Recruitment in the Canadian 3rd Sector: Trends, Challenges & Opportunities

Canada’s third sector—comprising nonprofits, charities, and voluntary organizations—plays a vital role in addressing social needs and fostering civic engagement. Yet, as demand for services grows, so too do the challenges of attracting and retaining the right talent.

Here’s what organizations need to know in 2025:

Recruitment Challenges

Canadian nonprofits face persistent recruitment hurdles:

- Limited talent availability and strained budgets continue to make it difficult to compete with private sector salaries.

- Higher industry turnover (from burnout and resource challenges) and leadership gaps are common, especially in key roles.

- Many organizations are struggling to align their candidates with the right roles, which ultimately leads to impacts to performance and culture.

2025 Recruitment Trends to Watch

1. Human-centered, AI-powered recruitment: AI will streamline administrative tasks, but the focus will continue to be on empathy and the candidate experience.

2. Personalized employer branding: Candidates continue to want authentic insights into your culture. They want to hear real stories about experiences, outcomes and impacts. These matter more and more over polished and properly messaged content.

3. Internal mobility: Promoting from within is gaining real traction in this space, which, for those firms doing it well, is reducing turnover and boosting morale.

4. Data-driven insights: Metrics are trying to guide smarter and more inclusive hiring decisions.

5. Skills are more important than credentials: Experience and adaptability are valued more than formal education, but education is still a differentiator in competitive fields and organizations.

6. Flexible work remains key: Remote and hybrid models remain essential to attract top talent in this space. Work-life balance continues to play an important role for candidates entering and staying in the third sector.

Why It Matters

The third sector employs over 1.3 million Canadians and is a cornerstone of community well-being. But to remain resilient and impactful, organizations must evolve their recruitment strategies to meet today’s realities.

Need Help Navigating These Shifts?

If your organization is facing recruitment or sustainability challenges, Craig Cherrett, Principal and Founder of The Iron Sail Group, is here to help. Reach out today to explore how The Iron Sail Group can support your mission and build a stronger, more sustainable future.

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