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Category Archives: Government

All blog posts by Kevin Dee, Chairman at Eagle — Canada’s premier staffing agency, related to government.

March Tech News

This is my 30,000-foot look at events in the Tech industry for March 2020. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of March in previous years …

Five years ago in March 2015 HP paid $3 billion for Aruba Networks; Lexmark paid $1 billion for customer management software company Kofax; eCommerce company Rakuten paid $410 million for ebook marketplace Overdrive; Cheetah Mobile paid $58 million for mobile ad network MobPartner; TeraGo Networks paid $33 million for cloud provider RackForce; IBM bought natural language and image processing company AlchemyAPI; and in the cable TV world Charter Communications paid $10.4 billion for Bright House Networks.

March 2016 saw the $3 billion sale of Dell Services to NTT, a direct result of Dell’s IBM logorestructuring following the recent purchase of EMC. IBM was out bolstering its services business with a couple of acquisitions; the first was Optevia, a UK-based integrator focused on Microsoft Dynamics; and the second was Bluewolf Group, a global Salesforce consulting partner. Montreal-based Yellow Pages picked up Toronto-based Juice Mobile, primarily for its mobile marketing capability. Another Toronto company, Influitive, raised some cash ($8.2 million) and bought a couple of mobile app companies, Ironark Software and Triggerfox; and Netsuite bought IOity solutions, a cloud-based manufacturing software company.

Three years ago, in March 2017, Intel bought Israeli computer vision company, Mobileye, Amazon Web Servicesfor a hefty $15.3 billion. HPE bought storage solution provider, Nimble, for $1 billion. Amazon Web Services, a public cloud infrastructure provider, acquired Thinkbox Software, a company that provides software for managing media rendering workloads. Mozilla acquired Pocket, a startup that developed an app for saving articles and other content.

In March 2018 there was a significant amount of M&A activity.  The deal of the month saw Salesforce logoSalesforce pay $6.5 billion for cloud integration company Mulesoft.  Plantronics paid $2 billion for unified communications company Polycom; and Amazon paid $1 billion for smart home company Ring.  Other deals saw eBay shell out $700 million for the commerce platform Qoo10; Cognizant buy Bolder Healthcare Solutions; HPE Aruba buy Cape Networks; VMWare buy security company, E8; and Deloitte pick up API Talent in New Zealand.  It is also nice to see Avaya buying Spoken Communications after leaving Chapter 11 bankruptcy protection.

Last year in March 2019, the big deal of the month saw Nvidia shell out $6.9 billion for data centre solutions vendor, Mellanox.  F5 Networks paid $670 million for up and coming competitor NGINX; and Juniper Networks paid $40 million for AI startup Mist Systems.  Some other deals this month were Apple’s acquisition of machine learning startup LaserLike; Veritas’ acquisition of analytics company Aptare; Mastercard bought security company Ethoca; and Spotify added to its podcast capability with the purchase of Parcast.  Other companies in the news included Lyft, which was the first of several high-profile tech companies with planned IPOs in 2019; SAP who announced a major round of layoffs and SAS who joined the growing number of companies investing big in AI, announcing a $1billion investment.

Which brings us back to the present …

In March 2020, the big news is all about the impact around the world of the COVID-19 pandemic.  The economic and employment fallout have been dramatic, and there is significant uncertainty about how quickly people can get back to work.  So the messages for the period are stay home, wash your hands and don’t touch your face!  Stay safe people!

There was some M&A activity worthy of mention, including the $34.9 billion bid for HP, and HP logosubsequent withdrawal by Xerox.  No doubt that will resurface at some point in the future!  Veritas Capital is buying DXC’s Health and Human Services business for $5 billion; Private Equity firm Hellman & Friedman is paying $1.15 billion for software security testing  company Checkmarx; Palo Alto Networks is buying CloudGenix  for $420 million; and Accenture is paying $139 million for security consulting company, Context Information Security.  Other deals saw Watchguard buy Panda Security and NetApp buy Talon Software.

In the wake of so many layoffs there are bright spots around the world as some companies are staffing up.  A couple of notable announcements include Amazon, who announced they would be hiring an additional 100,000 people and increasing wages for their hourly workers; and Walmart who announced they would hire 150,000 people.

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

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Kevin Dee is the founder of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service ——————————————————————————————————————————

The Value of Recruitment Agencies Through the COVID-19 Pandemic

Marc Beniof quote about importance of talentOur team has spent the last couple weeks connecting with clients to understand how they’re coping through the COVID-19 epidemic and new economy we’re all experiencing. Not surprising, every organization is experiencing different challenges.

There are devastating stories coming from industries like hospitality and oil and gas, where low demand has halted IT projects and layoffs are being announced in unprecedented numbers. Contrarily, in other industries, organizations have seen the development of new, urgent projects and demand for IT help can’t come fast enough. Telecommunications companies, for example, play a crucial role in a time like this as the world depends on their services — internet, telephone and media — to stay connected. Similarly, both retail and manufacturing industries require all the support they can get. Consumers are stocking up on items so much to the point that grocery stores can’t keep up. More importantly, healthcare services are lacking much needed equipment and manufacturing companies are shifting their entire operations to do what they can to help.

The Many Services of the Staffing Industry

These are just a few examples of the range of activities happening at companies across Canada. Regardless of the specific situation, uncertainty and stress levels are through the roof.  As we have conversations with clients and learn about what’s driving their stress, we’re proud that our industry is able to provide support in various capacities:

  • Finding the needed resources for companies who need to hire urgently;
  • Managing those contract resources who are no longer required by unburdening clients and working with contractors to understand how we might help;
  • Bringing ideas and stories to clients about what others in their industry are doing;
  • Sharing our own experiences with work from home, pandemic planning etc.; and,
  • Being another resource to talk with, for both clients and contractors, which is always important in times of stress.

Some Examples of What Eagle is Seeing and How We’re Bringing Value

We’re currently working with companies who are scrambling to hire and build teams that make website updates and build applications literally within hours. Others need extra resources to ensure their workforces of hundreds of people are set-up to work from home securely and efficiently. That requires rolling out new hardware and making configurations on mass scales.

Eagle has been able to bring relief to these organizations in a number of ways:

  • We already have networks of readily available IT contractors.
  • We find the right person quickly because we track IT contractors across Canada, we know which industries and technologies they specialize in, and we have knowledge about who’s available and when.
  • In many cases, our recruiters reach out to contractors with experience and knowledge specific to a hiring organization, meaning they can start working at full capacity on Day 1, with little onboarding.

