Attract & retain talent

Strategic roadmap for Canadian companies facing tariff uncertainty

Planning across horizons

The uncertain tariff environment is creating significant challenges for Canadian businesses, necessitating thoughtful approaches to navigate this period of instability. Instead of focusing primarily on the uncertain duration of these trade measures, effective organizations are implementing comprehensive planning frameworks that span multiple time horizons. This structured approach enables businesses to address immediate concerns while establishing a framework for sustainable business continuity despite ongoing tariff uncertainty.

Organizing your response to tariff challenges

Short-term (0 – 6 months): Stabilize

This immediate period addresses urgent financial and workforce concerns as tariff impacts first materialize. Focus on stability through strategic communication, data-driven planning, and compensation oversight to manage pressing challenges.

Communications & change management:

Uncertainty inherently creates anxiety for employees. Support employee wellbeing (financial, physical, and mental) through clear communications and company resources. Transparent dialogue about potential impacts while proactively managing employee concerns proves critical in these early stages
Strategic workforce planning:

Use data to move from "chaos" to "clarity" when considering workforce options. Before making decisions about workforce reduction or relocation, analyze alternatives and model multiple timeline scenarios to understand potential impacts
Compensation oversight:

Strengthen governance and validate bonus metrics in light of tariff impacts. Implement strategic compensation and retention programs designed to secure key employees through market disruption, ensuring business continuity during uncertain times

Medium-term (6 – 24 months): Adapt

With initial impacts understood, this period shifts from reactive measures to building adaptive strategies against ongoing tariff uncertainty through comprehensive employee listening, compensation assessment, and supportive restructuring.

Employee listening:

Employees want clarity around leadership decisions. Engage them in two-way communication to understand their evolving needs, and protect your organizational culture and engagement during these disruptive times
Restructuring support:

Support displaced employees with end-to-end change management and communication assistance, including digital delivery for outplacement services. This comprehensive approach helps maintain company reputation and workforce morale during necessary transitions
Compensation cost assessment:

Assess your compensation and incentive plans based on the ongoing impact of tariffs, macroeconomic factors, and retention strategy to navigate an uncertain labor market. This may include decisions regarding pay adjustments, incentive redesign, or benefit modifications

Long-term (24 months+): Transform

This extended timeframe transforms challenges into opportunities through skills architecture development, HR transformation, and redesigned job frameworks. These investments position companies to thrive regardless of how long tariff conditions persist.

Skills architecture & agile working:

Start with developing a comprehensive skills architecture that considers what capabilities your organization needs today and in the future. Implement reskilling, upskilling, and agile working programs that allow your workforce to adapt to changing market conditions.
HR Transformation & digital:

As HR functions & broader workforce may be impacted by structural changes; reinvent how HR operates with an optimized operating model and digital solutions to maximize productivity and effectiveness in supporting the workforce.
Job & Career framework:

In a disruptive talent market, ensure the components of your pay management programs remain sound and create sustainable workforce for today and tomorrow. This requires the realignment of job evaluation processes, clear career pathing opportunities, and pay transparency to the shifting market landscape. This enable organizations to explore & leverage international labour markets to tap diverse talent pools, establish strategic partnerships, and diversify revenue streams beyond tariff-affected regions—ultimately building a more resilient organization that can thrive despite trade uncertainties.

Moving forward with confidence

The most successful organizations facing tariff challenges will be those that can simultaneously operate across all three time horizons. This multi-dimensional approach allows companies to:

Address immediate pressures:

Short-term solutions provide the stability needed to make thoughtful decisions rather than panicked reactions.
Build adaptive strategies:

Medium-term strategies create the flexibility to adapt as the tariff situation evolves and economic impacts become clearer.
Position for future opportunities:

Long-term investments in skills, systems, and structures prepare the organization to thrive in whatever new normal emerges.

Companies that focus exclusively on short-term cost-cutting risk undermining their ability to compete when market conditions improve. Conversely, those that neglect immediate pressures while focusing solely on future positioning may not navigate long enough to realize their vision.

Conclusion

While we cannot predict how long these tariff measures will remain in place, the uncertainty alone is having an impact with systemic changes. Companies that systematically address challenges across all three-time horizons will navigate this period with greater confidence.

By approaching tariff challenges with this comprehensive roadmap, Canadian businesses can not only navigate current economic headwinds but potentially discover new opportunities for growth and innovation in a transformed global marketplace.

With workforce, compensation and communication experts in six Canadian cities, Mercer Canada is available to provide tailored guidance for your organization's specific circumstances in this evolving landscape.