Transcript This Better Work - Canadian Council for Career Development

THIS
BETTER
WORK !
Pragmatic
Solutions
for Creating
Good Jobs
TOM ZIZYS, METCALF FOUNDATION FELLOW
DONNALEE BELL, CANADIAN CAREER
DEVELOPMENT FOUNDATION
WHAT DO PEOPLE WANT?
WHAT DO PEOPLE
WANT?
• Full time
• Fairly compensated
• Safe
• Respectful
• Meaningful
“It may be more accurate
to distinguish “good and
bad” work
environments/workplaces”
Graham Lowe
• According the World
Gallup Poll what people
want today more than
anything is a GOOD
JOB!
• 30 years ago people told
Gallup they wanted love,
money, food, shelter,
safety, peace and
freedom
SOMETHING’S NOT
RIGHT
• We have jobs without people and people without
jobs
• We can’t seem to be able to say if there a skill
shortage.
• The most educated cohort in our country is
being asked to work for free.
• According to SunLife (Nov. 2012), 90% of youth
18-24 feel excessive stress because of economic
instability and underemployment
SESSION OUTLINE
• Explain how we got to this point
• Explore the impact of shifting from the loyalty
line to the bottom line has had on careers
• What can and is being done
HOURGLASS LABOUR MARKET
COMPARISON OF DISTRIBUTION OF JOBS BY
SKILL CATEGORIES, ONTARIO, 1991-2006
COMPARISON OF DISTRIBUTION OF JOBS BY
SKILL CATEGORIES, TORONTO AND THE REST
OF ONTARIO, 2006
CHANGE IN EMPLOYMENT SHARES BY
PAY LEVEL, EUROPE AND UNITED
STATES, 1993-2006
CHANGE IN EMPLOYMENT SHARES
BY SKILL CATEGORIES, TD BANK,
CANADA, 1999-2012
CHANGE IN EMPLOYMENT SHARES BY
SKILL CATEGORIES, TD BANK,
CANADIAN PROVINCES, 1999-2012
PERCENTAGE CHANGE IN EMPLOYMENT
SHARE OF ALL JOBS,
BY SKILL CONTENT, UNITED STATES, 19812011
CHANGING HIRING AND PROMOTION
PRACTICES
CAREER PATHWAYS IN
A 1950S COMPANY
From “Working Better: Creating a High-Performing Labour Market in
Ontario” Metcalf Foundation
THE 1950S CORPORATE
STRUCTURE
The labour market “perfect
LATE 60s/EARLY 70s:
storm”
STAGFLATION
FRAGMENTED CAREER
PATH IN A 1990S FIRM
THE INTEGRATED FIRM NOW
BECOMES THE NETWORKED FIRM
THE FINANCIALIZATION OF OUR
ECONOMY
THE SHIFT TO
FINANCIALIZATION
• Concept of shareholder value: CEO primary
responsibility is to maximize return to
shareholders
• Stock market difficulties in 1970s opened way to
hostile takeovers
• Broad conglomerates were thought to be worth
more if run more efficiently or if broken up
• Not that weren’t profitable, but could be more
profitable
THE TYRANNY OF THE
“RATIOS”
ELEMENTS OF THIS MODEL
AFFECT OTHER BUSINESSES
• Not every business is looking to shed its
workforce
• But how a business is evaluated may depend on
these ratios
• The ability of a business to access capital
(stocks, loans) may be affected by these ratios
• Others borrow parts of this model (contracting
out)
• Each business is acting in its own interest, but
collectively is undermining employment and
ultimately the economy
WHAT DOES THIS MEAN FOR THE
SUPPLY SIDE (OUR CLIENTS)?
YOUTH HAVE DONE
THEIR PART
• Canada has
the highest
percentages of
the population
aged 25 – 64
with tertiary
education
among OECD
countries
BUT…
Canadian college graduate earnings (25-64 year olds) compared to
other countries (2010 or latest available year)
Japan
Canada
United States
Australia
Germany
Sweden
34.7%
10.1%
23.1%
13.3%
19.3%
10.2%
16.4%
8.1%
14.8%
10.9%
14.7%
5.0%
United Kingdom
13.3%
OECD average
13.0%
France
At or below half of the median
11.6%
9.9%
More than 2 times the median
13.3%
12.6%
BUT THEN …
Canadian university graduate earnings (25-64 year olds)
compared to other countries (2009 or latest available year)
Canada
United States
Germany
Sweden
17.6%
29.4%
12.8%
30.3%
12.1%
10.9%
France
10.1%
Australia
9.7%
OECD average
9.3%
Japan
8.9%
United Kingdom
7.7%
At or below half of the median
27.2%
14.1%
25.1%
18.4%
26.7%
34.7%
28.0%
More than 2 times the median
THE B.A.RISTA
GENERATION
In Canada
• Under-employment number 2nd highest in OECD since
2005
• 1 in 4 – the ratio of young people with university
degrees who worked in “low-skilled” jobs in 2012
• 40% of food and beverage servers and 45% of retail
salespersons (age d 25-54) in Ontario hold a university
or college degree
• The earnings gap between high school grads and those
with a university bachelor’s degree is narrowing.
Sources: World Economic Forum; Statistics Canada study – “Unemployment Dynamics Among Canada’s
Youth”
ENTRY-LEVEL JOBS ARE NO
LONGER STEPPING STONES
• More casual, part-time and temp work
• Wages dropped for entry-level jobs
• Drop in minimum wage in real terms
• Less unionization
• Less opportunity for advancement and many are
getting stuck
= More income inequality
WHAT’S THE WAY FORWARD?
Prescription: Focus on
Employers
• Grooming individuals for a job
• Supporting access to next rung of the career
ladder
• Employers need to invest more in training
THE QUESTION:
Is there a business case for employers
investing in their workforce?
MANY BARRIERS TO
TRAINING
Simply making the business case for training is
not enough:
•
•
•
•
•
•
•
Cost (simple matter of cash-flow)
Risk aversion (immediate expense, distant gain)
Information (ROI on training, peer benchmarks)
Resources (which training, who should deliver)
Poaching (fear that trained workers will leave)
Inertia (easier to leave this as they are)
Competence (broader HR skills)
Demand-side approaches and
skills development
THREE LEVELS OF RESPONSE
1. Addressing the specific challenges/
barriers faced by the individual employer
2. Using intermediaries to broaden the
reach/create economies of scale
3. Promoting those values and norms that
recognize the value of employees
A STRATEGY WITH THREE
DIMENSIONS
RECOMMENDATIONS:
EMPLOYER PRACTICES
RECOMMENDATIONS:
INTERMEDIARIES
RECOMMENDATIONS:
NORMS AND VALUES
QUESTIONS?
“We live in a time of ultra
capitalism, that often seems
inescapable. Well so did the
divine right of kings.”
Ursula Le Guin
FINAL WORDS