6 Tips to Ease Hiring in Canada's Tight Labour Market

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6 tips to ease hiring in Canada’s tight labour market:

Review your salary structure
Embrace flexibility
Emphasize staff development
Promote a supportive, inclusive workplace culture
Offer the right benefits and perks
Lean more on contract talent

Are we currently in a tight labour market?

Though some Canadian companies have slowed hiring, recent Robert Half research found that nearly half plan to add new permanent positions in the first half of 2025. They worry that what remains a tight labour market for hiring skilled talent will be long-lasting, continuing to shrink the pool of job candidates they can pull from.

At the end of 2024, for example, the Canadian unemployment rates among the professions Robert Half focuses on ranged from 1.8 per cent for legal and marketing and creative roles to 3.6 per cent for technology roles.

Need more insights into the Canadian labour market? Check out the Robert Half Demand for Skilled Talent report.

So, how to hire in a tight labour market for skilled talent? Here are six tips to help you succeed:

1. Review your salary structure

What does a tight labour market mean for Canadian job seekers? With demand for skilled candidates outpacing supply in many sectors, Canadian job seekers are in an unusually strong negotiating position, resulting in soaring starting salaries. As money remains a significant factor in employees’ overall job satisfaction, offering competitive salaries can help companies attract (and retain) talent who are actively or passively seeking a new opportunity.

In fact, the 2025 Canada Salary Guide From Robert Half reveals that 51 per cent of Canadian professionals feel underpaid, and if they don’t receive a raise this year one third – 33 per cent – plan to look for a new role. Among professionals already seeking out new opportunities, 60 per cent are looking for a higher salary.

Organizations should adjust their salary structures to meet or exceed local market averages, which can be found for six professional fields in the 2025 Canada Salary Guide from Robert Half.

Need more salary benchmarking tips? Check out our employer’s guide to benchmarking salaries in Canada.

2. Embrace flexibility

Remote work, initially a business necessity, has become extremely popular with many employees. In fact, Canadian companies that allow their employees to choose when and where they work have a dual advantage in a tight labour market: it helps with both hiring and retention.

According to research for the 2025 Canada Salary Guide by Robert Half, for example, 32 per cent of job seekers are looking for more flexibility than they currently have, while 34 per cent of employees who aren’t seeking a new job don’t want to give up the flexibility they already enjoy.

Some jobs can’t be done remotely, of course, but whether it’s through flextime, windowed work or a compressed workweek, you might still be able to give employees some of the flexibility they want.

Canadian job seekers looking for a more flexible employer are invited to use our job search page to hunt for a new position.

3. Emphasize staff development

Talented professionals looking for a new job want to stay at the top of their game. According to Robert Half’s multigenerational workforce research, Generation Z tends to value career guidance, networking and mentorship when assessing a potential new position, while savvy professionals of all ages know the importance of skills development.

Therefore, a clear way to gain hiring advantage in a tight labour market is to let job candidates know about upskilling and reskilling opportunities at your organization, and make sure they stay readily available to them as their career progresses. Many workers lack the time or resources to invest in training outside of work, putting the onus on employers to provide support. They’ll appreciate the chance to develop the capabilities needed to move into a more advanced role within the company.

Looking for ideas to support your employees’ career advancement and upskilling? Check out this post.

4. Promote a supportive, inclusive workplace culture

Employees and job seekers are attracted more than ever to a company culture that aligns with their personal values — one that sends a powerful message: You can flourish here. You’ll be happy here.

Great pay and career opportunities won’t mean much to a skilled professional if that person doesn’t feel accepted and that they belong. Companies that prioritize diversity, equity and inclusion (DEI) offer job seekers a chance to be a part of an organization where everyone can connect, thrive and grow.

The lion’s share of employees now expects a company to have a strong focus on DEI, especially in a tight labour market. You always want to hire the best available person for the job, leaving any potential bias behind. Having diverse hiring managers or interviewers helps cut through unconscious bias. Organizations that build DEI into their succession plans for senior and executive management roles find that it helps boost staff retention.

See this post to learn why a strong commitment to promoting DEI can help improve your business.

5. Offer the right benefits and perks

In a tight labour market for hiring, some of the most successful organizations are the ones that do their best to accommodate the full scope of workers’ needs, including health and wellness. Examples include focusing on mental health, stress management and financial health. Many Canadian employers are also amending their employee benefits plans to cover health services through telemedicine.

6. Lean more on contract talent

The tight labour market for permanent hires has made interim professionals even more valuable. But hard-to-find permanent staff aren’t the only drivers of this trend. One-time events, sudden spiking or shrinking customer demand, and unforeseen operational roadblocks require the scalable resources only contract talent can provide.

That may be why, according to the 2025 Demand for Skilled Talent report, more than half – 54 per cent – of Canadian companies are increasing the number of contract professionals they bring in to support projects this year.

Employers often hire these professionals with an eye on their potential to join the team in a permanent role. During this initial trial period, your company has a firsthand opportunity to evaluate a worker’s skills as they tackle your projects. You can also see whether the person is likely to thrive in your organizational culture, and how they might enhance it.

The tips above are a good start on where and how to adapt to the Canadian labour market. Put what you can and what makes the most sense for your firm in place. Then confer with your management team and HR department to see how else you can get creative and up your game. And be persistent! It might be a tight labour market for skilled talent, but your next great hire is definitely out there.

Still unsure where to start? Give your local Robert Half office a call. Our recruiting specialists are ready to help you with your candidate search.

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