German Companies Ready to Hire Refugees, Survey Says

Far from viewing the influx of some 1.1 million refugees and migrants in 2015 with trepidation, Ernst & Young survey results published on Tuesday show that over half of the 3,000 SMEs polled see the new arrivals as one way to alleviate the country’s shortage of skilled labor. 85 percent of companies say they would happily employ someone who came to Germany as a refugee.

Over half of SMEs say that a shortage of qualified workers is hitting their balance books hard: companies calculate that a shortage of some 326,000 workers has directly resulted in an annual revenue shortfall to the tune of 45.9 billion euros ($50 billion). Indeed, experts have long warned that Germany is likely to lose economic steam, as its population ages, the birth rate stays low, with fewer, qualified workers to replace them.

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A Migration Agenda for the Private Sector

By Khalid Koser

This article is reprinted with permission from Project Syndicate.

Khalid Koser speaking at the Cities of Migration Conference in Berlin

Khalid Koser speaking at the Cities of Migration Conference in Berlin

As Europe’s refugee crisis continues to evolve, offers of assistance have come from some unexpected places. Interventions by governments, civil-society groups, and aid organizations have been complemented by a broad-based response from the business community. This mobilization highlights not only the role that the private sector can play in managing migration, but also the importance of extending this engagement beyond the response to the immediate crisis.

Contributions have been made by companies large and small. Shop owners have provided refugees with free food and clothing, and local transport firms have helped people move across borders. On the corporate level, FedEx, JPMorgan Chase, and Google have all made direct contributions of more than $1 million to humanitarian organizations. American Express and Daimler are matching their employees’ donations, Western Union is offering ten cents per transaction made by consumers in the European Union, and Norwegian Air has raised money through inflight collections.

Meanwhile, the Bayern Munich Football Club has opened a training camp for refugees, and Siemens has launched a traineeship program in Germany for asylum-seekers.

On the web, Facebook is connecting asylum-seekers with members of their diaspora, as well as citizens who want to help, and a program called “Refugees Welcome” is helping refugees find vacant rooms in Germany, Spain, Portugal, Austria, Poland, Greece, Sweden, and the Netherlands. In France, an Amazon wish list has been established to allow people to purchase goods for refugees (portable fuel packs and warm boots are the items most in demand).

The private sector’s response to the refugee crisis has helped efforts to address it in three important ways. For starters, the business community has generally proved faster and more flexible than governments. On the whole, the private sector is not encumbered by political constraints or bureaucracy that can impede government action. And many companies are organized to move quickly in response to market opportunities – or in this case a humanitarian emergency.

Second, the business community has filled a gap in the response that the public sector risked overlooking. The international community has been focused on immediate humanitarian relief –rightly so. But the current crisis also has an economic component: in many cases, it represents a business opportunity, as new arrivals offer their talents and knowledge to forward-thinking firms. As a result, it is not just corporate social-responsibility departments that are driving companies’ response.

Finally, the business community’s reaction has underscored the long-term advantages of migration, something that politicians in fear of (or in thrall to) xenophobic currents have struggled to accomplish. The private sector’s enthusiastic involvement helps make the case for the bright side of the refugee influx: it can help close Europe’s demographic deficit, plug gaps in its labor market, and supply a cohort of young workers and taxpayers for the future.

But while the private sector’s involvement is to be applauded, its impact will be limited if it is not extended beyond the current emergency. Like governments, the business community rallied in a meaningful fashion only after large numbers of refugees began arriving on European shores. The private sector must not overlook the role it can play in helping to stabilize and support economic growth in the countries from which refugees flee.

Furthermore, there are far more Syrian refugees in Jordan, Lebanon, and Turkey than in Europe, and many of the innovative responses now emerging in Europe would have a greater impact (and larger returns on investment) if they were concentrated where most refugees reside.

Above all, businesses must ensure that their current efforts are sustained into the future. The programs companies have put in place will bear long-term fruit only if they are seen through to the end. Firms must prepare for the decline in public goodwill that is likely to occur as efforts to integrate the newcomers hit inevitable obstacles. Local spikes in unemployment, temporary pressure on education and health services, incidents of criminality, and hints of radicalization could spark a backlash in the media and among shareholders. Business leaders must help keep a clear, public focus on the long-term benefits of immigration through statements, media engagement, and direct lobbying of government officials.

