Eight Mega-Issues Facing Canada

Canada’s Human Capital Challenge

Strategic Capability NetworkSymposium: Diversity and the Bottom-Line

April 28, 2006

Judith L. MacBride-King Principal

MacBride-King and AssociatesResearch and Advisory Services in Human Resources

Management

Eight Mega-Issues Facing CanadaEight Mega-Issues Facing Canada

Governance

Global Economy

Canada & U.S.Relationship

Innovation

Healthy Environment

Competitive Cities

Health Care

Human Capital

Source: The Conference Board of Canada

It’s All About People…The Skills Crunch: 2000 and 2002

• Significant numbers of governments and private sector organizations reported experiencing skills shortages

• Both private sector firms and governments projected that the trend would continue - and intensify - especially for particular occupations


52%57%

36%

16%

52%

16%

75%

19%12%

0%

20%

40%

60%

80%

100%

Non-tech(entry)

Non-tech(non-entry)

Prof, tech,sci (entry

Prof, tech,sci (non-

entry)

Trades(entry)

Trades(non-entry)

Supervisor Middle mngt Seniormngt/Exec

Projected Skills Shortages (Governments) - 3 to 5 Years -

Source: Judith L. MacBride-King, et al. Building Tomorrow’s Public Service Today: Challenges and Solutions in Recruitment and Retention, The Conference Board of Canada, 2002

49.8

45.3

47.2

44.0

45.0

46.0

47.0

48.0

49.0

50.0

51.0

SeniorManagement/Exec.

Middle Management Supervisory

Average Age of Executives/Managers/Supervisors

(All Three Levels of Government)

Source: Judith L. MacBride-King, et al. Building Tomorrow’s Public Service Today: Challenges and Solutions in Recruitment and Retention, The Conference Board of Canada, 2002

Retirement Woes

If the age of which public servants across the country retire remains at current level..

governments project that by Dec. 31, 2010, a full 44 per cent are eligible to leave.

Source: Judith L. MacBride et al, Building Tomorrow’s Public Service Today: Challenges and Solutions in Recruitment and Retention, The Conference Board of Canada, 2002

A Sampling of Occupations in High Demand

Engineers IT project managers

Accountants Computer analysts

Nurses & doctors Firefighters

Physical scientists Electricians

Heavy equipment operators Welders

HR professionals Managers

Source: Various

Attracting and Retaining Talent: Trend Data

49%51%54%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2001 2002 2003 2004

% employers reporting difficulty attracting & retaining talent


It’s Time For Your First….

QUIZ!

Attracting and Retaining TalentAttracting and Retaining Talent

49%51%54%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2001 2002 2003 2004 2005



??

Answer….

67%

49%51%54%

72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2001 2002 2003 2004 2005

The pressure for talent is building – as predicted.

Beginning in 2010-2011 labour shortfalls will be more widespread.

Employees are becoming a bit more footloose. The voluntary turnover rate in organizations is on the rise.


Source: Various publications, The Conference Board of Canada

Oil patch labour crisis seen spreading to rest of country

Cities face off over talent

India, China call expats back home

Alberta Labour Shortage Draining Civil Service

Skills crunch rivals tax cuts as top issue

Nursing shortage more severe, urgent than expected Buttoned down and in demand…not enough

accountants

A Sampling of Recent Headlines…

Oil patch labour crisis seen spreading to rest of country

BUT, It Is Not Just About People

Skills in “Need of Improvement” in Governments Across Canada

Top Areas in Need of Improvement Number Noting Need

Ranking by Respondents

Ability to manage stress 154 3

Creativity and innovation 148 2

Communication skills 138 1

Adaptability/flexibility 138 4

A focus on results (i.e., outcome orientation)

131 5

Emphasis on customer service 120 6

Source: Judith L. MacBride et al, Building Tomorrow’s Public Service Today: Challenges and Solutions in Recruitment and Retention, The Conference Board of Canada, 2002