Overall, we’ve been successful at helping clients ramp up projects immediately so they can get their product and information to customers as quickly as possible.

On the flipside, as noted, we’re also having an unpleasant amount of conversations with clients who are struggling. Organizations where the leadership is working as hard as possible to keep things afloat, but the reality of the COVID-19 pandemic has made it impossible to sustain existing projects. Work is being cancelled, people are out of jobs, and productivity comes to a standstill. Eagle continues to bring value and support to these organizations too:

  • We help deliver bad news to contractors who suddenly find themselves out of work.
  • We do what we can to find those individuals new gigs with organizations needing skilled IT labour.
  • We research and make available information in one place for contractors impacted by layoffs, which has also proven to be useful to clients who can share this information with their own employees.
  • We work with managers to plan for the future.

Although slowing down today, we are hearing from these clients that their project plans, while on hold, are still very important.  This will result in a pent-up demand once things settle.  By better understand these upcoming requirements, even if the time is uncertain, we are able to help with planning for potential hires.  Some clients are proactively hiring, with start dates quite far in the future.  Some clients are interviewing (remotely) now, such that they can make hiring decisions faster when the time comes.  Others are hoping that their staff being laid off will be available in the weeks and months ahead when they are needed again.  Staffing companies are able to provide help with understanding rates, projected demand and projected availability to assist in making these kinds of decisions.

This is not an easy time for anyone. Companies and individuals are dealing with stress and anxiety from all angles, whether it be concerns with financial stability or health. The recruitment industry prides itself on building solid teams that keep companies successful and that is what Eagle has vowed to do for the coming months. We encourage all organizations, those who are hiring and those who are hurting, to reach out to their staffing partners today. Learn what we can do for you and take advantage of our expertise wherever possible. We will all come out on the other side stronger when we stick together.

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Kevin Dee is the founder of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service ——————————————————————————————————————————

February Tech News

This is my 30,000-foot look at events in the Tech industry for February 2020. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of previous year’s Februarys …

Five years ago, in February 2015, we saw the $6.3 billion merger of Staples with Office Depot and the $1.6 billion purchase of Orbitz by Expedia.  There was a big buy in the communications and IT space with Harris paying $4.75 billion for Excelis to establish a 23,000 person company.  There was a big data center play with UK-Microsoft logobased Telecity Group paying $2.2 billion for Interxion Holdings.  Microsoft made a couple of acquisitions, paying $200 million for pen-tech maker N-Trig and $100 million for mobile calendar company Sunrise.  Samsung bought a mobile payment company (competing with Apple pay), LoopPay.  Also out buying was Twitter, which picked up Niche, a network of social media creators.  There were a number of interesting deals in Asia, including Sapdeal buying luxury fashion estore Exclusively; Foodpanda made six acquisitions of online meal delivery services to establish itself as a powerhouse in that space.  Australian job board OneShift bought Adage, which is a job board serving people over 45.

In February 2016, the biggest deal saw HNA Group of China pay $6 billion for Ingram Micro.  Ingram Micro logoTwo other billion dollar deals included Cisco paying $1.4 billion for IoT company Jasper Technologies and a consortium of Chinese internet firms making a $1.2 billion bid for Opera. Microsoft was busy with a couple of acquisitions, Xamarin a cross platform mobile application development company, and Swiftkey which produces predictive keyboard technology.  Another busy company was Alibaba Group which was investing in a bunch of companies, including a $100 million investment in Groupon, and smaller investments in microblogging site Weibo; software company Momo; augmented reality startup Magic Leap; Chinese retail chain Suning; and Singapore telco SingPost.  Other companies of note out buying included IBM who bought digital agency Aperto and Blackberry acquired cybersecurity company Encription.

The apple logo and apple with a bite out of itThree years ago, in February 2017, there was very little M&A action.  Nokia paid $371 million for Finnish telecom software company Comptel, as it reinvented itself, and Apple picked up an AI startup company RealFace.

February 2018 was a very active month in M&A.  There was more consolidation in the telco space with US-based GTT paying $2.3 billion for London headquartered Interroute, thus expanding its global footprint.  Security companies were a theme this month and you will spot several in the following list.  Cybersecurity firm Phishme was bought with $400 million of private equity money; Splunk paid $350 million for Phantom Cyber Corp; and Proofpoint paid $225 million for Wombat Security Technologies.  Other deals saw LogMeIn pay $342 million for Jive Communications; Carbonite pay $146 million for Mozy; and Red Hat pay $250 million for Core OS.  Some of the household names that were also out making deals included Oracle, Google, Opentext, Avaya and Citrix.

Last year, February 2019 was a relatively busy month in M&A but there were no blockbuster, billion dollar deals.  The biggest deal I saw was Carbonite’s $618 million Spotify logoacquisition of internet security company Webroot.  Palo Alto Networks seemed to be on a buying spree, closing two deals this month, $560 million for analytics company Demisto and $170 million for cloud security startup, RedLock.  The money guys were out shopping too, with Thoma Bravo paying $270 million+ for MSP platform company Connectwise and Trive Capital paid $330 million for Windstream’s Earthlink telephone service provider assets.  Spotify announced its podcast intentions with a couple of acquisitions, Gimlet Media and Anchor, and Witricity strengthened its hand in the wireless charging space with the acquisition of Qualcomm’s Halo business unit.  There were some big names out shopping too, including Microsoft who picked up Datasense in the education space; Amazon picked up eero in the home automation world; DXC picked up EG A/S a services company in Europe; and Semantec bought cybersecurity startup Luminate Security.

Which brings us back to the present …

February 2020 was a relatively quiet in the number of M&A deals, however there were dell logosome big dollars and some big names involved.  Dell announced that it is selling RSA, its cybersecurity arm to a group of investors for $2.075 billion.  Internet of Things company, Forescout went public about two and a half years ago, but was bought by private equity for $1.9 billion this month.  Another big deal saw SAIC pay $1.2 billion for Unisys subsidiary, Unisys Federal.  Infosys improved its Salesforce capability and US presence, paying $250 million for Simplus, a Salt Lake City based consulting company.  Other, smaller deals saw HPE buy cloud security company Scytale and Square bought Toronto based AI startup Dessa (formerly DeepLearni.ng).

Other news was somewhat dominated by the coronavirus outbreak and what that might mean for our industry.  Conferences have been cancelled, travel curtailed and one interesting bye-product was an increase in hiring of temp workers in China, to service the many people who cannot leave their homes.  Related, but not solely because of coronavirus the Chinese government announced it would be “seizing control” of HNA Group Co, which happens to be the parent company of Ingram Micro.  Cisco was also among the first companies to announce impending layoffs due in part of potential coronavirus impacts.

