Moving from in-house hiring and recruiting to outsourcing is a big decision, and it’s one that business owners don’t take lightly. As with any other strategic decision that needs to be made, you likely want to perform some research to better understand whether or not it’s a good idea to outsource your hiring function.
These statistics about the Canadian staffing industry can provide some insights that can help you make your decision.
1. Province Differential
Business owners in Ontario, Alberta, British Columbia, and Quebec are the most likely to outsource their hiring needs to a staffing agency. In fact, 96% of employment services industry revenue comes from these four provinces, according to a Statistics Canada report. Ontario sees the largest operating revenue at 51.1%, Alberta follows at 25.4%, and then Quebec at 12%.
2. Metro Areas
Furthermore, the use of employment services is most popular within the six largest metropolitan areas, namely Toronto, Montreal, Edmonton, Calgary, Vancouver, and Ottawa. It shouldn’t be a surprise that these are the key locations for staffing demand considering these areas account for approximately half of the total population in Canada.
In addition, Toronto has the most head offices in Canada with Calgary having the second most head offices, so it’s expected that this would be where the largest markets for staffing would be. Toronto sees more staffing in banking, telecommunications, and insurance, while Calgary sees more staffing in the oil and gas sector.
3. Clientele
If you’re in the business sector, then your current idea to outsource your hiring function is on par with the rest of the industry. The business sector is the primary client of the Canadian staffing industry, making up a staggering 86.7% of 2013 sales. Public institutions and the government are also big clients, accounting for 10.6% of total sales that year.
4. Market Size
There’s little doubt that the Canadian staffing industry is growing. In 2014, the industry had a total market size of 9.8 billion dollars. This number is forecasted to rise in 2016 to 10.3 billion. With more competition than ever before, businesses are trying to cut costs while capitalizing on top talent. Outsourcing their recruiting and hiring functions helps them do both. With fewer hiring costs, reduced turnover, and top talent, these businesses gain an edge over their competition.
5. Export Industries
Due to a weakened Canadian dollar and a strong US dollar, Canada’s exports are expected to grow, making up approximately 30% of Canada’s GDP. Industries that include industrial machinery, aircraft and parts, building and packaging materials, pharmaceuticals, and fabricated metals are expected to become a new growth opportunity for staffing firms in the near future.
6. Popular Worker Types
In 2014, it was estimated that approximately 50% of the temporary Canadian staffing industry was comprised of professional workers and the other 50% consisted of commercial workers, including blue collar workers and office or clerical temps. This 50/50 split is on par with the US staffing industry and is a trend that is expected to continue into the future. The revenue proportions by skill segment of workers supplied were estimated at 25% of revenue for IT staffing, 14% for engineering, 5% for finance and accounting, 2% for healthcare, and 4% for other professionals.
If these statistics about the Canadian staffing industry have convinced you to partner with a staffing firm, then contact Liberty Staffing today.
