1. 10 Steps to an Innovative World-Class Industry Training System and Skilled Workforce Submission to Honourable Allan Rock, Minister of Industry by Kerry Jothen, CEO of Human Capital Strategies August 8, 2002

2. The Demographic Reality BC Stats, 2002 Population Growth

3. Aging hits traditional occupations harder OccupationAvg. Age% 45+ Millwright/Industrial Mechanics 4447% Aircraft Electrical/ Avionics Mechanics 4348% Heavy Duty Mechanics4241% Industrial Electricians4245% Computer Programmers3415% *From Jock Finlayson, BCBC, May 9/02 Business Council of BC Conference

4. How are we doing in the global war for talent? Ability to retain well- educated workers ** 36 th of 47 countries Extent of staff training*14 th of 75 countries Cooperation in labour- employer relations *** 46 th 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.

5. Jobs Requiring Vocational and Work-Based Training are in the Majority ITAC, 2001

6. 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.

7. 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 brightand in the long run, thats 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)

8. 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.

9. 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.

10. 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

11. A Composite Sector Training Model? Government Legislation Sector Industry Training Bodies Occupation Committees Training Fund Industry Training Corporation Training Providers

12. 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.

13. 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).

14. 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.

15. 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.

16. Step 7 – Encourage businesses to adopt a S.M.A.R.T. approach to talent development Successfully Mentoring, Attracting and Retaining Talent

17. 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.

18. 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.)

19. Step 9 – Tapping Under-Utilized Talent Pools WomenParticularly under-utilized in trades, technologies (except IT), self-employment & management First Nations Peoples Fastest growing segment of Canadas workforce especially youthat 920,000 by 2006 ImmigrantsHighly 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

20. 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.

21. Key points to leave you with: Demographics mean it is not just a skills shortage – its 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. Its a lot about ATTITUDE: Leadership, Change, Action.

22. Contact: Kerry Jothen Human Capital Strategies Telephone: (250) 213-9231 E-Mail: kerryjothen@shaw.ca Website: www.humancapitalstrategies.ca www.humancapitalstrategies.ca