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Building a Skilled Workforce in Canada

Copyright Dec. 17, 2004 by Arupa Tesolin, Intuita

Canada, like other developed nations, is grappling with the challenges of developing and retaining a skilled workforce.  Why is a skilled workforce so important?  As jobs have become more complex many companies have discovered that skilled workers learn better, are more productive, and more motivated to continue adapting to changes.  In contrast, the absence of certain kinds of skills, defined as workplace literacies, create a serious inability to fulfill basic workplace requirements such as quality and safety processes.  This was the topic of a recent industry conference from The Conference Board of Canada, Canada's leading think tank. 

Among the issues to be faced are growing gaps between employer’s needs and the skill level of the workforce.  This creates a dual edged problem; workers who have a harder time finding jobs and employers who have a harder time finding talent.  Both issues are being addressed by skills development and training. The need to build a skilled workforce to compete in the global economy is a given.  The challenge of how to train and retrain the right workforce will require many solutions. 

Michael Bloom, Director of Education and Learning, quoted the following facts in his opening remarks.  Canada, US, Scotland, England, Australia, New Zealand and other OECD countries the ratio of retired people versus working or school age people is lowering.  There are too few young people to make up the difference resulting in a worker deficit.  Because of this the workforce will need to generate more productivity per worker. The solution is to keep and upgrade skills of existing workers and hire more immigrants to make up the difference.

In my view, these facts have been stated before and are based on assumptions that the North American economy will continue established growth levels and that the job market is stable.  Both of these assumptions may be flawed if jobs disappear along with the retiring workers.

But let’s get back to the issue of skills.  Over 40% of workers in both Canada and US have literacy and other basic skills deficiencies in terms of levels what most workplaces today require.  The skills list includes literacy, employability, essential, job-specific, sector-specific, technology and advanced.  Absence of these skills are viewed as contributing to decreased economic performance, productivity, innovation and quality of life via wage and consumer sustainability.

Here are the nine classes of Essential Skills as defined by Human Resources and Skills Development Canada. These are considered enabling skills that help people perform typical life and work tasks which provide the foundation for learning all other skills needed so people can evolve with their jobs and adapt readily to workplace change.

Reading Text -  which involves understanding reading materials, reports and other written or displayed documents, what most of us typically consider as "literacy"

Document Use - completing tasks using different information on work documents in both print and computer media, in the form of words, numbers, icons and arranged data, for example charts, tables, blueprints, schematics, drawings, signs and labels

Numeracy - using numbers and thinking in quantitative terms.

Writing - writing texts and writing in documents (for example, filling in forms) and non-paper-based writing (for example, typing on a computer

Oral Communication - the ability to speak and exchange verbal information with co-workers and supervisors

Working with Others -  the ability to work alone or with colleagues and work teams to carry out their tasks, co-operation and self-discipline

Continuous Learning -  the ability to learn, find materials and upgrade knowledge of equipment, safety and other work related knowledge

Thinking Skills -  five different types of cognitive processes

Computer Use - performing and using a computer to the level of the job, also called digital literacy.

Employability Skills are directed at young people entering the work force, such as Fundamental Skills in managing information, communicating, solving problems, and using numbers.  Personal Management Skills are positive self traits, responsibility, adaptability and safe work, and Teamwork Skills

Job-specific, sector specific, and advanced deal with more particular information as per the job.  ie. skills/knowledge particular to the job the worker is performing, skills/knowledge that relate to the particular sector and may be defined by a Sector Committee or industry report, and advanced skills, higher level of performance, credential, education or experience.

Canada has 3 strategies in place.  The Innovation Strategy (2002), The Workplace Skills Strategy (2004-5) and 29 Sector Councils that help employers and workers in specific industries collaborate to address workplace skills issues. 

The skills strategy has components for recognizing credentials across regions and professions, a credit review pilot project to assess post-secondary credits for job related training and a National Literacy Secretariat to fund literacy programs that prepare people for jobs.  The United States has similar provisions in its Workforce Reinvestment and Education Act, expected to become law in spring 2005.  England, Scotland, Australia and New Zealand all have similar initiatives.

In his summary Michael states that while labour supply is limited, the demand for skills and talent is rising and the competition is global.  Current employees are the key to building capacity and Canada must invest in skills development for maximum results.  Learning is and will continue to be a major source of competitive advantage.

Judith McBride King, Director of HR Management, said both government and private sector firms were experiencing shortages in certain areas which were expected to intensify particularly among mid-level to executive level management, professional, technical and scientific groups.  More recent findings have shown the demand is tapering off somewhat now but will be more pronounced in 2010 and 2011. 

A sampling of the in-demand occupations includes engineers, sales, managers, nurses, geologists/geophysicists, heavy equipment operators, welders, HR professionals, IT project leaders, computer analysts, firefighters and electricians. 

Organization remedies include developing succession plans, learning and development and retention strategies aimed at keeping skilled workers.  In the race for people companies want those who are change-able, adaptable, productive, innovative and impassioned.   The top human capital challenges for the next 3-5 years are productivity improvement, capacity to respond to rapid change, and the capacity to innovate.  Leadership capability is also important.

An aging population is one of the realities for Canada and other OECD economies.  The median population age in Canada is now around 38 years, US is 37.  By comparison China is 31, India 24.4 and Pakistan 19.4 years.

Given this environment Canada needs to make sure it is fully tapping into all the skills and talents of those in communities and organizations, including youth and older workers, women, people with disabilities, aboriginal peoples, visible minorities and immigrants.  (As an aside, a recent federal policy review found that 50% of employers are simply dismissing the resumes of immigrants from the pool of prospective employees.)

Marianne Chambers, Ontario’s Minister of Training, said that an alarming 30% of high school students in Ontario, drop out of school.  Very few of today’s academically biased students have been cultured to think of having a career in trades.  Yet in economic terms this is perhaps a better option for many.  In terms of salary average a college grad can typically earn an average of $37,000, University grads, $43,000.  But a sheet metal worker coming out of a 4-year apprenticeship program will start at $73,000.

Canada’s report card on learning, said Judith, has not been that good.  Investment in training and development has been flat for 8 years and our productivity results have lagged behind other nations.  Only 30% of Canadian companies claim to have an environment that supports creativity and risk taking.

Chalk that up perhaps to complacency and the fact that, as U.S. author Edward Gordon pointed out, 85% of our exports go to US.  Gordon pointed out that aggressive human capital investment to build a smarter workforce is needed to avert a potential meltdown in smart technology and industry as early as 2005/6. Who expected the world to change, eh?

Arupa Tesolin, the principal of Intuita, is an internationally well-published speaker, training consultant and seminar leader who conducts seminars on intuition, innovation and building intuitive organizations. Intuita's On-Line Learning Institute turns your computer into a classroom for management & employee skills development.  See www.intuita.com, email or call 905.271.7272.