Hiring? 8 Smart Strategies for Small Businesses to Attract & Keep Top Talent

Small business owners in Canada, eager to expand and strengthen their companies, often face challenges in recruiting the right talent for crucial roles. Many struggle to find qualified candidates who can help drive business growth and maintain momentum.

A key reason for this challenge is the tight Canadian labour market, which continues to impact recruitment efforts. According to Statistics Canada, employment increased by 0.4% in June, with the employment rate rising to 60.9%. Simultaneously, the unemployment rate saw a slight decline to 6.9%.

Meanwhile, the 2025 Zensurance Small Business Confidence Index survey of Canadian small business owners found 10.5% of owners intend to hire more employees this year. That’s down from the 33% of business owners who told us in 2024 they plan to hire more employees.

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For businesses that are hiring this year, there could be a broader pool of job candidates to choose from – particularly among Canadian youth. Data shows Canadians between the ages of 15 and 24 are facing the highest unemployment rate this country has seen since the mid-1990s.

Canadian small businesses that are hiring can take heart. In fact, small businesses have distinct advantages, including agility, mission-driven values, and a deep focus on people. It’s these attributes that can propel them into lasting success in hiring and retaining talented employees. 

While talent shortages may persist, they are not insurmountable. Here are eight actionable strategies that Canadian business owners can use to attract and retain top talent:

1. Be Flexible

Offering flexibility that works for both your business and employees is no longer just a perk – it should be a top priority for Canadian business owners.

Data from the Angus Reid Institute suggests 59% of Canadians prefer working from home if it’s possible. Among workers who experienced working from home during the COVID-19 pandemic or who do presently, that figure jumps to 76%. Only 9% of workers prefer working in an office or on a job site full-time.

Some roles undoubtedly require a physical presence. However, flexible work schedules, hybrid work options, results-based work arrangements, or even just understanding life happens and being accommodating can help small businesses win big by offering what large companies often can’t: genuine flexibility.

2. Define and Highlight Your Business’s Culture

People want to be paid fairly for what they do, but choosing an employer to commit to requires more than just a decent paycheque. People want to work for organizations that reflect their values.

That is particularly true for younger generations. For instance, research from Deloitte notes Gen Z and Millennials prioritize work-life balance, learning and development opportunities, a positive workplace culture, and flexible hours when seeking employment.

Small businesses have the upper hand over corporations in these areas and can celebrate their workplace culture while showcasing their purpose, impact, and authenticity.

Craft a compelling company story that highlights your business’s ‘why,’ ensuring your mission, values, and community involvement are showcased in job listings, interviews, and onboarding processes.

3. Hire for Attitude and Train for Success

A job candidate who fits your culture and brings enthusiasm can often be more valuable than someone with the perfect résumé but the wrong mindset. 

In other words, look for potential, not just credentials, and offer relevant training and upskilling opportunities for new and current employees.

Over 60% of Canadian workers consider upskilling essential for career growth, and 64% are more likely to invest time in learning and development if their employers cover the costs, according to an Angus Reid upskilling survey.

Interestingly, 57% of Gen Z workers and 52% of Millennials believe upskilling and training are critical to advance their careers. However, these cohorts are also the ones most affected by the cost of courses and training.

4. Simplify Hiring Processes

Job candidates today expect a quick hiring process and won’t wait weeks or months for an employer to make a decision. One of the top reasons job applicants ghost employers is a poor interview process.

Business owners need to streamline their applications, interviews, and offer stages to be smooth, forthcoming, and respectful of candidates’ time.

Use simple application forms. Be responsive and provide frequent communication to candidates on the status of their applications. People want and value honesty and transparency, especially when it concerns their careers.

5. Make Onboarding New Employees Personal

A crucial part of hiring new employees is setting them up for success and not tossing them into the deep end on day one, expecting them to adapt.

Make the first days count by ensuring new hires feel welcome, supported, and clear about expectations. Have a senior or experienced member of your team serve as a mentor or success partner for them.

An estimated 83% of employees with mentors find them helpful in career advancement, navigating difficult situations, learning new skills, and boosting job satisfaction, according to a Future Skills Centre survey. 

6. Celebrate and Recognize Performance

Increasing employee retention starts with celebrating and recognizing their achievements and performance.

So do that. Publicly celebrate and congratulate employee accomplishments, reward them with small bonuses or other perks, and celebrate top performers. These ideas can be done cost-effectively. 

A Robert Half report notes 73% of Canadian workers say receiving recognition for their contributions influences their decision to remain with their current employers.

7. Be Creative With Benefits

You might not be able to afford top-tier perks for employees, but you can offer meaningful, cost-effective benefits.

For example, offering mental health days, professional development budgets, pet-friendly offices, or profit sharing. Measures like these can stand out more than free snacks or ping pong tables.

8. Encourage Feedback and Act On It

Soliciting employee feedback regularly and taking action to implement suggestions that help foster a healthy workplace culture demonstrates to your employees that you are invested in their happiness and success.

A small business with a culture that shows employee concerns are heard and considered is likely one with low turnover. By consistently listening to your employees’ concerns, you’re demonstrating you regard them as the business’s most valuable asset.

Does Business Insurance Cover Injuries to Employees?

Protecting your small business from liabilities related to occupational injuries is a crucial component of your ongoing risk management strategies.

Part of that strategy should include workers’ compensation insurance, or workers’ comp, which is regulated by the province where you live.

It is a type of workplace insurance funded by mandatory employer premiums and designed to provide injured workers with wage-loss benefits, coverage for medical expenses and rehabilitation, and resources for employers to help prevent injuries from occurring at their places of business.

Workers’ comp is different from employers’ liability insurance; however, the two complement each other – employers’ liability insurance protects an employer if one of their employees is injured, and workers’ comp is insufficient, the benefits don’t apply, or if the injury was caused by negligence.

How to Get Comprehensive, Low-Cost Small Business Insurance

Protecting your small business’s financial and reputational health with comprehensive business insurance is equally essential for attracting and retaining top-tier talent.

Zensurance is Canada’s leading small business insurance provider, helping more than 500,000 small business owners, entrepreneurs, and independent professionals get the affordable coverage they need.

Complete our online application for a free quote in just a few minutes.

Our savvy, knowledgeable team of insurance brokers will shop our partner network of over 50 insurers to find the right coverage to suit your business and budget, customize it to address the risks you face, and issue the policy documents and a certificate of insurance in 48 hours or less.

– Reviewed by Brandon Bowie, Senior Broker and Team Lead, Professional Lines, Zensurance.