Things Haven’t Changed Much…

• Technical, professional, or job specific skills

• Leadership and management skills

• Computer skills

• Interpersonal and teamwork skills

• Problem solving skills

• Communication skills

• Basic skills such as literacy and numeracy

Source: Canadian Labour and Business Centre (2005 Survey of Business and Labour Leaders)

What’s Driving the Skills Shortage…

• Ageing of the population

• Ever increasing global competition

• Rapid pace of economic, technological and scientific change

Demography Is Destiny:Demography Is Destiny:Canada’s Demographic Canada’s Demographic

RealitiesRealities

Demography Is Destiny:Demography Is Destiny:Canada’s Demographic Canada’s Demographic

RealitiesRealities

• Fertility rates going the wrong way for population replacement

• As a nation, we are getting older

• Other developed nations also “aging” – some at a faster pace than Canada

• Not only are we getting older, but there are more colours in our national demographic portrait.

Population Estimates for Population Estimates for 1998 and Projections for 1998 and Projections for

2006, 2016, 20262006, 2016, 2026

19.8

67.9

12.3

18.1

68.8

13.116.8

67.4

15.814.9

63.7

21.4

0

10

20

30

40

50

60

70

1998 2006 2016 2026

0 - 1415 - 6465+

Source: Statistics Canada

Median Age Estimates and Projections in OECD Countries

19801980 19901990 20002000 20102010 20202020 20502050

CanadaCanada 29.229.2 32.832.8 36.836.8 40.040.0 41.641.6 42.642.6

United StatesUnited States 30.130.1 32.832.8 35.835.8 37.837.8 39.039.0 42.142.1

JapanJapan 32.632.6 37.437.4 41.241.2 43.843.8 46.946.9 49.049.0

GermanyGermany 36.436.4 37.737.7 40.040.0 44.144.1 46.946.9 48.448.4

FranceFrance 32.532.5 34.734.7 37.637.6 40.340.3 42.342.3 43.943.9

ItalyItaly 34.034.0 37.437.4 40.640.6 44.944.9 49.049.0 53.253.2

United KingdomUnited Kingdom 34.634.6 36.136.1 38.238.2 41.241.2 42.742.7 44.544.5

Czech RepublicCzech Republic 33.033.0 35.235.2 37.537.5 40.440.4 44.744.7 53.353.3

GreeceGreece 34.234.2 36.136.1 39.439.4 43.043.0 46.646.6 52.552.5

PortugalPortugal 29.129.1 34.534.5 37.337.3 40.540.5 44.544.5 50.050.0

SpainSpain 30.330.3 33.933.9 37.937.9 42.342.3 46.946.9 54.354.3

Source: United Nations Population Division, World Population Prospects: The 1998 Revision

Time For Your Second….

QUESTION

10.0

20.0

30.0

40.0

50.0

60.0

Canada China India Pakistan

Whence Youth?Whence Youth?

37.0

10.0

20.0

30.0

40.0

50.0

60.0



37.0

31.8

10.0

20.0

30.0

40.0

50.0

60.0



37.0

24.4

31.8

10.0

20.0

30.0

40.0

50.0

60.0



37.0

19.4

24.4

31.8

10.0

20.0

30.0

40.0

50.0

60.0



So, That is Our So, That is Our ChallengeChallenge

What must we do to meet the skills challenge?

What Must We Do?

As a country we need to build a human capital strategy:As a country we need to build a human capital strategy:

• Nurture, develop skills

• Recommit to/invest in education

• Recognize and leverage the competencies/skills we have (i.e., PLA)

• Remove barriers to labour mobility within Canada

• Tap into untapped or underutilized pools of labour

• Improve our ability to attract and keep talent from abroad (immigration)

Create a Compelling Brand

Immigration

• Remove barriers of entry into Canada

• Continue to ways to expedite the assessment of and recognition of foreign credentials and work experience

• Create a welcoming environment – improve settlement services

• Prepare the nation for even greater ethnocultural diversity

The Problem is…For Too Many We are Not Living Up to the Promise

• Immigrants are attracted to Canada by a promise…

• rewarding employment opportunities and a high quality of life for themselves and their families.

• The challenge is that it can take many years for newcomers to realize their dreams, and for some the prize remains elusive. According to one person in a CBoC focus group….

