Hiring and Training Grants in Canada: A Simple Guide for Businesses

Running a business often means making tough choices. Hiring costs money. Training takes time. And when cash flow matters, both can feel risky.

The good news? There are government programs in Canada that help cover part of the cost of hiring and training. These programs are designed to help businesses grow while building a stronger workforce.

This guide explains how hiring and training grants actually work, in plain English — so you can decide if they’re worth your time.

Hiring and training grants are not free money.

They are:

·       Funding for specific hires or training activities

·       Usually partial cost‑sharing, not 100% coverage

·       Often paid after the fact, once you show proof

When used well, they can reduce risk and stretch your budget. When used poorly, they can create frustration or cash‑flow headaches. The goal is to plan first, then apply.

Most hiring grants are delivered through wage subsidy programs, which reimburse a portion of an employee’s wages when you hire someone who meets specific criteria. For a deeper look at how hiring grants work in practice, you can read this article from our partners at Pocketed.¹

Most hiring grants come down to three things lining up at the same time:

Most hiring grants fall into a few common categories. These are the ones businesses most often pursue:

• Students - Paid work placements tied to post‑secondary programs (e.g., co‑ops or internships)
• Youth - Early‑career workers, typically ages 15–30 (definitions vary by program)
• Research roles - Internships linked to research talent and institutions
• Newcomers - Permanent residents or recent immigrants, depending on the program
• Recently unemployed - Provincial workforce re‑integration programs

In practice, businesses most often focus on student, youth, and newcomer hiring programs, as these tend to be the most accessible and easiest to align with everyday hiring needs.

A business hires a post‑secondary student to support a summer marketing project, helping advance key initiatives while providing the student with meaningful, hands‑on experience.

Before the student’s start date, the business confirms that both the role and the student are eligible under a government wage subsidy program and submits an application. Once approval is received, the student begins their new role.

At the end of the summer, the business tracks payroll and submits the required records. After the work term concludes, 50% of the student’s wages are reimbursed, up to a maximum of $5,000, through the program.

Training grants help cover the cost of job‑related skills training for your team. This might include:

• Safety or compliance certifications
• Technical or equipment training
• Supervisory or operational skills

They usually do not cover:

• Conferences
• General business consulting or coaching (including executive or leadership coaching)
• Degree or diploma programs
• Training that is purely about a vendor’s own product

Training grants work when these three elements align:

1. You (the employer) meet the program rules
2. Your employee is eligible to participate
3. The training and provider are approved by the program

If one element doesn’t fit, the training may still be valuable to your business and your employee - but it won’t be funded.

As a B.C.-based business grows, one of its long‑tenured employees is promoted into a first‑time people manager role. To support that transition, the company identifies a need for structured leadership training focused on supervision, performance management, and workplace communication. They find a B.C.-based company that provides this training.

Before enrolling the employee, the business reviews available training grants and finds the B.C. Employer Training, confirming that both the course and training provider are eligible. The company applies for funding and receives approval before training begins.

The employee completes the approved leadership program, and once proof of completion and payment is submitted, 80% of the training costs are reimbursed through the grant.

For a deeper dive into training grants and how they work check out this article from our partners and Pocketed here. 

Hiring and training grants can be valuable, but most frustrations come from a small set of avoidable pitfalls. Keeping the points below in mind can help you use these programs more effectively - and avoid surprises.

1. Pitfall #1: Moving too slowly

Most hiring and training grants are first‑come, first‑served, not competitive. Funding is limited, and programs may close once their budget is fully allocated, even if demand remains high.

What to do instead: Start looking for programs as soon as you know you want to hire or invest in training. Acting early gives you more options and reduces the risk of missing out due to timing.

2. Pitfall #2: Spending money before getting approved

Many grants require approval before you hire someone or begin training. Costs incurred before approval are often not eligible, as most programs are not retroactive.

What to do instead: Always confirm whether pre‑approval is required and wait for written confirmation before committing to wages, training fees, or invoices.

3. Pitfall #3: Underestimating the cash‑flow impact

Even when a grant is approved, funding is usually reimbursed after the fact, once you submit proof such as payroll records, invoices, or training completion documents. This means your business must cover costs upfront.

What to do instead: Plan for the timing gap between paying expenses and receiving reimbursement. Grants can reduce overall cost, but they don’t eliminate the need for short‑term cash flow.

Bottom line

Most challenges with hiring and training grants come down to timing, approval, and cash flow - not paperwork. When you plan ahead and understand how these programs actually work, grants are far more likely to support your business goals instead of complicating them.

Once you know what hiring and training grants typically cover, the challenge is finding the right programs for your business at the right time. Business owners often find themselves googling, clicking through dozens of federal and provincial pages, and trying to piece together what might apply. It’s time‑consuming and inefficient. Scotiabank works with partners like Pocketed, a Deloitte business to help businesses spend less time searching and more time growing.

To help you move faster, Pocketed offers a guided alternative. Pocketed’s grant‑matching platform helps you quickly identify hiring and training programs that fit your business - all in one place. 

As always, tools are best used for shortlisting. Be sure to confirm eligibility, timing, and approval requirements before hiring or starting training.

While every program has its own rules, the sequence below reflects how most hiring and training grants actually work in practice:

1. Start with the business decision. Decide who you want to hire or what skill you need to build first.
2. Find relevant programs. Use tools like Pocketed to identify your eligible hiring and training grants.
3. Check eligibility and timing early. Confirm eligibility and whether pre‑approval is required.
4. Apply before you commit (where required). Costs incurred before approval are often not eligible.
5. Hire or train under the program’s rules. Follow approved wages, hours, training dates, and providers.
6. Track and submit documentation throughout. Reimbursement depends on payroll, invoices, attendance, and reports.

Tip: Documentation is part of the project - programs pay based on proof, not intent.

Step 1: Write down one role you want to hire for or one skill your team needs

Step 2: Check if a hiring or training program fits (Tip: use your free Pocketed account)

Step 3: Apply early and keep your paperwork organized

Start with one opportunity. Once you’ve done it the first time, it gets much easier.

Hiring and training grants work best when they support decisions you already want to make.

If you plan ahead, apply early, and keep things simple, these programs can become a reliable way to grow your team and build skills - without putting unnecessary strain on your business.

This guide is provided for general information only and is not sponsored or endorsed by any government agency or financial institution.