2007 HRPAO Presentation

Canada’s War for Talent: 

Canada’s War for Talent Human Resources Professional Association of Ontario February 2, 2007

Talent Shortage: 

Talent Shortage 62% of Canadian CEOs say skilled worker shortage is slowing growth 85% of Canadian firms will be increasing attention on retention source PricewaterhouseCoopers Provincial economies severely affected by migration

War for Talent: 

War for Talent Global Competition for talent ''More than the war on terror or anything else, the competitive threat is by far one of the gravest threats that has ever faced the United States.'‘ Richard Florida The Flight of the Creative Class: The New Global Competition for Talent,

The War for Talent: 

The War for Talent Deloitte Research – It’s 2008: Do You Know Where Your Talent Is?

Drivers : 

Drivers Increased globalization of trade and commerce Demographic changes Changing expectations Emerging nations

Canada’s Workforce: 

Canada’s Workforce Canadian birth rate in decline = 1.4 (U.S. = 2.0) Employment grew from 13.6 to 16.2 million 1997 to 2005 Immigration = 70% of Canada’s workforce growth 1991 –2001 Immigration =100% of workforce growth by 2011 Unemployment 30 year low

Demographic Shifts: 

Demographic Shifts

A Changing World: 

A Changing World UN Population Division, World Population Prospects: The 2002 Revision

Workforce Growth: 

Workforce Growth By 2010, Canada's labour force, with constant participation and in the absence of immigration, will begin to decline.” David Baxter – CERC Conference 2005. By 2012 U.S. Employment needs to increase from 145 million to 162 million to achieve GDP growth of 3% U.S. Immigration Policy Center

Labour Force Participation: 

Labour Force Participation Source: BLS Foreign Labor Statistics,

Labour Force Participation: 

Labour Force Participation Source: Immigration Policy Center

Changing Expectations: 

Changing Expectations 75% of U.S workers considering a change in employment as the economy improves SHRM Survey 26% of UK workers quit due to poor management practices Vedior Survey Time to recruit on the rise – 37 to 51 days Quality of candidates declined by 10% Corporate Executive Board

Talent Defined: 

Talent Defined Transformational – that needed to extract and transform Transactional – the talent needed for work that is easily automated and scripted Tacit –requires critical thinking, complex interactions and judgement McKinsey and Company Research

Workforce Trends: 

Workforce Trends Canada creating more high paying jobs 113,000 management positions $30.70/hr 32,000 Natural and applied science positions $27.70/hr 134,000 education and gov’t services $25.74/hr Losing lower paying jobs 164,000 jobs lost that paid less than the national average Source Statistics Canada

Mobility and recruitment: 

Mobility and recruitment "We no longer think of immigration as a gate-keeping function but as a talent-attraction function necessary for economic growth.“ Pete Hodgson, New Zealand's minister for research

Foreign Worker Recruitment: 

Foreign Worker Recruitment Government Programs NAFTA Provincial Nominee Program Temporary Foreign Worker Program Permanent Resident Application

Foreign Workers: 

Foreign Workers Number of foreign workers in Canada has increased in recent years: From 71,390 in 1996 to 99,141 in 2005 Number of foreign workers requested by employers varies with economic cycle: Flows of foreign workers increase during “boom” periods when fewer Canadians are unemployed Source HRSD/CIC

Foreign Worker Recruitment: 

Foreign Worker Recruitment Foreign workers in managerial, professional, and technical/trade occupations Represented approximately 37% of workers with known occupations in 2005 (36,855 FWs) Foreign workers in lower-skilled occupations Represented approximately 33% of the total number of workers with known occupations in 2005 (32,823 FWs), largely live-in caregivers and seasonal agricultural workers

Foreign Workers: 

Foreign Workers CIC issues documents necessary for a foreign national to legally enter Canada to visit, study, and work; and makes the final decision as to whether a foreign national may enter or stay in Canada. 92% of work permit applications are approved by missions overseas. 97% of work permit applications are processed within 28 days. Applicants who do not require a visa to enter Canada may apply for a work permit at a Port-of-Entry, provided they do not require a medical exam Source CIC

Bona Fides: 

Bona Fides Have an LMO, if required Have a valid job offer Are qualified to perform the job for which they are being hired Will leave Canada by the end of the period authorized for their stay Hold a valid travel document

Foreign Skills and Recognition: 

Foreign Skills and Recognition Only 6 in 10 immigrants work in field they are trained for 40% of all immigrants arrive with a university education Only 20% of Canadians have a university education Costs to Canadian economy $3.5 – 5.0 b Conference Board of Canada

Mobility Policy Best Practices: 

Mobility Policy Best Practices “….generally, best practices continue to evolve toward new-hire relocation benefit programs that mirror those offered to their current employee counterparts at a similar level. Prudential 2006 North American Trends Study

Assistance to New Hires: 

Assistance to New Hires Source CERC Recruitment Survey 2006

Relocation Support: 

Relocation Support Source CERC Recruitment Survey 2006

Housing Assistance: 

Housing Differential Assistance Housing Assistance Source CERC Housing Survey November 2006

Solutions: 

Solutions Shift in immigration policy – focus Immigration on recruitment A national policy Promote Canada’s reputation National framework for credentials of non regulated occupations Establish an employer advisory council on immigration

Government Action : 

Government Action Foreign Worker Recruitment Immigration (business) backlogs Recognition of foreign skills and credentials

HR’s Strategic Direction: 

HR’s Strategic Direction Work force planning job #1 Ownership of issue Identify key business/value functions Develop knowledge transfer processes What areas are/will or could be outsourced Understand talent that is in demand Identify “new skills” Develop talent pools

Organizational Practices: 

Organizational Practices Separate policies for domestic and foreign recruitment Recognize and support needs for foreign worker recruitment Address the “soft” issues to ensure success Flexibility is paramount

Slide30: 

Thank you