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Certification in Certification in Sanitation & Hygiene Sanitation & Hygiene

Business Case DevelopmentBusiness Case Development

Certification in Certification in Sanitation & Hygiene Sanitation & Hygiene

Business Case DevelopmentBusiness Case Development

Human Resource Conference Moncton, NBNovember, 2005

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Workshop ObjectivesWorkshop Objectives

Present business case for certification program.

Get your feedback.

Present business case for certification program.

Get your feedback.

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Consultants MandateConsultants Mandate

Can a credible business case be made for worker certification in Sanitation and Hygiene in the fish and seafood processing industry?

Can a credible business case be made for worker certification in Sanitation and Hygiene in the fish and seafood processing industry?

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ChallengeChallenge

Developing a business case for a “concept” not a clearly defined “product”.Developing a business case for a “concept” not a clearly defined “product”.

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Main FindingsMain Findings

1. Very strong employer support for concept of voluntary certification if it is credible, affordable and can be used for marketing purposes.

1. Very strong employer support for concept of voluntary certification if it is credible, affordable and can be used for marketing purposes.

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Main FindingsMain Findings

2. Widespread employer concerns about costs and practical applications.

3. Widespread worker concerns about testing.

4. Changes needed to certification model.

2. Widespread employer concerns about costs and practical applications.

3. Widespread worker concerns about testing.

4. Changes needed to certification model.

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Main ConclusionsMain Conclusions

5. Certification can be a viable business proposition if :

External funding is available for development, administration & maintenance costs.

It has a strong food safety marketing component.

5. Certification can be a viable business proposition if :

External funding is available for development, administration & maintenance costs.

It has a strong food safety marketing component.

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Research toolsResearch tools

Employer Survey Worker focus group Key informant interviews

Employer Survey Worker focus group Key informant interviews

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Employer survey

Employer survey

35 employers surveyed in 8 provinces.

35 employers surveyed in 8 provinces.

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2

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6

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NL NS NB PEI QC ON MN BC

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NL NS NB PEI QC ON MN BC

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Distribution by Firm SizeDistribution by Firm Size

15 Small (<100) 17 Medium (100

to 499) 3 Large (500+)

15 Small (<100) 17 Medium (100

to 499) 3 Large (500+)

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5

10

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20

Number

SmallMediumLarge

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10

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Number

SmallMediumLarge

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Question 1: SupportQuestion 1: Support

Do you support the principle of voluntary national certification in sanitation and hygiene for both workers and plants?

Do you support the principle of voluntary national certification in sanitation and hygiene for both workers and plants?

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Very strong support for conceptVery strong support for concept

85%

6%

9%YES

NO

DK85%

6%

9%YES

NO

DK

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Support consistent across sampleSupport consistent across sample 12 out 15 small employers 16 out of 17 medium sized employers 2 out of 3 large employers Only 2 “No’s”

12 out 15 small employers 16 out of 17 medium sized employers 2 out of 3 large employers Only 2 “No’s”

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Question 2: ParticipationQuestion 2: Participation

Do you think your company would likely participate in the program?Do you think your company would likely participate in the program?

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45%

9% 3%

20%

23%

YES

YES BUT

MAYBE

NO

DK

45%

9% 3%

20%

23%

YES

YES BUT

MAYBE

NO

DK

Less certainty about participation

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AnalysisAnalysis

Lack of program definition increased uncertainty. Both YES and NO respondents share concerns about:

Length of training time Costs of off-site training Paper work

Lack of program definition increased uncertainty. Both YES and NO respondents share concerns about:

Length of training time Costs of off-site training Paper work

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Question 3: CostsQuestion 3: Costs

What would be manageable costs per worker for your company to participate in program?

What would be manageable costs per worker for your company to participate in program?

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Mixed PictureMixed Picture Majority (65%) didn’t know what manageable

cost might be.

Cost estimates range from $100 to $5000

Majority (65%) didn’t know what manageable cost might be.

