The impact of potential tariffs on Recruitment for SMB’s in Canada.
Disclaimer: We are not economists or experts in economic policy. HannahHR is based on our big sisters' 15 years of HR consultancy experience at BLANKSLATE. They specialize in People and HR for Small—to Medium-sized businesses, and this post provides our perspective.
For the first few weeks of 2025, we have heard a lot of fear. Many “What ifs?” and “What does this mean for us?” Small and medium Canadian Businesses that work directly with or export exclusively to the US, are worried right now, and rightfully so!
In times of uncertainty, companies need to adapt in a way that’s uniquely suited to sustaining their business. But what does that mean? Cashflow management becomes key, and the workforce is one of the most significant expenses for any company. As a result, companies often start with this line item in times of uncertainty.
Typically, recruitment gets reviewed, and hiring freezes until it’s clear how tariffs will impact and where they must apply or remove resources.
Questions to ask yourself if you're recruiting right now:
- Is this a permanent role or a project-based role? Can it be filled out by a contractor/freelancer?
- Is this new role essential to business, or is it a nice to have?
- Can you execute the work you need to do without additional labour strength?
- Is there bandwidth within the existing team to execute this role instead?
- Can some of this role be solved by creating internal processes and efficiencies? Is there a technological solution that might offset some of this roles’ requirements?
- How does this role align with our company’s short-term and long-term strategic goals?
- Can this role be deferred until the economy stabilizes without significant business disruption?
- How will this hire affect team dynamics and workload distribution?
- How will current employees be impacted if we don’t proceed with this hire?
- Are there non-monetary ways to support the team (e.g., process improvements, workload redistribution)?
If the answer to all these questions still leads you to believe you need to hire, then you're in luck. In a downturn economy, we see a swing to a company-driven market. This means that there are more qualified candidates looking for roles than companies hiring. In turn, it helps slow the wage battle and allows companies to access talent that might otherwise not have been available.
Want to learn more about how hannahHR support small businesses to grow while maintaining legal compliance in turbulent political and economic times?
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