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2024 Developer Hiring Trends in Canada: What You Need to Know
Sylvia Ogweng
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Canada’s tech landscape is thriving, with vibrant hubs in Vancouver, Toronto, and Kitchener-Waterloo. Home to global leaders like Shopify, Hootsuite, and BlackBerry, it’s no wonder that American companies look to Canada for skilled developers. The country boasts a rich talent pool and a supportive ecosystem that’s hard to beat.
As we progress through 2024, a few powerful developer hiring trends in Canada are emerging that will change how you hire, retain, and support your engineering teams. By embracing these insights, you’ll attract top Canadian talent and create a vibrant, dynamic work environment that keeps your teams happy and productive. Staying ahead of these trends is essential for maintaining a competitive edge in the tech industry and addressing the ongoing talent shortage.
With global challenges like rising unemployment, widespread tech layoffs, and job security worries, engineers are rethinking their work preferences and career values. If you’re looking to hire Canadian remote workers, now’s a great time to fine-tune your company perks and hiring strategies to align with these changing needs and expectations.
Our State of Remote Engineering report explores key insights such as economic uncertainties, salary and equity considerations, job seeker preferences, the evolving interview process, and essential tips for business leaders hiring Canadian nearshore developers. Essential for both the developer community and startups alike, download our report to gain deeper insights into the global state of remote hiring and continue reading to explore the key developer market trends in Canada.
Our survey, conducted between October 2023 and November 2023, gathered insights from 1261 software engineers. Of these respondents, 31% were located in Canada, and 9% were based in the US. This diverse pool of participants provides a comprehensive view of the current state of remote engineering.
Canada’s Tech Sector: What’s Happening Right Now
Canada’s tech scene is buzzing with energy and innovation, making it a magnet for top-tier software engineers. With its rich talent pool and thriving startup scene, Canada is quickly becoming the place to be for tech companies looking to expand. Here’s why everyone is talking about Canada’s tech scene.
Tech Hubs and Talent Pools
Canada is home to some of the best computer science programs and a thriving startup scene, making it a hotspot for hiring software development. Key tech hubs and tech talent concentration are located in these Canadian cities:
- Vancouver: Recognized as the top city in North America for tech growth, Vancouver is a leader in green technology and sustainability initiatives. The city’s commitment to environmental stewardship attracts startups and investors focused on clean energy, renewable resources, and planet-friendly innovations.
- Toronto: Known as “Silicon Valley North,” Toronto is the largest city and the financial hub of Canada. Home to major financial institutions, Toronto startups have ready access to capital and boast expertise in fintech. Toronto’s dynamic tech scene is bolstered by its diverse talent pool and strong economic foundations.
- Kitchener-Waterloo: This region claims the second-highest density of startups in North America and is the birthplace of Blackberry. It hosts the University of Waterloo’s tech co-op program, producing a steady stream of highly skilled tech talent workforce. Waterloo’s innovation ecosystem is supported by a collaborative network of universities, incubators, and tech companies.
Vibrant Startup Ecosystem
Canada’s tech startups benefit from access to a skilled developer community, strong government support, dynamic networking opportunities, and proximity to the U.S. market. The country’s high quality of life and entrepreneurial culture contribute to the thriving startup environment. Notable Canadian companies and startups include:
- Shopify: Founded in Ottawa and now remote-first across the U.S. and Canada, is a leading e-commerce platform enabling businesses worldwide to create online stores.
- Cohere: An AI-enhanced communication tool based in Toronto that analyzes and improves natural language understanding across platforms.
- Wattpad: Founded in Toronto, Wattpad is a global platform where writers share stories and connect with readers, launching successful publishing careers.
- Neo Financial: Based in Calgary, Neo Financial is a fintech startup revolutionizing banking with a mobile-first, customer-centric approach, disrupting traditional banking in Canada.
- Borrowell: This Toronto-based fintech company offers Canadians personalized recommendations for credit cards, loans, and mortgages through a user-friendly platform.
- Wealthsimple: Headquartered in Toronto, Wealthsimple is an online investment service making investing accessible with its user-friendly platform and innovative products.
- Ritual: Based in Toronto, Ritual is a mobile app that lets users order ahead and skip the line at their favorite coffee shops and restaurants, saving time and enhancing convenience.
- Fable: Interactive media and virtual reality technology in Vancouver that creates immersive storytelling experiences.
- Felix: A healthcare platform in Toronto streamlining access to virtual consultations and prescriptions.
- Nesto: A digital mortgage platform in Montreal providing transparency, efficiency, and personalized advice for homebuyers.
- Ada: Based in Toronto, Ada specializes in AI-powered customer support chatbots.