The lesson from Europe’s refugee crisis is clear: all aspects of migration are better managed when businesses, civil society, and governments work together. As the crisis continues to unfold, sustaining and deepening this cooperation – in Europe and elsewhere – will be both a challenge and an historic opportunity.

The World’s Most Talent Ready Countries, 2014

Talent is moving around the world faster than ever before. Countries that remain open to it are building a competitive edge.

By Paul Evans, Academic Director of the INSEAD Global Talent Competitiveness Index and Bruno Lanvin, INSEAD Executive Director for Global Indices

The pace of change in the knowledge economy is reaching unprecedented speed. Rapid technological change, coupled with a globally mobile workforce is bringing benefits to countries able to harness the energy of the young and ambitious, and raising challenges to those unable to attract and grow this precious resource.

The second edition of the Global Talent Competitiveness Index, created by INSEAD, in partnership with Singapore’s Human Capital Leadership Institute and Adecco confirms that talent competitiveness is closely linked to wealth: high income countries again lead the top-scoring countries in the GTCI 2014.  With world-class universities, rich countries also have a greater ability to attract foreign talents through better quality of life and higher remuneration – all of which drive up diversity.

In the ranking of 93 countries, which measures their ability to attract and incubate talent, European countries continue to dominate this year’s list with 16 of them in the top 25.  Switzerland maintains its number one spot, while four non-European countries are among the top ten: Singapore, the United States, Canada and Australia.

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Diversity and Immigration – Important Parts of Canada’s Past, Present and Future

Gordon Nixon, President and CEO of RBC, was a featured speaker in the Canadian Museum of Immigration at Pier 21’s “Breakfast with a Fascinating Canadian” series on March 27, 2014. In his speech, Mr. Nixon talks about the importance of immigration to Canada’s identity and economy, and how we must move beyond diversity to inclusion to leverage our individual and collective strengths. He gives practical advice for business leaders, governments, agencies that support immigrants, and immigrants themselves.   “Those of us in leadership positions have an obligation and responsibility to get involved. The business case is clear – diversity and inclusion are both the smart thing, and the right thing, to do,” says Nixon, who chairs the diversity council at RBC.

By GordON Nixon, President and CEO, RBC Royal Bank

Gord Nixon, RBCThank you – I am delighted to be here to celebrate Pier 21 and talk about an issue that has been an important part of my activity at RBC over the past 13 years as CEO – Diversity and Immigration.  I have spoken often about this or these topics which are not the same but very much connected.

As Chairman of our Diversity Council for all of my 13 years and of The Toronto Region Immigrant Employment Council for 5 years, I have been very active on the diversity file. I suspect that given my retirement, this may be one of my last opportunities to publicly speak on this issue – or at least the last time people will be willing to listen.

Diversity and Immigration are such important parts of Canada’s past, present and future. Canada would be a very different place today had immigration not played such a large role in our make-up and our diversity creates a global strength like no other country.  And while diversity and immigration have been a large part of our history, they will play an equally important part of our future.

Pier 21, the Canadian Museum of Immigration, is now a national museum with a new mandate to engage with Canadians across the country.  This morning’s breakfast has traditionally been an event that only people in Halifax could enjoy.  But today, we are kicking off a series of events to help the Museum celebrate and share the diverse story of Canadian immigration to a much wider audience.  These events will raise awareness and explain what Pier 21 was, what it is and what it stands for.

The Diversity Legacy  

Canada is a great nation — a wonderful place to live, work and raise a family.  And we are not alone in recognizing this.  We hear often from quality of life rankings that Canadians have built a prosperous nation, a civil society, one rich in diversity and opportunity, that people of many different cultures call home.  There is no question that our strength and economic prosperity are derived from the combination of what we all have in common and what makes each of us different.

