with Government Incentives
Today in Canada, companies are shifting focus to more innovation through technology. Moreover, demographic changes, including a spike in baby boomer retirements, are occurring as a result of a rapidly aging population. These changes in technology and demographics combined have brought about a great shortage of skilled workers and established a significant void across many industries.
Tax Incentives programs
refundable and non-refundable tax credits
In response to the shortage of skilled workers, the provincial and federal governments together have joined efforts to introduce refundable and non-refundable tax incentive programs for employers who hire and train apprentices in certain skilled trades.
Despite the financial incentive these training programs provide, employers have realized that managing the intricacies of the various programs effectively and efficiently so as to maximize credits would require additional investment in resources to tackle the growing burden involved in document sourcing ,claim preparation , and audit support.
Therefore, it is quite common for companies to implement an effective Apprenticeship Management System (AMS) so as to avoid taking on additional costs and risk of being imposed assessments and penalties for non-compliance.
Grant Incentive programs
As Canada seeks to keep its competitive edge in a rapidly changing environment, the reality is that the Canadian workforce needs to adapt and be ready for the future. The federal government has responded to this with the introduction of a nation wide grant incentive program for employers of all sizes to assist them in the development of a Highly Skilled Workforce. With these incentives, employers are now presented the opportunity to recover costs invested in “third-party training” which is made available and delivered to employees across all job categories within their organization. In turn, company employees improve on their skills and competencies needed to adapt to a changing economy, and employers are provided a workforce that’s prepared for tomorrow.
Experience has shown that without an effective Grant Management System (GMS) in place, employers are not fully capitalizing on the opportunity to offset their costs invested in training their employees. The reason is that employers are too busy driving their business forward, and meeting all the time-sensitive requirements would require diverting additional resources towards an onerous task where the risk of being denied funding is real.