The jobs news around the world was generally upbeat and the US economy continues to perform strongly.  In Canada the job numbers were not too bad, but there are lots of clouds on the horizon with blockades affecting infrastructure projects and resulting regional unrest.

That is it for my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!

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Kevin Dee is the founder of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service ——————————————————————————————————————————

November Tech News

Tech News HeaderThis is my 30,000-foot look at events in the Tech industry for November 2019. What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

A Little History of previous year’s Novembers …

Five years ago, November 2014 was an exceptionally quiet month on the M&A front with Yahoo logothe largest deal being the merger of two semiconductor companies, Cypress Semiconductor and Spansion to form a $4 billion company; private equity company Carlyle Group paid $700 million for investment bank technology company Dealogic and Yahoo shelled out $640 million for video advertising company BrightRoll.

November 2015 saw Expedia pay $3.9 billion for HomeAway as a vehicle to better compete The apple logo and apple with a bite out of itwith Airbnb.  Zayo Holding Group became the first foreign company to own a Canadian telco after paying $465 million for Allstream.  Other smaller deals saw Apple buy Faceshift, a motion capture company whose technology was used in a Star Wars movie; and Lightspeed POS bought SEOshop, increasing its size as a competitor to Shopify.  Other deals saw Ingram Micro grow its Brazilian presence with the purchase of ACAO; PCM bought Edmonton based services firm Acrodex; Data centre company CentriLogic bought infrastructure company Advanced Knowledge Networks; solution provider Scalar Systems bought another Toronto company, professional services firm Eosensa; and Washington-based New Signature bought Toronto-based Microsoft Partner, Imason.

In November 2016, Broadcom acquired Brocade Communication Systems for $5.9 billion; Adobe purchased multi-channel programmatic video platform TubeMogul for $540 million; IT services and outsourcing provider Wipro Limited bought IT cloud consulting firm Appirio for $500 million; Oracle Corp. announced its plans to acquire DNS solution provider, Dyn Inc.; SoftwareOne acquired and integrated House of Lync; and Avnet completed an acquisition of Hackster.

Two years ago, in November 2017, the big M&A activity for the month saw investment firm Thoma Bravo pay $1.6 billion for Barracuda networks.  McAfee also made an acquisition of Skyhigh Networks and smaller deals saw Talend buy Restlet and Qualys buy Netwatcher.

Last year, November 2018 was a busy month in the M&A space, with lots of action!  The largest deal saw SAP shell out $8 billion for experience management company Qualtrics.  Not far behind was Commscope paying $7.4 billion for telecommunication equipment maker Arris.  Vista Equity partners paid $1.94 billion for cloud software company Apptio; and private equity fund CVC paid $1.8 billion for a global IT and managed services provider, ConvergeOne Holdings.  The final billion-dollar deal saw Blackerry make its largest acquisition, paying $1.4 billion for AI cybersecurity startup Cylance.  In other deals, Thoma Bravo bought security testing vendor Veracode for $950 million; LinkedIn paid $400 million for a surveying startup, Glint; power management company Eaton paid $300 million for Turkish company Ulusoy Elektrik; and Citrix shelled out $200 million for intelligent portal company Sapho.  There were plenty of big name companies out shopping with no price tag named, Accenture bought a German design agency Kolle Rebbe; Apple bought AI company Silk Labs;  HPE bought big data company Bluedata; Oracle bought Talari Networks; Cisco bought networking company Ensoft; Microsoft bought another AI company, startup XOXCO; Red Hat (recently purchased by IBM) bought storage startup NooBaa; VMware bought Kubernotes startup Heptio; Symantec bought a couple of companies, Appthirty and Javelin Networks; and DXC bought a couple of companies TESM and BusinessNow.

Which brings us back to the present …

 November 2019 saw quite a few big dollar deals.  The biggest saw Apollo Global taking TechData private in a deal worth $5.4 billion.  eBay sold its Stubhub subsidiary to Viagogo for $4.05 billion; Xerox is selling its stake in Fuji Xerox such that Fujifilm will own the whole entity at a cost of $2.3 billion; Google paid $2.1 billion for Fitbit ; and Opentext paid $1.4 billion for security company Carbonite.  That is a lot of billion-dollar deals for one month!

DXC logoOther deals saw Proofpoint pay $225 million for threat management company ObserveIT; DXC picked up solution providers, Virtual Clarity and Bluleader; Rackspace bought professional services company Onica, and Mimecast picked up DMARC Analyzer.

One other company in the news was Cognizant, who announced it would be laying off between 10,000 and 12,00 employees.

Economic and jobs news around the world was a little mixed, with signs of things slowing in most countries.  Canada lost jobs in October, despite a big boost in public sector hiring.  The US had decent job numbers, but signs were less positive moving forward.  Of course, less positive, does not mean negative!

Some interesting reports this month, with Canada’s privacy commissioner pointing out that 28 million Canadians were affected by corporate hacks or mismanagement.  Pretty interesting for a country with a population of 37.5 million!  Two separate AI report suggest different impacts on jobs into the future; The Brookings Institute suggesting Higher paid workers will be the most impacted; and Jim Goodnight suggesting it will be the factory floor most impacted.

Eagle logoOne final piece of news and a little plug, as the Global Power 150 list of Women in Staffing was released, with Eagle’s CEO Janis Grantham on the list.

That’s what caught my eye over the last month.  The full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the November 2019 industry news in just about a month’s time.

Walk Fast and Smile

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Kevin Dee is the founder of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service ——————————————————————————————————————————

Canada’s Job Market – Fourth Quarter of 2017

Canadian Job MarketGeneral Observations:

The unemployment rate at the end December was 5.7%.  This was the lowest rate in forty (40) years, and a significant improvement over September when it was 6.2%.  During the previous 12 months, Canada added a very strong 422,500 jobs of which 394,200 were permanent full time jobs.

As just one indicator of the markets, and for the purposes of this report I focus on the TSX which showed strong growth during Q4, ending with a reading of 16,200 which was an improvement of 600 points from the end of Q3.

The price of a barrel of oil saw a little resurgence in the final quarter of 2017 reaching heights it hadn’t seen for a few years now.  It remains to be seen whether a price near the $65 range is sustainable, or the result of some OPEC activity but some companies are reacting positively.

The Canadian dollar continued to operate in the 80c US range, which was very similar to Q3.  This was positive given how well the US economy has been performing.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading latest reading Q4 was close to its high, at 123.  This was a big jump from its Q3 reading of 109 and a reading of 116 in Q4 of last year.

