Canadian employers are grappling with challenges on multiple fronts, from rising demands for higher pay to the shifting skill sets driven by artificial intelligence (AI) and lengthy recruitment cycles that are slowing down the hiring process. These insights come from Robert Half’s 2025 Salary Guide, which outlines emerging trends across various sectors, including finance, technology, and human resources.
Pay concerns dominate worker priorities amid inflation
In a tight labour market where inflation remains a pressing concern, salary is the top priority for Canadian professionals. According to Robert Half’s findings, 92 per cent of workers are worried about inflation outpacing their salary growth, while more than half (51 per cent) feel underpaid.
This discontent could prompt a wave of job-seeking, as one-third of employees surveyed said they would consider leaving their current positions if pay increases aren’t forthcoming.
“Salary continues to be the biggest priority for professionals, as cost of living remains top of mind,” said David King, Senior Managing Director for Robert Half in Canada and South America. The guide also noted that 60 per cent of respondents cited salary as their primary consideration when evaluating new roles. In response, 32 per cent of hiring managers have begun raising starting salaries to stay competitive and attract talent.
AI’s growing impact on hiring and skill demands
As AI becomes more prevalent in the workplace, Canadian employers are increasingly seeking candidates with specialized AI skills. The report reveals that 51 per cent of hiring managers have noticed a shift in the skills needed to support AI and automation projects. In turn, this shift is influencing hiring strategies, with 32 per cent of employers boosting their hiring efforts to meet the demand for AI expertise, and 40 per cent relying on contract workers or consultants to fill these roles.
“AI, machine learning, and automation projects are high priorities for firms across Canada,” the report notes, highlighting the importance of ongoing skill development. Employers are investing in training to keep pace with AI-driven advancements, emphasizing the need for a workforce that can adapt to rapid technological changes.
Long hiring cycles contribute to turnover and lost opportunities
While the push for AI skills and competitive pay is reshaping the hiring landscape, the report also sheds light on the consequences of prolonged recruitment processes. Nearly half of the managers surveyed (44 per cent) attribute high turnover rates to lengthy hiring timelines that increase the workload for existing employees. Additionally, 42 per cent of employers report that extended hiring processes drive up recruitment costs, while 40 per cent say they lose top candidates to competitors because of delays.
Prolonged hiring timelines have other operational impacts as well. According to the report, 39 per cent of managers noted that delayed hiring has led to stalled or cancelled projects. These setbacks underscore the need for streamlined recruitment processes to help employers secure qualified candidates in a timely manner and avoid disruptions.
Navigating a shifting hiring landscape
With these challenges, Canadian employers are tasked with not only adjusting pay and upskilling for AI but also optimizing their hiring practices to attract and retain talent. Robert Half’s 2025 Salary Guide suggests that businesses must adopt a multifaceted approach to stay competitive, balancing competitive salaries, flexibility, and efficient hiring cycles to succeed in a dynamic job market.
Robert Half’s annual guide, which compiles data from job placements and extensive surveys, offers insights tailored to various professional sectors across Canada. As employers look to navigate these changes, the report emphasizes the importance of adaptability and strategic investment in talent development as keys to long-term success in the evolving labour market.
