Doing business with a Canada PEO & EOR
Canada is a culturally diverse and developed country that is a common location for international business expansion. With its close proximity to the United States and a flourishing economy, it creates a productive environment for doing business.
That being said, international expansion into Canada can be complicated. With two national languages, provincial differences, and a set of labor laws that is unique compared to international standards, expanding business operations into Canada can often take longer than planned. Delays can lead to loss of significant revenue, so it is important that any organization interested in expanding here understands the laws and procedures.
Working with a Canada PEO with payroll experts that specialize in the management of Canadian workforces allows your organization to begin hiring and onboarding local professionals to expand as efficiently as possible, regardless of whether or not you already have an established subsidiary in the country.
Why Use a PEO in Canada?
The process of obtaining work visas and expanding your business into Canada with full legal compliance can be both challenging and time-consuming for foreign companies looking to begin operating in Canada. A Canada PEO provider can simplify this process for your business by managing the hiring and onboarding processes, leaving your company the time and resources to focus on the central functions of your business. Local employment experts who work for the PEO can also help expedite the process of renting office space, managing employment contracts, and more, depending on the needs and goals of your organization.
How to Hire in Canada
Canada has both federal and provincial employment laws, so depending on the Canadian market where you are looking to operate, you will need to familiarize yourself with everything that is relevant to your location. While providing employees with a formal contract is not required, we recommend that you use one to specify the details of any employment arrangement. This protects your business from starting new professional partnerships on the basis of any miscommunications. The details that should be specified into an employment contract include such as benefits, salary & wages, vacation allowance, and anything else relevant to your relationship with your new employee.
Because Canada is a bilingual nation with both English and French being used as a first language in certain provinces, it is important to provide an employment contract in the correct language for the employee and region where your employee will be based. However, in every province except Quebec (where French is the official language), English is the most common language for employment contracts and is the language that will generally be expected.
Canada has a universal healthcare system which provides residents and workers with the majority of their necessary healthcare needs. The level of coverage varies by province, and some regions offer more comprehensive coverage (which includes drug costs and dental care), but core medical expenses are covered nationwide by taxes.
As every culture presents different hiring challenges and opportunities, utilizing the recruitment channels with the highest potential yield is especially important for the process of hiring talented professionals in Canada. Partnering with a Canada PEO is an area where your company can likely benefit from working with an already well-versed organization in terms of understanding local regulations and possesses in-country connections.
In order to successfully hire in Canada, it can also be helpful to work with a recruitment agency to simplify and expedite the process of hiring talented professionals in the country. On occasion, global PEO organizations will have an in-house recruitment agency that will significantly aid the process of recruiting in Canada. The benefits of using a recruitment agency to improve your overall hiring process include:
- Accessing local recruitment experts who are familiar with the Canadian market and the best hiring practices.
- Working with a Canada PEO that is designed to understand the specific goals of your business and that can create a recruitment search process that is designed to fulfill your exact needs.
- Taking advantage of the recruitment agency’s local legal expertise to ensure that your business is compliant with the local laws and regulations in regards to employment.
When you partner with a PEO that offers recruitment coverage, you also receive the benefit of having ongoing support that includes the hiring and onboarding processes in addition to the initial recruitment phase.
Below we have listed our recommendations for the 3 Best Canada PEOs and Employers of Record. These companies all possess outstanding reputations for being able to hire talented professionals in Canada as well as ensure full compliance with local employment regulations.
Best Canada PEOs and Employers of Record
Unlike many Canada PEOs/EORs operating in North America, Horizons places high value on employing local consultants who truly understand the employment and business landscapes in which companies operate.
In doing so, it is able to guide executives through the often complex processes involved in setting up a business in Canada, as well as assisting any foreign staff to understand the business culture and etiquette.
GlobalizationPedia identified some of Horizons’ key advantages compared to its competitors:
- A 100% Horizons-owned entity in Canada.
- Large team of HR experts on-site in Toronto and Vancouver.
- French speakers in every department at Horizons.
- Hire in any province with Horizons.
- Generous supplemental insurance plans: health, vision, dental, and death & disability.
Global PEO is a fast growing PEO company that has gained significant traction in the globalization industry in recent years. Based in Hong Kong, Global PEO has entities in more than 160 countries worldwide, with their in-country expertise being a catalyst for their business’s growth as well as leading the way as part of our top Canada PEO choice for expansion into North America. Affordability is a strong selling point for businesses expanding into Canada, and GlobalPEO offers competitive rates that provide a strong value to foreign companies.
In addition to recruitment and hiring services, they’re also set up to take on a variety of duties based around entity setup, staffing, payroll, and a variety of administrative functions.
SkyExecutive is a well-respected recruitment agency and Professional Employer Organization (PEO) with active in-country entities located in Canada. With their ability to combine the leverage of their in-house recruitment agency and day-to-day employment solutions for companies looking to expand overseas, Sky Executive deliver a strong overall value to their clients while providing a single point of contact for these businesses.
In addition to their suite of expansion services, Sky Executive is also know for its deep network of local consultants based in Canada, with that level of local expertise being helpful for companies looking for a smooth transition into a new business environment.
Why are Deel, Remote, or other companies missing?
Deel, Remote, and other market-leading EORs are fine companies – but they may not be the best choice for hiring in Canada due to several factors:
- Such companies often prioritize hyper-growth, driven by investor demands for rapid expansion, over ensuring compliance with local regulations and protecting the interests of their customers. This can lead to potential legal and financial risks for companies utilizing their EOR services.
Example: A company focused on hyper-growth might encourage employers to hire de-facto employees as contractors, opening the client up to employee misclassification risk unnecessarily.
- In the past, we’ve seen that such ‘young & tech-driven’ providers may not meet the necessary knowledge levels for providing adequate EOR services in Canada, jeopardizing compliance.
Example: To best mitigate Canada PEO hiring risks, a Canada EOR or Canada PEO should be well-versed in laws surrounding labor rights and protected employees.
- Relying on a virtual-only support team can make it challenging to address any issues or concerns that may arise, potentially causing delays or disruptions in operations.
Example: If there are no local support staff in-country, your Canada employees may be left without answers to their important questions. If you go with a company that outsources their support staff to another time zone or to non-HR specialists, you risk losing candidates, or worse, employees.
- Providers specializing in HR in the United States may provide perfect service, but…
Example: Local US providers can often provide perfectly adequate service in Canada. However, if you are a US company that plans to hire more employees elsewhere abroad, it is recommended to go with a Canada EOR that is also a global EOR. In this way, your company can directly try the service of a global EOR in a low-risk, low-stakes environment with employees in the same time zone and a similar culture.
As such, it is recommended to carefully evaluate EOR providers based on their track record of compliance, experience in Canada, and support capabilities, rather than solely on their growth and pricing potential.
Request a Proposal
If you are looking to expand your business’s presence into Canada, GlobalizationPedia can help connect you with the best PEO that fits your company’s objectives at a cost-effective rate. Fill out the form below and we’ll use our extensive database of strategic partnerships to provide you with a full rundown of the best potential Canada PEO matches for your organization.