for Canadian recruiters in 2023, this article reports on dominant trends that will shape the way workers and employers interact going forward.

Check out our other Canadian Business Insights articles posted within the last year:

• Canadian Business Insights: Top Employers for Canadians Over 40 Report
• Canadian Business Insights: Report Shows Lack of Indigenous Representation in B.C.’s Tech Sector
• Canadian Business Insights: BDC Report Highlights Six Trends on Future-Proofing Your Business
• Canadian Business Insights: Top Tech Trends Report Expects Increased Budgets for 2023

Wage Negotiations as Inflation Rises

Despite the economic downturn we are headed towards in 2023, reports state that workers will continue to possess strong negotiation power this year. Canadians now spend much more on average each month due to rising interest rates and inflation. A competitive salary with a strong benefits package is likely to help support the workforce during these tough times.

As the baby-boom generation retires, we can expect that Generation Z and Millennials will be taking over more than half of the workforce by 2030. For this younger workforce, according to surveys, money and financial benefits remain the most important factor in terms of job satisfaction.

Businesses are integrating this knowledge into their workplace practices. Between August 2019 to August 2022, even low-wage sectors increased paid time-off offerings from 21.3% to 33.8%.

Recruiters in 2023 must lead the conversation about wages and its positive impact on the workforce and productivity. Being the major department which overlooks candidate expectations and labour market dynamics, recruiters can actively champion for attractive benefits packages alongside a higher wage band to attract and retain top talent.

A Growing Focus on Remote Work

With the pandemic starting off the era of remote work, workers are comfortable in their home offices. With many organizations adopting a remote working system, workers continue to demand a remote or hybrid work policy during negotiations.

A flexible work policy is crucial to attract talent, as nearly 44% of Canadian Generation Z employees prefer the freedom to choose where to work from.

However, while remote work increases employee job satisfaction, the Generation Z workforce still expects the benefits of mentorship, networking, and personal connections. As a result, there needs to be a balance which provides these workers with freedom of choice, as well as a sense of belonging to their organization.

Contract Work Is Attractive

Most of the younger Canadian workforce is open to contract work. The new Canadian hiring trends suggest that while full-time jobs were the focus of new graduates in the job market, we now see an increasing interest in contract work. This can be beneficial for both parties involved in the recruiting process.

Employers facing economic uncertainty can hire contract employees without having to commit to the long-term costs associated with hiring a full-time employee – such as paying for a benefits plan, spending time on training or even creating business cards.

Workers benefit by shifting between companies and roles more smoothly while on a contract basis, thereby increasing network across the industry and developing a diverse skill set.

Recruiters can efficiently reduce any labour shortage issues by offering short-term or long-term contracts.

Accounting for Diversity

Immigrants are expected to account for 80% of Canada’s population growth by 2030.Companies must implement Diversity, Equity, and Inclusion (DEI) initiatives in the workplace to reduce biases and discrimination against diverse populations. Reports state that 72% of workers between the age of 18-34 would turn down a job offer or resign if they found out that their management does not support DEI programs.

Whether it is racial diversity, ethnic diversity, or gender and disability equality, Generation Z workers stand strong on their opinion about DEI initiatives.

It is worthy of noting that this sentiment does not necessarily apply to older generations; however, with Generation Z is already a major part of the workforce, companies need to act fast to implement these DEI strategies going forward. Recruiters in 2023 should showcase their DEI initiatives in action to any new or potential hires.

Reskilling and Upskilling During the Artificial Intelligence (AI) Era

Generation Z professionals still worry about AI taking over their jobs despite being technologically savvy. Oddly enough, baby boomers are the least worried about AI replacing them.

73% of Generation Z workers and 68% of millennials worry about advanced technology replacing their role. This contrasts with only 33% of baby boomers who are worried about AI.

The younger workforce is willing to reskill and upskill to keep up with advanced technology. Therefore, companies should take advantage of this motivation and offer training opportunities to help promote morale and confidence.

Be Aware of Canadian Hiring & Training Grants

As Canadian businesses adapt to new recruitment and workplace standards, it is crucial that they offer what the workforce desires. With strong demands for higher wages, remote working policies, DEI initiatives, and extensive training, employers can feel overwhelmed. However, the Government of Canada offers many funding programs and grants for hiring and training purposes. At Mentor Works, a Ryan Company, we can help you navigate these options.

Did you know that the Canadian Job Grant (CJG) government funding program is designed to reduce the costs of providing third-party skills training to new and existing employees? You can receive up to 50-100% in grants for employee training programs. This program is province-specific, showcasing funding initiatives such as the Canada-Ontario Job Grant (COJG) or the Canada-Alberta Job Grant (CAJG).

Click here to learn more about hiring grants, wage subsidies and training grants. Our full directory is also a good resource to keep track of any upcoming hiring and training grants.

The Canadian hiring and training is an extensive and a costly process. However, there are several efforts towards helping businesses and supporting the hiring process. Read our downloadable guide on How to Fund Hiring & Training to build a rockstar team with the help of government funding.