Eagle logoHere at Eagle, demand was about as expected in Q4 which includes the holiday season.  Client demand dipped about 15% and was very similar to demand in Q4 of last year.  The number of job applicants was up more than 20% from Q4 of a year ago, and very similar to last quarter when we would have expected a seasonal dip.

Some of the sectors with big talent demands.

Piggy Bank accepting moneyThe financial sector is a huge employer in Canada and top talent is always in demand.  Technology is a huge part of their ecosystem and they invest in leading-edge technologies to gain competitive advantage and to improve productivity.  The banks have been leaders in automation (ATMs etc) and invest in AI, technology incubators and all of the latest innovations.  There will continue to be a demand in their technology shops into the foreseeable future.

Like the banks, the telcos are big believers in technology and invest heavily.  They have large technology groups and are always looking for ways to differentiate and gain competitive advantage through the use of technology.  While they demand the best talent in order to compete, they are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs, and with the recently introduced tax changes we can anticipate more investment and an even bigger appetite for talent.  The demand for skills in the US coupled with Canada’s increased tax burden will ensure that Canadian talent continues to head South.

ConstructionThe construction industry continues to thrive in Canada, and presents a good career opportunity.  The never-ending demand from the big projects (look at the skyline in just about any city), coupled with the demand for home renovation projects will ensure this demand continues for some time yet.  The aging workforce will also present opportunities, as workers retire.

The three levels of government in Canada are big employers, employing more than 20% of Canada’s workforce (CFIB).  These are well-paying jobs with great benefits, and with the retiring baby boomer generation comes a continuing need for talent.

More Specifically:

cn towerThere are more than six (6) million people living in the Greater Toronto Area (GTA) and it is home to more than 50% of Canadian head offices. It is the 4th largest city in North America, and represents about 60% of Eagle’s business.  As such it remains Canada’s busiest market, with the biggest appetite for talent.  The financial, telecommunications, insurance and services sectors are all busy.  The construction business is booming and there is a vibrant high tech/startup community.

The Saddledome in CalgaryThere are plenty of signs that Western Canada is recovering from the oil sector meltdown.  While the oil and gas sector itself is not particularly vibrant, it has turned the corner and the worst of the downsizing and layoffs are finished.  Large companies will always need talent, to replace their retiring employees, for new projects and to bring new lifeblood into the organisation.  Governments in Western Canada are continuing to implement programs and projects that require talent, infrastructure spending is happening and there are opportunities, particularly in the larger centres.  BC is enjoying the lowest unemployment rate in the country and Alberta is starting to see jobs come back.  Saskatchewan continues to be a leader in promoting business and hence job opportunities and Manitoba too is doing well.  Overall the West is in a good place.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  Ottawa is very much a government town again, and there are opportunities in the Feds, which is returning to its employment highs of some years ago.  The tech sector in Ottawa is alive and well with some up and comers, like Shopify and Assent Compliance joinng the Mitels and others that have been around a while.  While not providing the opportunities of Toronto, Ottawa does have some demand for talent.  Quebec appears to be enjoying a renaissance as its unemployment rate is now better than Ontario’s, in addition to having healthier finances.  They have been able to attract industries (such as large data centres) to help the economy and add jobs.  It doesn’t hurt that their hydro rates are very competitive as opposed to Ontario’s situation.  The Maritime Provinces don’t represent a great opportunity for the job seeker, however PEI and Nova Scotia are both showing signs of an improving economy.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Digital, big data, data scientists, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Outside of Eagle’s realm some of the in-demand skills include the classic tradespeople, drivers, and new tech skills like Artificial Intelligence, Robotics, video gaming skills etc.

 Summary:

Canada added more than 422,000 jobs last year, and with the unemployment rate at its lowest in 40 years it is a good time to be looking for work.

There are a number of factors creating this positive situation, including demographic shifts (retiring Baby Boomers), jobs moving to Canada from more expensive places like Silicon Valley and companies developing new technologies.  The large employers, such as banking sector, insurance sector, retail sector, telecommunications sector and the construction industry continue to demand talent. The growth of the “gig economy” creates new opportunities for people to define their own destiny and become mini-entrepreneurs, or build new enterprises.

Job seekers should research and understand the growing sectors and where the in-demand jobs are.  They also need to be willing to go where the work is!  If I was looking for work I would be moving to the larger centres, investing in in-demand skills and increasing my marketability with the right “attitude”.  Clearly the biggest job market is the GTA, but opportunity exists across the country.

In the hotter markets we are seeing clear skills shortages and the “in demand” people are receiving multiple job offers, giving them the ability to “pick and choose”.  So … IF you are looking people, and want to hire the best talent here are some things you should consider:

  1. Start the process early with a strong PLANNING phase;
  2. Develop very clean processes to find, screen, choose, hire and onboard these new resources (if you drag out the hiring process you WILL lose);
  3. Know that you will have a lot of competition and therefore speed in decision making will be critical;
  4. The job doesn’t stop there … a great retention strategy will be critical!

That was my look at the Canadian job market for the third quarter of 2017 and some of its influences.

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Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
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Independent Contractor or Employee (Canada)

Henry Ford quote about business ownershipBefore I get into this blog post I will post a disclaimer … I am not an accountant or a lawyer, so this article cannot be construed as “advice” from a professional.  I am a staffing company owner who has been in the business more than 20 years and have been very involved with this issue at an industry association level.

In Canada independent contractors are typically one person corporations that offer their services on a “just in time” basis to many organisations.  That flexibility is good for our economy.  Some (small) percentage of those independent contractors will go on to create bigger companies, and that is also good for our economy.

I have written previously about the importance of independent contractors to Canada’s economy …  Independent Contractor Myths and Realities in Canada.

The Federal and Provincial governments have a problem with independent contractors because they often believe they are “employees of a different type” and thus are avoiding paying taxes, EHT, CPP, EI etc.   Obviously in such a climate it is prudent to do everything possible to be “onside”.

“A large percentage of small businesses are actually just ways for wealthier Canadians to save on their taxes …” Justin Trudeau

If you are an independent contractor it is imperative that you operate like a business … here are just three reasons.

  1.  The CRA look at independent contractors across a lot of different industries and are constantly evaluating whether they are true businesses.  If you are deemed to be (a) an employee (worst case) or (b) a dependent contractor (bad news) or  (c) operating on a Personal Services contract (also bad news) the tax implications are significant.
  2. The Ontario Government are likely to pass bill 148 with its effect starting in January 2018.  Some aspects of the bill address  independent contractors including  an increase in fines associated with misclassification.  They are also hiring 175 new employment standards officers, who will be focused on the new Bill 148 changes.
  3. The Federal Government recently tabled tax changes for small business, because they believe some people incorporate to avoid taxes.  You do not want that scrutiny.

