By HR and health & safety consultancy Peninsula Canada

There’s no doubt that the ongoing bilateral tariff escalation between the U.S. and Canada will be damaging for Canada’s economy and workforce. Reports suggest that Canada’s GDP could reduce by as much as 3.25 percent, with industries like automotive, energy, and manufacturing being the worst affected.

In the employment sector, this means 1.5 million jobs could be at risk across various sectors, with Ontario’s automotive industry alone potentially losing 500,000 positions.

Kiljon Shukullari, HR advisory manager at Peninsula, says, “U.S. tariffs put Canada’s automotive, energy, and agricultural sectors at risk, jeopardizing jobs and creating economic instability. The auto industry’s integrated supply chains could crumble, while Alberta’s oil exports may experience sharp declines, costing billions annually.

“Agriculture and retail sectors will likely also suffer due to reduced consumer spending. For small and medium-sized businesses, the tariffs could mean increased costs, disrupted supply chains, and reduced competitiveness in US markets.

“Sadly, economic losses usually mean job losses and increased unemployment. Employees may want to seek more stable employment in sectors not impacted by tariffs, leading to increased turnover and reduced morale. We could see further disruption to business as employee retention becomes a major challenge for employers.

“Businesses that need to terminate or temporarily lay off employees should plan properly and ensure they comply with all employment laws to avoid costly legal claims.” To reduce the risk of litigation, employers should:

Review documentation and implement written job contracts: “Well-written work contracts reduce risks of higher costs at termination. An employment contract with language that authorizes temporarily laying off employees and termination clauses that comply with employment standards law will decrease the risks of wrongfully terminating an employee or constructive dismissal claims.”

Prepare contingency plans for workforce reductions: “Fix criteria for selecting employees for layoffs or reduced hours. To avoid claims of discrimination or bad faith, it is best practice to document the rationale for such decisions.”

Provide advance notice of changes to hours, wages, or roles: “If possible, provide support services such as counselling or job placement assistance to help with a smooth transition.”

Train managers for termination meetings: “Training managers on how comply with employment standards legislation can help lower risk. Emphasize the importance of maintaining respectful communication when laying off a worker to minimize risk of aggressive behaviour during dismissal.”

A global leader in HR and health & safety consulting, Peninsula has been supporting small and medium businesses for 40 years. We are trusted by over 140,000 SMBs globally. In Canada, we helped over 6,500 SMBs with tailored HR documentation, 24/7 employer advice, and provide employment management software. We pride ourselves on delivering a service that mitigates risk, adds value, and allows businesses to focus their time on what matters most.

Finding and retaining top-tier sales talent can be complicated. According to Wolf Gugler, a veteran recruiter with over 30 years of experience in the home improvement sector, organizations face an evolving set of expectations and obstacles that require both strategic foresight and adaptability.

Remote work promotes flexibility. “The pandemic shifted everything,” says Gugler. “Now, people have more flexibility—hybrid or fully remote work is often the norm. But that also means your competition for talent isn’t just in your city anymore. If you’re in the Greater Toronto Area, you’re not just competing with other local firms. You might be up against a U.S. company entering the Canadian market or one from Vancouver.”

This broader competition for talent requires a sense of urgency and clarity during the hiring process—something that’s often missing. “Sometimes HR struggles to get the hiring manager to make a timely decision, and that can cost you top candidates,” he explains. “You don’t need to rush, but you do need to be process-oriented.”

Flexibility and transparency. Candidates, especially in sales, seek more than just a paycheque. Work-life balance, flexibility, and clear expectations are non-negotiables, according to Gugler. “Sales isn’t a 9-to-5 job. You’re answering calls after hours, attending recitals, managing work from a concert,” Gugler says. “Companies need to acknowledge that, support it, and still expect results.”

Another key issue? Job description accuracy. Often, candidates will discover the job they accepted and begin working in turns out to be something they didn’t interview for,” Gugler notes. “There might be tasks added post-hire or gaps in onboarding. It’s usually not malicious—more often, it’s miscommunication. But it leads to frustration.”

