Canada is considered the best country to build a business in 2025, according to the Canadian Employer Confidence Index 2025 Survey.
The global survey of small-medium enterprises also revealed that Canadian-based employees and New Zealand-based employees were the most likely to receive salary increases.
“The last few years have been tough for small businesses around the world but, as we move into 2025, there is an air of cautious optimism amongst employers. While there are certainly challenging times ahead, and it would be remiss of us to gloss over the pressures that businesses are under, it’s good to see both opportunity and optimism remaining high,” said Alan Price, chief operations officer of survey publisher Peninsula Group, in a statement.
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Nonetheless, Canadian employers displayed concern about the economy, with 77.5 percent of respondents citing rising costs as a significant problem this year. Sixty-four percent of employers also highlighted employee retention as an important issue.
Payroll cost was considered the most significant staffing concern across Canada, New Zealand, and the UK.
“Staffing continues to be a challenge for many employers, with increased payroll costs a top concern for 58.9 percent of all global respondents. This could impact on both recruitment and retention, as businesses look to balance the books. We’ve seen an increase in the number of employers turning to flexible working, mental health support, and reward and recognition to aid retention instead of financial remuneration,” Price said in a statement.
One in seven employers worldwide has made hybrid working arrangements permanent, but Price noted “a clear global divide in opinions.” Survey findings indicated that 62 percent of Canadian employees would likely return to the office full-time.
“UK employers are most likely to embrace hybrid working, while Canadians are least likely,” he said. “Flexible working remains the benefit that most employers are turning to when it comes to employee retention, coming out top for 4 out of the five countries we surveyed.”
Recession fears persist, with 23.3 percent of global respondents seeking to survive the year. Nonetheless, 47 percent of SMEs cited growth as their leading business goal, which increased from 447.7 percent last year.
Moreover, 79 percent of small businesses worldwide have not altered their working patterns in the last 12 months.
“With that being said, it could be that larger employers have made changes to working patterns this year, with SMEs set to follow suit in 2025 – that remains to be seen,” Price said.
The Peninsula Group surveyed 79,000 SMEs in Australia, Canada, Ireland, New Zealand, and the UK.