Government continues its assault on the independent contractor, so independent contractors need to clearly demonstrate that they are a legitimate business.

“Whenever you see a successful business, someone once made a courageous decision.”  Peter Drucker

Here are some common sense (although not always common) suggestions:

  • Incorporate.  Yes, you can operate as a sole proprietor … BUT as a sole proprietor your agency must deduct CPP and EI, and there is even some debate about EHT.  This makes you look like an employee …  you do NOT want to look like an employee.  If you are serious about being a business then incorporate. PS More and more agencies are refusing to work with sole proprietors.
  • Get advisers … an accountant (who TRULY understands the nuances of this space … most don’t) also get a lawyer.  Sure its OK to do your own books, but still engage these professionals.
  • Have your own website.  What other business do you know that does not have a website?  This is just basic stuff.  You MUST operate like a business.  Your own domain would be a good idea.
  • Have business cards.  Even in the digital age I know of no service business that operates without business cards.  Considering the cost, why would you NOT get them.
  • Have a separate business phone number.
  • Have business insurance.  This is good business sense, and is the right thing to do professionally.  It is available at a reasonable rate and is a business expense … so just do it.
  • Advertise your services … on your website, and perhaps job boards.
  • Participate in industry associations such as AQIII or APCC.
  • Invest in yourself.  Take courses on your own time, learn new skills, spend some of those revenues on increasing the capability of your company (you).
  • Do NOT OPERATE like an employee.  If you are operating on a client site then invariably there will be employees there, with similar skills to you.  You should try to differentiate yourself, to avoid the appearance of being an employee.  Some ideas (and there are plenty more)
    • If you attend a company social, pay your own way;
    • If you take any training through the client, pay for it;
    • Do NOT adopt the rigid 9 to 5 mentality … you are a business, do what it takes.  Leave after the employees and if possible arrive before them.
    • Never get involved in company politics, part of being an independent contractor is remaining independent.
    • Do not get paid like an employee … every business I know gets paid monthly or based on milestone deliverables.  Getting paid every two weeks (or twice monthly) just looks too much like an employee.
  • Have your own tools. This is a big indicator in the CRA tests but most (maybe ALL) IT contractors cannot take their own tools to work, typically for security concerns.  However you should have your own tools for marketing purposes, writing proposals, accounting purposes, training purposes, tracking expenses etc.  Any demonstration that you have your own tools helps.
  • Take on risk.  This is another key indicator for CRA.  Sometimes you may get an opportunity to bill Statement of Work activities rather than time and materials, but most often you are paid an hourly rate.  You should accept contractual risk (non competes, monthly payment terms paid only on acceptance of work etc.).  You accept the risk of being responsible for your own future, training and your next contract.  Anything you can do to exhibit an entrepreneur’s mindset on risk will help.
  • Control. Where possible you should get terms removed from your contract that demonstrate a control over you, such as an employee would have.  Eg Hours of work, dress code, how you do your work etc.  This is a difficult one and end clients are often hard to convince, but it’s worth the effort.
  • Sole client. The longer you work at one site, in the same role, the more you begin to look like an employee.  Despite opinions, there are no hard and fast rules about how long is “safe” or pushing the limits.  You can be pretty sure that if your contract is going into years then it is likely to be scrutinised more closely.  That doesn’t mean you can’t be a contractor, it just makes it harder to justify.  Can you have other clients?  Perhaps a part time role supporting someone else?   If it is a long term contract could you change the terms to a higher risk based reward such as a deliverables based contract?  You could offer your services to charities and give them “in kind” donations of your time.
  • Educate yourself. Do not fall into the trap of reading the US articles, their laws are very different than ours.  Understand how the various levels of Canadian government look at independent contractors.  Be CLEAR about ALL of the things that differentiate you from an employee … hopefully most of the ideas here, but also no pension, no sick days, no vacation.  You accept the risk of no pay if you are not working.
  • Have a Sideline. Many large companies were started by contractors, or a group of contractors.   That is one of the values to the Canadian economy that contractors bring.  Your “sideline” could be Canada’s next big company … it could be anything such as an app, a software or hardware product, a services company.  Have a business plan, work with partners, explore the potential.  It could grow from an interesting hobby into something significant.

All of these ideas are just normal practice for a business, so the overriding consideration for anyone operating as an independent contractor is Think and Operate like a business.

To someone starting out this might seem a little onerous, but really none of these are BIG things and they go some way to telling the world that you truly are an independent business.

As already indicated, these are my personal thoughts on this subject and cannot be viewed as professional advice.

 

The following are some links that might be useful:

Government of Canada CPP & EI Explained (IT Consultants)

AQIII (Quebec Association of IT Freelancers)

APCC (Association of Professional Canadian Consultants)

SMB Statistics in Canada

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Canada’s Job Market – Third Quarter 2017

General Observations:

newspaper job sectionThe unemployment rate at the end September was 6.2%, an improvement from the 6.5% unemployment rate at the end of June.  During the previous 12 months, Canada added 320,000 jobs (almost 289,000 full time).

For the purposes of this report I focus on the TSX and during the third quarter it returned to the Q1 level just above 15,600, a gain of about 500 points.

picture of an oil rigThe oil patch continues to struggle, with the price of a barrel hovering in and around the $50 a barrel range.  The continued lack of support from the various levels of government has led to the cancellation of the Energy East pipeline.  This will mean (a) lost jobs, but also (b) reinforce a message to the investment community that Alberta oil is not a good investment.

The Canadian dollar has been relatively strong lately and in the third quarter ranged between 78c US and 82c US.

Piggy Bank accepting moneyThere is little change in the banking sector, which is one of the bigger employers in Canada.  The talent demands for the banks address areas such as regulatory changes, new product development, new service offerings and addressing the aging workforce.  On the other side, new technology and offerings also displaces some of the roles traditionally found at the banks.  The banks remain a good place to find employment, but increasingly the skills needed are specialised.

The telecommunications sector is another large employer in Canada.  Like the banks, this sector is operating in an environment affected by new technological change, demographic pressures and regulatory change in addition to extreme competition.  While they demand the best talent in order to compete, they are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs, and over the third quarter averaged about 90,000 new jobs per month.  The demand for skills in the US is luring talent from Canada which is good for the individuals but not so good for Canada in the long term.

