If you’re looking at Toronto as an option to grow your Engineering team, here are 2 ways companies are accessing talent.
Hiring Remote Contractors
Hiring remote talent in Toronto is a great way to test out the Canadian candidate pool. Allowing you to engage talent on a contract to hire basis before committing to setting up a Canadian entity.
Companies tend to go this route until they are confident their infrastructure can support a remote worker successfully.
One drawback to consider when hiring on a contract basis is not being able to take advantage of government tax incentive programs. Although you're saving on initial setup costs and resources, there are programs that allow you to save significantly more long term.
Setting Up a Local Team
Setting up a local team in Toronto and having your first hire start can take as little as 30 days. Here are the main areas to consider:
Using a local legal professional, a Canadian entity can be set up in one business day.
Creating employee agreements from scratch is less costly than having your existing ones reviewed and adjusted to be in line with Canadian employment law.
Similarly to incorporation getting your Canadian accounting setup can take as little as 24 hours. Payroll, bookkeeping and tax return services can be performed by your existing provider or a local one.
There are several government programs, tax incentives and grants that support the growth of tech companies in Canada. The most popular program, SR&ED, allows companies to get back 15-45% of their engineering costs. Engaging a specialist in this area will help you maximize the amount of money your company is eligible for. Most specialists work on a contingency basis so you don't have to worry about upfront costs.
Canada is one of the few countries with universal healthcare. Because of this the cost of an employee benefits program is significantly cheaper than the US.
To stay competitive with tech talent, companies need to offer comprehensive plans that communicate they are prioritizing the health and well being of their employees.
The process for getting your company's health benefits setup can take approximately 4-5 weeks.
Location, location, location. If you choose to setup an office, where you setup your office within a metropolitan city significantly impacts the size of your candidate pool and often times the quality.
An office location in the downtown core allows you to access people there as well those residing just outside the city. There are millions of people within an hour of commuting via public transit routes. Downtown is the most preferable option as it would be more difficult to setup an office in the suburbs and attract talent from the city rather than the other way around.
If you’d like to find out how much it will cost to grow your Engineering team in Toronto, click the button below.