Uncertainties and Tensions Aside, Canadian Search Market Remains Robust

February 21, 2025 – Executive search firms in Canada reflect the country’s diverse economy, geography, and culture, with a mix of global players like Korn Ferry, national firms, and boutiques. Major cities such as Toronto, Vancouver, Calgary, and Montreal serve as key hubs, each with distinct market characteristics—Toronto’s financial prominence, Calgary’s ties to oil and gas, and Quebec’s French-language emphasis. Firms prioritize both industry-specific expertise and a deep understanding of local markets, often assembling teams that blend regional knowledge with specialized functional skills to meet client needs.

Recruiters tell Hunt Scanlon Media that the executive search landscape is shaped by Canada’s complex immigration framework, labor market regulations, and shifting economic conditions. Work permits, permanent residency requirements, and processes like the Labor Market Impact Assessment (LMIA) add administrative hurdles when hiring international executives. Economic uncertainty due to geopolitical tensions and the pending election of a new Prime Minister has led many companies to adopt cautious hiring strategies. However, sectors like AI, natural resources, and healthcare continue to drive demand for top talent, with a growing focus on diversity, inclusion, and technology-driven leadership.

Canada’s smaller market size and concentrated business hubs foster a relationship-driven approach to executive search, requiring firms to build strong connections with clients and candidates. The relatively limited talent pool and geographic challenges demand creative sourcing strategies, especially for senior roles. Bilingualism, particularly in Quebec, can be another thing recruiters are faced with.

“Executive search firms in Canada, much like the country itself, mirror its diverse economy, geography, and culture,” said Cleo Kirkland, managing partner of Toronto for Korn Ferry and head the firm’s legal center of expertise for North America. “The Canadian landscape is home to a wide array of firms, ranging from large global players like Korn Ferry to regional and national firms, as well as smaller boutique agencies. Most executive search activity is concentrated in key cities such as Toronto, Vancouver, Calgary, and Montreal. Each of these markets has its own distinct characteristics—Quebec’s emphasis on the French language, Calgary’s strong ties to the oil and gas sector, and Toronto’s prominence as a hub for financial institutions.”

Across the country, a common thread in the executive search landscape is the crucial importance of both industry-specific expertise and a deep understanding of the local market, Mr. Kirkland explained. “Canadian clients often prioritize search partners who not only possess specialized knowledge of the relevant industry, but also demonstrate a strong grasp of the specific province, region, or city,” he said. “To address these needs, we frequently assemble teams that combine local expertise with industry or functional leaders to deliver tailored solutions. Our search consultants often help clients refine their strategies by identifying candidates with regional ties and those who have a proven track record of relocating for professional opportunities.”

“The job market for senior executives in Canada in 2025 remains uncertain due to geopolitical tensions and economic volatility,” Mr. Kirkland said. “This uncertain environment has prompted some companies to adopt a more cautious stance on executive hiring. Provinces with strong ties to industries such as manufacturing and agriculture are facing more pronounced challenges in attracting senior executives. The outlook for the senior executive job market in Canada will become clearer once a new Prime Minister is elected and the economic environment has more clarity. Until then, many organizations and executive search firms are adopting a wait and see approach, carefully monitoring developments before making strategic hiring decisions.”

Adaptability to Regional Nuances

“Executive search firms in Canada are distinguished by their adaptability to regional and industry-specific nuances, their commitment to diversity and inclusivity, and their role in supporting industries like AI that drive global innovation,” said Karen Swystun, CEO of Waterford Global. “Search strategies in Canada need to be customized across provinces, firms, and industry sectors due to differences in labor market regulations, organizational culture, the client’s competitive landscape, and the relative mobility of the talent pool. Offer negotiations are further shaped by the systematic use of monetary and non-monetary incentives related to hiring, pay, promotions, and terminations, and tailored to align with regional and industry-specific needs.”

Canada’s diversity in both clients and candidates creates a unique environment for executive search firms, according to Ms. Swystun. “With highly diverse candidate pools, clients are increasingly aware of the importance of unbiased selection systems, resulting in heightened focus on equitable and inclusive hiring processes during candidate evaluations,” she said. “Canada has emerged as a global leader in AI-driven enterprises, supported by a growing cohort of AI talent, which has outpaced many leading nations. The annual 38 percent growth in Canada’s cohort of AI talent in recent years highlights Canada’s commitment to innovation and addressing real-world challenges. This trend has positioned executive search firms to specialize in sourcing top talent for technology-driven and technology-aided industries, particularly in AI and related fields.”