The demand for the “trades” continues unabated, as the construction industry seems to be forever busy.  Cranes dot the skies of Canada’s largest cities, and home renovation projects are hard to staff!

The three levels of government in Canada are big employers.  As an example almost all of the jobs added in Canada in September (about 100,0000) can be attributed to public sector jobs.  Clearly the increased government spending is not a boon for the economy, but good for those looking for public sector jobs.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading at the end of the second quarter was 114, which was up from 110 last quarter, and also 110 in Q3 last year.

Eagle logoHere at Eagle, we experienced an expected drop in demand over the Summer months, of about 10% from the second quarter however demand was up 10% over the same quarter in 2016.  There was a corresponding drop in people looking for work over the Summer months.

 More Specifically:

cn towerThe Greater Toronto Area (GTA) is Eagle’s busiest region, representing about 60% of our business.  It is also the 4th largest city in North America, containing more than 50% of Canadian head offices and with a population of approximately six (6) million.  This market continues to be one of the busiest markets in Canada, and we see strong demand from our clients for skilled talent.  There is some concern that new legislation from the Ontario Government (Bill 148) will have a negative effect on the temporary help market in particular.

The Saddledome in CalgaryWestern Canada continues to struggle, receiving little help from our Federal government and not helping themselves much at the provincial level.  The cancelling of the Energy East pipeline was a tough blow for the region and optimism in the oil patch is low.  While the Conference Board had expected Alberta to be the fastest growing province in Canada for 2017 I doubt we will see that happen.  The BC economy continues to do well despite the concerns about legislation to curb foreign investment in real estate.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  Ottawa is very much a government town again, although there are some smaller tech companies rising from the ashes of Nortel, JDS and the previously large tech sector. The government continues to employ a lot of people (22,000 more in The NCR since the Liberal government took office) but despite significant Federal government hiring the unemployment rate in Ottawa has been a concern.  Quebec appears to be enjoying a renaissance as its unemployment rate is now better than Ontario’s, in addition to having healthier finances.  They have been able to attract industries (such as large data centres) to help the economy and add jobs.  It doesn’t hurt that their hydro rates are very competitive as opposed to Ontario’s situation.  The Maritime Provinces don’t represent a great opportunity for the job seeker, however PEI and Nova Scotia are both showing signs of an improving economy.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Digital, big data, data scientists, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Outside of Eagle’s realm some of the in-demand skills include the classic tradespeople, drivers, and new tech skills like Artificial Intelligence, Robotics, video gaming skills etc.

 Summary:

There are numerous good indicators for Canada’s economy and hence job seekers, but there are also some challenges on the horizon:

  • NAFTA re-negotiations may have a negative impact on our economy;
  • we don’t yet understand all the implications of the Energy East project being cancelled;
  • January in Ontario will see the introduction of Bill 148, a severe increase in minimum wage plus new labor laws that will hurt business and cost jobs;
  • January we will see the introduction of new carbon taxes in Ontario;
  • our Federal Government is introducing new tax changes affecting small business, possibly to help pay for their out of control spending;
  • at the same time that Canada is raising taxes, the US is encouraging small business through tax breaks, which may well cost Canada as some companies will be forced to go where they can make money.

If all of this goes ahead, then we will see a big impact on the job market.

Canada added 320,000 jobs in the last year which is good news for today’s job seekers.  The BIG elephant in the room is whether the factors listed above will conspire to undermine our economy and create a government driven recession.

For job seekers there remain the bright spots, caused by demographic shifts (retiring Baby Boomers), jobs moving to Canada from more expensive places like Silicon Valley and companies developing new technologies.  The large employers, such as banking sector, insurance sector, retail sector, telecommunications sector and the construction industry will always require large workforces representing job opportunity. The growth of the “gig economy” creates new opportunities for people to define their own destiny and become mini-entrepreneurs, or build new enterprises.

The effect of US policy changes by the Trump administration remain to be seen.  Having said that, some possible impacts include immigration (positive for Canada); trade agreements & protectionist policies such as the NAFTA negotiations (possibly negative for Canada); and defense (possibly negative for Canada) all having some impact.

Job seekers should research and understand the growing sectors and where the in-demand jobs are.  They also need to be willing to go where the work is!  If I was looking for work I would be moving to the larger centres, investing in in-demand skills and increasing my marketability with the right “attitude”.

That was my look at the Canadian job market for the third quarter of 2017 and some of its influences.

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Canada’s Job Market – Second Quarter 2017

General Observations:

The unemployment rate at the end of the first quarter was 6.5%, an improvement over the 6.7% unemployment rate at the end of the last quarter.  During the previous 12 months, Canada added 351,000 jobs (almost 250,000 full time).

For the purposes of this report I focus on the TSX and during the second quarter it slipped about 400 points from 15,600 to around 15,200.

Oil canThe oil patch continues to struggle, and while the price of a barrel has been in and around the $50 a barrel range, it actually finished the second quarter down in the $45 range.  The foreign investment money that exited the Canadian oil patch is unlikely to return unless there is a significant shift in political support for this sector.  Even the approval of some pipelines has not generated the positive job impact it might have done a couple of years ago.

Canadian dollar the LoonieThe Canadian dollar had seemed to be settled around the 75c US level, but during Q2 edged up to 77c. (It should be noted that post Q2 an interest rate increase has driven the Canadian dollar even higher.  It remains to be seen whether the increased cost of borrowing will have a negative impact on the Canadian economy.)

There is little change in the banking sector, which is one of the bigger employers in Canada.  The talent demands for the banks address areas such as regulatory changes, new product development, new service offerings and addressing the aging workforce.  On the other side, new technology and offerings also displaces some of the roles traditionally found at the banks.  The banks remain a good place to find employment, but increasingly the skills needed are specialised.

The telecommunications sector is another large employer in Canada.  Like the banks, this sector is operating in an environment affected by new technological change, demographic pressures and regulatory change in addition to extreme competition.  While they demand the best talent in order to compete, they are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs in significant numbers, averaging more than 200,000 jobs a month over the last quarter.  The demand for skills in the US is luring talent from Canada which is good for the individuals but not so good for Canada in the long term.

The demand for the “trades” continues unabated, as the construction industry seems to be forever busy.  Cranes dot the skies of Canada’s largest cities, and home renovation projects are hard to staff!