We are Not Living Up to the PromiseWe are Not Living Up to the Promise

“I had the feeling that I was good enough for immigration, but not good enough for Canadian employers…If Canada needs cab drivers, then Canada should get cab drivers, not professionals.”

Immigration is Seen as Being Important in Helping to Close the Skills Gap

• Yet….we in Canada and Canadian organizations continue to underutilize the skills and talents of immigrants.

• According to one Statistics Canada study, 6 in 10 immigrants did not work in the occupational field in which they had worked prior to arriving in Canada.

• For the immigrants in that study, two major hurdles to achieving the right occupation fit were:

• difficulty in transferring their qualifications

• lack of Canadian work experience.

Other Challenges for Immigrants According to CBoC Focus Group Participants

• Desire of managers to hire someone like themselves

• Scarcity of visible minorities in hiring roles, which may create bias in selection and promotion processes

• Language issues and an inability on the part of the hiring staff to look or hear beyond the applicant’s accent

• Unfamiliarity with the “Canadian way”


Immigration will Continue to Play an Important Role in our Nation’s Success….

Natural IncreaseNatural Increase Net MigrationNet Migration Selected YearsSelected Years1851 - 18611851 - 1861 77%77% 23% 23%1951 - 19611951 - 1961 71%71% 29% 29%1991-19961991-1996 49%49% 51% 51%2030*2030* 20%20% 80% 80%

* = Projections* = Projections

Components of Population Components of Population GrowthGrowth

Source: Statistics Canada, The Conference Board of Canada

2051*2051* 0%0% 100% 100%

Trends in Immigration

Proportion of Immigrants Born in Europe and Asia by Period of Immigration

%

Source: Census 2001, Statistics Canada

• Soon will no longer be a “minority” in many communities.

• Visible minority population growing at a rate five times faster than the Canadian population as a whole.

• Approximately 13 per cent of persons in the Canadian labour market and in the population are visible minorities.

• By 2016, visible minorities will constitute 18 per cent of the labour market and 20 per cent of the population.

Visible Minorities in Canada

Immigration is Changing the Face of Canada

• Over 80 per cent of all visible minorities in Canada are immigrants

• In 2003, 73 per cent of all newcomers to Canada were visible minorities

Visible Minority Talent is Underutilized, Under-Appreciated

We have labour shortages and yet...

• 1 in 5 visible minorities report experiencing discrimination and most of this occurs in employment-related situations (Statistics Canada)

• Visible minorities are under-represented in key decision-making positions

• Their earnings are roughly 15 per cent below the national average

What Must We Do? …Continued

In organizations: In organizations:

• Get serious about talent management – make it a strategic priority aligned with the business plan

• Make diversity a core part of an integrated TM strategy

• Tap into and retain untapped talent pools

women visible minorities aboriginal peoples persons with disabilities older workers – men and women

What Must We Do? …Continued

In organizations: In organizations:

• Create inclusive work environments – identify and break down barriers to full participation and growth in workplaces (The time for talk is long past.)

• Rethink retirement and develop different forms of working relationships

• Invest in training and skills development – for employees of all ages

• Move beyond retention to engagement

• And, segment the population - focusing on what matters to them

The Diversity Advantage

OrganizationEffectiveness

Enhancecreativity and

decision making

Expand businessopportunities –

national/international

Close labour force gapsBuildstronger client

relations

The Diversity Advantage

Enhance organization’sreputation

A Focus on Diversity Helps in Recruitment and Retention

• In CBoC studies over the years, women, youth and visible minorities have all indicated that they are attracted to organizations that are demonstrably supportive and respectful of diversity.

• People have choices – lots of them!

• Women and visible minorities in our work noted that they would leave/have left organizations that do not have a culture supportive of diversity.

For Example…

• In 2000, almost 5 in 10 women executives in one survey noted that “inhospitable” organizational culture had prompted them to leave organizations. (The Conference Board of Canada)

• The most prevalent reason given by women in the Ottawa Police Force who have considered leaving the Force is “frustration over harassment and limited opportunities” (Ottawa Citizen, Nov. 13/04)

Engaging Talent…What Does it Take?