Canada’s executive search landscape reflects ongoing generational shifts in management and leadership, Ms. Swystun explained. “These transitions demand adaptive search strategies and an emphasis on identifying leaders equipped to address modern challenges in dynamic, diverse environments,” she said. “Canada’s openness to newcomers, banking stability, access to global markets, and highly skilled workforce enable its executive search firms to draw from international best practices. This allows Canadian search firms like Waterford Global to maintain high efficiency in their search processes while catering to the local and global needs of clients.”
Ms. Swystun also noted that as an executive search firm with a long-standing history of recruiting international talent for leadership roles in Canada, key success factors have included being vigilant regarding changes in labor laws (nationally and provincially) and immigration policy. “Given the various immigration routes available to foreign talent, being mindful of the different options to immigration and their associated requirements and timelines are other critical success factors in meeting the timelines of an executive search process,” she said. “The sophistication and complexity of the immigration process also demands that a search firm not try to go it alone without the aid and assistance of a recognized, credible, and experienced immigration law firm.”

Significant Opportunities Across Canada

“The job market for senior executives in 2025 is shaping up with significant opportunities across various sectors in Canada,” said Ms. Swystun. “Canadian companies are entering the year with a positive outlook for executive search, particularly in key industries such as manufacturing, natural resources, healthcare, logistics, information technology, and construction. These sectors are actively recruiting talent at the mid-to-senior level for both existing and newly created roles, emphasizing strategic growth and future-readiness. Employers are spending significant time and energy on training and development for mid-level employees, as well as long-term succession planning across executive levels and functions.”

“We find that Canada’s smaller market size with an economy concentrated in natural resources, financial services, healthcare, and technology has resulted in a more generalist approach in executive search,” said Tracy Posner, co-founder of Toronto-based executive search firm Ivy Group. “While search firms have practices and services aligned with industry and/or functional expertise, it is not unusual for consultants to specialize in more than one area. Head offices for companies tend to be clustered around Montreal, Toronto, Calgary and Vancouver. This economic concentration has created a heightened emphasis on a relationship-driven approach to business development, requiring firms to build deep, trust-based connections with both clients and candidates.”

“Search strategies in Canada are influenced by the relatively smaller talent pool created partly because of a subsidiary economy with an increasing consolidation of ownership,” Ms. Posner said. “This injects the need for creativity in candidate sourcing, particularly for senior C-suite roles, where firms need to leverage international networks to identify top talent. For most executive search firms dealing with small to medium sized enterprises, which comprise 99.8% of the Canadian economy, sourcing candidates requires a heightened awareness of their interest in moving from a larger organization to a smaller one.”

While effective use of technology is required, sourcing top candidates still requires a high personal touch, given the need for alignment with organizational values in smaller to medium
sized enterprises, Ms. Posner explained. “Local knowledge of the structure of the talent pools is key to effective talent identification and attraction,” she said. “Canada’s vast geography does deter candidate mobility, and increasingly, as return to office policies take hold, location is once again, becoming a limiting factor. Bilingualism, particularly in Quebec, adds another layer of complexity, as firms must ensure candidates meet language proficiency standards for certain roles.”

Poised for Transformation

“As we enter 2025, the Canadian job market for senior executives is poised for significant transformation,” Ms. Posner said. “Not only are the requirements for leadership transforming, but organizations are also increasingly seeking executives who can navigate the complexities of technological innovation, environmental challenges, and evolving workplace dynamics. The need for leadership in small to medium-sized enterprises, often founder owned and run, is becoming more pronounced as these founders/owners seek exit strategies. We expect to see increased demand from this sector given the age demographic nearing retirement.”

“At its core, the Canadian market reflects both the concentrated nature of its business centres and its role as a connector between global markets,” said Chris Beck, CEO of Caldwell. “Cities like Toronto, Vancouver, Calgary, and Montreal have become specialized ecosystems where search firms excel in Canada’s key industries: natural resources, financial services, and technology. This is a bit different from the U.S., where firms operate in a broader range of industries across many metropolitan areas. One of the standout strengths of search firms with strong Canadian operations like Caldwell is our expertise in cross-border work, especially with the U.S. Given the close economic ties between the two countries, firms like ours are skilled at finding executives who can thrive in both business cultures.”

“Another layer of complexity in Canada is the need for bilingual leaders, particularly in Quebec and for national roles,” Mr. Beck said. “The requirement for French-English proficiency makes the talent search more nuanced compared to other English-speaking countries, calling for broader international networks and more advanced screening methods to find the right fit. Canada’s smaller market also influences how search firms operate. Unlike firms in larger markets that tend to specialize narrowly, Canadian firms have become more flexible, managing searches across multiple sectors. This versatility is a competitive edge, allowing them to draw on insights and networks across industries while still maintaining deep expertise where it matters most.”

