Workplace Challenges
Threat #1: Labour shortageUniversity education in desperate demandLet the bidding begin for university-educated workers, who will be in high demand as baby boomers start to retire en masse. By Jennifer McFee |
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 [ 2009-03-03 ] |
With the bulk of baby boomers on the brink of retirement, Canada faces a shortfall of university-educated employees in every industry. As the number of degree-holders dwindles, the country contends with the threat of not having enough university grads to fill a rapidly increasing demand. This unprecedented shortfall could cripple industries like healthcare and education if we don’t swiftly seek solutions.
According to Human Resources and Development Canada’s 10-year projections, professions in the public sector will feel the crunch first due to their low retirement age. Canada will soon see a shortage of elementary and secondary school teachers, as well as managers in public administration and social services.
To further fuel the problem, the healthcare system will bear more burden than ever before as the bulk of the population ages. The health sector will not only need doctors and nurses, but also specialized technicians, computer systems professionals and university research professors to address the growing geriatric health demands.
Demographic pinch plagues eastern provinces
In the ’90s, Canada lost many academically educated workers to other countries in a brain drain blitz. But now the problem is not that we’re losing our degree-holders, it’s that our demand for them is growing faster than our supply. Immigration is an increasingly important way to address this growing gap.
The demand for academically educated workers will likely begin in the eastern provinces, which have an older population base and attract fewer immigrants than the rest of Canada.
“Atlantic Canada is older and aging more quickly than the rest of the country. This region also has had a very poor track record of keeping and retaining immigrants,” says Ian Munro, director of research for the Atlantic Institute for Market Studies.
“Immigrants might land in Halifax, but they tend to end up in Montreal, Toronto, Vancouver, Calgary — not Fredericton or Charlottetown or Sydney. We often hear a lot about the difficulties skilled immigrants, who have education in science and technology or medicine, have in getting their credentials recognized here in Canada. That’s a problem in Canada we have to deal with.”
As one way to address this problem, the federal government developed the Foreign Credentials Referral Office, which aims to improve the assessment and recognition of foreign qualifications.
Although this menace might hit the East Coast first, the rest of the country is not immune to the problem. The reality is every province and territory must contend with the same concerns.
Companies compete for grads
Educated immigrants, as well as Canadian-born professionals, are often convinced to leave their communities when offered higher wages and lower taxes in another part of the country. Alberta draws a lot of educated employees partly due to having the lowest taxes in Canada.
“You see big flows of labour into Alberta and Saskatchewan to reflect the fact that that’s where most of the petroleum reserves are,” says Lars Osberg, research professor at the University of Dalhousie.
Not only are provinces trying to lure loyal workers to their regions, companies also attempt to entice university-educated employees to join their firms.
To attract graduates, businesses are building relationships with universities and colleges through open-house events, scholarship awards and co-operative education programs, says Fiorella Callocchia, president of Toronto-based consulting firm HR Impact.
“Managers should ensure they treat part-time, co-op or summer students respectfully and ensure their working experience is positive. They can either turn into one of your company’s best marketing agents or a nightmare if they have been treated badly or unprofessionally,” she says, adding that companies can sponsor university events or target their advertising campaigns to increase their campus profile.
Another way companies try to connect with rising stars is through employee-referral programs, Callocchia says.
Through this type of program, recently graduated new hires act as recruiters within their network to earn cash rewards for successful referrals.
Career fairs are also common practice at universities across the country, where companies vie for commitment from students before they even have a diploma in hand.
Companies that still need to fill specialized positions may offer competitive salaries, tuition reimbursement and sign-on bonuses to target top students, Callocchia adds.
“Companies have to find what is right for them given the nature of their business, the economic climate and ability to pay,” she says.
Social solutions
To counter Canada’s retirement boom, Doug Watt, Associate Director of Research in the Organizational Effectiveness and Learning Group of the Conference Board of Canada, has a few other suggestions.
In addition to integrating more immigrants into the labour force, he says governments should tap into other groups that are typically under-employed. For example, older workers can continue to contribute to the work world, since 11 of 13 provinces and territories have gotten rid of mandatory retirement, he says.
“So many people have great knowledge and skills. They can contribute so much more to our economy. There is going to be this shortage, and businesses and governments and education systems are going to be feeling this demographic pinch,” says Watt, associate director of organizational effectiveness and learning.
Solutions to this situation could include developing a tax credit for people who work beyond a certain age, offering income support and work incentives, and implementing pension reforms.
Ultimately, says Watt, business, government and education systems will need to work together to understand each other’s needs and resolve the challenges going forward.
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