Blog - Cambridge Chamber of Commerce

A large majority of Canadian businesses are sluggish when it comes to the adoption of Generative Artificial Intelligence (Gen AI), according to the results of a recent report by the Canadian Chamber of Commerce’s Business Data Lab (BDL).

 

The 38-page report details how a multitude of barriers, along with a lack of trust in the new technology, could impede the adoption levels needed to improve Canada’s economic growth.

 

Locally, the report shows that 11% of businesses in Kitchener-Waterloo and Cambridge are "using", or "planning to use" Gen AI, compared to 18% in Toronto or 15% in Ottawa. 

 

The report, Prompting Productivity: Generative AI Adoption by Canadian Businesses, underscores how Gen AI (referring to Large Language Models bases and the practical applications built on top of them) can help tackle one of the most significant economic challenges facing Canadian prosperity and standard of life — low productivity — while also exploring what is holding Canadian businesses back from adopting AI technologies.

 

The results detailed in the report, compiled from a survey of 13,327 businesses in January and February of this year, shows that larger businesses are nearly twice as likely to adopt Gen AI compared to smaller businesses. Overall, the data shows that one in seven businesses (roughly 14%) – mostly larger businesses and industries with highly educated workers – are Gen AI adopters. 

 

Patrick Gill, BDL's Senior Director of Operations and Partnerships, and the report's lead author, says he's surprised more small businesses haven't been embracing this new technology. 

 

“I’ve never run into a small business owner who wasn’t run off their feet and wearing multiple hats or wish they could replicate themselves,” he says. “But that’s the nice thing about this tool. With little or at no cost a small business owner or team can leverage this to fill in some of their existing skills gaps.”

 

According to the report, the top three industries adopting AI includes information & culture (31%), professional services (28%), and finance and insurance (23%). The two lowest to adopt are agriculture, forestry, and fishing (8%) and construction (7%).

 

Building trust an issue

 

Patrick says historically, larger businesses usually face more barriers adopting new technologies due to the fact their operations are more complicated and often have technology ‘stacked’ on top of each other.

 

“Smaller businesses usually face less of a challenge,” he says. “Their biggest challenge has usually been ‘Do I have the money right now to invest in a new technology?.”

 

Besides potential costs, trust is also a key issue.

 

“Public trust and the perception of AI will definitely play a crucial role in the adoption of the technology going forward,” says Patrick, noting a survey released last year indicated that Canada was the third most pessimistic country in the world and that only 38% of Canadians view AI in a positive light, slightly ahead of those in the U.S. and France.

 

Patrick says the Business Data Lab report also indicates that people are nervous about what the adoption of Gen AI will mean for their jobs and notes most agree change will come in the way they conduct their jobs, versus losing them outright.

 

“Right now, the technology is predominantly being used to augment workers’ abilities and not to replace them entirely,” he says, adding many are looking at Gen AI as a tool that can accelerate production and improve quality and services in effort to reduce costs. “That’s incredibly important during this time of a high-cost operating environment.”

 

From a global perspective as interest in Gen AI continues to grow, the report indicates that Canadian businesses need to move fast to gain a competitive advantage over global competitors. Low productivity and business investment puts Canadians’ prosperity and living standards at risk and its GDP per capita is now significantly below the U.S. and the OECD (Organisation for Economic Co-operation and Development) average.

 

Businesses must ‘innovate or die’

 

“Gen AI is a generational opportunity to boost Canadian productivity at a time when our performance is steadily headed in the wrong direction. The time to prompt productivity and act is now. Canadian businesses must innovate or die, and that means embracing Gen AI,” says Patrick. “While adoption has begun in every industry, it’s likely not fast enough for Canada to be competitive on the global stage, especially since three in four Canadian businesses still haven’t tried Gen AI yet.”

 

Based on two adoption scenarios (“fast” and “slow”), the Canadian Chamber of Commerce’s BDL projects that Gen AI adoption by Canadian businesses will reach a tipping point of 50% in the next three to six years.  This may seem fast but is probably not fast enough to keep pace with global leaders. Businesses in the U.S., China and several European countries are investing heavily in AI, likely outpacing Canadian investment.

 

“Those who move first basically set the standards and capture the largest market share,” says Patrick. “And everyone else is perennially playing catch up.”

 

He hopes the findings in the BDL report may gently ‘nudge’ businesses into more experimentation when it comes to adopting Gen AI. 

 

“There are so many low costs and no cost options available, so experiment and give it a try,” says Patrick, explaining how AI can assist with creating emails, marketing, and promotional content, and well as new visuals. “Use and test it and eventually you’ll find a way.”

 

Click here to the read the report.

 

 

Key findings from the report

 

  • Roughly 1 in 7 Canadian businesses (14%) are early Gen AI adopters. They are found within every Canadian industry and region, but are more likely to be exporters, larger businesses, industries with highly educated workers or emerging enterprises.
  • Larger businesses are nearly twice as likely to use Gen AI than small businesses.
  • 18% of Ontario businesses are ‘already using’ or ‘plan to use’ Gen AI (Toronto rate was 18%, while KW-Cambridge was 11%).
  • On its current trajectory, Gen AI adoption by Canadian businesses could reach a tipping in the next 3 to 6 years — likely too slow to keep pace with global competitors.
  • Depending on the rate of adoption, Gen AI could grow Canada’s productivity between 1% and 6% over the next decade.
  • The factor of “trust” will be important for future adoption, with public interest and acceptance of AI likely being positively correlated with countries’ business adoption rates. Global IPSOS surveys reveal that Canadians are less knowledgeable and more nervous about AI than citizens of most other countries.
  • Most businesses using Gen AI are predominately looking to accelerate content creation (69%) and automate work without job cuts (46%).
  • Interestingly, replacing workers is not the primary driver of adoption, with only 1 in 8 businesses (13%) that use Gen AI cite its value for replacing employees. 
  • Roughly 3 in 10 businesses cite hiring skilled employees and access to finance as top challenges to adopting new technologies.
  • Almost 3 in 4 Canadian businesses (73%) have not even considered using Gen AI yet.
  • Public interest and perception of the technology are likely additional major barriers to adoption by businesses. 
  • It is recommended that Canadian businesses move fast to adopt Gen AI to gain a competitive advantage over global competitors. This means starting with small-scale pilot projects to validate the feasibility and impact of Gen AI before gradually expand to larger initiatives based on successful proofs of concept, all while training and preparing employees for its adoption.
  • For its part, government can support Gen AI adoption by upskilling workers, setting adoption targets, tapping the private sector, and among other actions, ensuring regulation is proportionate and risk based.