Cost estimates range from $100 to $5000

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Cost sharingCost sharing

What share of the costs should the employer pay and what share should workers pay?What share of the costs should the employer pay and what share should workers pay?

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Cost sharingCost sharing

34% said employer should pay 100%. 0% said workers should pay 100%. 4 of 15 small plants said 50/50 split; no

medium or large employers chose this option.

34% said employer should pay 100%. 0% said workers should pay 100%. 4 of 15 small plants said 50/50 split; no

medium or large employers chose this option.

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Question 4: MarketingQuestion 4: Marketing

Would meeting a Canadian standard in sanitation and hygiene be a marketing advantage for your products?

Would meeting a Canadian standard in sanitation and hygiene be a marketing advantage for your products?

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68%

26%

6%

YesNoDK

68%

26%

6%

YesNoDK

Clear overall perception of marketing advantages

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Perceptions unevenly distributedPerceptions unevenly distributed

4 out of 5 medium and large firms said YES. 1 in 2 small firms say NO.

4 out of 5 medium and large firms said YES. 1 in 2 small firms say NO.

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16

M&L SM

YES

NO

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4

6

8

10

12

14

16

M&L SM

YES

NO

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Analysis of perceptionsAnalysis of perceptions

Firms facing food safety auditing processes see certification as marketing advantage.

Smaller firms dealing in price sensitive products/markets not facing same pressures.

Firms facing food safety auditing processes see certification as marketing advantage.

Smaller firms dealing in price sensitive products/markets not facing same pressures.

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Question 5Question 5How would you rate your main customers’ concerns about food safety?

1. not at all important 2. somewhat unimportant 3. neither important nor

unimportant4. somewhat important 5. very important6. don’t know

How would you rate your main customers’ concerns about food safety?

1. not at all important 2. somewhat unimportant 3. neither important nor

unimportant4. somewhat important 5. very important6. don’t know

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1 2 3 4 5 D/ K

SmallMediumLarge

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1 2 3 4 5 D/ K

SmallMediumLarge

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Diverse industryDiverse views

Diverse industryDiverse views

Medium and large firms almost unanimous on food safety importance for clients.

Half of smaller firms say their clients more interested in price.

Medium and large firms almost unanimous on food safety importance for clients.

Half of smaller firms say their clients more interested in price.

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Employer perspectives on worker interest

Employer perspectives on worker interest

Employers think workers will not be interested in certification because of:

Aging workforce in East, High annual turn-over in other parts country, Low income levels. Low scholastic achievement generates fear of testing.

Employers think workers will not be interested in certification because of:

Aging workforce in East, High annual turn-over in other parts country, Low income levels. Low scholastic achievement generates fear of testing.

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Key Informant Interviews

Key Informant Interviews

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Corroboration of survey

Corroboration of survey

High importance on food safety in Canada’s main export markets (US, EU, Japan).

S&H certification will be definite marketing advantage for exporters.

Significant levels of industry support for program if it is voluntary, brings added value (not same as CIFA), costs are reasonable and minimal paper work.

Workers should not be expected to contribute to costs.

High importance on food safety in Canada’s main export markets (US, EU, Japan).

S&H certification will be definite marketing advantage for exporters.

Significant levels of industry support for program if it is voluntary, brings added value (not same as CIFA), costs are reasonable and minimal paper work.

Workers should not be expected to contribute to costs.

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Worker Focus Group

Worker Focus Group

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Worker focus group

Worker focus group

Workers’ main interest is broader recognition of skills to enhance mobility.

Strong resistance to traditional testing. Openess to PLAR. Concerns about impact on seniority. Costs should be paid by employers. Older workers will be less interested in

program.

Workers’ main interest is broader recognition of skills to enhance mobility.

Strong resistance to traditional testing. Openess to PLAR. Concerns about impact on seniority. Costs should be paid by employers. Older workers will be less interested in

program.

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Summary research resultsSummary research results Strong employer support “in principle”

but concerns about costs and practical implementation.

Worker interest is passive; concerned about testing.

Employer marketing interest is certification’s main driver.