Data fluency and category leadership. Sales professionals today are expected to be more than relationship builders—they must also be data literate. “Whether it’s POS data, shelf analytics, or using Excel and customer portals, being fluent in data is now part of the job,” Gugler emphasizes. “And if you’re not providing them with a sales analyst, they better be able to handle it themselves.”

He also highlights the growing importance of category management. “Strong candidates aren’t just selling a product—they understand the entire category. They’re bringing insights to the merchant, thinking proactively, and creating new opportunities for collaboration.”

U.S. vs. Canadian approach. When asked about differences in hiring practices between the U.S. and Canada, Gugler points to travel expectations. “In the U.S., a rep might cover a massive territory with 50 percent travel. That’s a lot to ask, and not everyone is up for it,” he says. “Sometimes, companies understate what the travel load will be, and that backfires.”

Salary is just part of the equation. While compensation always matters, it’s rarely the sole reason people move. “Usually, dissatisfaction builds when someone finds out their peers make more, or when bonus payouts don’t match expectations due to company performance,” says Gugler. “But more often, they’re quitting on their boss or leaving because the company lacks innovation.”

Still, inflated salary expectations can be a red flag. “I had someone just recently tell me they’d only consider moving for a 30 percent bump and big bonus potential. That’s the kind of thing that turns companies off,” Gugler says. “If someone has moved three times in four years, it might not be about growth—it might be about chasing money.”

Plumbing and HVAC wholesaler Wolseley Canada, based in Burlington, Ont., has announced that it will fund 21 financial need-based bursaries to produce skilled trades workers in its industries.

The bursaries will range from $750 to $2,000 and will be available coast to coast to coast in Canada.

“We see first-hand the important role that skilled trade workers have across the country,” says Wally Quigg, president, Wolseley Canada. “We understand the rising costs of pursuing post-secondary education can be a barrier for many and we’re proud to support students who are pursuing a career in the skilled trades.”

Wolseley will place a particular emphasis, in awarding its bursaries, in those provinces with the greatest skilled trades shortages. “We want to make a difference,” says Quigg. “If we can help remove some of the financial costs of education and help more students enter the trades, we’ll have made a positive, lasting impact on the industry.”

Wolseley Canada has approximately 2,500 employees and it operates more than 220 wholesale locations in the country. It serves a contractor base who do plumbing and HVAC work in what Wolseley identifies as a $340 billion industry in North America.

Dialogue Health Technologies Inc., a Canadian wellness provider, has realeased the latest edition of their annual report in partnership with Leger. It revealed that Canadians are feeling a sharp decline in their mental health and well-being under the growing weight of financial pressures and poor work-life balance.

The new report, Dialogue’s 2025 State of workplace well-being, highlights a workforce under pressure. In the past year, a third (30 percent) of Canadian employees experienced a decline in their mental health. Respondents identified worsening financial health (29 percent), continued sleep issues (26 percent), and lack of physical exercise (23 percent) as top contributors to their mental health challenges. This, in turn, fuels anxiety and burnout, making it harder to meet the demands of the workplace.

Regarding workplace benefits, the report shows a significant gap between the well-being benefits offered to Canadian employees to support their mental health and their understanding of what these benefits are and how they can be accessed. While 80 percent of employers offer access to an employee assistance program (EAP), only 16 percent of employees understand these benefits very well.

While the factors affecting employee well-being persist, the findings also reveal that employees are actively looking for ways to tackle these challenges. The report focuses on the positive role employers can play in empowering their employees to improve their physical and mental health, and just how effective accessible solutions are in driving real impact.

“We’ve seen over the years how Canadian workers are increasingly burdened with the demands of both personal and professional expectations. Taking care of your health isn’t just about staying physically healthy but about nurturing your mind, too,” said Dr. Stephanie Moynihan, associate medical director at Dialogue. “Once we’ve acknowledged it, we can start trying to solve it. To tackle this, employers can better provide employees with the right tools at their disposal, which can range from treatment-based solutions, self-serve resources, habit trackers, and wellness activities.”