 

Recommendations for business

 

Innovate or die: Canadian businesses need to move fast to gain a competitive advantage over global competitors. With Gen AI so accessible and applicable for every type of business, there is little excuse for Canadian businesses to sit on the sidelines. 

 

Pilot projects that measure uplift: Start with small pilot projects to validate the feasibility and impact of Gen AI. Compare metrics (e.g., efficiency, costs savings and revenue generation) before and after its implementation.

 

Change management and employee training: Prepare employees for the adoption of Gen AI. Provide training sessions, workshops, and resources to help them understand the technology and develop new workflows. 

 

Strategic alignment: Align Gen AI adoption with overall strategic goals. Identify where Gen AI can enhance existing processes, improve customer experience, or drive innovation. 

 

Data infrastructure and governance: Invest in robust data infrastructure and governance practices. High-quality data is essential for training Gen AI models. Ensure data privacy, security, and compliance. 

 

Talent acquisition and retention: Attract and retain talent skilled in Gen AI. Recruit data scientists, machine learning engineers and domain experts who can develop and deploy Gen AI solutions. 

 

Investment in cloud infrastructure: Leverage cloud platforms for scalable computing power. Cloud services facilitate model training, deployment, and maintenance, allowing businesses to experiment and iterate efficiently. 

 

Leverage public resources: Move faster by basing policies on the federal government’s Guide on the use of Gen AI or tapping available funding, such as the NRC’s (National Research Council of Canada) IRAP AI Assist Program.

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In the dynamic landscape of modern business, where competition is fierce and innovation is paramount, the role of effective leadership cannot be overstated. Among the many responsibilities of business leaders, one crucial aspect often stands out: conducting performance management reviews. These periodic evaluations of employee performance are not merely administrative tasks but essential components of a thriving organizational culture.

 

“People really need to have those conversations because quite often they’re operating in a vacuum,” says Debra Burke, Head of Client Success at HR2 Business Solutions, adding most people believe they are doing a good job and take pride in their work. "And in the absence of any feedback to the contrary, they go about their merry way with that. But you just can’t come around and surprise people afterwards if you haven’t had those conversation with them.”

 

Performance management reviews provide a structured mechanism for evaluating employee contributions and aligning them with organizational goals. By assessing individual performance against predefined objectives, leaders can gauge the effectiveness of their workforce in driving the company's mission forward.

 

This evaluation helps identify high performers who deserve recognition and rewards, as well as areas where improvement or additional support may be needed. Such insights enable leaders to make informed decisions regarding talent development, resource allocation, and strategic planning.

 

But how a manager or leader initiates the process should be done in a positive way, says Debra.

 

“When you say, ‘performance review’, sometimes I feel we can go down a negative road,” she says. “It has mixed messages for people, especially those who have had really bad experiences with those kinds of things. I prefer performance conversations.”

 

Setting clear expectations vital

 

Debra believes that employees want a clear understanding of how their performance is being viewed, especially when it may relate to compensation or promotions, and when they know that their work will be evaluated regularly and objectively, they are more likely to stay focused, motivated, and committed to achieving excellence.

 

By setting clear expectations and providing constructive feedback, leaders empower their teams to take ownership of their roles and strive for continuous improvement. This culture of accountability not only enhances individual performance but also cultivates a sense of trust and camaraderie among colleagues.

 

“Having those conversations is absolutely critical and managers and leaders need to get better at them because to be honest, many are not,” says Debra, adding some may lack the necessary training. “When you become a manager or move into a leadership role, it’s certainly not everyone’s forte to be very adept at having those difficult conversations.”

 

She says it’s easy to offer praise, but that performance conversations can be much more nuanced when it comes to outlining potential strengths and weaknesses. 

 

“At a minimum, the conversation should be about growth and where you want the role to grow and how do you help guide and mentor them, and what path they should be on,” says Debra. “A lot of times, the problem with people who don’t have performance conversations at all is that they don’t know what the expectations are, so there is a big gap or void, and they may not find out until it’s too late and a termination may be involved.”

 

Managers and leaders too busy

 

She recommends ongoing performance conversations can be far more effective and beneficial – especially for managers - rather than scheduling annual or even quarterly meetings.

 

“The No. 1 reason performance conversations are avoided is because managers and leaders are just too busy, especially if they take this on as a once-a-year project. Even half year or quarterly meetings can suddenly become a time management issue,” she says. “If you’re giving feedback on performance on a regular basis, where people are being guided and informed, it’s not a big scary thing. Even when there might be poor performance involved, you can accomplish it in ways where people are really receptive to it.”

 

Debra says a conversational approach can take a lot of the problematic parts out of the process for the leaders as well as the individuals, providing it’s done in a compassionate and empathetic manner.

 

“There should be some element of careful language and the potential for opportunities to help because sometimes you might have to provide feedback to someone who won’t have the skills set to make those changes unless you actually help put those things in place for them,” she says, adding there are tools available to help leaders who may not have the natural ability to have those difficult conversations. “I feel like conversations don’t happen as easily and as compassionately, or maybe as kind as they used to.”

