Eight Mega-Issues Facing Canada

1. Canada’s Human Capital ChallengeStrategic Capability NetworkSymposium: Diversity and the Bottom-LineApril 28, 2006 Judith L. MacBride-KingPrincipalMacBride-King and AssociatesResearch and Advisory Services in Human Resources Management

2. Eight Mega-Issues Facing Canada Global Economy Canada & U.S. Relationship Governance Innovation Human Capital Health Care Healthy Environment Competitive Cities Source: The Conference Board of Canada

3. 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 Source: The Conference Board of Canada

4. 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

5. 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

6. 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

7. 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

8. Attracting and Retaining Talent: Trend Data % employers reporting difficulty attracting & retaining talent Source: The Conference Board of Canada

9. It’s Time For Your First…. QUIZ!

10. Attracting and Retaining Talent % employers reporting difficulty attracting & retaining talent ? Source: The Conference Board of Canada

11. Answer…. % employers reporting difficulty attracting & retaining talent 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

12. A Sampling of Recent Headlines… Oil patch labour crisis seen spreading to rest of country Buttoned down and in demand…not enough accountants Nursing shortage more severe, urgent than expected Cities face off over talent Skills crunch rivals tax cuts as top issue Alberta Labour Shortage Draining Civil Service India, China call expats back home Oil patch labour crisis seen spreading to rest of country

13. BUT, It Is Not Just About People

14. Skills in “Need of Improvement” in Governments Across Canada 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

15. 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)

16. What’s Driving the Skills Shortage… • Ageing of the population • Ever increasing global competition • Rapid pace of economic, technological and scientific change

17. Demography Is Destiny:Canada’s Demographic Realities

18. Demography Is Destiny:Canada’s Demographic Realities • 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.

19. Population Estimates for 1998 and Projections for 2006, 2016, 2026 Source: Statistics Canada

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

21. Time For Your Second…. QUESTION

22. Whence Youth?

23. Whence Youth?

24. Whence Youth?

25. Whence Youth?

26. Whence Youth?

27. So, That is Our Challenge What must we do to meet the skills challenge?

28. What Must We Do? 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)

29. Create a Compelling Brand

30. 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

31. 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….

32. We 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.”

33. 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.

34. 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” Source: The Conference Board of Canada

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

36. Components of Population Growth Natural Increase Net Migration Selected Years 1851 - 1861 77% 23% 1951 - 1961 71% 29% 1991-1996 49% 51% 2030* 20% 80% * = Projections 2051* 0% 100% Source: Statistics Canada, The Conference Board of Canada

37. % Trends in Immigration Proportion of Immigrants Born in Europe and Asia by Period of Immigration Source: Census 2001, Statistics Canada

38. Visible Minorities in 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.

39. 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

40. 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

41. What Must We Do? …Continued 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

42. What Must We Do? …Continued 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

43. The Diversity Advantage Close labour force gaps Build stronger client relations Organization Effectiveness Expand business opportunities – national/ international The Diversity Advantage Enhance creativity and decision making Enhance organization’s reputation

44. 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.

45. 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)

46. Engaging Talent…What Does it Take? Supervisor Support Organization Support Employee Outcomes Fit and Belonging Employee Engagement Job Characteristics Organization Effectiveness Justice/Fairness Rewards Source: The Conference Board of Canada

47. 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.)

48. 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.

49. 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.

50. 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 with Hubert de Pesquidoux CEO of Alcatel