“10 Steps to an Innovative World-Class Industry Training System

and Skilled Workforce”Submission to Honourable Allan Rock, Minister of

Industryby Kerry Jothen, CEO of Human Capital Strategies

August 8, 2002

The Demographic Reality

-30-20-10

010203040

5060708090

100110

1976-77 1983-84 1990-91 1997-98 2004-05 2011-12 2018-19 2025-26

InternationalInterprovincialNatural Increase

Thousands

Projections

BC Stats, 2002

Population Growth

Aging hits traditional occupations harder

Occupation Avg. Age % 45+

Millwright/Industrial Mechanics

44 47%

Aircraft Electrical/ Avionics Mechanics

43 48%

Heavy Duty Mechanics 42 41%

Industrial Electricians 42 45%

Computer Programmers 34 15%

*From Jock Finlayson, BCBC, May 9/02 Business Council of BC Conference

How are we doing in the global “war for talent”?

Ability to retain well-educated workers**

36th of 47 countries

Extent of staff training* 14th of 75 countries

Cooperation in labour-employer relations***

46th of 75 countries

* Industry Canada, Achieving Excellence: Investing in People, Knowledge and Opportunity, February 2002, p. 55.

** IMD Switzerland, 2001 World Competitiveness Yearbook, 2001.

*** World Economic Forum, The Global Competitiveness Report: 2002, 2002.

Jobs Requiring Vocational and Work-Based Training are in the Majority

Percentage of job openings in BC by skill level between 1998-2008

14

17

60

10

Management

Professional

Skilled

Unskilled

ITAC, 2001

BC Innovation Summit – Human Capital has become #1 factor

“Some key and immediate actions that need to be taken in BC include: Revolutionizing education; Changing the public mindset …to the use of innovation to drive new developments; Encouraging lifelong learning; and, Stimulating training and development in every facet of the provincial economy.”

BC Innovation Summit Final Report, May 2002, Canadian Manufacturers and Exporters, p. 9.

We need: Leadership, Change and Action

“We can let the future happen or take the trouble to imagine it. We can imagine it dark or bright—and in the long run, that’s how it will be.” (David Gelertner, 2000)

“It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.” (Sir Charles Darwin)

“When all is said and done, more is said than done.” (Attributed to Lou Holtz, former Notre Dame U. football coach)

Step 1 – A new HR investment tax credit

Make available Human Resource Investment Tax Credits to businesses and individuals whom invest in training and education.

Step 2 – A new industry training champion in BC

Create a new industry-led Industry Training Corporation to champion & oversee training for trades and technical skills.

Industry Training Corporation

Small

Industry-driven

Focused on occupational standards & credentials

Shared funding model

Industry Training Organizations

Stimulate competency-based training models

Flexible delivery

Public & private training providers

The champion for trades & technical skills

A Composite Sector Training Model?

Government Legislation

Sector Industry Training Bodies

Occupation Committees

Training

Fund

Industry Training Corporation

Training

Providers

Step 3 – A new federal-provincial agreement

Re-negotiate a new Labour Market Development Agreement that reflects a stronger priority on industry training and apprenticeship.

The current agreement represents over $200 million in federal funds in BC for services for EI and welfare clients. Few of these resources focus on trades and technical careers.

Step 4 - Adopt a sector approach

Establish sector industry training bodies (existing or new organizations).

No cookie cutter – different for different industries.

Not necessarily “sector councils” (i.e. could be existing bodies).

Step 5 – New credential & “branded” training model Create a new training credential that provides for

smaller skill sets (modules) and reflects bridging and laddering (existing and new skill areas).

Maintain and expand national standards, within and outside the Red Seal program.

Brand new “traineeships” or “mentorships” which allow young people (in school and unemployed) to more easily access trades and technical jobs.

Reduce the rules and regulations for participation in traineeships and apprenticeships.

Step 6 – Performance-based Funding to Training Providers

Base provincial funding of training providers on outputs and outcomes (i.e. performance-based funding model).

Include performance indicators for school districts to meet regarding career awareness & career training in trades and technical areas.

More strategic use of private training sector to achieve public policy goals.

Step 7 – Encourage businesses to adopt a S.M.A.R.T. approach to talent development

Successfully Mentoring, Attracting and Retaining Talent

Ten ways for businesses to attract, retain & motivate human resources

1. Establish a reputation as an employer of choice.

2. Adopt explicit positive values with input from employees.

3. See yourself as a Chief Talent Officer.

4. Have a R&R system – reward both extrinsically & intrinsically.

5. Model and stimulate passion among staff.

6. Foster a learning organization.

7. Equally value “soft” and technical skills.

8. Tap into traditionally under-utilized talent pools.

9. Strengthen/establish relationships with K-12 & PSE schools.

10. Joint ventures with other organizations and educators.

Step 8 – On-line learning achieves 3 goals

1. Increase employee access.

2. Decrease employee/employer costs.

3. Increase training space capacity.

(The provincial government could institute a policy that at least 20% of all full-time students’ courses are on-line.)

Step 9 – Tapping Under-Utilized Talent Pools

Women Particularly under-utilized in trades, technologies (except IT), self-employment & management

First Nations Peoples

Fastest growing segment of Canada’s workforce—especially youth—at 920,000 by 2006

Immigrants Highly skilled immigrants will represent almost all of the net new workforce growth in the future

People with Disabilities

90% of those with disabilities who are under 35 have “mild to moderate” conditions

Displaced Workers

45-64 year age group is growing and most vulnerable to workplace transition (transferable skills)

At-risk, non-University Bound Youth

Tens of thousands of youth are on EI and welfare; 80% of K-12 $ goes towards the 20% who go to university/PSE

Step 10 – Eliminate the “class” bias against trades careers

Make trades and technical careers more attractive to young people in your community and business.

Initiate a comprehensive, sustained national promotion campaign.

Engage parents, youth, educators and the media.

A comprehensive, national sustained campaign.

Key points to leave you with:

Demographics mean it is not just a “skills” shortage – it’s a qualified people shortage.

As a country, province, sector, region, company, or individual, we ignore the skills challenge at our peril.

Action can be taken; solutions are at hand.

Collaboration, partnerships, alliances.

It’s a lot about ATTITUDE: Leadership, Change, Action.

Contact:

Kerry JothenHuman Capital Strategies

Telephone: (250) 213-9231E-Mail:

kerryjothen@shaw.caWebsite: www.humancapitalstrategies.ca