Humi data shows more Canadians staying put; benefits and pensions now key to retention strategies
A recent Humi survey indicates that over half of Canadians who previously considered relocating to the US for career opportunities are now less inclined to do so, influenced by Donald Trump's re-election and new US tariffs.
This shift presents Canadian employers with a chance to strengthen domestic talent retention.
Historically, Canada has experienced a “brain drain,” with professionals moving south for higher compensation and lower taxes.
The survey found that 21 percent of Canadians with university-level education or higher have contemplated such a move in the past five years.
Younger generations are more inclined: 29 percent of Gen Z and 23 percent of Millennials, compared to 17 percent of Gen X and 5 percent of Boomers.
Among those considering relocation, 31 percent cited higher compensation and 29 percent pointed to lower taxes as primary motivators.
Kevin Kliman, co-founder of Humi, noted, “Unfortunately, these findings don’t come as a surprise as the Canadian government and companies have long struggled to reverse the trend of brain drain.”
He added that recent US political developments might offer a unique opportunity to address this issue.
The survey also revealed that 52 percent of respondents are less likely to consider moving to the US in the next four years due to Trump's re-election, and 51 percent are deterred by new US tariffs.
Kliman emphasized, “Talent is a company’s greatest asset, and with Canadians re-considering moving their careers to the US, businesses have an exciting opportunity to attract local talent over the next four years.”
To capitalize on this shift, Canadian employers are encouraged to:
- Offer Competitive Benefits: Small and medium-sized enterprises can now provide benefits packages, including health and retirement plans, previously exclusive to larger corporations. Engaging employees to identify valued benefits can enhance these offerings.
- Align Career Goals: Regular check-ins to connect individual career aspirations with business needs can boost engagement and motivation.
- Invest in Technology: Modern, user-friendly tools can improve job satisfaction and productivity.
- Ensure Compliance: Implementing employment platforms tailored to Canadian regulations across provinces and territories can provide reliable payroll systems.
Additional insights from Benefits and Pensions Monitor suggest that defined benefit (DB) pension plans are effective in attracting and retaining talent.
According to the CAAT Pension Plan, 86 percent of members considered the DB pension a key reason for joining their employer. Employers have reported up to a 50 percent reduction in involuntary departures after implementing such plans.
Furthermore, fostering workplace friendships has been linked to higher retention rates.
A survey by Express Employment Professionals and The Harris Poll found that 85 percent of companies believe employees are more likely to stay if they have friends at work.
With changing sentiments towards US employment opportunities, Canadian employers have a timely opportunity to enhance their talent retention strategies through competitive benefits, career development, modern technology, compliance, and fostering a positive workplace culture.