Employees turn to external professionals or informal support networks like friends and family when facing well-being challenges but rarely think of using their workplace benefits. As a result, 65 percent of employees have never used their EAP benefits for mental health support. Despite this, over 70 percent of HR professionals report that these benefits contribute to increased employee engagement, reduced absenteeism, and improved retention—indicating a clear gap between availability and actual utilization.

Awareness alone contributes greatly to an increase in employee well-being, and employers should communicate the breadth of high-quality care EAPs can offer. Of those using EAPs, an overwhelming number of respondents report satisfaction in support for family and relationship issues (89 percent), managing workload and deadlines (86 percent), women’s health (84 percent), and mental health and substance use (81 percent). As the growing number of Canadian employees in need of well-being support increases, employers have a responsibility to break down the barriers that prevent their employees from using these benefits.

With a federal election coming up on April 28, Canadian employers face challenges in balancing employees’ democratic rights with workplace safety.

Charlie Herrera Vacaflor, senior employment law consultant at Peninsula Canada, says, “Political transitions or significant events like a federal snap election create unique workplace dynamics where personal political opinions and professional boundaries intersect. Canadian employers must review their obligations on election day and reinforce workplace harmony while respecting employee’s diverse political viewpoints.

Under the Canada Elections Act, all employees who are eligible to vote must receive three consecutive paid hours during polling hours (9:00 am to 9:30 pm local time) to cast their ballot. Employers who fail to comply face fines up to $2,000, imprisonment for up to three months, or both.

If an employee works from 10:00 am to 7:00 pm, their work schedule overlaps with voting hours but does not inherently provide three consecutive hours within the voting window. Therefore, the employer is legally required to grant paid time off. This could mean letting the employee arrive 1.5 hours late or leave 1.5 hours early to create a continuous three-hour window within polling hours.

Where an employer is obligated to provide voting time off, the Canada Elections Act explicitly prohibits any deduction from an employee’s pay, and employees cannot be penalised in any way for exercising their right to vote. Employees must receive their regular day’s pay. For hourly or piece-work employees, this means they must be paid for the hours they would have normally worked, even if they are at the polls.

The Act further prohibits employers from using intimidation, undue influence, or any other means to interfere with an employee’s ability to exercise their three consecutive hours for voting. Employers must be transparent and communicate voting rights clearly.

While facilitating voting access is a straightforward legal duty, managing political discourse can present different challenges. Political belief is not explicitly a protected ground under most Canadian Human Rights legislation (except for British Columbia and Manitoba), but employers must ensure that political discussions in the workplace do not create a discriminatory or hostile work environment.

Allowing bigotry or hate speech, even under the guise of political commentary, can disrupt the workplace and form the basis for harassment or discrimination complaints, potentially leading to constructive dismissal claims under unsafe workspace environment grounds.

Employers should ensure they have clear and robust policies that outline acceptable behaviours and establish clear boundaries for respectful political discussions. Provide specific examples of prohibited conduct, such as harassment, discriminatory comments, or hate speech, and clearly state the company’s commitment to balancing freedom of expression with its obligation to maintain a safe, respectful, and productive work environment. Establish clear and accessible procedures for addressing workplace conflicts arising from political discussions, ensuring prompt and impartial resolution.

We’ve all seen examples where social media posts have led to issues in the workplace, and seemingly casual political comments can easily turn to a liability or disciplinary issue for employers. So, it’s important to remind employees of your expectations regarding use of social media.

Clearly distinguish expectations between employees’ on-duty and off-duty social media use, especially when it comes to representation of company views. Establish explicit guidelines for sharing political content on company platforms, internal communication channels, and outline specific examples of prohibited online behaviour.

It’s important, however, to ensure a careful balance between reasonable policies and employees’ rights to privacy and freedom of expression.

The overarching goal is not to eliminate political discussion entirely, but to ensure such discussions are conducted respectfully, without interfering with productivity or creating a hostile or discriminatory environment for any employee.

A global leader in HR and health & safety consulting, Peninsula has been supporting small and medium businesses for 40 years. We are trusted by over 140,000 SMBs globally. In Canada, we helped over 6,500 SMBs with tailored HR documentation, 24/7 employer advice, and provide employment management software. We pride ourselves on delivering a service that mitigates risk, adds value, and allows businesses to focus their time on what matters most.