 

 

Tips for business leaders to enhance their performance management practices:

 

Set Clear Expectations: Clearly define performance expectations for each role within the organization. This includes outlining key responsibilities, goals, and performance indicators. When expectations are transparent, employees understand what is expected of them, leading to better performance outcomes.

 

Regular Feedback: Provide regular and constructive feedback to employees regarding their performance. Feedback should be specific, timely, and focused on both strengths and areas for improvement. Encourage open communication and dialogue to address any concerns and provide support for development.

 

Goal Setting: Collaboratively set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals with employees to align individual objectives with organizational goals. Regularly review progress towards these goals and adjust as necessary to ensure they remain relevant and achievable.

 

Performance Reviews: Conduct periodic performance reviews to assess employee progress, provide feedback, and identify development opportunities. Performance reviews should be conducted in a supportive and objective manner, focusing on accomplishments, challenges, and future goals.

 

Recognition and Rewards: Recognize and reward employees for their contributions and achievements. This can take the form of monetary incentives, promotions, or simply verbal recognition. Acknowledging employee efforts boosts morale and motivation, leading to increased engagement and productivity.

 

Training and Development: Provide opportunities for continuous learning and growth to empower employees to reach their full potential. Development initiatives should be aligned with both individual and organizational goals.

 

Performance Improvement Plans: When performance falls below expectations, work collaboratively with employees to develop performance improvement plans. Clearly outline areas for improvement, set measurable goals, and provide support and resources to facilitate progress. Monitor performance closely and provide ongoing feedback and coaching throughout the improvement process.

 

Data-Driven Insights: Utilize data and analytics to gain insights into employee performance trends and patterns. Analyzing performance metrics can help identify areas of strength and weakness, inform decision-making, and drive continuous improvement efforts.

 

Employee Engagement: Foster a culture of employee engagement and empowerment by involving employees in decision-making processes, soliciting feedback, and recognizing their contributions. Engaged employees are more committed, motivated, and likely to perform at their best.

 

Continuous Monitoring and Adaptation: Regularly review and refine performance management strategies based on feedback, evolving business needs, and industry trends to ensure effectiveness and relevance.

 

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The weight of responsibility can be overwhelming for business leaders.

 

They are constantly under pressure to drive growth, manage teams, make critical decisions, and ensure their organizations’ long-term success, which is something Debra Burke, Head of Client Success at H2R Business Solutions says has only been magnified in the recent years.

 

“Since the pandemic, some things have really changed. They changed during the pandemic and somewhat again since then,” she says, referring to a rise in negative conflicts which can lead to a toxic environment and even workplace investigations. 

 

“We’re seeing an unbelievable amount of those kinds of problems coming into play in organizations and have leaders coming to us because they’ve never had to deal with them before but are dealing with them much more often.”

 

She says employees have become more empowered with information, and that many are dealing with mental health issues and feeling ‘angry’.

 

“They may not be working with the same expectations in their jobs that they used to and for some people, there are more challenges as they deal with downsizing, and shifts,” says Debra, adding bigger workloads, and hybrid work situations could be adding to these stresses since they may no longer ‘align’ with what an employee wants.

 

As a result, she says many leaders are now seeing more employees who are willing to take employers to court, or a human rights tribunal, or filing a report with the Ministry of Labour.

 

“Leaders who may never really had many people issues to deal with are now finding they are faced with all kinds of these things just to keep the business going,” says Debra. 

 

She says the challenges can vary between the several generations of employees that are now in the workplace, noting there are still many benefits of having a multi-generational workforce despite potential issues.

 

Leadership can be isolating

 

“For a leader, becoming someone who has to manage all these things that come to play and the nuances and potential conflicts, plus the lack of time and resources, it’s very challenging,” says Debra. “When someone says being a leader can be a very isolating place, they are not wrong.”

 

She says leaders must first watch for warning signs and realize they don’t have all the answers.

 

As the demands of leadership continue to mount, it is vital for leaders to discover effective strategies to ease their burden and navigate their roles successfully, which Debra says can start with better communication.

 

“As a leader, you have to get comfortable with communicating. Employees want messaging and they want to hear it from the owner, CEO, or an executive,” she says, adding that a communication breakdown is often the key cause of any conflict, and that lack of management training could be the root cause. “When you do a job well and get promoted to management, that doesn’t necessarily mean you’re going to be a good people manager.”

 

As well, Debra says leaders can benefit from expert support from others who may have experienced the same issues they are facing, even those outside of a leader’s particular industry.

 

“I’m not a big fan of coaching for your own industry. You can receive a lot of benefits from working with a diverse support group,” she says. “Even if you feel like you’re an introvert CEO or leader, you might be really surprised how much that support is going to mean to you.”

 

And while some companies and industries are dealing with tight budgets, Debra says investing in training can pay off big time for a leader professionally and personally, as well as the organization.

 

“Those things are going to trickle down through an organization in powerful and impactful ways,” she says.

 

 

Several strategies to lighten the burden of leadership

 

Delegation and empowerment

Many leaders fall into the trap of trying to do everything themselves, fearing that no one else can handle the responsibilities as well. However, effective delegation distributes the workload and fosters team development and growth.

By entrusting capable team members with tasks and responsibilities, leaders can free up valuable time and mental energy to focus on strategic decision-making and higher-priority matters. Delegation is not just about offloading tasks but also about giving team members the opportunity to contribute and grow.

 

Building a support system

Establishing a support system of mentors, advisors, or fellow business leaders can provide valuable guidance and emotional support. Sharing experiences and seeking advice from those who have faced similar challenges can be invaluable.

Additionally, leaders should foster a culture of open communication within their organizations. Encouraging team members to share their thoughts and concerns can lead to more collaborative problem-solving and reduce the burden on the leader.

 

Embracing technology and automation

Automation can handle routine tasks, data analysis, and reporting, allowing leaders to focus on strategic initiatives. Investing in technology solutions that align with the organization’s goals and processes can significantly reduce the administrative burden on leaders. Moreover, data-driven insights can aid in making informed decisions and staying ahead of market trends.

