There are literally thousands of franchise concepts in the marketplace today and more than their fair share require the hiring of staff to run the operational side of the business. That’s why FranNet of Canada thought it was important enough to bring you an update on a few hiring and grant options in 2022 regarding wage subsidies for Canadian-based employers. These funding programs are incentive-based and tie-in to the formal application process.
These wage subsidies and grants apply to the youth generation of Canadian workers, who fit neatly into the unskilled labor force and are suitable for multiple franchise-run businesses. Here’s what you need to know…
Two Grant Opportunities
Currently, there are two individual hiring grant opportunities in Canada – one for youth employment and the other for post-secondary graduates. But the program to take advantage of these hiring grant incentives are handled on a first come, first-serve basis. And the initiatives are not designed to be retroactive for pre-grant application hires. To qualify for these stipends, employers must receive funding approval prior to hiring any candidate who qualifies.
Option 1 – Post-Secondary Graduates
The grants for post-secondary graduates are meant to foster candidates who are eager to begin their full-time employment and career paths. Most candidates are highly educated and possess skills employers are looking for when filling critical positions. The post-secondary grants require any hired applicant to spend 26-52 weeks as an employee, with plans to continue after the funding period ends. Candidates must have graduated within the past 2-3 years and be hired for specific skilled roles. If all requirements are met, employers can recoup up to 50% of the new hire’s wages to a maximum of $300,000 or up to 100% of wages covered for nonprofit organizations.
Option 2 – Student Internships
For co-op students looking to establish practical, hands-on knowledge, employers can take advantage of grants to help them get started. The co-op period for these funds (essentially, an internship) typically last between 16-18 weeks. When hiring co-op students who meet these requirements, employers can obtain up to 50% of the intern’s wages to a maximum $5,000. However, this amount increases to 70%/$7,000, provided the co-op student belongs to an under-represented group, including women in STEM programs, or recent Canadian emigres. The grant money can only be applied once per student, to foster additional candidates in each subsequent year.
The hiring incentives are offered to employers for several important reasons. For students and recent graduates, paid work fosters relevant, meaningful job experience that helps them grow and learn. And for employers, offering internships and first-time career opportunities provides an assist for young, energetic employees who may go on to grow within your company. If you’re currently a franchise owner, or about to be, and you need a crack staff to help run your operation, it may be worthwhile to look into these valuable incentive programs.
2022 has begun to wind down to the finish line, so if you’re ready to begin your entrepreneurial journey before the year is out, FranNet of Canada can help you get started. With consultants serving every Canadian province, you can set up a no-cost, no-obligation appointment with one of our qualified representatives. To find your local province consultant, simply follow this link and select “Canada” on the FranNet Franchise Consultant Directory page of our website. Getting started is easy – you can take our FranNet Ownership Quiz – or simply make an appointment to speak with one of our franchise experts today. And don’t forget to read our bi-monthly blog series, covering franchising issues for all Canadian entrepreneurs!