Express Entry - Canada’s Pathway to Permanent Residence and Talent Retention By Janet Bomza, Partner and Canadian Immigration Lawyer, PwC Law LLP and Lisa Min, Senior Associate and Canadian Immigration Lawyer, PwC LLP
Introduction
In the face of intense global competition for talent, the ability to attract and retain a highly skilled workforce is critical to an organization’s success, and in turn, to a country’s profile in this ever-changing industry. In solidifying its position as one of the most favoured destinations for skilled labour, Canada has opened its doors to foreign talent. Since 2015, significant changes to Canada’s immigration system have resulted in the introduction of new processes and programs which prioritize certain in-demand skills, and fast-track the entry of highly skilled workers to Canada. Coupled with the notable increase in the number of new immigrants welcomed to Canada each year through permanent residence programs, Canada is well- positioned to maintain its role as one of the most desirable destinations for highly skilled talent.
According to PwC’s annual global CEO survey, 77% of CEOs have identified the shortage of key skills as the biggest threat to their company’s growth.1 This talent gap is particularly acute for companies operating in the technology-based innovation and digital automation sectors, with talent shortages persisting in areas such as machine learning, data science, product management, user experience design, sales, and digital marketing.2 Notably, IT executives note the lack of experienced business talent and key functional expertise as the largest obstacle for Canadian technology companies looking to expand.
In efforts to address this demand and capture their market potential in these highly competitive and dynamic sectors, Canadian employers are increasingly looking to the international labour pool to fill in- demand occupations, train Canadian workers in niche skillsets, and scale up business operations. Indeed, immigration has become a key player in the strategy to alleviate Canada’s current and projected skilled labour shortages, already accounting for all labour force growth.3 Through the Canadian government’s efforts to facilitate the inflow of skilled economic immigrants through varying immigration policy, Canadian businesses benefit from an expanded knowledge and skills base, ties to global markets, and new business opportunities. However, most notably, foreign talent provides the critical skills that will help small and medium-sized Canadian businesses scale up to create high-quality jobs for Canadian workers.
Due to the demand for highly unique skills, it is critical that companies seeking to capitalize on the international pool of skilled talent integrate long-term retention strategies into their human resource policies. A Conference Board of Canada report notes that Canadian employer-spending on learning and career development programs for employees has been increasing since 2010.4 As a complement to this significant investment into training and developing their workforce, it is important for companies to plan for these employees’ transition to permanent immigration status. A well-defined global mobility policy that proactively supports the immigration needs of an organization’s foreign workforce can be a key differentiator in attracting and retaining specialized and senior talent, sparking higher employee performance, and reducing turnover. In this light, it has become apparent that employers can benefit significantly by understanding Canada’s permanent immigration system, in order to leverage the short and long-term benefits available from the global talent pool.
Overview of the Express Entry System
Express Entry is Canada’s electronic application management system used to select and process skilled economic immigrants. Implemented in 2015 to expedite the pathway to permanent residence for those foreign nationals best positioned for economic success in Canada, Immigration, Refugees and Citizenship Canada (IRCC) aims to process complete applications filed through the Express Entry system within a six-
1 https://www.pwc.com/gx/en/ceo-survey/2017/deep-dives/ceo-survey-global-talent.pdf 2 Attracting the Talent Canada Needs Through Immigration, Advisory Council on Economic Growth. 3 https://www.conferenceboard.ca/press/blog-item/trending-insights/2018/10/31/2019-2021-immigration-levels-plan-why-is- canada-welcoming-more-newcomers 4 https://www.conferenceboard.ca/press/newsrelease/2018/01/31/canadian-employers-investment-in-employee-learning-and- development-continues-to-rise
month timeframe. Compared to the prolonged timeframe to obtain a Green Card, the US equivalent of Canadian permanent residency, which can for some foreign nationals range from 6 – 10 years, a six month processing standard is particularly attractive for US skilled workers considering Canada as their new home. Coupled with the unpredictable changes to US immigration policy under the Trump administration, Canada’s Express Entry system provides Canadian employers both a competitive edge and a strategic advantage in attracting skilled immigrants.
Express Entry manages the intake of permanent residence applications under the three federal economic immigration programs, namely the Canadian Experience Class (CEC), Federal Skilled Worker Program (FSWP), and Federal Skilled Trades Program (FSTP). It also manages permanent residence applications under certain Provincial Nominee Programs (PNPs). Prospective applicants who meet the eligibility criteria under one of the federal economic programs can express their interest in applying for permanent residence by submitting a profile into the Express Entry system. Qualified candidates are then placed in the Express Entry pool with all other candidates, and assigned a point score under the Comprehensive Ranking System (CRS) based on factors, including age, education level, official language abilities, and work experience. Additional points may be awarded for having Canadian education, a Canadian sibling who resides in Canada, a qualifying offer of employment, or a provincial nomination certificate.5
Every one to three weeks, IRCC will select the highest-ranking candidates and issue an invitation to apply for permanent residency. If invited, a candidate has 60 days to submit a complete application online, which must include all supporting documentation.
As the selection of candidates is a demand-driven process based on pre-determined indicia of successful economic integration and performance, Express Entry has become a responsive immigration system that enables employers to fill open positions mission-critical to their business goals and compete proactively for the world’s top skilled professional talent.
