Canadian Healthcare Trends and What It Means for You: Opportunities and Lessons for US Staffing Agencies
By Hunter Reid, President of Payroll Funding Canada
Healthcare staffing in Canada is vastly different than its counterpart in the United States – but that doesn’t mean US firms can’t gain anything from knowing what’s happening up north! While governments, programs, insurance, customers, and a variety of other key factors differ, there are a number of elements to running a successful staffing company in the sector that are effective in both environments, as well as several similar challenges.
The COVID Wage Bubble Burst
In the midst of COVID, healthcare staff saw their wages, expense accounts, benefits and signing bonuses skyrocket to all-time high levels. And like any of us who have had a few years of being rewarded at higher levels, it’s a difficult journey returning to lower pastures - the eating is just not as good! The current challenge the industry is experiencing is just that; educating new or returning hires to the less lucrative jobs as downward wage pressure demands more level remuneration in most areas. Two strategies we are witnessing to combat this are 1) US companies drawing in Canadian healthcare workers and 2) the interprovincial movement of healthcare workers across Canada, whereby companies are pulling from the lower paying regions into the higher paying regions. Here are a few ways our staffing firm clients have been tackling this: • Drawing candidates from out of region • Providing pay scale comparatives by region • Allowing for shift/work choice (where available) • Hiring new immigrants
Canadian Immigration
Canada’s highest immigration on record was 2022 and 2023 continues with a relatively “open door” policy from the Federal government. While there are certainly qualifications and requirements, Canada has nearly doubled on its annual immigration policy. What makes this more interesting, is that provincial governments have been addressing the qualification for immediate recognition of health care workers upon arrival into the country. As an example, Ontario has recognized doctors coming from several other countries who are now only required to take an exam in order to have their credentials immediately recognized in the province, with nursing and several other vocations to follow a similar mandate. For staffing firms, this opens up quite an opportunity to work with and attract newly landed immigrants as part of their overall employee acquisition strategy with considerable success. A few ways our staffing firm clients suggest approaching this to identify new and upcoming qualified candidates: • Working with government • Subsidized/Specialized immigration groups • Testing facilities
A Growing Sector
Most, if not all, of our clients continue to experience significant growth in the Canadian healthcare space, with a fairly rosy outlook over the next several years. While the economy creates some turbulence, the aging venerability and resulting need of our population demands attention. And they have the money to pay for it. While Canada does not share an obvious “two tier” healthcare system there is no question that it exists, and voters are pushing for more local options which will continue to place added demand on the sector to produce quality healthcare. With Canadian health care spending expected to reach $331 billion, or $8,563 per Canadian annually (Canadian Institute for Health Information), there is huge need for healthcare workers - which is good news for those serving the sector. Key Focuses: • Government Healthcare • Hospitals, Clinics, Retirement & Assisted Living • Travel Nursing • Home Healthcare (predominately, but not limited to PSW’s)
Systems, Systems, Systems
Like other sectors in staffing, systems are a key element to growth. Getting started is relatively easy as we continue to support smart start-ups in this space, often with one of the partners having a health care background or continued exposure and perspective on the sectors need. We took some time to speak with several of our staffing firm clients, from start up to $50MM+ and asked them what challenges they currently face in relation to growth. Unanimously the response was: systems!
The new growth firms often cite key software addressing specific needs such as front-end ATS, mid-operational time systems or implementation of standard operating procedures (“SOP”) that make sense for a new growing firm. The mid- to larger firms are focused on more advanced end-end systems that take their candidates from hire to retire. While most of us prefer not to spend inordinate amounts of time or money on new systems, the objective is to identify each bottleneck in your operational funnel and widen it through automation, process or even elimination of unnecessary tasks in your SOP.
Network and Partners
Saving the best for last, nothing in your organization will outperform your network and partnerships. These are the purchased or built third-party system suppliers, and organizations that you have and will partner with in future who are best aligned for your growth. We know this intuitively but also through experience. While our business is in the business of supply through partnership at the forefront of our approach, we have selected partners in our own network with three very specific criteria in mind:
1. Will the partnership support future needs? 2. Will the partnership provide growth opportunities? 3. How well do the people at the partner company know your business?
It goes without saying that we select a partner based on our perception that they can support our current needs, so the emphasis should be on “where are we going” rather than on the here and now. Our partners should be selected strategically on what doors can be opened and what other services are readily available when you are ready for them.
