What every business leader needs to know for 2026.

About SMB Pulse

Illuminating possibilities.

Welcome to the first edition of The SMB Pulse, Spraggs Group's weekly newsletter designed to serve as a compass for the Canadian small business leader. Our goal is simple: to provide the impactful, data-driven business insights and news you need to move at the speed of clarity.

In each issue, you can expect a curated look at the trends, regulations, and innovations shaping our business landscape. Plus, you will get field-tested perspectives from our experts, helping you pivot quickly and anticipate shifts in your industry.

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Industry insights

A snapshot of the SMB landscape.

The past couple of years haven’t been easy for Canadian small to mid-sized businesses. It can be characterized by an HR crisis, a “perfect storm” of demographic shifts and economic pressures. HR challenges are faced across all core industries:

Construction: The primary friction point remains the skilled labour shortage, with 72% of contractors in BC alone reporting a lack of capable tradespeople. This is exacerbated by the aging Canadian workforce, as one in five workers is set to retire over the next decade, leaving a significant gap in employment. Plus, 28% of construction firms now identify employee retention as their biggest hurdle, as workers are frequently poached by competitors offering higher pay.

Non-profits: A severe recruitment and retention crisis is currently destabilizing this sector, as the number of NPOs experiencing high turnover jumped from 27% to 39% within the last year. Burnout is a growing concern, now affecting 35% of the workforce, largely driven by stagnant wages, and 57.3% of charities report that demand for their services far exceeds their current capacity.

Professional Services: Firms in this sector are facing a "tight labour market" that is expected to persist through 2026, particularly for advanced engineering and technical roles. Profitability is increasingly sensitive to wage growth, with salaries and benefits now representing roughly 40% of total operating expenses. Moreso, one-third of Canadian professionals plan to look for new opportunities in the first half of 2026, primarily motivated by the desire for better benefits and flexible work perks.

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Our complimentary webinar

Sharing our knowledge to help you build your company.

Our first webinar, “Termination Mistakes That Could Bankrupt Your Business,” was a resounding success! We are now building on that momentum with an exciting new webinar in the works related to the Canadian HR crisis. Stay tuned!

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The SMB Report

Check out our sponsored podcast!

Hosted by veteran journalist Kirk LaPointe, SMB Report is the leading podcast dedicated to small businesses in Canada. Tune in for candid conversations with industry experts and business leaders on current Canadian small and mid-size business climate.

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Legal news affecting your business

Spraggs Law lawyers provide a look at 2025 and beyond.

2025 was an exciting year full of business law updates and changes.

Bill 11: For one, officially as of November 12, 2025, Bill 11 prohibits employers from requesting medical documentation for an employee’s first two health-related leaves of up to five consecutive days per year. While this restriction applies to most short-term illnesses, you may still request a note to determine whether an employee is fit to return to work or requires accommodation.

Bill 30: In other legal news, Bill 30, as of November 28, 2025, allows employees covered by the BC ESA up to 27 weeks of unpaid, job-protected leave within a 52-week period for serious illness or injury. Employees can use this leave in units of one or more weeks; however, they must provide a medical certificate stating they are unable to work and their expected return date.

Pay Transparency: One of the most impactful changes takes effect on November 1, 2026, when Pay Transparency reporting requirements expand to their final scheduled tier, covering all employers with 50 or more employees. Watch out for this if you're a smaller business!