The Canadian executive job market in 2025 is showing good momentum, driven by shifting organizational priorities and changing leadership demands across major sectors, according to Mr. Beck. “It’s an exciting but challenging time for senior executives looking to navigate the next steps in their careers,” he said. “Workplace flexibility remains a factor, but its prominence is evolving. While some organizations continue to embrace flexible and hybrid work models as a competitive advantage for attracting talent, others are scaling back remote options to focus on collaboration and culture-building in physical offices. Executives who can successfully navigate these differing approaches and balance productivity, employee satisfaction, and organizational cohesion are in high demand.”

Mr. Beck also noted that economic conditions also play a big role in executive hiring decisions. Canada’s economy is proving resilient, but potential volatility is still a concern. “Companies are looking for leaders who can manage uncertainty while driving growth,” he said. “With the Bank of Canada’s monetary policy influencing investment strategies, executives need to be agile in how they allocate resources and plan for the future. Adding to this complexity is the uncertainty around U.S. trade policy, particularly the possibility of new tariffs looming. With the U.S. being Canada’s largest trading partner, any significant changes in tariff policies could disrupt supply chains and increase costs for Canadian businesses. Executives will need to demonstrate a deep understanding of international trade dynamics and have strategies in place to mitigate risks, maintain competitive pricing, and secure market access.”

“As we look ahead, the executive job market in 2025 seems to favor leaders who are adaptable, tech-savvy, and inclusive,” Mr. Beck said. “The ability to drive innovation while maintaining operational excellence in a hybrid work setting is becoming a must-have skill. Companies want leaders who can handle complexity, foster sustainable growth, and build resilience in their organizations— all while navigating the challenges of a shifting global trade environment.”

“Due to the difference in market scale, with the exception of a few vertices such as finance, healthcare and education, the vast majority of Canadian search firms are generalist in nature, covering a broad range of industries and disciplines,” said Sylvia MacArthur, managing partner of The ExeQfind Group. “As well, due to geography, population clusters, and cultural nuances, the search business in Canada is much more localized. For example, clients in Quebec prefer to work with French speaking, local firms. In addition, the likelihood of Canadians relocating their families for a job opportunity being much lower than in the US also impacts on this. As a result, clients in Vancouver or Halifax would prefer to work with a firm that is immersed in the local market.”

Immigration policies are tightening in Canada, but they are primarily impacting on the broader workforce – generally people brought in on temporary work visas, Ms. MacArthur explained. “Visa renewals and awarding permanent residency have slowed significantly,” she said. “At the executive level, while you do need to demonstrate that you have thoroughly considered Canadian talent first, Canadian immigration policies, though cumbersome and time consuming, remain pretty liberal. The bigger challenge in recruiting international executive talent is the reluctance of Canadian firms going through the expense and time-consuming process of sponsoring a candidate. An example is a client that hired a CMO from Germany—where it took two years to finally bring the person on board. In retrospect, it could have been cheaper and faster to set up a satellite office in Germany, hire the candidate there and transfer them to Canada.”

Ms. MacArthur also noted that momentum and future optimism regarding executive hiring in 2025 was strong in Canada until November 2024. “With the U.S. election and the threat of impending tariffs we have seen a wait and see mentality taking hold, with clients putting even some key hires on hold until the beginning of the second quarter,” she said. “As a result, it is pretty difficult to forecast what 2025 will hold overall.”

“Executive search firms in Canada often place a significant emphasis on cultural alignment and bilingualism, especially in Quebec, where fluency in both English and French is crucial,” said Pamela Ruebusch, founder of TSI Group. “Canadian firms also focus heavily on diversity and inclusivity, in line with national values and equity laws. These priorities set Canadian firms apart from their counterparts in other countries, where cultural or linguistic factors may not be as central to the recruitment process.”

Canadian Labor Laws and Immigration Policies

At TSI Group, Canadian labor laws and immigration policies have significantly influenced the executive search process. “Canada’s labor laws require compliance with employment standards and federal and provincial laws, such as the Canadian Human Rights Act and the Employment Equity Act,” Ms. Ruebusch said. “Employers hiring international talent need to secure a LMIA, which ensures that hiring a foreign executive will not negatively affect the Canadian labour market. Recent changes to the Express Entry system, which eliminate additional points for job offers supported by LMIAs, aim to reduce fraud but may increase complexity for employers. As a result, companies must anticipate longer timelines and more stringent compliance when hiring international talent.”