The three levels of government in Canada are big employers.  Municipal, provincial and Federal governments employ a lot of people.  Under the current Liberal administration the Federal workforce has grown significantly, with about 150,000 employees.   All levels of government are dealing with the issue of retiring “boomers”, among the executive ranks in particular.   The pensions are so lucrative that large numbers of civil servants are eligible for, and invariably take, retirement at a very early age.  This will create opportunity for new jobs, but will also result in a significant brain drain from our government.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading at the end of the second quarter was 110, which was unchanged from the first quarter.  The reading is not adjusted and so is affected by number of available working hours etc.  Having said that, the indication is a positive one.

Here at Eagle, we experienced consistent demand from our clients in the the first six months of 2017.  This is a positive indicator given that demand represents a 25% increase in demand over the fourth quarter of 2016. Eagle did see a big increase in people looking for work in the first quarter (20%) and the second quarter saw another increase of 16%.  There could be many factors at play, but one that we are seeing is both an increased demand for contract talent and an increased interest in the gig economy by professionals.

More Specifically:

cn towerThe Greater Toronto Area (GTA) is Eagle’s busiest region, representing about 60% of our business.  It is also the 4th largest city in North America, containing more than 50% of Canadian head offices and with a population of approximately six (6) million.  This market continues to be one of the busiest markets in Canada, and we see strong demand from our clients for skilled talent.  There is some concern that new legislation from the Ontario Government (Bill 148) will have a negative effect on the temporary help market in particular.

The Saddledome in CalgaryWestern Canada continues to be most impacted by the woes in the oil patch, but there are some positive indicators.  The oil patch has settled into its “new normal” and continues to employ a lot of people, albeit nowhere near the highs of the boom times.  The various levels of government are working hard to replace some of those jobs by attracting new industries, such as technology companies, offering educated and affordable workforces, especially compared to Silicon Valley and more affordable and yet attractive lifestyles. The Conference Board expects Alberta to be the fastest growing province in Canada for 2017.  The BC housing market has been affected by recently introduced legislation to curb foreign investment and a minority government will mean less affective decision making and an uncertain economy.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  Ottawa is very much a government town again, although there are some smaller tech companies rising from the ashes of Nortel, JDS and the previously large tech sector. The government continues to employ a lot of people (22,000 more in The NCR since the Liberal government took office) but the unemployment rate in Ottawa rose steadily in the second quarter. Quebec leads the country in job gains, and have improved their unemployment rate to 6% and added 122,000 jobs in the last 12 months.  The Maritime Provinces continue to struggle to create employment and we don’t expect much change there.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Digital, big data, data scientists, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Outside of Eagle’s realm some of the in-demand skills include the classic tradespeople, drivers, and new tech skills like Artificial Intelligence, Robotics, video gaming skills etc.

Summary:

Canada added 351,000 jobs in the last year which is good news for today’s job seekers.  Forecasters are optimistic for the next twelve months, in fact the Bank of Canada just raised interest rates sparking a recovery for the Canadian dollar.  If we can keep new legislation (CASL at the Federal level, and Bill 148 in Ontario would be just two examples) from hurting job growth then we should enjoy a period of growth.

For job seekers there are bright spots, caused by demographic shifts (retiring Baby Boomers), jobs moving to Canada from more expensive places like Silicon Valley and companies developing new technologies.  The large employers, such as banking sector, insurance sector, retail sector, telecommunications sector and the construction industry will always require large work-forces representing job opportunity. The growth of the “gig economy” creates new opportunities for people to define their own destiny and become mini-entrepreneurs, or build new enterprises.

The effect of US policy changes by the Trump administration remain to be seen.  Having said that, early indicators could see immigration (positive for Canada); trade agreements & protectionist policies (possibly negative for Canada); and defense (possibly negative for Canada) all having some impact.

Job seekers should research and understand the growing sectors and where the in-demand jobs are.  They also need to be willing to go where the work is!  If I was looking for work I would be moving to the larger centres, investing in in-demand skills and increasing my marketability with the right “attitude”.

That was my look at the Canadian job market for the second quarter of 2017 and some of its influences.

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Canada’s Job Market First Quarter 2017

Canadian Job MarketGeneral Observations:

The unemployment rate at the end of the first quarter was 6.7%, an improvement over the 6.9% unemployment rate at the end of the last quarter.  During the previous 12 months Canada added 276,000 jobs.

The stock market continues to be relatively volatile, but perhaps that is the new norm.  For the purposes of this report I focus on the TSX and it has enjoyed a reasonable period of growth ending the first quarter of 2017 at around 15,600 points.  This was up slightly from a reading of 15,300 at the end of last quarter.

Oil canThe oil patch has settled a little, but that isn’t a great news story.  With the price of a barrel hovering around the $50 a barrel range there is a still a conservative approach to adding jobs.  There has been some exodus of foreign money from the oil patch, allowing Canadian companies to increase their property holdings.  While in some ways that is good, it is an indicator that the big players are investing their money in more business friendly jurisdictions.  Even the approval of some pipelines has not generated the positive job impact it might have done a couple of years ago.

Canadian dollar the LoonieThe Canadian dollar seems to be settled around the 75c US level for now, which is where it was last quarter.  While there are some small benefits of a weak Canadian dollar, including positive impact on tourism, overall it is a negative for the Canadian economy and thus for job creation.

The banking sector is one of the bigger employers in Canada, and the Canadian banks have fared well this year with their stock prices riding high.  They are also prudent money managers and have been very careful with their hiring.  Areas of growth for the banks have been any area that improves productivity and profitability, including robotics.  In addition risk mitigation in an era of economic uncertainty has created specific demands.

The telecommunications companies are other big employers in Canada and are also very cost conscious.  While they demand the best talent in order to compete, they too, are also careful about keeping employment costs under control, particularly as they are also acquisitive, which can mean a big focus on integration of acquired companies.  Some of the drivers of demand here include the highly competitive nature of the business, investment in infrastructure, technological innovation and a need to plan for a retiring “Boomer” workforce.

The US economy continues to add jobs in significant numbers, averaging more than 250,000 jobs a month.  The demand for skills in the US will lure talent from Canada which is good for the individuals but not so good for Canada in the long term.  What has not happened, and is different from previous economic times, is that Canada’s economy has not improved along with US economy, which is one of the indicators of our “new normal” environment.

Construction worker

The demand for the “trades” continues unabated, as the construction industry seems to be forever busy.  Cranes dot the skies of Canada’s largest cities, and home renovation projects are hard to staff!

The three levels of government in Canada are big employers.  Municipal, provincial and Federal governments employ a lot of people and with the current Federal government it was expected their ranks would grow.  There has been some growth in the Federal payroll, about 40,000 in 2016 but it was expected to be more.  All of these governments are dealing with the issue of a fast retiring upper echelon.  The pensions are so lucrative that large numbers of civil servants are eligible for, and invariably take, retirement at a very early age.  This will create opportunity for new jobs, but will also result in a significant brain drain from our government.

