Plans to fill vacated positions increasing as employers 'navigate complex market'
Hiring activity across Canada is poised to remain strong in early 2025, according to a new survey.
While net new hiring may see a slight decline, the demand for filling vacated positions and the use of contract professionals are both expected to rise.
Almost half (46%) of companies plan to add new permanent roles in the first half of 2025—a modest dip from 52% in the second half of 2024, finds the Robert Half survey.
However, plans to fill vacated positions are increasing, with 49% of businesses prioritizing these hires, up from 41% in the latter half of this year. Additionally, more than half (54%) of companies intend to increase the use of contract professionals to manage projects in 2025.
"2024 has seen many hiring challenges, from skills gaps and talent shortages to new in-office policies and wider economic conditions. Both hiring managers and job seekers have had to navigate a complex market," said Koula Vasilopoulos, senior managing director at Robert Half Canada.
Factors driving hiring decisions in Canada
The top drivers influencing hiring plans include: company growth (47%); employee turnover rates (44%) and the emergence of new projects (41%).
The survey also found variations in hiring activity by company size:
To address hiring challenges and ensure projects stay on track, Canadian employers are adopting several strategies:
- Partnering with staffing firms (39%)
- Employee referral programs with bonuses (35%)
- Paid internships for students and recent graduates (34%)
- Enhanced mentorship programs (34%)
- Clear career pathways to attract internal candidates (33%)
Consequences of not filling roles
The Robert Half survey highlights the potential fallout from delays in filling open positions, with managers identifying several critical impacts:
- Decreased productivity (40%)
- Burnout among existing staff (39%)
- Delayed project timelines (34%)
- Inability to support key business initiatives (31%)
"While hiring plans remain high as we enter 2025, businesses must ensure they have the right hiring strategies in place to keep key initiatives running smoothly, complete projects on time, achieve goals, and attract top talent for the future. In addition, they need to mitigate burnout and decreased productivity from overstretched teams through strong retention plans," Vasilopoulos added.
Conducted in December 2024, the survey included over 1,050 hiring managers from industries such as finance, technology, legal, and human resources across Canadian companies with 20 or more employees.