Current Economic Challenges and Future Outlook
While hiring in the Canadian job market is expected to rebound in 2024, a negative sentiment may linger, experts predict. Confidence rates in Canada are down eight points on LinkedIn’s Workforce Confidence Index, tied with Australia for the second-worst drop across 12 countries. HP’s data from September shows that 77% of Canadian knowledge workers do not have a healthy relationship with work, slightly higher than the global average of 73%.
Despite these challenges, the demand for IT professionals, including software engineers, cybersecurity experts, and data scientists, remains high. According to Canada Hires, there will be 80,500 more job openings due to market growth, but the labor shortage is likely to continue until 2031. Organizations are finding it challenging to hire and retain skilled employees in sectors like cloud computing, AI, machine learning, and data analysis.
Want a 360º view of global developer trends? Download our 2024 State of Remote Engineering
Deloitte reports that $2.57 billion was invested in Canadian AI research and development from 2022 to 2023, with total venture capital investment in Canada reaching $8.64 billion. The increasing use of AI reflects a significant trend, and coding remains one of the most sought-after skills for 2024.
Canada’s tech sector is rich with opportunities for American companies looking to hire top-tier engineering talent. The country’s vibrant tech hubs, skilled workforce, and supportive startup ecosystem make it an ideal location for sourcing high-quality developers. By understanding and leveraging these trends, companies can effectively tap into Canada’s skilled tech talent workforce to build dynamic, innovative teams.
Why US Teams Should Hire Canadian Engineers
Canada’s tech sector is rich with opportunities for American companies looking to hire top-tier engineering talent. The country’s vibrant tech hubs, skilled workforce, and supportive startup ecosystem make it an ideal location for sourcing high-quality developers. By understanding and leveraging these trends, companies can effectively tap into Canada’s skilled tech talent workforce to build dynamic, innovative teams.
Time Zone Alignment and Collaboration
When it comes to smooth collaboration, time zone alignment is key. Canadian software developers are perfectly situated in U.S. time zones, which means American and Canadian teams can work together seamlessly.
Cut Down on Costs
Hiring Canadian developers is cost-effective. US companies can save up to 26% on salaries, benefits, and taxes compared to hiring domestically. This provides significant savings while accessing high-quality talent, helping companies reduce costs while staying competitive.
Deep Pool of Expert Engineering Talent
Canada boasts approximately 353,000 engineers and related tech professionals. Of these, 43% hold advanced degrees in computer science or related fields, and the average experience for Canadian engineers is 13+ years. This wealth of expertise makes Canada a premier market for hiring within its top-tier tech talent.
Grow Your Team With Terminal
Terminal makes it easy to build a team in Canada without the hassle of setting up operations. As Rupen Chanda, SVP of Engineering at Bluescape, said, “Terminal offered the benefit of quickly building a team without having to worry about building the organizational rubric to support it in Canada. It can be a lot of work to set up to run internationally and Terminal took that off our plate.”
2024 Developer Trends in Canada
Ready to tap into Canada’s tech talent? Let Terminal help you build and support your team, and get the best developers without the extra work. Start browsing Canadian talent today.
Trend #1 – Engineers in the US and Canada Want More Than Just Paychecks—Equity Matters
Our 2024 State of Engineering report confirms that salary and equity remain top-of-mind for engineers in the US and Canada. This year, more engineers in these regions have landed in higher income brackets compared to their counterparts in Latin America and Europe, where the vast majority earn an average salary of $75K or below. While over half of engineers feel satisfied with their pay, there is a growing demand for salary transparency, particularly among engineers outside the US.
Equity holds significant importance for job-seeking engineers in the US and Canada. Unlike their counterparts in Latin America and Europe, skilled professionals in North America place a higher value on stock options and equity packages. However, there has been a notable decrease in the number of engineers holding stock or expecting to receive stock in their current companies—down to 31%, a 21% decrease from last year. Despite this, 54% of engineers report moderate satisfaction with their compensation, with only 25% expressing dissatisfaction.
| Key Recommendations |
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| Be transparent about compensation: Clearly outline salary ranges and equity options in job postings to build trust. Offer competitive equity packages: Provide attractive stock options and communicate their benefits effectively. Highlight income growth opportunities: Showcase clear promotion tracks, regular salary reviews, and performance-based bonuses. Promote compensation satisfaction: Regularly review and adjust compensation packages to stay competitive and address employee concerns. |
Trend #2: Remote Is Best For Canadian Engineers
The preference for remote work remains strong among developers globally, with 63% favoring fully remote or autonomous tech teams. This preference is shaping the structure of global teams significantly. The majority, 63%, prefer location-independent setups, where team members work entirely remotely or autonomously. Fullstack teams, which consist of a mix of skillsets in the same location, are preferred by 25%, while 11% of developers favor skillset-based teams, such as all iOS engineers being located together.
