Scaling teams with stiff talent competition and shifting trends
Before we dive in, let’s first look at today’s US talent landscape.
On the work front, there is a ton of stiff competition for niche skills in areas like artificial intelligence and cybersecurity. As well, aggressive return-to-office policies are being met with some fairly stiff resistance from employees that place huge value on work-life balance and location flexibility.
While all this is happening, a turbulent political environment – as well as questions about visas and immigration policies – have foreign talent seriously considering whether to move back home or stay put.
That’s the backdrop.
Where does that leave you? Well, chances are – you’re feeling the push to scale up a team in your US-based company quickly. So, consider this your blueprint!
The first key part is knowing that more and more US companies just like yours are looking northward at hiring Canadian.
Why consider Canada?
Well – as hungry as you are to find new talent, Canadians are eager for new opportunities, too.
A recent survey showed that nearly three-quarters of Canadians were planning to leave their current roles for greener career pastures.
Canada is an engineering and tech-talent rich environment, with many of the world’s largest technology firms, as well as several booming tech hubs, including Waterloo, Ottawa, Toronto and Montreal. So, you’ll find no shortage of university grads in the STEM and business fields.
Consider this pair of points, as well:
- Canadian talent is generally more affordable for US firms due to the exchange rate.
- Hiring Canadians often comes with no major time zone and language differences – and a very similar working culture.
All of this adds up to an environment primed for US companies hiring in Canada.
Hiring Canadians: Do you partner with an employer of record or create a business entity?
One of the single most important questions you need to ask when hiring Canadian talent is: Do we create a business entity, or can we partner with an employer of record (EOR) to manage payroll and HR for us?
If you’re planning to have a physical presence in Canada, agents/representatives conducting regular business on your behalf, or want to sell goods/services in Canada, then an entity may be your only route.
But – if your goal is solely to add top Canadian talent to your team, then partnering with an EOR is an excellent way to scale up quickly without the red tape, costs and lengthy timelines involved in creating an entity.
Scaling up your business with a Canadian EOR
At a high-level, employer of record services (EORs) allow you to quickly hire Canadian employees without having to be an expert in Canadian payroll, tax and employment law, or set up a legal entity.
EORs function as the legal employer to your remote Canadian workforce. Day-to-day, they handle the back-end administrative HR functions (payroll, onboarding, etc.), while you manage workloads and set direction with your employees.
Why else should EORs be part of your “scale-up” blueprint?
- They are a legal way around hiring Canadian employees as independent consultants – which often isn’t desirable. Independent consultants must handle their own taxes and don’t get paid vacation, leaves or benefits.
- Speaking of benefits – EORs can source and administer health benefits on your behalf, so you can create a rich compensation package to woo top Canadian talent.
- With an EOR arrangement, your talent doesn’t need to uproot their lives (and relocate) to join your company, contribute fully and enjoy the job security that full-time employment entails.
Another big advantage with EORs is that your business gains the freedom (and flexibility) to pivot in new directions as needed, and get talent onboarded within days – not months.
Having a greatly reduced time-to-market ensures top talent isn’t slipping through your fingers and signing on with your competitors.
What’s required to create a Canadian business entity?
Of course – there may be certain business situations that absolutely require you to create a Canadian business entity – i.e., if you’re selling goods and services in Canada or want to establish a physical presence.
But you’re in for a long process: Setting up a legal Canadian business entity can take – on average – anywhere between six to 12 months.
Plus – you’re now responsible for ensuring compliance with Canada’s web of evolving federal and provincial tax and employment laws. This means you’ll want to find Canadian accountants and legal counsel and/or local HR and employment law experts on hand.
You’re also looking at fixed costs, like provincial business registration fees and – depending on where in Canada your talent is located – could be spending $5,000 or more to create provincially compliant employment contracts.
Let’s create the blueprint for your scaled-up team together
Bridgewater TI can help make your expansion ambitions a reality by facilitating seamless, easy access to top Canadian talent that will fuel your growth.
Speak with our experts and let’s map out the best set of solutions - from recruitment, through to payroll process and more!
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