The Hire Knowledge Project ... Find the right one.

Originally published at TheManual.ca in 2007.

If you are a Canadian company, a not-for-profit, public education institution, public health care provider, municipality or First Nations council, a government-funded program may pay a portion (40-60%) of the wages of a new hire during the first months of work. With that money, your organization can cover the costs of training a new employee.

Officially, it’s known as the Targeted Wage Subsidy program.

If this is new to you, you are not alone. Most small businesses don’t have a specialist in matters of personnel, nor does the management have time to browse government web sites looking at programs. Many human resource specialists don’t know about it, and some may have preconceived notions about the program or type of applicants that qualify.

Read on to learn more.

Who Can You Hire Using This Program?

Just about anyone. Eligible job seekers encompass the full range of skills, experience and talents that you find in the wider workforce. However, they will have some barriers to regular employment. Typically, they will have been unemployed during the previous 3 to 5 years, or are presently unemployed. They may have done a job successfully in the past, but have not used their skills lately. Perhaps their past employers no longer exist (think dotcom burst), or their references have moved on, or both. Perhaps the required skill set has changed a bit, just enough that they need a chance to learn one new thing. Maybe their experience is from another country, or in another language. The reasons are varied, but quite legitimate.

To be eligible, a job seeker must be unemployed (I imagine severely underemployed would count), and

1. have an established Employment Insurance benefit period, or completed a benefit period within the previous 36 months (3 years); or

2. have established a maternal or parental claim withing the previous 60 months (5 years) and remained out of the work force.

The Benefits to Your Organization

The Money

First, the obvious boost that several thousand dollars can give your bottom line. Need I explain this to anyone managing a growing business? I thought not.

A larger business might consider this to be a relatively small sum. In comparison to overall expenditures, that is probably true, but a bigger business is more likely to be hiring multiple people, potentially saving quite a bit more. Saving a bit on several hires might allow you to bring in a contractor, a part-time employee or pay overtime, when needed.

More People to Choose From

When you post a job, you probably get many applications, but it is often difficult to find someone with all of the qualifications that you need, especially if you need someone right away.

Instead of waiting for someone with everything you need, those other candidates with 80 or 90% of your requirements become viable options when the government will compensate you for the cost of training and orientation. With most of the skills and experience that they will eventually need, they can often be productive right away, while still learning to do other tasks.

Public Relations

By assisting job seekers overcome barriers to stable employment and gain skills/experience, you can help create an image of the company as a good corporate citizen. Consider how much some companies spend on similar efforts. It makes sense to get money while you do the same.

The Limitations

No Agencies or Third-party Recruiters

If you are an agency or recruiter, you won’t be able to use this program to make your candidates more appealing to a client. That includes direct placement in a full time role. An agency or outsourcing company may qualify for a wage subsidy when hiring its own staff, however.

New People Only

You can’t use the subsidy to cover salary for someone who is already working for the company, nor can you use it to bring someone back to work full time, or convert a part-time to full time.

Duration

The wage subsidy is available only for full-time positions. Extended contracts (such as 2 years) may qualify in some circumstances, but forget about anything much less than a year.

The wage subsidy is intended for regular employment, subject to provincial employment standards legislation and providing the same benefits and responsibilities as other regular employees. Sorry, no outside contractors that are employees in all but name.

Paperwork

Sure, it’s a government-funded program, and there is a process involved. But any hiring involves some, and once you have gone through it once, successfully, it should be easier. The money won’t appear right away, due to the process, so you will have to pay the wages of the new hire in full and be reimbursed later.

Company Stability

Start-ups will have a hard time gaining approval for a wage subsidy, as the program is intended to provide stable employment for eligible job seekers, and a company history is important. If you are looking to expand an existing, viable business, and you have been in operation for at least a year, you may qualify for a wage subsidy. Otherwise, probably not, unless it is a new business closely associated with an established organization.

Summary

If you have a need to hire, and want to expand your options to include talented people that need just a bit of training, but can’t afford it, this program could make the difference.

Disclaimer

This is intended only as an unofficial introductory overview of the targeted wage subsidy program, as it applies to potential employers.

The information above is based on my interaction with administrators and others involved in the delivery of the program, my review of the documentation available online and my prior experience from 2001. The terms of the program are subject to change. Please refer to official sources for up-to-date, detailed information, especially if you have questions regarding about eligibility (either as job seeker or employer) or the process of application.

Yes, I am eligible for this program, should an organization hire me, so I do have a vested interest in promotion of the program. Other than that, I’m motivated by a desire to help other job seekers and entrepreneurs.

Official Links

Government of Ontario - Min. of Training, Colleges and Universities

In your area

Official form for employers in Ontario

Service Canada page