Report Details HR Challenges for Canadian SMBs

- SMB leaders report their top concerns heading into the end of 2026 are retaining top talent (82%), finding talent quickly (75%), and hiring skilled candidates (74%). - A significant skills mismatch complicates hiring, with 47% of small businesses struggling with the gap between applicant skills and role requirements. This has led to costly errors, as over 20% of SMB managers admitted to making a bad hire in the last two years, resulting in an average of 14 weeks of lost productivity. - While 90% of Canadian SMBs are planning major digital transformations, including the use of AI, 88% find it challenging to hire the skilled professionals needed for implementation. Affordability is the largest barrier to new technology for 58% of small firms, while 41% of medium-sized businesses cite a lack of internal expertise. - AI adoption is accelerating, with nearly half of Canadian SMBs now using it and another 18% planning to do so within three years. However, only 10% have fully integrated digital tools across their operations, indicating most are still in the early stages of adoption. - Despite being at the forefront of AI adoption (81% usage rate), HR professionals are the most anxious about its impact, with 62% concerned that AI could replace their roles within five years. - There is a significant gap in AI training; while 42% of Canadians use AI at work, only 12% have received formal training, and just a third feel confident using the tools effectively. - Employee burnout and mental health are growing concerns, with 69% of Canadian workers reporting burnout. Meanwhile, 39% of employees feel burned out, and 46% worry their job could be at risk if they don't become proficient with generative AI. - Professional development has become a key retention strategy, with 56% of Canadian organizations now making it a major priority to answer the question, "Can I grow here, or do I need to leave in order to evolve?".