The Canadian job market in 2025 will demand leaders who can successfully integrate AI and automation into business operations, boosting efficiency while maintaining a human-centered approach, according to Ms. Ruebusch. “Addressing widening skills gaps will be a major priority, with organizations investing in upskilling initiatives to future-proof their workforce,” she said. “The retirement of baby boomer executives will create a leadership void, making succession planning and the identification of next-generation leaders crucial. Additionally, to meet the evolving expectations of Millennial and Gen Z workers, leaders will need to foster purpose-driven cultures, embrace collaborative leadership styles to effectively manage and inspire these generations. In 2025, the need for executive search firms will continue to be essential as we assist clients in navigating this rapidly changing landscape and securing the right leadership to thrive in the future.”

“As the Canadian executive landscape evolves, firms must adapt to changes in labour laws, shifting immigration policies (for firms that need to), and emerging workforce expectations,” Ms. Ruebusch said. “By embracing innovation, diversity, and inclusivity, Canadian organizations are well-positioned to navigate the challenges and opportunities of the 2025 job market. Leaders who can blend best in class people, processes, and technology with empathy, who also plan for succession, and understand the values of the younger workforce will be the driving force behind success in this dynamic environment.”

“Executive search firms in Canada face a challenging market,” said Jim Harmon, managing partner, Boyden Canada. “With an economy roughly the size of Texas, stretched across a 4,000 mile border, our country has less than 200 public companies with revenues in excess of $1 billion. On top of this, there has been a decades-long erosion of the number of Canadian offices maintained by multinationals, who prefer to instead include Canada under U.S. regional direction, curtailing the number of senior executives based here. More recently, both federal and provincial governments have been prone to elected leadership that is unfriendly to business, particularly the energy sector, which has been a critical source of excise revenue to underwrite Canada’s social entitlements.”

The executive search industry of very much a reflection of these realities, Mr. Harmon explained. “With the exception of the pursuit of several extremely incumbent, regulated industries—specifically financial services – the largest global firms have little enthusiasm for Canada,” he said. “Given that the search market is substantially made up of owner-managed and family business, PE-backed and small-cap public companies, and a massive set of organizations that derive funding from taxpayers, fees are lower and search opportunities are highly competitive. Given the lack of client sectoral critical mass, search professionals often remain generalists and many firms offer modified retainer arrangements. Public-sector and institutional search business development is very procurement-centric, requiring significant investments in compliance and infrastructure.”

Recruiting Executives to Canada

Mr. Harmon also noted that the reasonableness of Canadian labor law lies somewhere between that of Europe and the U.S. As a result, interim management is a less sought-after solution given the ability to reasonably terminate an executive. “The regime is nonetheless challenging, however, given that our courts and their precedents are extremely biased to the employee’s position,” he said. “Recruiting executives to Canada is surprisingly simple. Our immigration path to permanent residency and ultimately citizenship can nonetheless be time-consuming and requires organizations to prove no domestic solution was viable.”

“Finally, from an outlook perspective, Canada’s current economic fortunes eclipse all the context described above,” Mr. Harmon said. “Massive amounts of immigration have resulted in never-before-seen pressure on our underfunded social welfare system. Coupled with debt, plummeting investment, and perennial fiscal mismanagement, our economy is in a uniquely weak position relative to fellow G7 countries. Brain drain and demographics are very much in the search industry’s favor, but organizations need to be able to budget our fees. All of this suggests a flat outlook at best.”

“Our experience has been that executive search firms in Canada tend generally to have many similarities to those of other countries, yet some may differ subtly in a few areas,” said Jason Carmichael, founder and CEO of Oxford+Richmond. “Canadian executive search firms operate within a dynamic and highly diverse environment, shaped by the country’s vast geography, multicultural makeup, and regulatory frameworks. Unlike many international markets, Canada features robust regional differences: the economic drivers in provinces like Alberta or Saskatchewan center on natural resources, while Ontario and Quebec often lead in finance, software and professional services, and British Columbia hosts a thriving tech sector. This regional variety prompts Canadian search firms to adopt customized, sector-specific strategies that may differ from more uniform approaches seen elsewhere.”