 

Setting realistic goals and expectations

While ambition is essential, setting achievable goals and expectations is equally crucial. Unrealistic targets can lead to stress and burnout, as well as erode team morale. Leaders should work with their teams to establish realistic objectives and timelines. This approach fosters a sense of accomplishment and helps prevent the exhaustion that can result from chasing unattainable goals.

 

Continuous learning and development

Continuous learning and professional development are essential for effective leadership. Leaders should invest in their own growth by attending seminars, workshops, and courses relevant to their industry. Also, encouraging team members to pursue their own professional development can contribute to the organization’s success and ease the burden on leaders.

 

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High inflation, interest rates and housing costs continue to drive pessimism in Ontario’s economic outlook, according to the Ontario Chamber of Commerce’s (OCC) eighth annual Ontario Economic Report (OER)

 

Despite this, many businesses surveyed remain confident in their own outlooks, with 53% expecting to grow in 2024.

 

“In spite of the fact there seems to be a mood of pessimism in the air, the reality of it is there seems to be more bright lights than there are dim lights,” says Cambridge Chamber of Commerce President and CEO Greg Durocher. “We’ve had years where business confidence and prospects of being confident are going to be over 60% but given where we are today, I think having around 50% of businesses confident they are going to have a good year and grow is a positive sign.”

 

However, he says that figure doesn’t minimize the economic issues facing businesses, including affordability and also notes the struggle to achieve necessary tax reform measures continues.

 

“We must also ensure there is a balance or equity in tax distribution from not only a cost perspective but also on deployment so when money is being handed out it’s being handed out appropriately,” says Greg.

 

The OER contains regional and sector-specific data on business confidence and growth, public policy priorities, regional forecasts, and timely business issues such as supply chains, employee well-being, diversity, equity and inclusion, economic reconciliation, and climate change.

 

The report, compiled from a survey of businesses provincewide conducted between Oct. 12 and Nov. 21 and received just under 1,900 responses, states that 13% of businesses are confident in Ontario’s economic outlook. That represents a 3% drop from last year and a 29% drop from the year before with the cost of living and inputs, inflation, and housing affordability as the key factors for the confidence decline.

 

The sector showing the most confidence was mining, with the least confidence being shown in the agriculture, non-profit and healthcare social assistance sectors. The most confident regions were Northeastern and Northwestern Ontario, both at 23%, and the least were Kitchener-Waterloo, Windsor-Sarnia, and Stratford-Bruce County. (The survey indicated these latter two regions had a high share of respondents in the non-profit and agriculture sectors compared to other regions).

 

“As the report suggests, businesses still need to grapple with economic headwinds and many of those headwinds are limiting their ability to invest in important issues within the workplace and that may well be part of the reason they are having difficulty hiring people,” says Greg. “That said, entrepreneurs are interesting individuals, and they always will find a way to wiggle themselves through the difficulties of the economy.”

 

He questions whether the pessimism around growth and confidence outlined in the survey is related to the economy or stems more from the fact many businesses are unable to hire the people they require so they can grow their business.

 

“There are lots of companies out there that need people and that’s always a good thing when you’re at a very low unemployment rate now which is hovering around the 5% rate,” says Greg, noting he receives calls and emails daily from local companies seeking workers. “As inflation starts to drop and as the Bank of Canada rates start to drop, I think we’ll see that pessimism go away.”

 

Read the report.

 

Outlook highlights: 

 

  • Small businesses are less confident (12%) than larger businesses (22%) due to challenges with repaying debt, fluctuations in consumer spending, inflationary pressures, and workforce-related challenges such as mental health.
  • Simplifying business taxes is identified as a major policy priority of 50% of surveyed businesses. 
  • Confidence in Ontario’s economic outlook varies considerably across industries and is lowest within the agriculture sector (3%), non-profit (8%), health care and social assistance (8%), and retail (10%) sectors. 
  • Confidence is highest in the province’s mining (46%) and utilities (27%) industries, both of which benefited from strong growth and investments in the province’s electrification infrastructure and electric vehicle supply chains. 
  • Businesses in Northeast and Northwest Ontario exhibit the highest confidence at 23%, where the mining industry is a major employer.
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The evolving nature of work continues to shape the employee landscape due to unprecedented changes driven by technological advancements, shifting societal expectations, and the aftermath of a global pandemic. As a result, organizations must adapt to emerging employee trends to foster a resilient and engaged workforce.

 

One way to accomplish this suggests Frank Newman, owner of Newman Human Resources Consulting, is to keep in touch with employees through engagement surveys.

 

“Listening to the pulse of your organization is going to be more important than ever,” he says. “Employers may also want to think about their work culture and in terms of what attracts people, and they want to make sure they are managing leadership effectively.”

 

Among the many trends employers must embrace is creating a more welcoming work environment, especially when it comes to Canada’s growing immigrant population.

 

More than 430,000 immigrants were brought to Canada in 2022 by Immigration, Refugees and Citizenship Canada (IRCC), with an additional target of 485,000 this year and a further 500,000 in 2025. IRCC data indicates in 2022, 184,725 of these new permanent residents came to Ontario.

 

“There is a large talent pool available, and employers have to be thoughtful in how they bring new talent into their organizations from our immigrant population,” says Frank. “The whole concept of diversity, inclusion, and equality is rising in terms of what’s important for companies and for individuals. If you’re not having that positive and diverse work culture, that’s going to hurt you in the long run.”

 

AI gaining importance

 

He says the introduction of AI tools, such as ChatGPT, Copy.ai and Kickresume, have not only benefitted Canada’s newcomer population by helping them become more proficient and fluid in the English language, but have become valuable assets for businesses as well.

 

“I think we are going to see more employers looking for people who have some AI experience,” says Frank. “Being able to say you can demonstrate use of those tools is a good thing for potential job candidates.”

