So, what is the Economic Benefit of International Tech Hiring anyways?

I recently had the opportunity to take part in a Business in Vancouver-organized panel on the Tech Migration. “Which Tech Migration,” you ask? It’s the one everyone’s talking about: US companies from Silicon Valley and other big tech hubs moving north, or at least setting up outposts in places like Toronto, Vancouver or places like Kelowna and Calgary. 

This is a huge story in business and technology -- and naturally, VanHack sits at the center of it. We’ve helped hundreds of senior developers, computer engineers and other tech professionals from around the world to get hired at these kinds of innovative, migratory companies across the country. 

In fact, if you’d like to know, here’s how to apply to the Global Talent Stream.

I won’t re-hash the entire panel here, but I did want to share some of my answers to the questions that were posed to me during this exciting talk with other experts like Launch Academy Co-Founder & CEO Ray Walia and Innovate BC President and CEO Raghwa Gopal, President. Ray actually has a very useful article here on my favorite topic: calling entrepreneurs from around the world to Canada to set up their companies.

Here’s my summary of the questions that came to me -- and the answers I gave.

“To what extent does talent (access to it, cost of it) play a role in tech migration?” 

Let’s face it: talent is the main reason international companies come to Canada. They simply have access to a bigger talent pool. That sounds funny, since Canada actually is about the same size of California, population-wise. But thanks to the Global Talent Stream, they are able to rapidly onboard senior tech talent from everywhere: Brazil, Colombia, Nigeria, India, etc.

You might think that the cost of talent would be a bigger factor. Canada’s tech sector has grown so fast that wages are rising. But the truth is that international companies are totally fine with paying very high salaries. If a talented tech professional will mean a startup gets to launch faster than its competitors, with leading-edge technology -- the value far outweighs that cost.

“How does it benefit the broader technology ecosystem here?” 

This is a great question. For starters, more employment. There are 5 jobs created for each developer relocated in “support” industries such as retail, health, etc., according to The New Geography of Jobs by Enrico Moretti. 

Developers also relocate and then start their own companies in the future, employing even more Canadians.

From a social standpoint, there are huge benefits. Just think of the local tax revenue helping to pay for schools, hospitals in rural areas, especially.

We’re also seeing a brain gain. Newcomers are almost always senior talent that help to train local talent as part of the Labour Market benefit plan. Data scientists, computer engineers and others with special skills are helping our own local talent level up.

For example, “the federal government said more than 1,000 Canadian high-tech companies have hired over 40,000 foreign workers through GTS as of January 2020. 

“In return for welcoming these specialized individuals into the country, the program is directly responsible for creating 40,833 new Canadians jobs as well as 9,732 paid co-op positions.”

“Can big investments by big companies put a tech ecosystem off-balance from a talent perspective?” 

Yes. No doubt about it. We have to watch out and not let too many companies join without bringing more tech talent to the ecosystem and training new talent up through local education programs 

“Do we have the skilled talent in this province to continue to supply local tech ventures and incoming tech companies?” 

Unfortunately, no. There’s a huge lack of talent -- and it is only getting worse

Let me break down the numbers for you. There will be 310K open roles across Canada by 2023 according to ICTC. We simply aren’t graduating enough skilled talent through our universities and digital community college programs to meet demand on our own. 

“What are some of the things companies should be aware of when bringing tech talent into Canada?”

The number one thing is learning how the Global Talent Stream works. There’s a lot of information out there -- in fact, VanHack has produced a lot of it. But also, just be open to global talent in general. It can actually be quicker and easier to hire globally, particularly in locations where companies are desperately competing for limited candidates. 

Finally, I think most companies are aware of the benefits of building a diverse team. Diversity and inclusion programs were being in 2018 and 2019 and will only grow. Well, hiring from a global workforce helps you get onto that path.

“What opportunities does tech migration into Greater Vancouver and B.C. present to local entrepreneurs and/or talent?”

For me, the answer is the ability to learn from world-class companies and entrepreneurs who are moving here. 

More talent in this ecosystem is obviously a great thing for companies based here. We’re also seeing higher salaries for tech talent, which spurs many economic benefits. We’re also seeing more VC investment and investment of all kinds in the local tech ecosystem. That is a great thing for the future.

And you can see all the amazing tech talent that wants to relocate on the VanHack platform for free here.