Report Highlights Canadian SMB HR Priorities

A "State of HR" report from Folks surveyed over 400 Canadian small and medium-sized businesses, identifying top priorities for 2026. Key challenges and areas of focus include recruitment, the adoption of AI and other technologies, and enhancing the employee experience.

- A recent study indicates that one in three Canadian employees (33%) plans to look for a new job in the first half of 2026, with the intention to leave being highest among technology professionals (43%) and Gen Z workers (41%). - While 81% of Canadian HR professionals report using AI tools at work, formal training lags significantly, with only 33% having received it. This highlights a gap, as broader studies show only about 6% of small businesses and 8% of medium-sized businesses in Canada are using AI. - The push for new technology is widespread, with 90% of Canadian SMBs planning a major digital transformation initiative, yet 88% report that it is challenging to find the skilled professionals required for implementation. - The talent shortage is compounded by a skills gap, with 56.1% of Canadian companies reporting that their employees lack necessary skills, particularly in technical, problem-solving, and critical thinking areas. - Navigating regulatory complexity is a growing concern for Canadian businesses, with top compliance challenges cited as data privacy, paid leave requirements, payroll tax, pay transparency, and overtime rules. - Beyond recruitment, retention strategies are shifting to focus on employee expectations for clear career growth opportunities and pay transparency, which are now considered standard rather than perks. - Despite 87% of organizations believing they are responsible for employee mental well-being, fewer than half (46%) currently provide mental health benefits, often citing associated costs as the main barrier.

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