Tom Newton is an executive coach with 30 years of experience and is head of Trillium Executive Coaching.

What are some of the things that make a company a great place to work? In Tom Newton’s experience there are three things to highlight: trust, purpose, and learning and development.

“First and foremost is trust. It really is foundational,” he says. “You can build trust over a long period of time, but it’s easy to lose it quickly. So, a lot of things go into trust. It’s something that leaders should spend a lot of time to really analyse or to look in themselves and go, do people trust me?

A first sign there’s a lack of trust can even be seen during a meeting. Are there crickets, Newton asks? It sends the message that there’s a lack of feeling safe to speak up.

Active listening is important. “Listening to somebody, and maybe you’re not going to follow through on their idea, is empowering when somebody comes up with an idea and they have an opportunity to share it. And it’s in a safe space.”

How well does the company communicate? “Communication is huge. When you think how often you might hear somebody on the front line say, ‘Well, we don’t know what’s going on.’ That creates an ‘us versus them’ kind of atmosphere.”

Trust and communication create a pathway to have healthy debate, to express ideas, he says. “When that happens, then innovation can come alive. But it goes through a process of trust that leads to allowing for healthy conflict, which can lead to commitments and people buying in. If everybody’s had the opportunity to speak their mind on something, you’re going to get better buy-in—because people have made that contribution, which leads to accountability and ultimately results.”

Purpose helps people to align the work they do with the purpose of the business. Newton shares a bricklayer analogy and how it relates to someone working on the front lines. When asked what each is doing, bricklayer number one says he’s laying bricks. Bricklayer two says he’s building a wall. Bricklayer three says he’s building a cathedral. “When people understand why they’re doing something, they can connect the work they do to the key results of the business.”

It helps define purpose: knowing that what they’re doing matters, Newton says. “That contributes to people saying, ‘I like working here.’”

Learning and development is empowering. When companies provide support, Newton says, it’s encouraging. “Even having a good mentor on the job. That, too, is learning.”

Initiatives like these should always start at the top. “If the culture isn’t created from the top, it comes up from the bottom,” where Newton says it can create a negative experience. “It’s rooted in gossip. But when it’s coming from the top and it’s intentional, it works its way down.”

Canada is known for being a beacon for immigrant talent. According to the Government of Canada, the country planned to admit more than 110,000 skilled immigrants under the Federal High Skilled category in 2024, as part of its overall immigration levels plan, which aims for 485,000 permanent residents. Though Canada continues to welcome skilled workers in record numbers, many in the building industry are concerned that the country is not letting in workers to help fill their employment needs.

For example, immigrants made up more than half of the core-age workforce in the Toronto region with a bachelor’s degree or above in 2021. Nearly a quarter of these highly skilled immigrants were newcomers, according to a report titled Embracing Immigrant Talent: Perspectives and Practices of Toronto Region Employers, conducted by the Toronto Region Immigrant Employment Council.

The report noted that in Ontario, newcomers with a bachelor’s degree or above from outside of Canada are especially at risk of overqualification. In 2021, the report stated, 17.8 percent of newcomer men and 20.3 percent of newcomer women with degrees from abroad worked in jobs requiring a high school education or less. Meanwhile, the comparative figures for all Canadian-born workers were 9.7 percent for men and 8.6 percent for women.

Bill Ferreira, executive director of Build Force Canada, told Hardlines that over the next decade, the industry will need to recruit approximately 380,500 workers to keep pace with demand and replace retiring workers.

According to the latest BuildForce Canada 2025 to 2034 forecast, the construction industry could face a shortfall of up to 108,300 workers by 2034.

“While we anticipate that 272,200 of those positions can be filled through domestic recruitment, this still leaves a significant gap of 108,300 workers. Addressing this shortfall will require a multifaceted approach: attracting displaced workers from other industries who possess transferable skills, increasing participation from historically under-represented groups in the skilled trades, and expanding efforts to integrate newcomers already in Canada seeking employment,” he said. “Immigration will play a supporting role, but it cannot replace the need for robust domestic recruitment and training strategies.”

