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Employers to up investment in hiring, training employees in 2020: report

posted on January 24, 2020

By Canadian HR Reporter |

Despite low confidence in the economy, Canadian entrepreneurs are looking to invest more in hiring new talent and in training employees in the first quarter of 2020, according to a report from the Business Development Bank of Canada (BDC).

Entrepreneurs have a -37 confidence in the world economy, down 11 points from the previous quarter, based on a survey of 1,000 business owners of small to medium-size enterprises (SMEs). However, confidence in increasing the number of employees is at +19, from +11 last quarter, while spending on employee training is up to +8 from +6 in the final quarter of 2019.

Business owners will also invest more in technology (up +10 from +8), marketing initiatives (up to +11 from +7) and intellectual property (up to +2 from -2).

“Canadian entrepreneurs will keep investing in their companies despite international uncertainty and lower global growth,” says Pierre Cléroux, vice-president of research and chief economist at BDC. “There’s reason to be optimistic: At the end of 2019, the United States, Mexico and Canada signed a new free trade agreement, reinstating favourable conditions for Canadian products and services.”

Business owners in the manufacturing sector (+15 from +14) show the most confidence in investing while those in the retail and wholesale trade sectors (-10 from -9) are the least confident.

Talent attraction is one of the top concerns for C-suite members for the year 2020, according to a global report. More than two-thirds (66 per cent) of Canada’s employers are also set to exceed payroll budgets to attract new hires, says Hays Canada.

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