Strong employer support “in principle” but concerns about costs and practical implementation.

Worker interest is passive; concerned about testing.

Employer marketing interest is certification’s main driver.

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ConclusionsConclusions Worker certification alone will not satisfy

employer marketing interest. Need to develop standards and assessment

mechanisms to certify plants. Based on critical mass of trained/certified employees

and other criteria.Maintenance of certification with high worker

turnover and short-term peak employment periods. Reduce training time; with employer delivery of

training under NSSC accreditation

Worker certification alone will not satisfy employer marketing interest. Need to develop standards and assessment

mechanisms to certify plants. Based on critical mass of trained/certified employees

and other criteria.Maintenance of certification with high worker

turnover and short-term peak employment periods. Reduce training time; with employer delivery of

training under NSSC accreditation

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ConclusionsConclusions

Industry-wide reality of low levels of formal education will require PLAR approach for worker assessment.

Specific challenges: Immigrant workers’ languages other than

English & French

Industry-wide reality of low levels of formal education will require PLAR approach for worker assessment.

Specific challenges: Immigrant workers’ languages other than

English & French

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MarketingMarketing

Certification program should be branded.

Certification program should be branded.

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BrandingBranding

Branding is opportunity for industry to define values it wants associated with its certification product.

Brand development is opportunity for creative, participatory process to get user/client buy-in.

Branding is opportunity for industry to define values it wants associated with its certification product.

Brand development is opportunity for creative, participatory process to get user/client buy-in.

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RecommendationRecommendation

Easily recognizable multi-lingual, trade-marked Certification Brand name and symbol.

Something that works in English, French + (German, Spanish, Japanese?).

Easily recognizable multi-lingual, trade-marked Certification Brand name and symbol.

Something that works in English, French + (German, Spanish, Japanese?).

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Costs analysisCosts analysis

Approx 60% of development costs already covered.

Precedents exist for funding of remaining development and admin costs.

100% of pre-certification costs including branding need to be covered prior to launch.

Certification can be offered on a user-pay/cost recovery basis.

Approx 60% of development costs already covered.

Precedents exist for funding of remaining development and admin costs.

100% of pre-certification costs including branding need to be covered prior to launch.

Certification can be offered on a user-pay/cost recovery basis.

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AdvantagesAdvantages

Industry only pays for actual training and/or assessment needs.

Costs tailored to each individual workplace. Rewards existing investments in sanitation

and hygiene training.

Industry only pays for actual training and/or assessment needs.

Costs tailored to each individual workplace. Rewards existing investments in sanitation

and hygiene training.

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User pay system

User pay system

Each workplace assessed individually and pays only costs associated for its certification process.

Basic infrastructure not dependent on income from certification.

Each workplace assessed individually and pays only costs associated for its certification process.

Basic infrastructure not dependent on income from certification.

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Estimated certification costsEstimated certification costs

$30 per worker for structured interview assessment process + plant certification costs.$30 per worker for structured interview assessment process + plant certification costs.

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BenefitsBenefits

EmployersCertified processors can use branded logo and associated marketing tools to demonstrate their products meet Canadian standard of excellence in food safety.

WorkersAcquire a portable credential that shows they meet a national employer standard in food safety.

EmployersCertified processors can use branded logo and associated marketing tools to demonstrate their products meet Canadian standard of excellence in food safety.

WorkersAcquire a portable credential that shows they meet a national employer standard in food safety.

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The ChallengeThe Challenge

Creating a credible, affordable system that meets real training and marketing needs.

Requires creative, participatory process. Opportunity is there to fill an industry need.

Creating a credible, affordable system that meets real training and marketing needs.

Requires creative, participatory process. Opportunity is there to fill an industry need.

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The challengeThe challenge

Can the industry leaders in sanitation and hygiene work together to develop the certification product that meets their marketing needs?

Can the industry leaders in sanitation and hygiene work together to develop the certification product that meets their marketing needs?

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The questionThe question

Do you see opportunity in Certification?Do you see opportunity in Certification?