Re-strategizing Recruitment: Changes in the Temporary Foreign Worker Program

The recent changes in the Temporary Foreign Worker Program (TFWP) were intended to make sure Canadians were considered first for open jobs in Canada, as well as exhausting the Canadian talent pool before looking for foreign workers. Adjustments to the TFWP were to offer better clarity and transparency with the program’s processes while getting stricter with enforcements and increasing penalties.

These changes are creating challenges for retailers who currently employ Temporary Foreign Workers (TFWs) and those who have open hourly positions that are struggling to find local talent.

The TFWP changes

Below are the relevant changes to the TFWP affecting retailers who offer hourly positions:

1. Increased application fee from $275 to $1000
2. Wage is now used instead of National Occupation Codes (NOC) to gauge the occupational skill level and local labor market conditions
3. Less than 10% of your entire workforce can be made up of temporary foreign workers
4. The application is more rigorous and comprehensive. It was known as the Labor Market Opinion (LMO) and is now changed to the Labor Market Impact Assessment (LMIA)
5. The contract duration has decreased from 2 years to 1
6. Compliance checks are more frequent and monetary penalties have increased
7. Applications for low-wage positions in the accommodations, food services, and retail sectors will be denied if the unemployment rate of 6% or higher. They must meet the following three criteria to be denied:
   • Looking to hire TFWs in an economic region where the unemployment rate is 6% or higher
   • Classified as:
     • Accommodation and food service (NAICS 72), or
     • Retail trade (NAICS 44-45)
   • Hiring TFWs for low-wage roles in:
     • Food Counter Attendants, Kitchen Helpers and Related Occupations(NOC 6641);
     • Light Duty Cleaners(NOC 6661);
     • Cashiers(NOC 6611);
     • Grocery Clerks and Store Shelf Stockers(NOC 6622);

** For a full list of changes to the TFWP, view link at the bottom of the page.

The challenges

The changes have created a huge challenge for hourly employers in smaller cities. With the current available channels for sourcing talent it will be difficult to attract quality talent to apply for your open roles. Low candidate quality and flow are a major source of the usage of TFWs in the first place.

Retailers who have existing TFWs also face the issue of letting go of this current workforce. They need to begin the search for Canadian candidates or start the LMIA application process.

The solution

If you are a retailer in a smaller city or town, you are likely struggling to find quality local talent for your open roles.

Our solutions revolve around hiring local talent and finding the best-fit local candidates. Here are some tactics you should consider:

• Identify what the ideal candidate profile (ICP) is for your open hourly positions
• Take time to understand your current turnover costs, overtime spend and lost store hours to determine how big the problem is
• Create a recruitment plan that will allow for ongoing attraction and pipelining of local talent
• Ensure you have a digital strategy and in-store applicant process – make sure they are integrated
• Crystallize your employment brand proposition – why should someone come work for you over the alternative employers

With the Mindfield solution, we have the process, people, and technology in place to alleviate these hiring issues. We are able to scale the effort required to attract, screen and hire great local talent. In 2015 alone, we have been able to help our customers hire over 13,800 local job seekers for their hourly roles.

For more information on how Mindfield can help you find great local talent, click here.

Source: http://www.esdc.gc.ca/eng/jobs/foreign_workers/reform/highlights.shtml#consq