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The changing Canadian workplace: 5 ways immigration will impact employee benefits

The Canadian workplace is in trouble.

A greater than expected number of people have retired in recent years, as the number of Canadians over 65 edged closer to 20 percent of the population. At the same time, immigration slowed during the COVID-19 pandemic, leaving fewer workers to fill the roles. Job vacancies in many industries climbed to near-emergency levels.

Politicians are betting that the solution to the labour crisis will be immigration. The Canadian government has committed to bring in increasing numbers of immigrants over the next several years, through a variety of different programs. The population grew by more than 1 million people, surpassing 40 million residents for the first time in 2022. And nearly one quarter of Canadians today arrived as an immigrant.

Immigrants will change the Canadian workplace in much the same way that Boomers did. They come with different needs and different expectations, and employers seeking out the best and the brightest will have to draw them in with enticing benefits packages and other bonuses.

Here are five key considerations for HR teams to remember:

1. Organizations will rely on immigrants to fill vacancies.

With the Baby Boomers retiring and an average family size that recently fell below three people, the labour shortage will get worse before it gets better. Companies across Canada will look to immigrants to fill those vacant positions, from blue-collar jobs in manufacturing and agriculture to white-collar office work. In fact, a large percentage of immigrants to Canada come with advanced degrees, often in STEM-related fields.

HR teams that are worried about attracting and retaining talent will quickly recognize that these new Canadian residents are the key to long-term stability and growth. Even if your industry doesn’t traditionally target immigrants, you may need to consider ways immigrants can succeed in your organization – and seek them out as candidates.

2. DEI perspectives will become mainstream.

Organizations that are already targeting DEI as a top priority have the edge. Recruiters with flexible, open-minded outlooks already know how to look beyond the typical barriers to entry to find qualified candidates from a variety of different backgrounds. Those who can adapt to an even more diverse talent pipeline will have the advantage.

Yet HR teams can go one step further and actually target those with international credentials and experience, rather than focusing on specifically Canadian experience. They can use data to identify how cultural differences will impact the workplace – and figure out how to work with those differences to the organization’s benefit.

3. Avoid missteps by clarifying working policies.

Generally, immigrants around the world expect to work hard. They may come from a culture where working overtime is expected – or their vulnerability at being a newcomer may lead them to give more of themselves to their employer than is really necessary.

While hardworking employees is the stuff managers dream about, supervisors must also clarify expectations around productivity and time management. If necessary, share corporate right to disconnect policies. Use simple, clear communication to be sure there is no misunderstanding, and cover all guidelines, from formal workplace policies and procedures to informal rules regarding working hours and personal time.

4. Encourage mentorship as a gateway to acculturation.

Believe it or not, mentorship programs actually work. Many studies have shown that workers who participate in mentorship programs receive significant raises and promotions. They seem to be happier at work as well; employees involved in mentorship programs have a 50% higher retention rate than those who don’t.

Yet beyond the general benefits of mentorship, new Canadians find it especially helpful. A mentor can help a new immigrant get their footing in the workplace more easily by demystifying workplace culture and expectations, as well as making helpful introductions. Organizations that develop mentorship programs and offer company-wide activities for participants will see the benefits immediately, as mentorship relationships can facilitate integration into the workplace and provide workers with much-needed tools to succeed.

5. Explore personalized benefits to attract the best.

With rising costs and inflation rampant, a majority of Canadian employers chose not to make changes to their benefits packages this year. They simply couldn’t afford it. And while that may have been the fiscally responsible decision, it does nothing to attract immigrants – a diverse group with needs that are wildly different from other groups – to the team.

One-size-fits-all benefits programs are disappearing. Savvy organizations recognize that not every employee will have the same needs, and that attracting new talent will depend on offering the right mix of benefits. Employers that can offer personalized benefits options without breaking the bank will win it all: the best and brightest immigrants will be seeking them out, and they will improve productivity, retention and employee satisfaction for the organization overall.

With hundreds of thousands of new Canadians arriving each year and joining the workforce in droves, employers will face tremendous opportunities – and also some important challenges. Successful workplaces will understand the changes before they happen and seek data to support their initiatives. A quality employee experience includes highly personalized benefits in an affordable, manageable way – elevating the experience of all employees.

Hugh Doyle is vice-president- group insurance, retirement and estate planning at HUB International.