OrganizationEffectiveness

EmployeeOutcomes

Justice/FairnessRewards

Job Characteristics

Organization Support

Supervisor Support

Employee EngagementFit and Belonging


A Focus on Diversity Helps in Engagement

• Consider the driver relating to “fairness and justice”

• In a recent study in the U.S., the most inclusive workplaces generated the most loyal employees. (Gallup)

• Among visible minorities in Conference Board focus groups, those who believed that their employers and managers were “fair” were less likely to perceive other barriers in the workplace.

• Employees whose leaders/managers display key competencies with respect to diversity are rewarded with engaged staff. (TWI Inc.)

A Focus on Diversity Acts a Magnet for Customers and Investors

• Customers and shareholders alike are becoming more selective in where they spend/invest their dollars.

• In one U.S. study, 40 per cent of households which included a person with a disability indicated that they would be “extremely likely” or “very likely” to switch brands to support a disability cause.

• What is more 32 per cent of households which had NO member with a disability would do the same thing.

A Focus on Diversity Acts a Magnet for Customers and Investors

• In Canada, the Ontario Municipal Employees’ Retirement System Pension Plan recently announced that it would apply social and environmental criteria to the plan’s share votes.

Diversity Contributes to Innovation and Decision-making

It is unfortunate that attempts at cloning leaders still go on at a time when globalization and internationalization of the workforce make it possible for us to seek different leadership characteristics. Every time you seek to clone leaders, you will restrict your competitive edge.

Conference Board Interview withHubert de Pesquidoux

CEO of Alcatel

Toward Organizational Change: Lessons Learned

Diversity must be embedded in the cultural DNA of the organization

Lesson One: Demonstrable Leadership and

Commitment Count

“Leaders must lead...”

“Don’t ask employees or managers if they buy into the value of diversity. Tell them this is the way it is...and model it. Value diversity.”

Source: Leaders’ Summit on Visible Minorities,

May 2004. The Conference Board of Canada

What Does Demonstrable Leadership Look Like?

Strong leaders…• model desired behaviours and become personally

involved in diversity

• have a propensity for action and they invest time and resources to achieve change

• hold themselves and others accountable for change.

Lesson Two: Education is Important – But It’s Not Enough

“We thought that if we created awareness through an education process, managers would eventually do the right thing. That didn’t happen.

We are now embarking on a completely different course that has targets, measurements and pretty tough reporting – the way line managers are typically used to reporting their business results.”

Source: Interview with Human Resources Leader, Financial Services Industry, The Conference Board of Canada

It’s About Accountability for Change

• Develop internal accountability frameworks

• Develop supplier standards/accountability frameworks

What gets measured – and rewarded and recognized – gets done.

Lesson Three: The Basics Matter

• Get serious about talent management – make it a strategic priority

• Develop a zero tolerance for discrimination, harassment

• Invest! Invest! Invest!

• Provide diversity training to managers and staff

Lesson Four: Experience Counts

• Learn from your past experiences in managing diversity (transfer lessons learned)

• Tap into current and prospective employees’ views on what is needed

• Connect with other employers and other groups

Some Specifics for Newcomers to Canada

• Provide career development programs that focus on the development of “soft skills”, such as communication and listening skills, as well as an understanding of how to “do things the Canadian way.”

• Programs could provide information on• how to navigate organizational processes• how to interact with colleagues and managers• what it takes to be successful in Canadian organizations

Lesson Five: Building Capacity Goes Beyond the Organization

• Invest in the future – get involved in community efforts to support diversity. For example...

• Work with stakeholders to seek solutions regarding the recognition of foreign credentials

• Provide financial support to help build capacity among diverse communities

• Invest in programs to help visible minority youth and newcomers gain valuable Canadian work experience

Contact Information

Judith L. MacBride-KingJudith L. MacBride-King

Principal

MacBride-King and Associates

Tel: 613-692-8134

E-mail: [email protected]

Documents

Eight Mega-Issues Facing Canada