Collage HR Trends for Q1 2025:

A lot has changed this quarter and the main thing on people’s minds is tariffs, driving our first two trends. Let’s jump in.

1. Buy Canadian - how do we support our ecosystem?

Many Canadian businesses are struggling as a result of tariffs and Canadians are looking to help at the personal and business level. As we walk into grocery stores, we are now looking at labels. Ontario and LCBO made buying Canadian easier by removing American products. We are seeing a flood of businesses like goConfirm moving to Canadian providers like Collage HR. The benefits are two-fold in supporting Canadian businesses and ensuring that American businesses are encouraged to fight to end the tariffs.

Our recommendation: we encourage you to revisit your vendor lists and purchases to buy Canadian and support our fellow Canadians and economy.

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2. Revised people strategy - do we act or wait?

According to KPMG, 33% of Canadian businesses expect significant profit losses or a shutdown as a result of tariffs. As a result, more than a million Canadians could lose their jobs if the tariffs are imposed for over a year. 76% of businesses are conducting a strategic review to assess the situation.

The Freight sector, manufacturing, and some immediately impacted industries have already had to make tough decisions. The challenge is that layoffs were a theme earlier in the quarter, with Canada Post, Bell, and others making difficult decisions. In the US, February 2025 was the highest month of layoffs since 2020.

Linda Chammartin, Vice President at People First HR Services, has seen a drastic increase in inquiries of clients looking to better understand their options through this challenging time. “The constantly changing state of tariffs makes delaying major decisions a valuable option for businesses less impacted, and who can afford it”, Linda says. If necessary, furloughing is also a flexible option that can better protect employees and employers.

Our recommendation: assess your situation and ensure that you are considering long-term implications. Engaging with an HR consulting firm like People First HR Services is an investment in your future that can help you understand and evaluate your options.

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3. Artificial intelligence (AI) - are there easy wins?

It was interesting to see Anthropic, a leader in AI, disallow the use of AI in the job application process. It makes sense but is still contradictory to the adoption of the tool the company is promoting, similar to when Zoom mandated its return-to-office.

In speaking to leaders, there is more openness to the use of ChatGPT, Copilot, and other AI tools. Teams are seeing efficiency gains in summarizing information and cleaning up data. This often includes the type of work team members dislike doing.

Oh - and a lot has changed in the AI tool race with the introduction of DeepSeek followed by the launch of Alibaba’s new tool. This shows that we don’t quite know what the potential of AI innovation entails.

Our recommendation: if beneficial for your teams, choose your preferred AI tool. Communicate how it can and can’t be used. Listen to the arguments people make when it relates to benefits. At a time that companies are reluctant to hire, AI automation is an opportunity to help your team today and prepare for the future.

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