Ferreira believes the greatest pressure appears to be within the voluntary trades, particularly in the residential and civil sectors. He said occupations such as trade helpers and general labourers are experiencing especially acute shortages.

“Unfortunately, immigration is often not a viable solution for these roles. Many individuals with experience in these high-demand trades are ineligible for permanent residency under Canada’s Express Entry system. Although provincial nominee programs offer some flexibility, the application and processing timelines remain too long to effectively respond to the industry’s near-term needs,” he said.

As for the potential impact of tariffs on the construction industry and overall demand for construction services, he said, it remains too early to predict with any certainty.

The Clement family has been involved in the lumber and building supply industry for five generations dating back to the late 1800s. Mission Building Supplies, in Edmonton, seems to have what does it takes to stay successful, particularly in retaining long-term employees.

The store won the 2024 Outstanding Retailer Award (ORA) in the category of Best Contractor Specialist at last year’s Hardlines conference. Company president Don Clement (shown above, holding the award with his wife, Nicole, and sponsors Jacques Desrosiers of Johns Manville, far left, and Yanick Miron of Taiga, far right) is familiar with the deep-rooted passion his parents Tom and Karen Clement, who are the owners, as well as his grandfather and generations before them had for this industry. “This passion is not limited to the family but extends to our dedicated staff, many of whom have made Mission their home for numerous years,” he said in the ORA entry form.

The team consists of individuals with extensive tenures, including shipper-receivers and engineering technologists who have worked at Mission for over 20 years, multiple truck drivers with over 15 years of service, a sales team with members exceeding 10 years, and retired sales staff who dedicated over three decades to Mission. “This experienced and committed team has solidified Mission’s reputation in the industry as knowledgeable and customer service-oriented,” said the application.

In addition to training, particularly for back-end staff, new hires receive a minimum of one week of training alongside a certified trainer, then first aid, forklift certification, and any other job-related training a staff member would like to take. Front-end staff receive multiple months of mentoring from general manager Lonnie Janes.

Sales staff receive a healthy base salary based on a combination of experience, knowledge, and performance. There is also a generous profit-sharing program, as well as several incentive programs for both front- and back-end staff.

Back-end workers are eligible to receive “Johnny Days.” Johnny Days was re-named from “Steady Eddie” Days after a long-term truck driver who showed exemplary attendance over a 15-year period. When a staff member shows up on time to every scheduled shift for three months running, they receive eight hours of vacation time added to their standard vacation eligibility.

All staff receive fully paid health and dental plans after three months of employment, and short- and long-term disability. All employees receive flextime benefits. These flex hours are provided as an additional benefit to provide an enhanced work-life balance. To increase their recruiting efforts, Mission offers a Candidate Referral Bonus program, which pays up to $200 for the referral of a qualified candidate.

Mission also has a Service Recognition Award program designed to recognize and appreciate significant long-term contributions. Employees are awarded a cheque at designated levels of long service, from five to 20 years of service. All awards are presented publicly at the company Christmas party or other appropriate company gathering.

On March 4, 2025, the U.S. levied 25 percent tariffs on certain Canadian goods. In retaliation, Canada announced their own tariffs on U.S. imported goods that add up to approximately $30 billion annually. Now the U.S. has scheduled 25 percent tariffs on all steel and aluminum imports from Canada; a decision that will heavily disrupt Canadian supply chain. A full-scale trade war between Canada and the US would have a major impact on small and mid-size businesses. Canadian businesses must understand the risks they face and prepare proactively.

Impact on economy and employment. U.S. tariffs will have damaging effects on Canada’s economy and workforce. A CIBC report suggests Canada’s GDP could decline by as much as 3.25 percent, with industries such as automotive, energy, and manufacturing facing the brunt of the impact. In the realm of employment, this means having up to 1.5 million jobs at risk across different sectors, with Ontario’s automotive industry alone potentially losing 500,000 jobs.

