A new Employment Hero survey of 600 senior business leaders finds most Canadian SMEs plan to hire this fall, but with greater discipline and a sharper eye on AI ROI
Canadian small and mid-sized businesses are heading into the second half of 2026 with a cautious but broadly positive outlook, according to new survey data, although that optimism is coming with tighter guardrails around staffing and technology spending.
The inaugural Employment Hero SME Pulse, conducted by research firm GWI between April and June 2026, polled 600 Canadian senior business leaders at companies employing between five and 1,000 people. The findings point to an SME sector that is growing more strategically rather than aggressively, with an eye on productivity and cost discipline.
Fifty-eight per cent of respondents described themselves as optimistic about their business prospects over the next six months, compared to just 18 per cent who said they were pessimistic. Yet that confidence is translating into measured action rather than bold expansion: 41 per cent of leaders said their primary focus is balancing growth with stability, while only 26 per cent cited expansion as their top priority.
On hiring, two-thirds of SMEs said they expect to bring on new staff this fall. However, the nature of that hiring has shifted. Just 34 per cent are expanding their teams outright, while 32 per cent described their approach as selective, targeting only specific roles that address clear operational needs.
The three biggest pressures facing Canadian SME leaders right now are productivity (cited by 41 per cent), wages (39 per cent), and hiring and talent acquisition (36 per cent) — a combination that helps explain why business owners are being more deliberate rather than reactive in their workforce decisions.
The survey also captures a meaningful shift in how Canadian businesses are approaching artificial intelligence. Sixty-two per cent of respondents said they plan to increase AI investment, but the framing has changed. Rather than debating whether to adopt AI at all, leaders are now focused on how to extract practical value from the tools they deploy.
Chris Pinkerton, Managing Director of Employment Hero Canada, said the findings reflect a sector entering the second half of the year "from a position of cautious confidence." On AI specifically, he noted: "The conversation around AI has shifted. Businesses are no longer asking whether they should invest, they're asking how they can use AI to help existing teams work smarter."