A distinctive national focus on healthcare also influences the way Canadian firms carry out executive searches, Mr. Carmichael explained. “Publicly funded healthcare models ensure that executive roles require familiarity not just with clinical and operational best practices, but with navigating public policy and stakeholder relationships,” he said. “In addition, the Canadian technology ecosystem, especially in urban hubs such as Toronto, Montreal, and Vancouver, demands that search firms, such as ours, source leaders skilled in scaling start-ups, driving digital transformation, and fostering inclusive cultures that reflect Canada’s emphasis on diversity. Overall, Canadian executive search firms stand out through their ability to pivot between specialized local requirements and global market influences. Their strong grounding in regional economies, coupled with an acute awareness of diversity, sustainability, and industry-specific regulations, tends to set them apart from their international counterparts.”

“Immigration policy further influences how Canadian firms recruit globally,” Mr. Carmichael said. “Programs like the Global Talent Stream, Provincial Nominee Programs, and various work permit channels facilitate the entry of highly skilled professionals, including those with specialized expertise in technology and life sciences. For instance, a venture-backed AI start-up looking to rapidly scale in Toronto may find it easier to attract and onboard an international chief technology officer due to Canada’s relatively streamlined visa pathways (though these are constantly evolving). Furthermore, with a potential change in federal leadership following the next election in 2025, there may be a realignment of the country’s immigration strategies and requirements, underscoring the importance of staying informed and consulting legal experts. However, the strict credentialing processes—particularly in fields like healthcare— require comprehensive verification of foreign qualifications and licenses, adding layers of due diligence for search firms.”

When it comes to private equity and venture capital-backed companies, cross-border deals necessitate a robust understanding of both Canadian corporate law and international regulations, especially if the executive hire is relocating from the U.S. or Europe, according to Mr. Carmichael. “Additionally, Canadian laws governing diversity and inclusion, supported by institutional frameworks such as Employment Equity legislation, encourage the recruitment of underrepresented groups, thereby shaping the search process,” he said.

Evolving Industry Demands

As Canada approaches 2025, Mr. Carmichael believes demographic shifts, technological advancements, and evolving industry demands will reshape the executive recruitment landscape. “One significant trend is the increased need for leaders adept at digital transformation across sectors,” he said. “Similarly, tech-focused companies—ranging from AI start-ups in Montreal to clean-tech ventures in Vancouver—will seek C-suite leaders skilled at rapid scaling, strategic partnerships, and navigating complex regulatory environments. Though the Canadian private equity and venture capital environment remains sensitive to macroeconomic headwinds, 2025 should still see targeted growth.PE/VC-funded firms will need executives who can manage accelerated timelines, deliver investor returns, and orchestrate cross-border expansions. This includes CFOs with deep expertise in capital structuring, and CEOs adept at disruptive growth strategies.”

“As a proud member of Alto Partners global we have line of sight on other search firms from around the world,” said Adam Pekarsky, partner at Humanis Talent Acquisition & Advisory. “In truth, Canadian firms aren’t that different. However, the reality is that our population just isn’t big enough, nor our country’s industries diverse enough, to offer the level of geographic or industry specialization seen in other parts of the world. Our candidate pool is similarly smaller and the regional difference in cost of living (such as relocating someone from Saskatoon to Vancouver isn’t without some challenges), though that is changing with disappearing borders and our firm’s commitment to the latest technology and tools.”

“Canadian search firms typically emphasize building long-term relationships with clients and candidates,” Mr. Pekarsky said. “This aligns with Canada’s smaller, interconnected professional networks and the high value placed on trust and discretion. A significant number of searches may focus on cross-border roles due to Canada’s proximity to the U.S. and reliance on global talent for leadership positions.”

A Canadian Labour Market Opinion, now referred to as a Labour Market Impact Assessment, (as previously mentioned) plays a critical role in the recruitment of international talent. It serves as a key document that determines whether hiring a foreign worker will have a positive, neutral, or negative impact on the Canadian labour market. In summary, while the LMIA process ensures fairness and protects the domestic labour market, it can introduce delays and costs for employers. However, it also pushes organizations to focus on high-priority roles and skilled workers, ultimately shaping the strategies used to attract and integrate international talent into the Canadian economy.

“Canada has a couple of interesting areas of difference from many comparable countries,” said Esther McGregor, managing partner of DHR Global’s Vancouver office. “The sector that I work most in is in the not-for-profit and government sectors. In Canada there are many public-sector ‘businesses’ which would be wholly commercial in the U.S. or Europe. These can include energy and infrastructure providers, insurance, transport infrastructure and both wholesale and retail operations for cannabis, alcohol, and gaming. The multi-billion-dollar corporations providing these services operate much as companies do with the added emphasis on the triple-bottom-line, ensuring they achieve economic, social, and environmental goals.”

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media