The desire to work remotely full-time is strong, with 54% of engineers wanting to work from home 100% of the time. Additionally, 25% prefer to have an office available without the requirement to come in, enjoying the flexibility to use the office space as needed. Only 15% of engineers favor a hybrid schedule that includes both in-office and remote work.
Embracing remote work not only meets the desires of the majority of engineers but also opens up opportunities to tap into a broader talent pool without geographical limitations.
| Key Recommendations |
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| Offer 100% remote positions: Cater to the majority preference for fully remote work. Flexible office access: Provide office space without mandatory attendance. Invest in collaboration tools: Equip teams with top remote work tools. Highlight work-life balance: Promote the benefits of flexible work arrangements and adopt modern models like asynchronous work. |
Trend #3: Canadian Engineers Need More Team-Building To Thrive at Work
Team-building activities are a big deal for Canadian engineers, with 53% wanting more opportunities to connect and collaborate with their colleagues. This isn’t just a Canadian thing; engineers worldwide value strong team dynamics and a sense of community at work.
To keep engineers engaged, it’s important to focus on frequent team-building activities, even if they’re virtual. These activities help bridge geographical gaps and create a sense of unity.
Want a 360º view of global developer trends? Download our 2024 State of Remote Engineering
Flexible meeting schedules are also key. By accommodating various time zones, everyone can join in without disrupting their work-life balance. Clear and transparent communication is crucial to keep everyone on the same page and build trust within the team.
Employee exchange programs or shadowing initiatives are fantastic for giving engineers diverse experiences and new perspectives. Mentorship programs that bridge cultural differences are also highly effective. They promote mutual understanding and collaboration among team members from different backgrounds.
| Key Recommendations |
|---|
| Regular team-building events: Plan frequent team-building activities, both virtual and in-person, to strengthen team bonds and create a collaborative culture. Work this concept into your company mission. Flexible meeting times: Make sure meeting times are convenient for all team members by accommodating different time zones, promoting inclusivity and participation. Clear communication channels: Keep communication clear and transparent to ensure everyone is informed and aligned with the team’s goals and progress. Mentorship and exchange programs: Develop mentorship programs and employee exchange initiatives to give engineers diverse experiences and foster a culture of continuous learning and collaboration. |
Trend #4: Canadian Engineers Want It All – Full-Time Tech Jobs With Solid Benefits
Canadian engineers have a strong preference for the perks that come with full-time jobs. While 58% of global engineers like the flexibility of contract-to-hire tech positions, Canadian engineers lean heavily toward full-time positions. A solid 68% of Canadian engineers prefer the stability and benefits of full-time work, a stark contrast to the global trend.
So, what makes full-time employment so appealing? For starters, job security and stability are at the top of the list, valued by 77% of Canadian engineers. Comprehensive benefits packages, including health insurance and retirement plans, are also a big deal, with 58% of engineers prioritizing these perks.
Opportunities for career growth and advancement are another significant draw. Engineers want to see a clear career progression framework within their roles. A consistent work schedule is important too, appreciated by 45% of engineers for providing a predictable structure that helps balance work and personal life. Finally, 40% of engineers value the stronger integration with the team and company culture that comes with full-time employment.
| Key Recommendations |
|---|
| Emphasize full-time benefits: Make sure to highlight the comprehensive benefits packages you offer, like health insurance, retirement plans, and other perks. Communicate job security: Clearly talk about the stability and long-term prospects of full-time positions. Showcase career growth: Highlight opportunities for career advancement and professional development within your company. Foster team culture: Focus on integrating employees into the team and company culture. Promote activities and initiatives that foster a sense of belonging and collaboration. |
Trend #5: Contract Work Is Flexible but Comes With Real Challenges
Many engineers appreciate the flexibility that comes with contract work, such as choosing their projects, work hours, and locations. However, this type of work comes with significant challenges that can’t be ignored. In the US, 80% of engineers struggle with the lack of guaranteed benefits. Canadian engineers face their own set of issues, with 46% finding continuous self-marketing and client acquisition to be major hurdles.
Globally, contract tech workers face several challenges:
| Key Recommendations |
|---|
| Communicate clearly: Provide detailed project expectations and timelines upfront. Ensure timely payments: Make sure payments are prompt and reliable to build trust. Give feedback: Regularly acknowledge and appreciate the work of contract employees. Offer stability: Provide options for contract extensions or new opportunities to keep contractors engaged. |
Trend #6: Canadian Engineers Say Pay Is Their Top Priority When on the Tech Job Market
One key developer hiring trend in Canada is a tale as old as time: pay. Engineers told us that their top priorities during their search for jobs are pay, benefits, and stability, leaving elaborate offices and cultural programs far behind. For Canadian engineers, these three criteria are crucial.