Diversity is not new to Canada.  In fact, it has always been a core aspect of the Canadian identity — consider our origins and the coming together of Aboriginal peoples, the French and the English those who have come from hundreds of other countries including those who passed through Pier 21.

The Canadian history of immigration is accompanied by a history of integration. Canada’s experience shows that integration need not come at the cost of diverse identities and those diverse identities create a vibrancy and mosaic that helps define Canada.

The Museum’s own literature has called Pier 21 “a humble-looking building on the waterfront of Halifax.”  Don’t judge this book by its cover because Pier 21 has played a monumental role in welcoming new immigrants to our shores.  From 1928 to 1971, more than one million people entered Canada via Pier 21 and it is estimated that today, one in five Canadians has a direct link to Pier 21.  These are simple facts that speak profoundly to how large a role immigration has played in building our country and how large a role Pier 21 played in immigration.

Coming to Canada through Pier 21, these brave men, women and children took their first steps in building new lives in a new country.  Pier 21 was a gateway to opportunity for new Canadians to reach for and achieve new heights.  And as they followed their pursuits, these people contributed to Canada’s economy, its prosperity and to the building of a great nation.

Today, Canada’s population growth rate is the highest among G8 nations — and that is thanks to immigration.  Canada welcomes almost a quarter of a million permanent immigrants each year — one of the highest rates of all developed countries. It is projected that 28 per cent of Canadians will be foreign-born by 2031 up from 20 per cent today.  And without immigration, our growth rate would be in decline, a disaster for any economy.

Immigration and diversity should not be feared but rather celebrated as it is a source of strength for our country and we do multiculturalism like no other.  We are far from perfect but we are the model for the world and we should find ways to build on our strength.

Today, immigrants to Canada are coming from different places than during earlier years.  Fewer are from European countries. More people come from Asia, South America, the Caribbean and Africa.  Today’s immigration patterns represent diversity in a different way and reflect changing global demographics.

This diverse population presents tremendous opportunities — I have said many times it is one of Canada’s great competitive advantages.  But it is only an advantage to the extent we are inclusive.  Full inclusion means everyone feels enabled to bring their perspectives, knowledge and experiences to the table. Inclusion goes beyond diversity.

RBC has a saying:  “Having diversity is interesting; doing something with it is powerful.”  What that means is that we work to create an environment with equitable access to opportunities, where we can leverage individual andcollective strengths. If you only have people who think and act in the same way, you will be very consistent, but not very innovative and flexible.

While immigration patterns have shifted, four fundamental pillars remain the same:

  •  First, what brings people to Canada- the opportunity to build a future and the desire to contribute.
  • Second, the commitment and motivation of immigrants to succeed — let us not forget being an immigrant is not easy in any country.
  • Third, Canada’s need for immigrants – to grow and to continue the work of building this country.
  • And lastly, the welcome immigrants receive as the newest contributors to our society, to a shared economic prosperity.

Looking Forward

Institutions like Pier 21 are important because they help us learn from our past to help shape our future.  Canada’s history is intertwined with immigration.  This is a past we celebrate — and it’s also something to learn from and build on.

Lester Pearson understood the connection of Canada’s history and future immigration when he said, “The destiny of Canada is to unite, not divide; sharing in cooperation, not in separation or in conflict; respecting our past and welcoming our future.”

I strongly believe diversity and inclusion has a central role in driving productivity, innovation and growth in economic prosperity.  Canada’s future prosperity will increasingly depend on innovative, highly productive businesses with the flexibility to capitalize on opportunities wherever and whenever they emerge.

But we must remain a destination of choice for skilled immigrants — for entrepreneurs, professionals, scientists.  Talent is more mobile than ever, and skills shortages are predicted for many economies. Potential immigrants have more choices than ever before and simply having our doors open will not be enough.

Everyone knows Canada’s large companies like RBC, but we are a nation of entrepreneurs and small businesses.  The financial towers may be the landmarks of our Toronto business centre but go north of the 401 and you will find an incredible number of thriving companies – growing and creating jobs and many of them were founded and are run by visible minorities who are first and second generation Canadians.

