To Successfully Fill a Vacant Role, Looking at the Benefits and Drawbacks of Hiring a Foreign Employee is a Worthwhile Endeavour

According to a survey conducted by Statistics Canada in 2021, more than half of Canadian companies (56.1%) said they struggled to recruit employees with all the skills needed to do the job required.

If you are experiencing issues with filling vacant roles, hiring a foreign employee could be an attractive solution. This article explores the benefits and drawbacks of using this strategy.

Recruiting internationally

Recruiting internationally can help your company grow in a diverse and innovative way. With an increase in remote working and workforce shortage-related challenges, hiring internationally is on the rise in Canada. This is especially true since experts agree that 40% of jobs in Canada can be done remotely.

The benefits

The new reality of the job market and advances in technological tools make this an easier option than it used to be and offer many benefits to employers, including the following:

• The ability to meet workforce needs, particularly for highly sought-after jobs
• The option to offer flexible working conditions that attract and retain talent
• A strategic distribution of teams and a better coverage of time zones
• Access to a larger pool of workers from diverse backgrounds and with a wide range of skills
• A more effective hiring strategy
• Diversifying the workforce to foster innovation and creative thinking and to expand presence to the international market
• Enriching the corporate culture and promoting an inclusive environment
• The ability to add employees with specialized skills to teams
• Better customer service thanks to a broader spectrum of languages and time zones
• A better understanding of market and cultural specificities in countries with a company presence
• The leverage effect of employees motivated by new career opportunities who are willing to take on new challenges and prove themselves
• Optimizing payroll by offering foreign employees fair pay, while taking into account the expectations of the local labor market

The drawbacks

Hiring a worker from abroad involves substantial legal obligations and requires relatively complex and costly administrative procedures for Canada-based companies, particularly if the employer wants the worker to move to the country. Recruiters need to make sure they familiarize themselves with the nature of these procedures and be well-informed about hiring a foreign employee while complying with the applicable laws.

Here are the main drawbacks of hiring a foreign employee.

• Most foreign workers will need to obtain a work permit to be employed in Canada. A visa may also be required to enter the country. The procedure varies according to the type of job and the conditions (temporary or permanent). Furthermore, provinces and territories also have their own requirements, particularly Quebec.
• Permanent employees sometimes have to wait several months or even up to a year before receiving the permit, depending on the case. Therefore, the company must make sure to prepare the application carefully, anticipate potential hurdles, and be patient.
• It can also be quite expensive for the employer, who may need to use the services of an international recruitment consultant as well as pay government and legal fees related to the permit application. They will also have to pay for the employee's plane ticket and accommodation upon arrival, where necessary.
• Among the requirements for a permanent work permit, the company must be able to demonstrate that they have been unable to find a suitable worker within the country. They will therefore need to carry out a Labour Market Impact Assessment (LMIA). The conditions are more flexible for temporary workers.
• Degrees obtained abroad are not automatically recognized in Canada or Quebec. Depending on the type of job, the candidate may have to seek recognition for their skills and confirm their degree equivalents. In the case of regulated jobs that require registration with a college or association, education obtained in another country may not be accepted and may require additional training.
• Language and cultural nuances may constitute a barrier for the new employee and make communication difficult.
• In the case of expatriated workers, some may struggle to adapt to their new living and working environments. All expats react to this big change differently. Without support, the stress and intense emotions felt by the expat, combined with the pressures of work, could lead to a higher rate of professional burnout and affect their progress at work. These factors could potentially make them want to quit the company.
• Any breach of national laws and regulations regarding foreign workers, particularly about salaries, taxes, or pension contributions, could have serious consequences if the company is not well-informed.

Once obtained, the work permit binds the foreign employee to their employer and gives them the right to work in Canada in accordance with the conditions stipulated in the permit, with the following in particular:

• The name of the employer hiring the worker
• The period of employment, either temporary or permanent
• The place where the employee can work (if applicable)

Please note that from January 30, 2023, Canada has extended the permission to work in Canada to include the spouses and dependent children of the majority of work permit holders at all skill levels, under certain conditions.

Hiring a foreign employee can be an interesting option for filling hard-to-fill roles and diversifying skills across teams. Thanks to remote working, companies now also have the option to recruit internationally without necessarily having to repatriate employees, an often cumbersome and complex process. Employers who want to move forward will need to be well-informed in order to comply with regulations and act fairly.