It’s not your imagination — it has truly become harder and harder to find solid talent for high-skill positions. Attracting and retaining skilled workers has become a challenge for 54% of global companies. And if you think hiring is tough now, it’s only getting worse — a recent study found that by 2030, there will be a global human talent shortage of more than 85 million people.
Some of the most difficult roles to fill are security analysts, data research scientists, and database administrators, but software developers are, by far, the most sought-after role.
The competition for talent is global, but it’s especially tough in the US, with a relatively slow and unreliable immigration system where H-1B visas are notoriously difficult to obtain.
In our current fast-paced and ultra-competitive tech world, companies can’t afford to wait months (or longer) for work permits – so what can American tech companies do to continue recruiting the very best employees?
Well, one tactic to keep growing is “nearshoring,” which is the practice of opening an office in a nearby country. Strategic American tech companies have been looking to Canada for years, and have recently begun to expand north even more.
Tech giants like Google, Microsoft, Intel, and Uber have gone — or plan to go — north of the border. And companies like Asana, Postmates, Lyft, and Zenefits are in the midst of staffing their companies in Canada too.
If you need more reasons to scale your US tech team in Canada, here are the five best reasons to head north.
Five reasons to expand your business in Canada
Over the past five years, Toronto saw the biggest growth in technology jobs of any North American city, outpacing even San Francisco and New York. Since 2018, more than 2,000 new jobs have been created in Toronto by US companies that have moved to Canada to dip into the country’s talent pool. This easy access to foreign professionals is very tempting to tech companies hurting for new talent.
But why is Canada the hottest tech sector in North America?
1. Speed of hiring
One way that Canada has eased its immigration process is through the Global Talent Stream (GTS), a program designed to fast-track the entry of foreign workers with specialized skills. The biggest advantage of GTS is that work permits can be issued in as little as two weeks for eligible Canadian employers. Unlike the US that uses complicated lottery systems and lengthy waiting periods, a highly skilled foreign worker can get to work in Canada within 15 days of applying for their work permit.
2. World-class engineering talent
According to a CBRE report, Canadian tech talent is strong and continues to grow. From 2014 to 2019, the tech talent pool in Toronto grew by 36.5% and the tech labor market increased by 66,900 jobs, making Toronto home to around 250,000 tech workers. In total across Canada, the tech labor pool is 899,200, with Toronto accounting for a large portion of it and Vancouver, Montreal, and Ottawa rounding out the group.
3. Great engineering schools
Education forms the foundation for the quality of tech labor in Canada. Several of Canada’s post-secondary schools have been rated among the world’s best universities, and the best computer science programs in Canada can be found at the University of Toronto (which is also the 17th best university in the world), the University of Waterloo, and the University of British Columbia (which is the 31st best university in the world).
These fantastic universities, and others, graduate serious Canadian tech talent that goes on to power successful tech companies. The top five ranked Canadian tech talent cities are also those that produce the highest number of tech graduates. Montreal has three of the top 10 university-level computer science programs and produces the highest volume of tech graduates followed by Toronto, Vancouver, Waterloo Region, and Ottawa.
4. Affordable cost of living
The cost of living in Canada’s major cities is typically lower than in the US While the United States is much larger than its northern neighbor in terms of GDP, the average income per capita is similar in both places. Americans generally pay more in taxes, but Canada offers superior social benefits.
For example, the cost of schooling in Canada is much cheaper. Tuition at top Canadian Universities is 16-38% cheaper than at the best schools in the US In the US, undergraduate tuition, fees, room, and board were estimated to be $17,797 at public institutions and $46,014 at private nonprofit institutions. In Canada, the average annual tuition at a public college in 2021 was $7,938 Canadian dollars or $6113.61 US dollars.
5. Healthcare costs are low
The US has the highest healthcare costs in the world! The average American can expect to spend approximately $10,739 annually on their health. This compares to an annual average of $7,068 for Canadians. Americans basically pay this cost out of their pockets, while Canadian citizens or permanent residents benefit from Canada’s universal healthcare system. The system is funded through taxes and Canadians don’t have to pay for most healthcare services.
Have I convinced you that expanding into Canada is a great move for your US-based tech team? Before you start worrying about the process, reach out to Syndesus for help.
Ready to scale your tech team in Canada? Syndesus can help
Rather than waiting around to see how hiring tech talent in the US will play out, especially during H-1B cap season, look north. Canada’s tech sector is hot and experiencing tremendous growth, and it’s the place you want to be right now.
And you don’t have to open an office in Canada either – hiring workers remotely through a Professional Employer Organization (PEO) like Syndesus means you avoid risks with the CRA and ensure compliance with Canadian employment law.
Syndesus manages employment contracts, payroll, and benefits operations and ensures your IP is protected while you focus on expanding your talented workforce and moving your company forward.
Syndesus can also help relocate your existing OPT workers who weren’t selected in the H-1B lottery, or existing H-1B workers who simply want stability in their life and don’t want to wait decades for their green card. They’ll continue to work for your US-based company, but remotely, from Canada.
Want to hear more? Book a consultation to chat about your hiring situation. Syndesus can help you expand your team with the world’s most talented technology professionals but without the world’s most frustrating immigration system.