 

However, there are potential downsides such as the creation of AI generated resumes and materials that can help a candidate embellish their qualifications.

 

“There are tools to test a document to see if it’s been AI written and you may now see many sophisticated employers doing just that,” he says. “They may also be thinking of asking a potential employee to provide writing samples.”

 

Managing performance key

 

Another trend is the emergence of ‘The Great Stay’ phenomenon, which experts say has been replacing the ‘Great Resignation’ experienced during the pandemic as employees re-evaluated their priorities and migrated to other opportunities.

 

“I’m not sensing The Great Stay too much in this region and am still sensing a fair bit of fluidity, but having people stay longer is always a good thing because it’s less costly,” says Frank, noting it can cost at least three times an employee’s salary to replace them considering the recruitment process, training, and upskilling. “Employers still have to focus on managing performance if people are going to stay longer and they have to invest in leadership and coaching if you want to maximize your investment.”

 

He notes employees may also be a little reluctant to move due to the ‘shakiness’ of the economy.

 

“I think employers may want to continue to monitor salaries which have stabilized quite a bit and want to make sure they are staying around that 3-4% annual change,” says Frank. “But I think in general, employers are cautiously optimistic about things going forward.”

 

 

Job Market Trends 

 

Hybrid Work Models

Employees now seek a balance between the flexibility of remote work and the collaboration offered by in-person interactions. Organizations that embrace hybrid models will likely attract and retain top talent, offering employees the autonomy to choose where and when they work.

 

Employee Well-being Takes Centre Stage

Organizations are placing a heightened focus on mental health, work-life balance, and holistic wellness programs. Employees value employers who prioritize their well-being, leading to increased job satisfaction and productivity.

 

Continuous Learning and Development

With the rapid pace of technological advancements, the demand for upskilling and reskilling is on the rise. Employees expect continuous learning opportunities to stay relevant in their roles and advance their careers. Forward-thinking organizations invest in robust training programs and partnerships with educational institutions to foster a culture of continuous development.

 

Diversity, Equity, and Inclusion (DEI)

Employees prioritize working for organizations that are committed to fostering diverse and inclusive workplaces. Companies that actively address and rectify disparities in hiring, promotions, and pay will not only attract diverse talent but also create a more innovative and collaborative work environment.

 

Emphasis on Employee Experience

Employee experience encompasses the overall journey of an employee within an organization. Companies are investing in enhancing the employee experience, from onboarding to offboarding. Personalized employee experiences, feedback mechanisms, and inclusive company cultures contribute to higher employee satisfaction and retention rates.

 

Remote Employee Engagement

With remote work becoming a staple, maintaining employee engagement is a challenge for many organizations. Companies are leveraging technology to create virtual team-building activities, foster communication, and build a strong remote work culture. Employee engagement tools and platforms play a crucial role in keeping teams connected and motivated.

 

Job Search and Career Success Hinge on Ethics

Employers are still looking for candidates who create undeniable value, not just put in clocked times, who have above-average communication skills, have a strong work ethic, will be reliable, possess the ability to think critically and above all, will fit their culture. Regardless of the uncertainty ahead, the key to creating job search luck will be the same as it has always been: preparation of hard work. 

 

 ‘The Great Stay’

The current global economic situation, the state of China and other major economies, as well as the ongoing geopolitical conflicts will see recession talk intensify, leading companies to focus on vital roles and hold off on hiring for roles that aren’t ‘must-haves’. Taking these factors into consideration, the next year it will be ‘The Great Stay’ as opposed to the ‘Great Resignation’ when many people switched jobs/careers during the pandemic.

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In the fast-paced world of business, the success of any organization hinges on the quality of its workforce. Hiring mistakes can be both expensive and detrimental to a company's growth and stability, especially in this changing job market which is now seeing an influx of potential candidates in certain fields.

 

“I really do feel that the market over the last year has softened,” says Lisa Marino, Senior Recruitment Specialist with H2R Business Solutions, noting there are always a handful of roles that are specialized resulting in fewer available candidates.

 

Her colleague Sue Benoit, Head of Recruitment Services at H2R Business Solutions, agrees.

 

“On the trades side there still is a labour shortage, especially since those types of roles are really hard to fill,” she says. “But if you have an accounting or bookkeeping role to fill there’s 100 plus applicants.”

 

As a result, finding the right person to fill those types of positions means putting systems in place that can help you avoid potential pitfalls, such as taking too long to decide on a potential hire which is a common mistake many employers make, says Sue.

 

“If they’re taking too long in the decision or interview process, they can lose that great candidate who might have been hard to find in the first place,” she says. “Then it it’s a matter of having to start over a lot of the time because employers are not going to just settle, necessarily.” 

 

As well doing their due diligence regarding reference checking, her colleague suggests making a select group of others in the company part of the hiring process.

 

“Bring in one or two other people from the company into the process rather than letting the hiring manager do it all because somebody from another department may be instrumental helping you gain a different perspective of the candidate,” says Lisa, adding incorporating some of type of skills testing during that process, depending on the level of the role, can also be helpful. “It can give some insight of how a candidate thinks.”

 

She also says once a candidate has been hired, an employer should be diligent when it comes to monitoring the performance of that person during their 90-day probationary period and watch for potential ‘flags’. These can include absences, struggling to meet deadlines, or an overall disconnect with their new workplace or colleagues.

 

“Hopefully, the recruiter is good enough to catch some of those flags in our pre-screen conversations,” says Sue. “How interested are they in the organization? Have they done any research? Employers really want someone who is truly interested in what they’re doing.”

 

 

Tips for avoiding hiring mistakes

 

Define Clear Job Requirements

Before posting a job opening, employers should thoroughly analyze and document the skills, qualifications, and experience necessary for the role. This not only ensures that candidates are well-informed but also assists in filtering applicants more effectively.