Eligibility for Economic Programs Managed through Express Entry
To be eligible to enter the Express Entry pool, candidates must meet the minimum criteria under one of the three federal economic programs. All programs require candidates to have full-time6 or part-time equivalent paid work experience in an occupation that is classified as a skilled occupation 7 by the National Occupational Classification (NOC), a system used by the Government of Canada to classify jobs.8 Candidates must also meet certain other program eligibility criteria, as follows:
Minimum CEC FSWP FSTP Criteria Type/Level of Canadian work experience Canadian or foreign Canadian or foreign Work in a skilled occupation work experience in a experience in a designated Experience skilled occupation skilled trade Amount of 1 year in the last 3 years 1 year continuous in 2 years in last 5 years Work (either combination of the last 10 years (either combination of Experience full-time or part-time (combination of part- full-time or part-time work) time, full-time or more work) than 1 job) Minimum Canadian Language CLB 7 CLB 5 for speaking and Proficiency in Benchmark (CLB) level 7 listening English or if NOC 0 or A occupation CLB 4 for reading and French CLB 5 if NOC B occupation writing
5 The Provincial Nominee Program allows provinces and territories to select or “nominate” for permanent residence economic class immigrants who possess credentials and human capital attributes deemed to be beneficial to their specific local labour market needs. 6 “Full-time work” means at least 30 hours of work over a period of one week. 7 Classified as Skill-Type 0 or Skill-Level A or B 8 The NOC system assigns a four digit code and list of major duties and responsibilities for every occupation in the Canadian labour market. Each NOC code is further classified into job types or levels. Managerial jobs correspond to Skill Type 0; professional jobs that typically require a university degree are classified under Skill Level A; and technical jobs and skilled trades that generally require a college diploma or apprentice training are included in Skill Level B.
Offer of Not required Not required A valid offer of full-time Arranged employment for a total Employment period of at least 1 year or a certificate of qualification in the skilled trade issued by a Canadian provincial, territorial or federal authority Education Not required Secondary (high Not required school) Proof of Funds Not required Required unless Required unless Candidate Candidate is currently is currently authorized to authorized to work in work in Canada with a Canada with a valid valid job offer job offer
Trends and Composition of the Express Entry Pool
The top source countries for Express Entry applicants in 2017 were India, China, Nigeria, Pakistan, United Kingdom, and United States. The highest number of invitations were issued to candidates who worked in the Information and Technology sector, with the top three occupations being Information Systems Analysts and Consultants, Software Engineers, and Computer Programmers / Interactive Media Developers.9 In the report “Digital Talent: Road to 2020 and Beyond” published by the Information and Communications Technology Council, it was estimated that Canada currently faces a talent gap of 182,000 skilled technology professionals that cannot be met by domestic supply of technology graduates and workers.10 Accordingly, Canada’s Express Entry system plays an increasingly vital role in mitigating the talent shortage in key sectors of the local economy.
In the first Express Entry draw, which took place on January 31, 2015, invitations were issued to candidates with a CRS score of 886 or higher. By March 2015, the score of the lowest-ranked candidate to receive an invitation had decreased to below 500. Overall, a competitive CRS score remains above 440. Human capital characteristics including age, education level, language proficiency, and Canadian work experience can contribute a significant number of points towards a candidate’s total CRS score by giving preference to young professionals between the ages of 20 and 29 with three-year or longer post-secondary education, fluency in English or French, and minimum one year of skilled work experience in Canada.
Since launching Express Entry, the Canadian government issued the highest number of invitations to apply in 2018, with 89,800 invitations. According to the 2018 Annual Report to Parliament on Immigration, the federal government plans to continue to increase the Express Entry admission targets by 18.5% under Canada’s multi-year immigration levels plan for 2019 to 2021.11 Together, economic immigration will account for 44% of the 1.3 million new permanent residents that Canada plans to welcome over the next three years.12 To meet these planned admission levels for Express Entry-managed programs in the coming years, it is anticipated that the number of invitations issued in each round will continue to rise.
Conclusion
Canada’s facilitative immigration programs have undoubtedly played a key role in maintaining Canada’s position as amongst the most desirable destinations for highly skilled foreign workers. As more and more countries join the global need for skilled talent, Canada’s immigration landscape, which is fluid in order to
9 https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/express-entry-year-end-report- 2017.html 10 https://www.ictc-ctic.ca/wp-content/uploads/2016/03/ICTC_DigitalTalent2020_ENGLISH_FINAL_March2016.pdf 11 https://www.canada.ca/en/immigration-refugees-citizenship/corporate/publications-manuals/annual-report-parliament- immigration-2018/report.html#plan 12 https://www.cicnews.com/2018/11/express-entry-pnps-set-to-drive-immigration-to-canada-over-next-3-years- 1111395.html#gs.fU8UyyuF
address skills shortages by enabling proactive selection and fast and efficient processing, will support Canadian employers to source and retain their foreign workforce.
Since coming into effect on January 1, 2015, Express Entry has represented a major change in the way Canada selects, receives, and processes permanent residence applications under the economic immigration stream. A marked departure from the former “first come, first served” application system, the Express Entry selection process favours candidates with the highest likelihood to integrate and become economically established in Canada, namely those who are young, highly educated, have a high level of English or French proficiency, and possess Canadian work experience.
In the global war for talent, Canadian employers seeking to retain skilled international talent must design and integrate effective workforce planning strategies and policies to support the transition of temporary workers to permanent residency. Coupled with a comprehensive employee retention program that not only anticipates the business’ workforce needs but also the needs of their international talent, employers’ human resource policies can play a significant role in attracting and retaining key skills. The resulting positive impact on employees’ motivation and job satisfaction may lead to increased morale, productivity, and performance, and support the continued success of those employers competing in the critical and influential technology industry.