Canada needs to leverage the diversity of our workforce today, and the workforce of tomorrow and large companies like RBC need to step up to the plate.  As important as immigration has been to our economy in the past, it will be even more so as we face an aging population and global competition for talent intensifies.

Yet current newcomers to Canada have a harder time adjusting than previous generations.  A 2012 RBC Economics study found that if immigrants were earning equal pay to Canadian-born peers, personal income would be $31 billion higher.  That’s more than 2.1 per cent of Canada’s GDP.  That means we are failing to tap the full potential of these highly skilled people, and the full economic potential of our nation.

We have choices to make — choices which will determine if we become more inclusive, innovative and prosperous, or face an uncertain future.

The Call to Action

With Canada’s growth depending on immigration as much today as a hundred years ago, we must recognize that there are new challenges that require new solutions.

We are building the next phase in the growth of our great country and there are many partners and players in this important work. These include businesses and business leaders, government at all levels, the agencies that support newcomers and the newcomers themselves.

I’d like to offer some suggestions and ideas for each.

Businesses

For businesses, competition is global — whether directly or indirectly. The best way to compete is with a workforce with global experience. I’d like to provide you with an example of what that means to RBC.

We’re a Canadian company with operations in more than 40 countries. Our talent flows need to be two-way. We send Canadians to work internationally because we need an understanding of those markets coupled with an understanding of how to leverage what we have in our home market.

At the same time we’re hiring bankers with experience from many different countries. One might wonder how relevant banking experience in Brazil or China might be for Canada. But because of Canada’s immigration patterns, we have many clients — and potential clients — from those countries.

It’s a valuable asset for our business to have people who know the banking expectations and norms for these clients. Better yet, those employees will have gone through the immigration process to come to Canada. Who better to empathize with newcomers and help them build a new future?

A view that international experience is an asset is beneficial to business. Too often we hear an alternative view that is narrowly and negatively defined — it states that newcomers with no Canadian experience would be hard to fit into the Canadian workforce. This change in perspective recognizes that international experiences relate directly to the modern Canadian context. In fact, the Ontario Human Rights Commission has recognized this and recently declared the requirement for “Canadian experience” is a form of discrimination.

Overlooking new Canadians with both the skills and credentials, in terms of education or technical certifications, to do the job makes little sense. Many will speak multiple languages and understand different cultures. They will help you reflect the communities and clients your businesses serve, and can help you pursue new markets.

Giving newcomers a chance to apply the skills they have learned and to build Canadian experience also pays an employee engagement dividend. In RBC’s experience, employees who are newcomers are among the most engaged. And employee engagement is good for business. Being more open to immigrants is just one action employers can take.

At RBC we have diversity objectives built into our business plans including hard targets for both women and visible minorities in senior management. I am pleased to say we are at 37 per cent and 15 per cent respectively in Canada, but we are looking for new ways to maintain our momentum.

Business Leaders

Those of us in leadership positions have an obligation and responsibility to get involved.  The business case is clear – diversity and inclusion are both the smart thing, and the right thing to do.

Business leaders can and should play an active part.  A simple place to start is in guiding your company to encourage diversity and to be inclusive.  Leaders set the tone for their organizations.  Leaders who get involved see the benefits and opportunities and they encourage others to do so.

Business leaders should be visible in their efforts.  We are role models to many – in what we do — and in what we choose not to do. Leaders should be mentors and sponsors.

We have learned through the RBC Diversity Dialogues program that mentoring is two-way.  Mentees also learn about Canadian workplace norms and leadership, while mentors gain insight into wider talent pools and cultural markets.  You will learn and you will help new Canadians feel — and be — truly included in our society.

As a tall, white, Anglo-Saxon, male, I am in many ways the anti-diversity stereotype and, frankly, for much of my working life never thought twice about whether my career was advantaged due to my background. But it is perhaps because of my background that I have come to realize the incredible richness and competitive advantage that we gain from diversity and it has made me more focused on ensuring fairness and equality across our workforce.

We all have and are impacted by systemic biases and rather than pretend they don’t exist, we must find ways to identify them and develop strategies to compensate for them.