 

Create a Comprehensive Recruitment Strategy

Develop a well-thought-out recruitment strategy that includes a timeline, sourcing channels, and a structured interview process. By outlining the steps from job posting to offer, employers can maintain control and consistency throughout the hiring journey.

 

Leverage Technology

The use of technology can significantly streamline the hiring process, from applicant tracking systems (ATS) to video interviews. These tools help in organizing candidate information, assessing qualifications, and conducting efficient interviews. 

 

Thoroughly Assess Cultural Fit

A candidate might have an impressive resume, but if they don't align with the company culture, it can lead to a discordant team dynamic. Incorporate questions and assessments during interviews that delve into a candidate's values, work style, and how well they would integrate into the existing team.

 

Conduct Behavioural Interviews

Conducting behavioral interviews allows employers to gain insights into how candidates handled situations in their previous roles. This approach provides a more realistic preview of a candidate's capabilities.

 

Check References Thoroughly

Reach out to previous employers, colleagues, and supervisors to gain a comprehensive understanding of the candidate's work ethic, reliability, and interpersonal skills. A candidate's performance history can reveal valuable information that might not be apparent during interviews.

 

Utilize Probationary Periods

Implementing probationary periods for new hires allows both the employer and the employee to assess the fit within the organization. This trial period provides an opportunity to evaluate job performance, integration into the team, and adherence to company values before making a long-term commitment.

 

Invest in Continuous Training for Hiring Managers

If possible, equip hiring managers with the skills necessary to conduct effective interviews, assess candidates accurately, and make informed decisions. Continuous training on fair hiring practices, diversity, and inclusion can help mitigate biases and enhance the overall quality of hiring decisions.

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The holiday shopping season has begun, and retailers are hoping for the best despite the fact consumer indicators have been painting a less than perfect picture of the weeks to come. In fact, according to Deloitte Canada’s 2023 Holiday Retail Outlook, Canadians are expected to spend at least $1,300 over the holidays representing an 11% drop from last year. 

 

But how these dire predictions will affect them in 2024 remains to be seen.

 

“I think in 2024 retailers will be facing an awful lot of pressure on inventory management and cashflows just because of the interest rate problems,” says Brad Davis, Associate Professor at Wilfrid Laurier University’s Lazaridis School of Business and Economics, who specializes in consumer behaviour and trends. “I think retailers are going to have a real deal seeking consumer base who are going to want deals, and that again cuts into their margins and can play havoc with inventory turnover.”

 

He says like the past couple of years, effective retail management will be required noting that consumers, in general, don’t really pay attention to consumer indicators.

 

“We’re not very good a judging what is a good deal or what is good value,” says Brad, noting that many consumers are very susceptible to perceived ‘sales’. “We have this whole apparatus that is designed to stimulate impulse purchasing.”

 

To encourage more in-store shopping, which has been facing turmoil as anti-theft measures and store closures detract from the customer experience, retail experts insist consumers must be provided exclusive products and deals or fun, and experiences they can’t find online. 

 

However, Brad says the true definition of what that special ‘customer experience’ is can be hard to pinpoint.

 

“Experts can never seem to quite define what this is,” he jokes, adding a positive in-store environment with expediated delivery and payments, and return policies should play a role. “We used to just call it good customer service. But for most consumers, when you talk to them about what they think is a good experience it’s ‘Can I find stuff easy?’, ‘I want to be able to check in and out fast’, ‘I don’t want salespeople bugging me unless I need help’. It’s sort of fairly basic.”

 

He says customer mapping is also something to consider, noting that online searching can lead consumers to physical stores. Industry experts often refer to the omnichannel approach where consumers may start their search in one place and make their purchase in another and encourage retailers in 2024 to learn where their audience is discovering products and where they are buying them.

 

“There is still a huge social component of shopping in a mall, particularly with younger generations,” says Brad, noting that humans still crave that ‘tactile’ physical encounter. “You have a generation of young people who is always going to gravitate to that sense of immediate gratification.”

 

He says the key for retailers going forward is to remain flexible in their approach to conducting business.

 

“Something that worked before and got you where you are now does not mean it’s going to get you where you need to go next,” says Brad. “Things are just happening so fast in multiple directions, and you have to be open to rethink and revisit what you thought was truth before.”

 

 

Released this past fall, the 6th annual RCC X Leger Holiday Shopping Survey from Retail Council of Canada (RCC) unveils the evolving shopping patterns of more than 2,500 Canadians: 

 

A few findings:

 

  • Savvy Shopping in Spotlight: Economic apprehensions, including inflation and rising living costs, weigh on many. Accordingly, 88% (vs 83% in 2022) of Canadians are turning to proactive holiday shopping tactics, most notably hunting for sales (52%), preparing in advance (41%), and adhering to a precise budget (40%).
  • Retailer Selection: To help shoppers decide which retailers to buy from this year, Canadians are prioritizing holiday sales/promotions (66%) and free shipping (55%). They are also looking for in-store exclusives (48%) and distinct online promotions (60%) to provide additional value.
  • Shopping Experiences Enhancers: In-store shopping will benefit from value bundles (26%) and product sampling (25%). Conversely, online shopping will be amplified by unique product offers and extended return policies, both at 33%.
  • Lead Spending Categories: Clothing emerges as 2023’s frontrunner, constituting 17% of the holiday budget, followed closely by home entertainment and essentials like food and alcohol grabbing 16% of the planned spend. 
  • More Gift Cards:  45% of shoppers are leaning towards purchasing gift cards for others this season, with a notable 37% of Canadians (up from 32% last year) expressing a preference for receiving gift cards over traditional presents. Dining gift cards top the charts (42%), while big-box retailers come in at 33% and food outlets register at 27%.
  • Local Shopping Upswing: Supporting local businesses this holiday has seen an increase in intent, with 82% of Canadians accentuating its importance, a leap from 74% last year.