The Canadian Staffing Index is an indicator of the strength of the largest provider of talent in any economy (the staffing industry) and an excellent barometer of the health of Canada’s economy. The reading at the end of the first quarter was 110, which was significantly up from last quarter when it was 96.  The reading is not adjusted and so is affected by number of available working hours etc.  Having said that the indication is a positive one.

Eagle LogoHere at Eagle we experienced a 25% increase in demand from our clients in the first quarter of 2017 versus the previous quarter, and the demand was about the same as the first quarter of 2016.  We also experienced a 20% increase in people looking for work over the previous quarter and a 16% increase over the same quarter last year.  This would suggest an uptick in activity that is a positive for the economy, if we can keep it going.

 More Specifically:

cn towerThe Greater Toronto Area (GTA) is Eagle’s busiest region, representing about 60% of our business.  It is also the 4th largest city in North America, containing more than 50% of Canadian head offices and with a population of approximately six (6) million.  This market has remained one of the busier markets in Canada, yet has not been as buoyant as previous years, with banks, telcos and provincial government all just a little slower with their hiring.   We have seen a small increase in demand in the first quarter and anticipate things will pick up as the year progresses.

The Saddledome in CalgaryWestern Canada is of course comprised of the oil patch in Alberta and the rest.  Some provinces have fared better than others, with certainly Alberta taking the brunt of the hit because of its resource based employment.  BC was actually the fastest growing province in Canada in 2016 but with an election coming and legislative interference harming the housing sector, the BC economy has started to slow down.  Saskatchewan has fared better than other provinces with a business friendly government although it too is hit by a decline in oil revenues and is struggling with deficit reduction, so no job boom here. The Conference Board expects Alberta to be the fastest growing province in Canada for 2017 but that remains to be seen as the province is not attracting foreign investment (because of Federal and Provincial government policies) and unemployment remains high.

Parliament building in OttawaEagle’s Eastern Canada region covers Ottawa, Montreal & the “Maritimes”.  While there is a better mood amongst the Federal civil service under the Trudeau government, I can’t say that I share their optimism given his focus on anything but job creation.  There has been an increase in Federal government hiring in 2017 with our civil service now employing an extra 23,000 in just the last year (wonder why our taxes are so high?).  Quebec is enjoying low unemployment and continuing to fund new tech growth in the province (wonder where those transfer payments are spent?).  We anticipate that to continue in 2017.  The Maritime Provinces continue to struggle to create employment and we don’t expect much change there.

The Hot Client Demand.

At Eagle our focus in on professional staffing and the people in demand from our clients have been fairly consistent for some time.  Program Managers, Project Managers and Business Analysts always seem to be in demand. It might just be our focus, but Change Management and Organizational Excellence resources are in relatively high demand too. Big data, analytics, CRM, web (portal and self-serve) and mobile expertise (especially developers) are specializations that we are seeing more and more. On the Finance and Accounting side, we see a consistent need for Financial Analysts, Accountants with designations and public accounting experience plus Controllers as a fairly consistent talent request. Expertise in the Capital markets, both technical and functional, tends to be a constant ask in the GTA.  Technology experts with functional expertise in Health Care is another skill set that also sees plenty of demand.  This demand fluctuates based on geography and industry sectors, so we advise candidates to watch our website and apply for the roles for which they are best suited.

Outside of Eagle’s realm some of the in-demand in the trades, a growth in demand skills include the classic tradespeople, drivers, and new tech skills like Artificial Intelligence, Robotics, video gaming skills etc.

 Summary:

 There are some positive indicators that would suggest light at the end of the tunnel, but it is early to tell whether that will lead to economic growth.  At a very low growth in GDP, and increasing government debt loads and no clear fiscal policies to help I do not anticipate significant job growth in Canada for a while.

There are however bright spots, caused by demographic shifts (retiring Baby Boomers) and new technologies.  The growth of the “gig economy” creates new opportunities for people to define their own destiny and become mini-entrepreneurs.

The effect of US policy changes by the Trump administration remain to be seen.  Having said that early indicators could see immigration (positive for Canada), trade agreements (possibly negative for Canada) and defense (possibly negative for Canada) all having some impact.

In today’s Canada job seekers need to understand the growing sectors, the in demand jobs and be willing to go where the work is.  If I was looking for work I would be moving to the larger centres, investing in in-demand skills and increasing my marketability with the right “attitude”.

That was my look at the Canadian job market for the third quarter in 2016 and some of its influences.

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Business Relationships

Trust Sales quote from Zig ZiglarBusiness relationships are just like any other relationships … they need to be nurtured, they need investment and they need a level of commitment.

Clients WILL buy from people they trust, and you do not achieve trust without establishing some kind of relationship.

In almost any business relationship there will come times of stress … where the parties need to fix something, or renegotiate something or have tough conversations.  These situations are always easier if there is a good relationship and a level of trust.

Salespeople and business owners work hard to develop these business relationships and clients invest their time and energy in them too.  There are many ways that they evolve and grow, but here are some ideas:

  1.  Make promises and always deliver (over deliver if at all possible).  This does not have to be hard it could be as simple as committing to send an interesting article by the weekend and doing it the minute you get back to your desk (but never forgetting to send it)!
  2. Meet face to face.  The phone is good, email is a good way to share some stuff but face to face is how you get to know people and they get to know you.
  3. Be truly interested in the other person.
  4. Find ways to bring additional value.  Share interesting articles, data, information, market knowledge for example.
  5. Have regular contact … without wasting anyone’s time.  (Touching base is a lazy approach … you should have a valid business reason, and ideally an agenda for a meeting!)
  6. Never waste their time.
  7. Be positive … keep your own negatives to yourself!
  8. Listen more than you talk.
  9. All large client organisations have valid governance concerns about undue influence of their buyers, so be mindful of these.
  10. It always helps a relationship to have some meetings under more informal settings.  Breakfast, lunch, coffee, drinks after work or even a game of golf (even though I hate golf) can help people get to know each other better.  (Be mindful of #9 above).

Every business relationship will hit a bump in the road at some point, and if you don’t have a relationship built on trust and credibility, beyond the terms of a contract then that bump may feel like a mountain!

“The business of business is relationships; the business of life is human connection.”  Robin Sharma

Invest in those business relationships!

——————————————————————————————————————————
Kevin Dee is Chairman and founder of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————