Chairing our diversity council since I became CEO has helped set a tone and it is thanks to people like Zabeen Hirji, and others that I have learned from, that diversity is well entrenched in our values and culture. When people begin to understand the value of diversity it is wonderful to see behaviour change and good things happen.

Government

We often hear that government’s role is to create the right circumstances for the private sector to drive economic growth. Governments need to continue to work together to find ways to improve labour force participation for recent immigrants. They need to continue addressing interprovincial barriers to job movement and invest substantially in bridge training programs, which help immigrants settle and prepare to enter the labour market.

Governments of all levels can create opportunities to bring people together. Coordination of efforts makes the transition into Canadian life for newcomers easier and enables faster contribution to economic growth.

Immigration policies can encourage integration and still actively promote awareness and retention of diversity in a variety of ways, including education, support for community centers and funding for cultural activities.

Cities are a particularly important level of government. Cities deliver social programs that help immigrants the most directly. Cities can develop strategies and even brands that attract skilled newcomers — strategies that help immigrants find employment equal to their education.

And cities are much more than purely economic arrangements. They bring people together and create new possibilities. Immigrants often come in pursuit of a better life so their new chosen city embodies the hope of positive change. This change is much more possible in cities that are diverse, stimulating and provide a wide range of amenities.

Cities that offer this kind of rich, vibrant environment will attract skilled newcomers, enhancing their likelihood of becoming centres of economic growth. Cities have to be livable, walkable and have good transit systems, services and parks. Livable cities are inclusive cities that build a sense of community, a sense of belonging and a desire to contribute to the greater good.

Because more than 80 per cent of the Canadian population lives in urban areas, a large number of us benefit from integrated strategies in these areas — from newcomers to aging populations.

Cities like Toronto, Vancouver and provinces like Alberta naturally benefit from immigration but it is the future of cities like Halifax and Montreal that must find ways to attract and retain newcomers. You are either growing or declining and the ability to attract and retain people will be a large part of that equation.

Agencies

We also need to recognize the role support agencies, not-for-profits, and immigrants themselves play in a successful immigration system.

The private sector and governments need to work together to provide support to both small businesses and the broad range of agencies that exist to provide services to newly arrived Canadians.

These organizations include TRIEC, the Toronto Region Immigrant Employment Council, the Immigrant ACCESS Fund and CareerBridge. The United Way also supports many agencies for new Canadians. These organizations often provide a vital networking path for immigrants, helping business better understand their skills and capabilities. This is the kind of action that is required to make it easier for small businesses to tap into pools of newcomers to bolster their participation in the labour force.

Immigrants

And finally, immigrants themselves must take ownership of their development. They must understand the limitations that their comfort zones place on them and push beyond. Immigrants must pursue and build professional relationships and networks in their field and participate in events and programs to help them become ready for their next new job.

New immigrants should seek advice and information on labour markets and not hesitate to get involved with volunteer services to gain valuable experience and to build connections.

We study history to learn from our past so we can help shape our future. The lesson of our history is clear and also points the way to future economic prosperity and success: Canada has relied on immigration to build a prosperous economy and will continue to do so in the years ahead.

Canada has benefited from its diversity and it remains one of our critical competitive advantages.

We are good at it but we need to get better to maintain that competitive edge.

The Pier 21 National Museum reminds us of the opening chapter to the stories of a million people, who literally stepped through its doors … to the opportunities offered by Canada.

The museum is also responsible for the many, many millions of descendants of those people.

Pier 21 played a major part in welcoming immigrants to Canada. Importantly, it also played a fundamental role in helping shape Canada, because of the critical place immigration holds in building Canada’s growth and prosperity.

The Pier 21 National Museum tells us the story of new Canadians. We need to tell this story and it needs to be heard. That’s why events like today’s are so important.

And that’s why, today, RBC is proud to announce a gift of $500,000 for the museum’s Canada: Day 1 Project. This national travelling exhibit will offer visitors a powerful living history experience, including displays of personal stories, original artworks and archive images.

We hope everyone will have a chance to see the exhibit, and truly appreciate what diversity, inclusion and immigration have contributed to Canada.

Thank you.

