Half (52 per cent) of Canadian employers say they’re planning to add new permanent positions in the second half of the year, according to a new survey by Robert Half Canada.

The survey, which polled 1,800 hiring managers at Canadian companies across a range of industries, found employers are cautiously optimistic about the hiring landscape, as two-fifths (41 per cent) said they plan to fill vacated positions and 58 per cent noted they plan to increase the number of contract and project-based professionals at the end of 2024. The No. 1 factor influencing respondents’ hiring decisions was company growth (50 per cent), followed by employee turnover (41 per cent), project-based work (39 per cent) and lack of requisite skills among current employees (38 per cent).

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While the economy experienced some headwinds in 2023, there are signs of readjustments happening in the hiring market, with easing inflation building confidence among employers, says Mike Shekhtman, Robert Half’s senior regional director.

“We saw slower growth in organizations coming out of 2023, but there’s a little bit of added confidence in some segments and industries [that has some employers] at the very least, feeling confident to replace the vacated positions . . . [and] add new positions where possible.”

Robert Half’s survey also found nearly all (90 per cent) organizations reported difficulty finding skilled professionals, with a third (32 per cent) of managers noting they anticipate it will take longer to hire between now and the end of 2025 than it did in the first half of 2024.

Indeed, many companies are still facing headwinds, which is leading them to adopt a more thoughtful and methodical approach to hiring, says Shekhtman. “They’re taking longer than ever before in terms of getting it right [with] every hire. We’re coming into a market that is just much more balanced in nature. It’s not a candidate-driven or employer-driven market — there’s just opportunities in different pockets.”

There are still instances where some job seekers are getting multiple offers, particularly for in-demand roles and some employers are tabling counter offers to retain their existing talent. But he says most organizations are looking at their bottom line and are very cognizant of overspending in this area. “Certainly, they know they’ll require more investment in infrastructure in order to see and yield the growth that they’re [seeking].”

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However, Shekhtman cautions that despite the expected increase in hiring, many managers are having trouble finding skilled applicants. Indeed, roughly half of respondents said they’re having trouble finding applicants with the required skills (51 per cent), who align with their company culture (49 per cent) or they just aren’t moving fast enough in the process to land the best talent (46 per cent) or were unable to meet candidates’ salary expectations (46 per cent).

In some cases, he says employers have leveraged artificial intelligence tools to create efficiencies within their talent acquisition team, including writing job postings and streamlining individual roles within the organization. “We’ve seen AI not so much replace people’s jobs, but just enhance the efficiency. So you’re getting a little bit of a step ahead [in terms of] creativity . . . that differentiates them from their competitors.”

Other steps that employers are taking to speed up the hiring process include being flexible on years of experience if the candidate possesses the required skills (59 per cent) and offering flexible schedules (37 per cent) or hybrid work options (39 per cent).

“Organizations that will see sustainable long-term growth are the ones that already have a [hiring] plan in place from investment in learning and development and added flexibility.”

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