‘Canadian companies, by and large, spend less money on training for their employee base than competitors in other OECD nations’
“In Canada, our productivity output per capita has been shrinking in relative terms to a lot of other countries around the world,” says Jeff Doucet, CEO of Thrive Career Wellness, in talking with Canadian HR Reporter.
“Canada's economy is producing less per worker than is being produced in a number of other countries around the world that are competitive nations of similar economic status to Canada.”
The labour productivity of Canadian businesses dropped in the second quarter of 2024, according to a report from Statistics Canada (StatCan).
This is the case even though there has been a steady influx of migrant workers coming into the country over the past years.
Overall, the number of positions approved to be filled by temporary foreign workers in 2023 stood at 239,646, more than double the 108,988 recorded in 2018, CBC previously reported, citing data from Employment and Social Development Canada (ESDC).
This persistent issue raises questions about how Canada integrates skilled workers into the workforce.
“A lot of these individuals haven't been able to transition to gainful employment as fast as possible, even though those individuals… have skillsets that are in demand in the country,” he says.
“They're having a hard time transitioning into employment that meets their skillsets, then that's impacting productivity across the country.”
The issue of immigrant underemployment remains a persistent problem in Canada, despite policies aimed at integrating highly skilled global talent into the workforce, according to a previous report.
How to onboard migrant workers into a company
One problem is improper onboarding of migrant workers, says Doucet.
“What hasn't properly been acknowledged is the impact of rapidly changing the social setting of where you're working or moving into a different type of organization, in a different country.
“What's required to make that individual productive is more than just the federal government looking at someone's resume and saying, ‘That's a skillset that's required in our economy.’ There's work that is required to get somebody up and ready to go for an organization.”
Here’s the complete guide to employee onboarding.
What is the importance of upskilling workers?
Another factor at play in the continued productivity crisis is Canadian employers’ low investment in training workers when compared to other countries.
“Canadian companies, by and large, spend less money on training for their entire employee base than our competitors in other OECD nations,” says Doucet.
“When you bring someone in and you onboard them within their organization, you're going to want to train and upskill that person to meet the needs of your organization.”
Putting in an effective upskilling program will not only make companies more productive but will also make it easier for them to fill job openings, he says.
“Putting in upskilling programs will drive improved employee productivity across the organization, but, as well, make it easier for you to have the infrastructure to take someone who did a very similar job in a completely different country, with a different work style, a different organizational dynamics, potentially even different rules at their workplace, and adapt them to be able to become more productive in our your environment.”
However, here in Canada, employers look at upskilling solely as “taking your existing talent base and investing in making them better from a professional development perspective,” he says.
How to maximize workers’ skills
Productive working hours by professionals across the world went up in 2024, according to a previous report. However, Canada has lowered its immigration targets for this year and the next years from its previous targets.
To maximize what migrant workers have to offer, employers should do the following, according to Doucet:
Expand recruitment pools: “Organisations should look beyond their typical hiring patterns,” Doucet said, suggesting that employers consider candidates with relevant skills, even if their experience comes from outside Canada.
Enhance onboarding: Employers should focus on the first 30, 60, and 90 days of employment to ensure new hires are equipped with the competencies needed for their roles. “Think about whether your onboarding plan includes clear expectations and sufficient training,” he advises.
Clarify work style expectations: Doucet stresses the importance of addressing differences in work styles between countries: “One of the things that changes a lot when you go from country to country is the style of work,” he says, citing his own experience working with German clients.
“Meetings in Germany are much more formal, and communication styles are different. Setting expectations and making them clear can make it much easier for organizations to absorb individuals,” Doucet explains.
