Read this article to learn about the HR Best Practices for Hiring and Paying Employees in Canada

HR Best Practices for Hiring and Paying Employees in Canada

The Canadian labour market is one of the most dynamic and competitive in the world. Companies that want to attract and retain the best talent must follow HR best practices, such as offering a competitive benefits package, a fair salary, and a positive work culture.

In this blog we will explore some of the expert-recommended practices your company should consider if it wants to hire employees in Canada.

What are HR Best Practices?

Before going into the details of hiring Canadian employees, let us talk about the best Human Resources practices in general.

Human Resources best practices are the processes, policies, and procedures that have been proven effective in attracting, developing, and retaining the best employees.These practices have been defined through the research and experience of Human Resources experts and are not monolithic. They change with the workforce’s needs, so you must be attentive to the latest trends or changes in legislation.

Human Resources best practices can vary depending on the size and industry of the company. However, some practices are common, regardless of other factors:

  • Effective Hiring Process: It starts with defining job requirements and continues with candidate search, candidate evaluation, and offer of employment.
  • Competitive Pay System: Offering salaries and benefits equivalent to employees’ experience, skills, and education.
  • Positive Work Culture: One where employees feel valued, appreciated, and supported.

Let’s dive deeper into each practice.

Effective Hiring Process

An effective process can help your company find the best candidates for open positions.

To have good results when searching for candidates for a position, you must consider a couple of things and follow some of these best practices.

1. Definition of Job Requirements

The first step in an effective hiring process is defining the position’s requirements. This includes identifying the skills, experience, and education necessary for the job.

Defining the job requirements precisely to avoid hiring unqualified candidates is essential. A salary investigation can also help you determine a competitive salary for the position.

2. Search for Candidates

There are several methods to search for candidates, such as posting vacancies online, either on a specialized website or on your own page, exploring professional networks and using recruitment agencies.

Using various methods to reach as many qualified candidates as possible is important. Your company should also ensure that the job advertisement is clear, concise, and highlights the benefits of working for you.

However, keep in mind that if you want to hire a Canadian employee, you must comply with the hiring rules and norms of the country. Salaries are on average lower, the working day is shorter, and Canadians receive more paid breaks and vacation.

Several provinces have laws that will impact your candidate search. In some, you must include a salary band in your job posts. In Ontario, you must include a salary band, declare the use of AI in the hiring process, and can only use certified recruitment agencies.

Candidate Evaluation

To ensure a proper fit, the evaluation process should include reviewing resumes, conducting interviews, administering tests (where necessary), and checking references designed to evaluate the skills, experience, and candidates. It is also important that you evaluate whether the candidate’s values fit those of your company, which may be done through an interview. It is vital to note that Canada, like the United States, maintains strict standards of equity, social justice, and diversity throughout the selection process. One significant difference to keep in mind is that testing candidates for drug and alcohol use is not permitted, unless the job has strict safety requirements.

1. Job Offer

The job offer must be clear and concise. It should include the salary, benefits, and other details of the position such as duties of the position, and expectations of compliance.

You should negotiate salary and benefits with the candidate to reach a fair agreement with both parties.

2. Canadian Legislation

Canadian employee hiring legislation is designed to protect the rights of employees and businesses. It includes Federal and Provincial employment and tax law, human rights and anti-discrimination law, and various Provincial regulations.  Provincial employment law governs most hiring in Canada, while Federal law applies to employees of the Federal government and those in federally regulated industries.

Canadian human rights law protects Canadian workers from being exploited or treated unfairly at work. It also promotes equal opportunities for all workers, regardless of their origin, sexual orientation, or any other quality.

Employment law establishes minimum and overtime wages, maximum hours of work, and more. It varies from province to province, and it can be difficult to stay on top of when hiring. Having a good HR team or outsourcing partner in place is critical to a smooth hiring process!

Competitive Payment System

In Canada, the average minimum wage is $16.66 CAD per hour and the average salary is $61,865, but both differ by province. However, companies must offer competitive salaries to attract and retain the best employees. A good salary is among the key factors employees consider when accepting a job, since it is the main incentive that a company offers.

Keep in mind that a competitive salary is not just the money that goes into your employee’s bank account. it is also the benefits plan you offer.

Benefits Package

Canadian employers typically provide a combination of mandatory and optional employee benefits. Provinces and territories require employers to provide an average of 10 paid statutory holidays and 10 days of paid vacation (or the equivalent in pay for hourly employees. They must also make contributions to provincial Health Tax, the national Canada Pension Plan and Employment Insurance, and pay Worker’s Compensation premiums.

Over 90% of Canadian companies offer benefits packages that go over and above these minimum requirements.

Some common benefits that companies offer in Canada include:

  • Extended Health and Life insurance, including Pharmaceutical Coverage and Dental, Vision and Paramedical Care
  • Registered Retirement Savings Plans
  • Additional Paid Vacation

Some uncommon benefits are:

  • Childcare: Some companies offer childcare  to their employees. This helps employees balance their family life and even helps workers not leave the workforce to devote themselves exclusively to their children.
  • Education Assistance: Some companies help employees continue their education by funding graduate degrees and certificates. Others provide matching contributions to children’s Registered Education Savings Fund.
  • Employee Assistance: Some companies offer employee assistance to their employees. This assistance may include services such as financial counseling, legal advice, and mental health support.

Benefits packages are a way of telling employees that the company appreciates them and cares about their well-being. Employees who feel valued and appreciated by their company are more likely to be productive and loyal, so it is advisable to offer valuable benefits in addition to an excellent pay system, and to keep them up-to-date with your industry and market needs.

Positive Work Culture

Another extremely important element for employees is the work environment, which plays a vital role because it affects the employees’ motivation to work. A good or bad work environment can be the difference between employees staying or quitting.

The following factors are signs of a positive work culture:

  • Teamwork: Employees who work well together are more productive and efficient. Promoting teamwork can be a very important pillar for your company. You can achieve that by hosting social events, providing team training opportunities, and creating a collaborative work environment.
  • Open Communication: Open communication is essential to building trust. Encourage open communication among your team, providing opportunities for employees to share their ideas and opinions. This can be done with regular ideation meetings and creating a work environment where employees feel comfortable speaking up and giving their opinions.
  • Professional Development: Companies that offer opportunities for their employees to develop their careers are more likely to retain them. Companies can offer professional development opportunities through training, mentoring and apprenticeship programs, and internal recruiting when eligible for a promotion
  • Work-life Balance: Nowadays, people like to balance their work and private lives. Employees with a work-life balance are happier and more productive. Offer flexibility in work schedules, offering paid vacation and time off, and encouraging the use of sick leave. It’s a way for employees to feel appreciated and happier at work.

Cheat Sheet for Applying the HR Best Practices in Canada

The best HR practices are more or less the same everywhere. Still, it is important to remember them, mainly if your company is in a different country than the employee, which makes it especially important to be careful with these practices.

HR Best Practices Cheat Sheet

On the other hand, there are other ways to facilitate the hiring of Canadian employees for your company. You can always trust an Employer of Record provider like us to hire Canadian Remote Workers for you. We hire, onboard, and payroll Canadian employees on behalf of US companies, and offer HR support every step of the way. As complex as Canadian employment law can get, we make it simple, by taking compliance off your hands.

If you need help hiring in Canada, contact us now! Likewise, if you want to know more about Human Resources in Canada, employment law , or the Canadian talent market, we invite you to follow our blog.

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