Impact on Canadian employers. This economic disruption may force small and mid-size Canadian businesses to start laying off employees. The economic fallout from U.S. tariffs may increase litigation related to terminations and constructive dismissals in Canada’s courts.

Economic uncertainty created by tariffs can cause low employee morale and increased turnover as workers look for more stable opportunities. Canadian employers may have a hard time retaining skilled staff, thus further disrupting operations.

Terminating employees demands workforce planning and compliance with Employment Standards legislation. Not providing proper advance notice or recall an employee back to work could lead to a constructive dismissal claim.

Protect your business from risk of litigation by reviewing documentation and implement written contracts. Ensure your employees are under written contracts of employment. Review their job contracts to ensure they allow you to layoff an employee and that its termination clauses effectively limit an employee’s common law termination entitlements. If their termination clause is unenforceable, employers may incur higher termination costs (up to seven times more).

Well-drafted job contracts reduce such risks. An employment contract with language that authorizes temporarily laying off employees and termination clauses that comply with employment standards legislation will reduce the risks of wrongfully terminating an employee or constructive dismissal claims.

Workforce planning. Canadian employers should have emergency plans for workforce reductions, including criteria for selecting employees for layoffs or reduced hours. To avoid risks, it is best practice to document the reason for decisions to show fairness and avoid claims of discrimination or bad faith.

Good communication is important. Employers should provide advance notice of any alterations to hours, wages, or duties. Where possible, offering support services such as counselling or job placement assistance will help with a smooth transition.

Before terminating an employee or laying off staff, ensure your managers are trained on how to lay off an employee without violating employment standards laws.

Bilateral tariffs escalation present exceptional challenges for Canadian businesses, particularly in managing workforce impacts effectively and lawfully. By following proactive measures such as written work contracts, workforce planning, and clear communication, employers can reduce risks while maintaining compliance with employment laws.

A global leader in HR and health & safety consulting, Peninsula has been supporting small and medium businesses for 40 years. We are trusted by over 140,000 SMBs globally. In Canada, we helped over 6,500 SMBs with tailored HR documentation, 24/7 employer advice, and provide employment management software. We pride ourselves on delivering a service that mitigates risk, adds value, and allows businesses to focus their time on what matters most.

Nicole Gallucci is an author and business and life coach who helps leaders and entrepreneurs align business and life goals with coaching, proven frameworks, and strategies for lasting success.

In times of economic uncertainty and what it means for business owners and employees, Nicole Gallucci advises that managers and leaders must help their teams recognize that they’re valuable.

Given the opportunity to reflect on individual strengths and accomplishments, sometimes by looking within your own organization you can build on an employee’s strengths, which will in turn strengthen the organization’s viability, as well. “We’re finding that an employee can help with their own retention by actually acknowledging their accomplishments and their strengths for themselves,” she says.

If management recognizes employees’ strengths, there will be less need to utilize external resources such as freelancers or consultants, she adds.

Gallucci mentions a client, whose biggest supplier is Home Depot, that had its head carpenter express interest in another department of the business: gaming. “Interestingly enough, they’re now adapting some products. It’s interesting to see how you dial back, say six months ago. Would you have had this conversation in your office? Would you have had to say to the carpenter, ‘We’re going to lay you off because we’re not as busy.’ Whereas now, it’s no.”

Giving your team the opportunity to rise to the occasion and work together, as opposed to shuttering the business’s doors is “unbelievably inspiring, unbelievably motivating. We’re solving bigger problems.”

We often look to leadership to have all the answers, yet opening the door for conversation amongst your staff can result in new opportunities and other avenues for revenue. “The last time I checked, leadership is not superhuman, and the best leaders actually admit their vulnerabilities and humanity—and have the most loyal followings when they bring everybody together,” Gallucci says.

Plant the seed with your employees, present the challenge, and let everyone ruminate. “You can regroup individually or collectively.” Sometimes, by having gone through the process of helping people realize their own purpose and value beyond their function, she says, “that’s what inspires them to realize and have the confidence to now say, ‘What if we do this and go out of outside of their… prescribed box?’”