HR Market Update
(4 minute read)
September is when many HR teams start turning workforce priorities into plans for the year ahead. As organizations look towards 2027, they’re assessing leadership effectiveness, the skills they’ll need, and how roles may need to evolve.
This month, we look at what current research and conversations with HR leaders across Canada are telling us about each of these areas, and what organizations should be considering now.
Leadership effectiveness is getting more attention
Organizations are asking more of their leaders as they manage technology change, economic uncertainty and evolving expectations from employees. HRPA recently highlighted the role of leadership, communication and workforce planning in helping organizations manage change, particularly as AI changes how work gets done.
Across client conversations, the focus is increasingly on how current senior teams are working together. Collaboration across functions, employee trust and team effectiveness are all coming up, along with questions from new leaders about whether they have the right people in key roles.
That is contributing to more interest in executive coaching and assessments, including 360s and team effectiveness work. Some leadership initiatives that were paused earlier in the year are also returning as organizations revisit development priorities.
The starting point is understanding what the organization needs from its leaders now. That could mean improving collaboration, building trust, preparing someone for a larger role or strengthening how a leadership team works together. The right support depends on the issue.
Organizations are taking a more selective approach to hiring and expertise
Hiring remains active, but employers continue to face challenges finding the skills they need. Statistics Canada reports that 25.2% of Canadian businesses expect recruiting skilled employees to be an obstacle this fall.
Current hiring activity suggests a more cautious market. Some roles are concentrated at more junior or delivery-focused levels, while organizations are taking a more selective approach to recruitment and assessing strategic or specialized expertise in other ways.
Those needs can also change over time. An interim role may become permanent. A defined project can move into implementation or uncover another need elsewhere in the organization.
For HR leaders, the decision goes beyond whether to hire. Organizations are looking at which skills they need permanently in-house, what can be developed within the existing team and where experienced HR support can provide additional expertise or capacity.
2027 planning needs to reflect how work is changing
As HR teams begin setting priorities and budgets for 2027, they are planning for jobs and skill requirements that continue to change.
New Government of Canada research found that since 2019, job postings for roles with a high risk of automation have declined, while postings for jobs where AI is more likely to complement human work have increased. The findings suggest technology is changing the mix of work rather than affecting every role in the same way.
For HR teams, that has implications for hiring, development and workforce planning. Organizations need to consider which skills will become more important, how existing employees can develop them and where roles themselves may need to change.
This is also the time of year when organizations begin setting next year’s priorities around performance management, succession, leadership development, HR capacity and compensation strategies. Those decisions need to reflect where roles, skills and workforce needs are heading, not simply carry forward what exists today.
As plans for 2027 take shape, the focus should be on the skills, roles and people priorities the organization will need next.
Looking Ahead
The labour market is not pointing to a simple story of expansion or contraction. Organizations are still hiring, developing people and investing in their HR priorities, but they are making careful choices about where those investments will have the greatest impact.
Leadership effectiveness, changing skill needs and workforce planning are likely to remain important considerations in the months ahead.
Questions to Consider
- Where are leadership or team effectiveness issues starting to affect performance?
- Which skills or expertise need to sit inside the organization, and where could outside support fill a gap?
- How are changing roles and skill requirements affecting our 2027 workforce plans?
- Which people priorities need to move higher on the agenda for 2027?
Continuing the Conversation
Every organization is responding to today’s workforce challenges differently. Whether you’re hiring, developing leaders, strengthening your HR function, or preparing for change, the right approach depends on your people, your priorities, and your business goals.
At The Talent Company, we partner with organizations across Canada to help solve workforce challenges through practical, flexible people solutions.