Leveraging Immigrant Talent for Business Development

Clarence Lochead of Hire Immigrants Ottawa examines how immigration furthers economic development objectives in Ottawa.

By Clarence Lochhead, Senior Manager, Policy and Research, Hire Immigrants Ottawa, Ottawa Business Journal

So I recently purchased an environmentally friendly humidifier for my home – called the Rumidifier – you may have heard of it. It’s a great innovation, requires no energy to run, and it works really well. What’s that got to do with immigration and business development you say? Well, it turns out that the Rumidifier was developed by a local immigrant entrepreneur. It’s a terrific success story, and one that illustrates how the skills and talents of newcomers can lead to exciting new Ottawa based business ventures, creating jobs and growing the region’s economic base.

To be sure, business development objectives are at the forefront of local efforts to ensure continued prosperity in the Nation’s Capital. Invest Ottawa for example, is leading the way with innovative programs and resources that promote and support entrepreneurialism, investment and business growth in the capital region. With downsizing and adjustments in the federal public service, this focus is both timely and welcomed.

Along with this focus on growth and diversification, there is a widely held view in Ottawa that immigrants will play an important, perhaps even critical role in the future success of the city. The Ottawa Local Immigration Partnership (OLIP) for instance, tells us that “successful attraction, settlement, and integration of immigrants is essential for Ottawa’s future prosperity and vitality.”

So is there a relationship between immigration and the broad objectives of economic growth and diversification? Can immigrant talent be leveraged to advance and optimize Ottawa’s business development objectives?

I’d like to suggest a few of the ways in which immigration already furthers economic development objectives in Ottawa. As a starting point, I’ll refer to some work recently produced by the International Economic Development Council(IEDC), which is the world’s largest membership organization of economic development professionals. Last July, the IECD released a report outlining four ways in which immigration furthers economic development objectives: by contributing to economic expansion; by fueling STEM (Science, Technology, Engineering and Mathematics) industries; by leading to immigrant owned businesses; and by supplementing the labour force in critical ways.

Let’s look at each of these in turn and see how it relates to the situation in Ottawa. Bear with me as I take you through a few numbers.

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Boldly Playing the Global Talent Game

IEC-BC argues it is a critical time close the skills and labour gap by thinking differently about attracting and retaining skilled talent from around the world — seeing skilled immigrants as the solution.

By IEC-BC

As we move further into the second decade of the 21st century, the years ahead promise more than a few surprises on the human capital front due to a perfect storm of factors.

For all countries, including Canada, it’s not a matter of if we address the skills and labour shortages but how urgently we take action. Failing to act will, at best, leave our businesses, industries and communities ill-equipped to remain competitive. At worst, without actual skilled workers, employers may struggle to keep their doors open. What’s driving us to this point?

In short, demographic shifts coupled with a growing skills mismatch mean the global marketplace is headed for a perfect storm — a world where talent shortages and a lack of skilled workers are the norm, as seen already in the BC construction and trucking industries, and in BC’s northwest. There, the region is poised to gain between 6,000 and 13,000 jobs between now and 2020 due to large-scale projects such as liquefied natural gas (LNG), pipeline and marine expansion. The reality is the northwest region’s local labour force will be unable to meet the labour requirements demanded by these projects as we heard at the Northwest Regional Forums on Immigrant Employment we held in August.

At the broader provincial level, with more than one million job openings expected across BC by 2020, and not enough students expected to graduate from K–12 to fill those openings, surviving the skills shortage is about ensuring BC’s industries and businesses have the necessary skilled workers to meet demand.

As countries around the world vie for the brightest and best workers, skilled immigrants are set to become a sought after talent pool in an aggressive global recruiting competition.

Though this coming storm transcends Canada’s boundaries, our governments, industries, businesses, post-secondary institutions and other organizations such as IEC-BC must work together to take bold, decisive steps.

It starts with being far more strategic about closing the skills and labour gap by thinking differently about attracting and retaining skilled talent from around the world — seeing skilled immigrants as the solution.