Why does pay matter so much? It’s simple. Engineers want to feel valued for their skills and hard work. They also want to know that their financial future is secure, which is why benefits and stability are right up there with pay. Beyond these top three, Canadian engineers also care about flexible hours, opportunities for learning and development, and company culture. Surprisingly, exciting companies and stock options are lower on the list.
| Key Recommendations |
|---|
| Offer competitive salaries: Make sure your salaries are attractive and competitive within the industry. Engineers want to know they’re being fairly compensated for their expertise. Enhance benefits packages: Provide robust benefits that meet the diverse needs of your employees, such as health insurance, retirement plans, and wellness programs. Communicate stability: Highlight the stability and long-term prospects of roles within your company. Promote flexibility and growth: Offer flexible working hours and emphasize learning and development opportunities. Trend 7: Engineers everywhere want smoother, faster interviews |
Trend #7: A Long Interview Process Pushes Engineers Away
Interviewing for new roles can be a headache for engineers. A whopping 70% of engineers report long delays in the interview process, which can be a major turn-off, especially for successful candidates. In fact, 57% say that too many rounds of interviews would make them reject a job offer. It’s clear that the current interview process is causing frustration and potentially driving away top talent.
Engineers have strong preferences when it comes to technical assessment methods. Most prefer take-home coding challenges over live coding sessions, emphasizing the need for flexibility and the ability to work in a comfortable environment. In the US, opinions are more divided: 44% prefer live coding exercises, while 39% lean towards take-home challenges.
| Key Recommendations |
|---|
| Streamline the interview process: Reduce the number of interview rounds to make the hiring process quicker and more efficient. Offer take-home challenges: Incorporate take-home coding challenges to provide flexibility and reduce the stress associated with live coding tests. This allows qualified candidates to demonstrate their skills in a familiar environment. Provide timely feedback: Keep successful candidates informed throughout the interview process and provide prompt feedback. Transparency and communication can greatly improve the candidate experience. Respect candidates’ time: Ensure interviews are scheduled and conducted efficiently, respecting the candidates’ time and effort. Avoid unnecessary delays and redundant interview rounds. |
Summary: What’s Trending for Canadian Developers in 2024
Staying on top of the latest developer hiring trends in Canada is crucial for attracting the Canadian developer community. Understanding what drives Canadian engineers can give you a real edge in recruitment. Here’s a quick rundown of the key insights and trends shaping the Canadian developer job market.
- Job search intentions: 66% of developers say they plan to search for jobs next year, with 36% looking for a higher salary, 14% seeking more interesting challenges, and 10% desiring more company stability.
- Compensation priorities: Pay is the top priority for Canadian engineers when choosing a company, followed closely by benefits and stability. Flexible hours, learning and development opportunities, and company culture are also important, but exciting companies and stock options are lower on the list.
- Team-building desires: 53% of Canadian engineers are looking for more team-building activities, emphasizing the importance of a strong team culture and regular interaction.
- Comprehensive benefits: 68% of Canadian engineers prefer the comprehensive benefits of full-time employment over the flexibility of contract work, valuing job security, stability, and opportunities for career growth.
- Remote work preferences: A significant majority, 54%, of engineers want to work from home 100% of the time. Another 25% prefer having an office available without the requirement to come in, while only 15% favor a hybrid schedule.
- Interview process frustrations: 70% of engineers experience long delays in their interview process, and 57% are turned off by too many rounds of interviews. Engineers prefer take-home technical knowledge assessment methods over live coding exercises, with flexibility being a key factor.
By understanding and adapting to these trends, companies can better position themselves to attract and retain top engineering job seekers in Canada.
Build Bigger and Better in 2024 With Canada’s Tech Talent
The 2024 developer landscape in Canada is evolving, shaped by trends like the increasing demand for comprehensive benefits, the importance of attractive salaries, and the preference for remote work. Canadian engineers are looking for tech positions that offer stability, growth opportunities, and flexibility, so employers need to align their vision with these new preferences to stay competitive.
Looking ahead, the future for developers in Canada is both promising and challenging. Staying informed and adaptable will be crucial as economic challenges and tech advancements continue to reshape the industry. For a deeper look into these insights, check out our comprehensive State of Remote Engineering report.
Terminal’s active market of Canadian developers includes approximately 353,000 engineers and related tech professionals. This deep pool of elite Canadian developers offers a valuable resource for US companies looking to save on employer costs while accessing top-tier talent.
By leveraging the unique strengths of the Canadian tech market, companies can fine-tune their remote recruiting strategies and secure the talent needed to drive innovation and growth. Start browsing Canadian engineering talent now.
