Canadian employers face fiercer battle for tech talent

International Workplace Group has published a study suggesting Canadian employers face intensifying competition to attract and retain technology talent. The survey found that 70 per cent of Canadian business leaders believe the market for top tech staff is more competitive than ever.

The findings point to a broader shift in hiring and promotion as companies place greater weight on artificial intelligence, data and coding skills. More than half of the 500 Canadian business leaders surveyed said hiring top tech talent is a core priority over the next year, while 56 per cent plan to add more AI expertise to their senior leadership teams.

That pressure is also reshaping promotion decisions. Seven in 10 respondents said advanced technology skills are now crucial for moving into leadership roles, and 15 per cent said their organisations are promoting tech professionals under 30 earlier than traditional career paths would normally allow because of their AI knowledge.

Leadership Shift

The study suggests technical fluency is becoming central to corporate leadership in Canada. It also indicates that formal qualifications are no longer the only route to advancement, with 20 per cent of respondents saying advanced tech skills are valued significantly more than university degrees when assessing candidates for new roles.

The emphasis on younger workers reflects a wider workplace trend tied to AI adoption. Separate research cited by International Workplace Group found that 55 per cent of Gen Z employees actively support senior colleagues with AI upskilling. In that earlier study, 73 per cent of younger workers said their coaching had improved team productivity, while 61 per cent of directors said Gen Z employees' AI expertise had boosted departmental performance.

Recruitment, however, remains difficult. Nearly six in 10 senior leaders surveyed reported a shortage of tech talent with the right skills. At the same time, 68 per cent said salary alone is not enough to retain top technology staff.

Hybrid Appeal

The results show employers are using a broader mix of incentives to compete for scarce workers. Competitive pay ranked first among the main strategies used to attract tech talent, cited by 39 per cent of respondents. Hybrid working followed at 34 per cent, ahead of financial rewards such as shares and options at 28 per cent.

For many businesses, that puts workplace flexibility close to pay as a recruitment tool. Almost three quarters of respondents said organisations that offer hybrid working have a clear advantage over those that do not.

The preferences of younger professionals appear to reinforce that view. Among technology workers under 30, business leaders said work-life balance and flexibility were the most important aspects of company culture for 50 per cent of this group, ahead of financial compensation at 35 per cent.

These findings come as companies across sectors try to build internal AI expertise while responding to employee expectations shaped by the broader shift to remote and hybrid working. In practical terms, the research suggests businesses must now compete on working patterns as well as pay when trying to recruit software, data and AI specialists.

International Workplace Group, which operates workspace brands including Regus and Spaces, has a commercial interest in the hybrid working market. Even so, the survey adds to evidence that flexible work remains a significant factor in white-collar recruitment. The research was conducted among 500 Canadian business leaders at director level and above.

The figures also underline how closely AI is becoming tied to management succession. Rather than treating technical expertise as a specialist function, many employers now appear to see it as part of the core profile for future leaders. That is especially evident in the willingness of some organisations to promote younger staff more quickly if they bring stronger AI skills than more experienced colleagues.

The result is a labour market in which traditional signals of seniority, including tenure and formal education, may carry less weight in some roles. Compensation remains important, but the survey indicates that flexibility, skills relevance and access to meaningful technology work are becoming central to how companies compete.

"The message from leaders - and particularly from younger generations - is clear: companies that do not embed hybrid working into their culture risk losing out in the race for tech talent and accessing the skills they need to remain competitive," said Mark Dixon, Founder and Chief Executive Officer of International Workplace Group.