We’re a country built on immigration, and Canada will always embrace new immigrants thanks to our longstanding policies of openness and welcome. The way ahead is about everyone — business, government and communities — recognizing that attracting skilled immigrants will be one of the keys to our success.

It’s also about turning dialogue into rapid action, so we can get there before others do. Our businesses and industries must be faster and more strategic at closing the gap between
what they have, what they need and the talent that’s out there.

As we navigate the coming competition for talent, it’s a real waste for us not to tap into the expertise of our skilled immigrants in BC.  Moreover, from an economic well-being perspective, now more than ever it’s critical that we do — as communities, as a province and as a country.

Finding and Keeping Top Talent Big Concern for Employers

Immigrants accounted for two-thirds of Canada’s population growth from 2006 to 2011 and are one solution to the skills shortages facing many Canadian organizations.

Even in the face of tougher economic times and belt-tightening, one of the biggest concerns for most Canadian organizations is finding and keeping the right talent.

One-third of employers say a shortage of talent at all levels is their most pressing HR challenge for 2012, according to a survey by Right Management, the talent and career management experts within ManpowerGroup.

Another 23 per cent of the 182 senior executives and HR professionals surveyed say a lack of high-potential leaders is their top concern, while 20 per cent say their biggest challenges is the loss of top talent to other organizations.

Not only is this skills shortage a concern for individual organizations, it’s threatening Canada’s competitiveness and ability to keep up in a global, knowledge-based economy, according to the Canadian Chamber of Commerce.

“Canada is developing a desperate labour shortage, and resolving it is key to the continued success of Canadian businesses and the economy,” states the Canadian Chamber of Commerce’s report Top 10 Barriers to Competitiveness.

The skills shortage is being driven by two phenomena:

Skilled immigrants are one solution to Canada’s skills shortage and are vital to ensuring Canada’s global competitiveness, as seen in the latest census figures. While Canada’s population grew by 5.9 per cent from 2006 to 2011, surpassing the growth of other G8 countries, it was immigration that accounted for 67 per cent of that growth.

With immigration expected to account for 80 per cent of Canada’s population growth by 2031, the importance of immigrants to Canada’s economy will only increase.

Larger Talent Pool

Employers commonly draw new staff from a diminishing but known pool of talent.

They may not tap into skilled immigrant pools of talent because they are not aware of these communities and networks and skilled immigrants generally do not have access to the networks used to refer candidates for job opportunities.

But employers who ensure their planning and sourcing strategies reach skilled immigrant communities expand their opportunities to source the best talent.

To do this, some employers develop relationships with community agencies that provide services to skilled immigrants, while others encourage employees to refer skilled immigrant applicants.

It requires creative planning to cast the recruitment net further, but the results can be rewarding.

Canadian-Born Workforce is Shrinking, Demand for Labour is Growing

As baby boomers retire and birth rates fall, Canada will face a shortage of skilled workers in the coming years.

In 2006, there were 1.9 Canadians aged 20-34 entering the work force for every person aged 55-64 leaving it, according to Statistics Canada. This is down from 2.7 replacement workers for every retiree in 2001 and 3.7 replacement workers for every retiree in 1981.

The Conference Board of Canada predicts a shortfall of 1.2 million skilled workers by 2025 and skilled immigrants, who Statistics Canada predicts will account for all net population growth by 2031, are the best solution to this demographic reality.

While the 2008-2009 recession may affect some of these projections, many sectors and occupations are already reporting skills shortages in a range of industries, including sales and service, trades and business, science, manufacturing and health care.

For example, the 2011 labour market forecast from the Information and Communications Technology Council predicts Canadian employers will need to hire about 106,000 information and communications technology (ICT) workers between 2011 and 2016.

Outlook for Human Resources in the ICT Labour Market, 2011-2016 states employers across the country will encounter systemic shortages in most ICT occupations when recruiting for jobs that require five or more years of experience.

And the Construction Sector Council predicts the industry will need about 320,000 workers between 2011 and 2019 to meet demand for new construction and replace retirees, with a predicted shortfall of about 157,000 workers.

Employers must remove barriers and position themselves to quickly attract and fully engage skilled immigrants in order to make up the labour shortfall.