 

Source: Canada News Wire

 

 

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The one constant thing business owners can count on is change, something the last three years have clearly shown.

 

But as business leaders continue to navigate in a changing economy shaped in the aftermath of the pandemic, many have not taken a moment to appreciate how resilient they’ve become.

 

“A lot of people haven’t been able to validate how many changes they’ve had to make doing business, and the transitioning and pivoting,” says Tracy Valko, award-winning mortgage broker and owner of Valko Financial Ltd. “They haven’t been able to look at their business, their goals and what they value in life and take the time to realize how resilient they’ve been.”

 

Tracy says in particularly, women business leaders are less likely to appreciate themselves and what’ve they been through and hopes to help rectify that by leading an informative and interactive workshop at our Women Leadership Collective Breakfast Series: Resilient Mindset later this month at Langdon Hall.

 

“I still see so many women spending time second guessing their skill sets,” she says, noting men seem to have more resiliency and forgiveness for themselves when it comes to pivoting in business. “Women spend more time judging themselves, thinking ‘maybe I shouldn’t speak up because someone’s going to say something’. I think in this world, especially now, women have to stand their ground and come together to support each other.”

 

At our Women Leadership Collective event Tracy will provide strategies for women to become more resilient by offering them a look inside what she refers to as her ‘resilient toolbox’ and share personal stories of what she has gone through creating a successful business over the course of the last 25 years. Besides being named one of Canada’s top individual brokers, she is also a published author and motivational speaker.

 

“I will provide a lot of different affirmations of ways to look at resiliency,” says Tracy, referring to her presentation. “A lot of people just don’t take the time to appreciate how far they’ve come and be able to pivot very quickly in an ever-changing world.”

 

Click here to learn more, or to register for our Women Leadership Collective Breakfast Series: Resilient Mindset which takes places Wednesday, Nov. 29 from 9-11 a.m. at Langdon Hall.

 

Tips about a resilient mindset

 

Embracing Change and Uncertainty

A resilient mindset begins with the willingness to embrace change and uncertainty. 

 

Learning from Failure

Failure is a common part of life, and a resilient mindset allows us to see failure as a valuable teacher. 

 

Cultivating a Positive Mindset

Resilient people focus on the positive aspects of a situation and avoid dwelling on the negative. 

 

Building Strong Social Connections

Resilience is not a solitary endeavor. Building and maintaining strong social connections is a crucial aspect of a resilient mindset. 

 

Setting Realistic Goals

While having big dreams is important, setting smaller, attainable milestones helps build confidence and motivation. 

 

Practicing Self-Care

Resilient individuals recognize the importance of taking care of their physical and mental well-being. 

 

Adaptability

Those with resilience are not rigid in their thinking and are open to new ideas and solutions. They can adjust their plans as circumstances change and are willing to try different approaches to achieve their goals.

 

Developing Problem-Solving Skills

Resilient individuals are excellent problem solvers. They break down complex issues into manageable steps and work through them systematically. 

 

Seeking Support and Seeking Help -

Resilient individuals are not afraid to seek support and help when they need it. 

 

Maintaining Perspective

In the face of adversity, resilient individuals remind themselves of the bigger picture. They recognize that the current challenge is just a chapter in their life's story and that it will pass, making way for new opportunities and growth.

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In the opening chapter of The E-Myth Revisited, a nearly 30-year-old book that is still relevant today, author Michael E. Gerber describes “The Entrepreneurial Seizure” or that moment when you decide to go into business for yourself.

 

Once the idea of entrepreneurship enters your mind it is life changing. Your imagination explodes with dreams of independence and success that will flow from turning your technical skills or passions into a be-your-own-boss enterprise. “Do what you love,” they say, “and you will never work another day in your life.”

 

This leads to what Gerber calls “The Fatal Assumption” which is that if you are good at the technical work of a business or are passionate about the work you will offer to the marketplace, then it follows that you will understand the business of delivering your goods or services to your customers. In the early days of your business this assumption can appear to be true. 

 

You launch your business filled with entrepreneurial energy, find customers, provide your products or services, build your reputation, and get more customers.

 

The growth cycle continues. Everyone is happy until one day you discover that your success is crushing you and the fatal assumption is revealed: That the technical skills you have are just one small part a of a complex set of business skills that you need to ensure your success.

 

For you to succeed as an entrepreneur you need the following four foundational elements:

 

  • A good product or service that customers want;
  • The ability to sell and deliver your products or services to your customers with quality and timeliness;
  • The ability to follow your money, understand cashflow, receivables, payables, and taxes and to take action to keep it all in order;
  • The ability to manage and strengthen interpersonal relationship with customers, employees, suppliers, etc.

 

Usually, a business starts with your product or service idea that has market demand or perceived market potential and perhaps you have competency in one of the other three foundational elements. 

 

But no one is proficient in all four so entrepreneurial energy and grit to succeed will only take you so far. Then the weaknesses in your business structure and practices reveal themselves as your business grows and your entrepreneurial dream begins to crack. It happens to all businesses.

 

When your business grows to the point where your success is crushing you, you must make a choice to either:

 

  1. Limit your business size to one you can handle on your own or;
  2. Change your business structure by hiring talent to shore up your weaknesses to enable continued growth.

 

Both options are valid. If you want to be a self-employed technician, where you are in control of your job then option 1 is for you but if your entrepreneurial goals include growth beyond your personal time and talent limitations you must choose option 2.

 

Option 2 requires the strategic hiring of people with talents that you do not have that will enable you to delegate and entrust parts of your business operations to them.

 

This may be accounting, sales, HR, communications and/or production personnel and managers.  Some of these services may be contracted out and some are better achieved if hired into your company. 

 

These are important strategic decisions that will enable you to grow beyond your previous limitations.  As you delegate to competent people your job changes to a true company president.

 

When you have good people in the right places in your business you can look up from your day-to-day operations and look out into the marketplace for new opportunities. Sales grow, production increases, cash flows better, and employees, customers, and vendors are satisfied.

