Many US companies have a small presence in Canada. This could be a sales team that helps the company find clients in Canada, trades products, or even a small office that handles administration.

These offices are often not viewed as strategic hiring or growth locations for the US-based company to hire and retain highly-skilled talent, particularly at scale, often because they simply don’t have the administrative staff to handle such scale outside the US.

However, companies that already have a Canadian office are in a great position to use that presence as a strategic global hiring hub. This is particularly useful given the unpredictable and unreliable nature of the US H-1B visa process. Companies don’t even need to build out a whole administrative team to do it. 

This article discusses why leveraging a Canadian office is a good hiring strategy and importantly, how small to midsize companies can easily retain and expand their workforce without having the administrative staff in Canada to do the work.

Why is leveraging a Canadian office to hire skilled talent a good strategy?

The H-1B visa, which serves as the linchpin of the US immigration system for recruiting skilled and talented technology professionals from overseas, is facing challenges. An overwhelming number of applications have significantly diminished the odds of being chosen in the lottery even to submit an H-1B visa application. This has given rise to fraudulent activities linked to the process. Tens of thousands of foreign-born, skilled tech workers are told to leave the US every year because of visa issues. 

In contrast, Canada’s Global Talent Stream facilitates work permits within weeks, with a policy that embraces hundreds of thousands of immigrants each year. Part of the Global Skills Strategy, the GTS program allows Canadian employers to easily hire foreign-born workers, particularly in the tech sector where there is increasing opportunity and demand.

With a more affordable cost of living, esteemed universities, accessible healthcare, and markedly more reasonably priced education, Canada is a desirable option for immigrants. Plus, when an employee has permanent residence status, they can receive most social benefits available to Canadian citizens and benefit from a streamlined pathway to citizenship.

There are even long-term, so-called boomerang strategies available to eventually move the tech worker back to the US after they gain residency and citizenship in Canada if they really want to. In other words, they don’t have to give up on the American Dream entirely.  

How can a company with a small Canadian office use it as a global talent hub? 

The short answer is by working with a Professional Employer Organization (PEO) that can provide support and expert guidance across every stage of hiring and employing a Canadian worker for your US company. They can also take care of the many, complex bureaucratic and financial challenges so you don’t have to.

A PEO is essentially a firm that provides comprehensive HR solutions for small to mid-sized businesses allowing them to outsource a variety of functions through a co-employment model. Not to be confused with an Employer of Record (EOR) that provides services to companies that don’t currently have a legal entity in Canada. 

The PEO contractually shares certain employer responsibilities with — in this case — a US-based company. This means that while the client company continues to manage and operate the day-to-day business, the PEO handles many of the time-consuming HR tasks. 

This partnership helps businesses to minimize risks, reduce administrative burdens, and free up resources to focus on their core operations. Companies can focus on growth and strategic initiatives while entrusting many of the administrative and regulatory tasks to experts.

Here are some of the technical aspects of employment that a PEO can take care of:

• Canadian payroll and employer tax obligations: Canadian payroll taxes and the submission process to the Canada Revenue Agency can be complicated. A PEO can take care of the entire payroll process.

   

• Canadian HR compliance: Canadian HR differs from the US, working with a PEO means you don’t need to understand Canadian employment law or hire an in-house HR team. With ever-changing employment laws, it can be challenging for a company to stay up-to-date and compliant.

   

• Company stock options and benefits: A PEO can help companies issue US stock options to Canadian workers and make sure it is compliant with the Canadian benefits system. They also help businesses provide a robust benefits package that might otherwise be unattainable due to their size.

   

• Healthcare: Canadian healthcare is different from the US. A PEO can make help find and issue the best plan for your staff in Canada and navigate health care employment laws such as parental leave and sick days.

   

• Hiring and firing: Apart from taking care of hiring and terminating employees, the PEO is also responsible for handling immigration matters for foreign nationals who need visa sponsorship, a work permit, or other benefits.

Canadian offices owned by US-based companies are more than just legal entities on foreign soil, they can function as strategic hubs for global talent acquisition. By partnering with a PEO, businesses can shift their focus from administrative obligations to growth and strategic planning, making the most of their Canadian presence.

Syndesus can help companies leverage their Canadian office

Syndesus is a one-stop solution for companies looking to tap into the Canadian market. Not only does Syndesus offer PEO and EOR services for US companies in Canada we also help US companies run and strategically grow their existing — albeit small — Canadian immigration offices. We can manage the technical aspects of employment such as immigration, benefits, HR, and payroll. Your administrative processes are taken care of while you focus on expanding your workforce and moving your company forward.

Alternatively, if you’re keen on working directly with a Canadian employer or a Canadian company needing tech pros, our tech recruitment platform, Path2Canada, can help. We have an expansive database of thousands of seasoned mid- and senior-level tech professionals eager to relocate and contribute to Canada’s tech scene.

Reach out to us to learn more about how we can help you.