Addressing issues of shortage, and workforce development
The London Economic Development Corporation (LEDC) is taking steps to defuse a demographic time bomb that is threatening the availability of skilled workers in London and surrounding areas. In a report released in August entitled 'A Workforce Development Strategy for London,' the LEDC outlines strategies that will help build workforce capacity now, before local employers hit a crisis situation.
"Access to a suitably qualified and experienced workforce is an issue, not just in London but globally," said Jeny Wallace, LEDC's director of workforce development. The Conference Board of Canada predicts that by the year 2020, there will be a shortfall of one million workers across the country. However, London may be facing a more immediate challenge than other communities. With the unemployment rate dropping to 4.7 per cent in July, the city is fast approaching full employment, and has experienced low success in attracting skilled immigrants and migrants from across Canada to address current and future needs.
On the positive side, London is also being more proactive than many communities in dealing with this potentially explosive situation. Wallace believes that London is the only Canadian city to create a position specifically dedicated to workforce development. To support the growth and retention of existing business and to attract new business investment, London must be able to provide a skilled workforce.
But the combination of an aging workforce and low population growth means skilled workers who are retiring outnumber those who are entering the local workforce to replace them.
In short, the demand for skilled workers is rising while the available supply is declining. Fifty per cent of local companies surveyed a year ago said they were either experiencing a shortage of skilled workers or expressed concerns about the issue and its future implications.
While both federal and provincial governments are taking steps to address the looming skills shortage, the LEDC is also advocating strong local action."We have forged partnerships with organizations that can help make a difference in ensuring we are able to match workforce with the needs of business," said Wallace. Working in partnership with stakeholders in the local business, training and employment services sectors, LEDC hopes to act as a catalyst for projects and activities that will increase workforce capacity in London and area.
The LEDC strategy report recommends a three-pronged approach to address the city's impending workforce shortage: training, retention, and recruitment.
Projects and activities being developed will focus on training to increase the skills of existing workers, initiatives to retain experienced workers, and tools to recruit talent from outside of London, as well as to assess and train immigrants to get them on the job quickly.
The report stated that "there is a human resource capacity in London that has already been identified, including individuals who are currently unemployed or underemployed, as well as older workers who may not be in the workforce at present.
These resources will be helpful, but bringing new workers to London will also be necessary." One of LEDC's goals is "to ensure that local employers, education and training institutions, and the many other stakeholders in the community are aware of the magnitude of the challenge ahead and are armed with the information and resources they need to help prepare London to meet the challenge."
Engaging the business community
LEDC has undertaken activities to engage local business and community leaders, to gather information about their future workforce requirements, and to disburse information about workforce development resources that are currently available.
As a starting point, the LEDC is taking stock of what is already in place in the London region, mapping the assets and resources that are currently available to both employers and job candidates.
A comprehensive directory of recruitment and human resources organizations has been compiled and is available on the LEDC web site. According to Wallace, London doesn't just need more workers, it needs workers with specific skills to match employer demands; for example, bilingual language skills, professional accreditation or training in a specific trade.
"There are already foreign-trained professionals in the community who possess skills that are in demand, and local companies are committed to having a diversified workforce," said Wallace.
But language is very important in the workplace and is one of the barriers that skilled immigrants face." Over the next year, the LEDC hopes to establish business conversation sessions to encourage dialogue between existing employees and unemployed immigrants who are in the same field of work. "There is the potential to connect people, for skilled immigrants to network for employment, and businesses are more than happy to play a role in that." For immigrants who are underemployed because their credentials are not recognized in Canada, local employment partners are discussing the use of nationally established Essential Skills guidelines to assess qualifications.
This project aims to facilitate the entry of foreign trained workers into positions that will utilize their existing skills. For employers who are recruiting nationally or internationally for specific skills sets, Good Move London can be a useful tool to entice job candidates to the city.
Website www.goodmovelondon.com, helps local businesses attract talent from outside the city by showcasing the quality of life and community that London offers. London is also exploring a targeted immigration process.
This will involve creating relationships with offshore communities that are known for excellent training in skill areas that are projected to be in demand in London, and that have excess workers who are prepared to be mobile when the need arises. The strategy report explained that "by tapping into their oversupply of skilled workers, we could help satisfy London's undersupply at a time when our needs are becoming more acute."
Preparing for the future
While LEDC predicts an increased reliance on immigrants and Canadian migrants to fill future skills gaps, it also encourages employers to invest in training their existing workforce in order to meet future demands.
To Liz Evanski, vice-president of the Human Resources Professionals London and District (HRPLD), and a member of the LEDC Workforce Development Taskforce, it just makes sense for companies to recognize the value of continuing to train and educate their workforce. The LEDC strategy report promotes stronger links between places of work and places of learning, recognizing that "new programs will be needed to keep up with changing technology and work environments, and to facilitate continuing education and training opportunities for those already in the workforce."
Businesses are encouraged to create a culture that embraces lifelong learning as an expectation, acknowledging that "the provision of ongoing training can help to maximize labour force participation and increase retention of good employees."
While some employers are hesitant to invest in training an older worker, Evanski feels that older workers have a lot of potential. "Their age doesn't matter," she said. "What's more important is their attitude and work ethic." To encourage the retention and retraining of older workers, LEDC received approval in September for federal funding that will support an Experience WoRKs initiative in London, Middlesex and Elgin counties. One planned program outcome is the development of an Experienced Worker Resource Kit, which will encourage businesses to retain and integrate older, experienced workers into their organizations. At the other end of the age spectrum are activities that will facilitate the entry of young people into high demand occupations. For example, through its Schools/College/Work Initiative the Thames Valley District School Board is working to align school curriculum to college training and business needs. Wallace acknowledges that even though London, Middlesex and Elgin counties have a relatively high number of active apprenticeships, they also have a high number of young people who are unable to find an employer to sponsor them.
She believes that there needs to be greater incentives as well as a greater commitment from both the employer and the apprentice. Some employers are hesitant to invest in training a new apprentice, knowing that once they have completed a portion of their training "they may be snapped up by larger companies that pay more," she said.
Other proposed activities target small and medium-sized enterprises that employ between 20 and 100 workers but do not have in-house human resources personnel. LEDC has identified close to 2,000 businesses in London and area that fall into that category.
According to the strategy report, "at most of these companies, recruitment, training and retention activities tend to be last minute, ad hoc and undertaken by a diverse range of people from the president to a pay-roll clerk."
Utilizing the expertise of community partners such as HRPLD, the LEDC aims to provide information, training seminars and other resources to help small and medium-sized enterprises improve their workforce recruitment, training and retention practices. As well as linking employers with existing information, a process will be implemented to identify resource materials that may be useful but are not readily available, and to subsequently develop materials to fill the gap. The approaches outlined in the LEDC strategy report provide hope for London's future, but the demographic time bomb hasn't been defused yet. As stated in the report's summary, "If London is to continue to experience economic growth, if our existing businesses are to thrive, and if we are to meet our goal of drawing new industry to our city, then it will require leadership, investment and the commitment of all workforce stakeholders."
BUSINESS TIMES
London Business Times
Kym Wolfe
Oct 21, 2004
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