 

This sounds easy, but giving up control of parts of your business to other people is a challenging and necessary growth step for small business entrepreneurs.  You may want to enlist a business coach who can also help you stick to your growth plan when it gets hard, as it always does.

 

Remember, at this stage of your business growth what you really need is good people with leadership skills and business management talents that are different and complimentary to yours so that you can set yourself and your business up for success in the next phase of your entrepreneurial journey.

 

 

Submitted by Murray Smith, President of Blue Cancoe Consulting

 

 

 

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Flexible work hours, new technology, and ever-changing workplaces has made it more difficult when it comes to setting healthy boundaries at work.

 

Factor in ongoing labour shortages and retention issues in many sectors, it’s now more important than ever for employers to create an environment where employees feel comfortable and productive.

 

“As people continue to move back into the workplace, you want to do it in stages. You don’t want to do it all at once,” recommends Carrie Thomas, owner of Nimbus HR Solutions Group, a Chamber Member. “Many people don’t really have a workday anymore they have a workflow, and we don’t even have boundaries and have let them all go.”

 

She says workplace boundaries can be broken into several categories, including physical, intellectual and emotional, communication, time, and priority and workload, and that each requires employers and employees to have a clear indication of what their work expectations are.

 

“If work performance isn’t where it needs to be, as a leader, we need to ask ourselves why? Does the employee feel comfortable here and does the task match?” says Carrie. “Are we having those candid conversations with our employees to say these are the clear expectations I need from you? Maybe I missed something on your onboarding?”

 

She recommends creating a 90-day commitment plan to ensure a new employee can get up to speed, and to give returning employees time to get back into the flow.

 

“If an employee was away from work for medical reasons, we would create a return-to-work plan and it would be gradual,” says Carrie, adding that most SMEs owners spend at least 90% of their time dealing with people and people problems and that using a professional HR company can help ease those stresses. “We like to put the power of a full-service HR department into the hands of the small business owner so they can focus on the business of running their businesses.”

 

 

The team at Nimbus HR Solutions Group Inc. – Carrie Thomas, Danielle Delnick and Janette McDonald – provided the following advice when it comes to creating healthy workplace boundaries:

 

How would you define ‘healthy’ workplace boundaries?

Healthy workplace boundaries are an agreement and understanding between the employer and employee on what a person requires to be effective, successful, and even over-achieve in their work.

It is a balance between the needs of the employee versus the needs of the business. Overall wellness impacts a person’s ability to produce quality work, the happier, more fulfilled and balanced a person feels the better the output from them. Investing in a health work environment and company culture is a more cost-effective solution as it promotes retention and ultimately lowers the cost of recruitment and training.

 

Examples:

 

  • Promoting break periods: We all know people who eat lunch quickly at their desk while they continue to work. Promoting actual break periods away from the desk/workstation.
  • Limiting over-time, unless necessary: If constant over-time is happening for your business, there’s a good chance you have a hiring need.
  • Ensuring over-time is paid correctly.
  • Setting clear working hours: Limiting communication TO employees outside of them (we know that legally they don’t have to respond, but we also know people are reading them and potentially stressing from home).
  • Work cellphones: Companies providing work phones that can be turned off outside of working hours that don’t go through to personal lines.
  • Clear communication and management of projects.
  • Keeping emotions out of interactions: We all have seen movies where the boss raises their voice, demoralizes, or bullies their subordinate. If an employee’s work performance is not meeting the expectations of the company, managers are not entitled to yell or belittle them. There is a more effective way to communicate with someone who has failed.
  • Open door policies: Providing an environment where managers encourage feedback, questions, and input from their team.
  • Having and promoting an Employee Assistance Program (“EAP”) with your Employee Benefits Plan.
  • Company employee appreciation events (balancing work/fun).

 

When people return to the workplace, or continue with hybrid models, what potential steps should employers take to make the transition smoother?

 

  • Consider completing the transition in stages. This would be especially useful if your team is moving back to a fully on-site model.
  • Take an employee census to determine how they will be feeling about the move back to onsite to give you a better sense of what the culture will be like.
  • Encourage team lunches to build up in-person comradery.
  • Adjust your dress code policy: If possible, consider implementing a more workplace – casual dress code that is professional and comfortable. For example, some companies have incorporated a “athleisure” dress code and even provided them with company branded comfy sweats.

 

How can an employer help employees communicate their needs?

Establishing rapport with employees: The more employees trust their employer, the more likely they are to communicate when experiencing any challenges.

Establishing rapport with employees immediately is an excellent way to encourage open communication.

For example, managers can bring lunch for their teams, and instead of discussing business, they can encourage everyone to share their interests and lives. This might be a modest gesture, but it can work as an excellent way to help employees begin communicating with each other.

 

  • Having an open-door policy
  • Have regular meetings with employees.
  • Provide context regarding assignments.
  • Listen to employees.
  • Avoid making assumptions.
  • Learn employees’ strengths and weaknesses.
  • Regularly set expectations.
  • Provide constructive feedback.
  • Make roles clear from the start.
  • Choose a suitable method of communication.
  • Use tools to enhance communication: Keep in mind that messaging platforms, video conferencing, and e-mail are excellent communication tools but if you discover they're ineffective in your workplace, continuing to use them can result in communication challenges. If possible, try to take the conversation offline and speak to employees in person. Changing your communication method can simplify tasks and prevent miscommunication.

 

What are the signs that ‘healthy’ workplace boundaries may be lacking in a workplace?

 

  • Low retention
  • Employees edging on/experiencing burn out.
  • Lack of feedback from employees.
  • Hands-off management styles.
  • High sick calls/absenteeism.
  • Employees feel the need to answer emails regularly outside of work hours (and managers expect this).
  • Employees are unable to take vacation time, personal time.
  • Workplace gossip is rampant.
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