Labour and Delivery

A keynote presentation by Philip Mondor, President, Tourism HR Canada

Presented at the TIAC Tourism Congress 2015, December 1–2, 2015, Ottawa, Canada

Labour and Delivery

Published November 2015. Tourism HR Canada.

Copyright © 2015, Tourism HR Canada. All Rights Reserved.

Tourism HR Canada4-71 Bank Street

Ottawa, ON, K1P 5N2 Canada

tourismhr.ca

Tourism HR Canada is a national organization working for the tourism sector in Canada, an $88.5 billion industry employing over 1.7 million people including over 500,000 youth. Its main goals include improving the quality and mobility of the tourism workforce and supplying tourism businesses with the labour market intelligence they need to plan for and overcome their current and future human resource challenges.

Tourism HR Canada is recognized as a global leader in setting occupational standards, building competency frameworks, developing occupational training and certification programs, conducting research into the tourism labour market, and analyzing the resulting data to plan and implement HR strategies for the industry.

Tourism HR Canada under the Emerit Consulting banner, performs consulting services for all sectors in occupational training and instructional design, assessment tools and certification programs, human resource planning and strategy, and labour market research and analysis. The team has worked with private companies, educational organizations, professional associations, and all levels of government, both in Canada and internationally.

DARRENREEDER

Good Afternoon

PHILIPMONDOR

TONYPOLLARD

DARLENEGRANT

FIANDER

JUDITHANDREW

Labour and Delivery

1.7 million workers and growing

Other Industries, e.g. retail

JOBS IN TOURISM INDUSTRIES

JOBS ATTRIBUTED TO TOURISM

DEMAND

1.7 million

628,000

1.7 million workers200,000 employers

Food & Beverage Services

Recreation & Entertainment

Accommodation TransportationTravel Services

52,000

255,000

194,000

265,000

925,000

228,500 Unfilled Jobs

SUPPLY

DEMAND

2010 20302015 2020 2025

Projections by 2035: 300,000

Spending up 56% = $293 Billion

For every dollar spent, 3.2 dollars is generated

in the community

Tourism is vital to Canada’s economy; it is a key driver of socio-economic progress.

Tourism plays a significant role in future job creation.

Full-year jobs that will go unfilled by 2030

53% 46% 34% 56%

% of youth

workers32%

6,267 8,738

20,536

38,782

42,690

Food Counter Attendants

F&B ServersCooksBartendersProgram leaders & instructors

Dissatisfaction with Immediate

Manager CompensationCareer

Opportunity Work Life

10121834

Percentage of Respondents

Top Reasons for Voluntary Turnover

‘Global Workforce Crisis’

Labour Shortage,Increased

Competition

Skills Mismatch

Cultural Intelligence

Frontline, Production

Supervisor, Mid-Level Manager

Management

Specialty

2020 2030

FRANCE 6 - 1

GERMANY - 4 - 23

ITALY 8 - 4

SPAIN 17 - 3

UNITED KINGDOM 6 - 1

RUSSIA - 5 - 24

BRAZIL - 7 - 33

CANADA 3 - 11

MEXICO 6 - 8

USA 10 4

CHINA 7 - 3

INDIA 6 1

INDONESIA 5 0

JAPAN 3 - 2

SOUTH KOREA - 6 - 26

Global Workforce Crisis

Tourism is a Growth Industry

Employees stay for things they get uniquely

from you.

2015

Comprehensive, Accurate, Timely

Labour Market Research

Do you need workers?

Able to meet needs?

Where are customers coming from?

Specific skills or specialized training?

What we are Hearing...

Rural – Urban Divide

Difficulty finding qualified workers: cooks and housekeeping is greatest concern

Rooms are kept empty/out of circulation: no staff

Stress, double duty

Restaurants and recreation businesses operating at reduced levels

Some businesses closing

Economic conditions compounding problem

Tourism Labour Market

Global Trends

SOCIAL POLITICAL HISTORIC ECONOMIC REGULATORY ECOLOGICAL TECHNOLOGY

S P H E R E T

S

Social and Cultural Context

Workers in short supply

Rapid change in cultural diversity

Increased affluence with new and emergent economies: different travellers

Reform of education and training

Idea of ‘service’ or guest/customer experiences have changed› Authenticity› Quality› Tailored experiences and services

› Workforce diversification strategy

› Flexible work, and work re-engineered

› Investment in automation

› Investment in training, education: cultural intelligence

Global Trends & the Tourism Labour Market

P

Political Context

Governments operating with shorter planning cycles: little emphasis on long-term

Increased policy and efforts to promote improved learner and worker mobility[Paradox: tighter immigration rules]

Greater need for sustained public-private partnerships

› Coalitions, partnerships, shared resources

› Increased coordination

Global Trends & the Tourism Labour Market

H

Historic Context

Tourism plays a strong socio-economic role

Tourism as a growing economic driver: increased competition, new products and services

‘Unskilled’ to increased need for a highly skilled: work has become more complex and specialized; image liability

Investment companies, less private ownership

Rise of a ‘global workforce’

› Places of employment = training institutions

› Improved efforts to address image and ‘professionalization’ of sector

Global Trends & the Tourism Labour Market

E

Economic Variables

Volatility is a new norm

Projected growth (globally, locally)

Companies invest less in their people; others invest more› Growing awareness or appreciation of

the value of workers to tourism

Growth hampered by shortage of qualified workers

Investments in infrastructure mixed

Creep of added taxation / tariffs

› ‘New’ business skills and continued professional development

Global Trends & the Tourism Labour Market

R

Regulatory Influences

Security concerns and agendas

Increased regulations and requirements› Accommodation/F&B: building codes,

access, grading, gaming control› Transportation: tariffs, licensing of

carriers› Tour operators, agents: licensing,

regulation on promotion and delivery› Outdoor recreation, attractions:

regulations on safety

› Standards of practice need to change

› Tourism workers are on the ‘front line’: skills linked to security

Global Trends & the Tourism Labour Market

E

Ecological Factors

Weather, climate events and impact on ecosystems› Insurance› Natural resources, icons

Greater adoption and demand for sustainable practices

Growing interest and importance of corporate social responsibility, improved ‘greening’ practices

› Scheduling of seasonal operations

› Ability to respond to climate events, risks, safety concerns

Global Trends & the Tourism Labour Market

T

Influence of Technology

Proliferation of direct marketing and use of social media

More informed consumers

Increased use and reliance by consumer, businesses, job seekers, educators... on communications, marketing, products and services driven by technology[Paradox: More connected than ever, but less human contact]

Education and training through technology

‘Big data’ information: reliable, just-in-time

› Adoption of new media and nimbleness to adapt: technology departments

Global Trends & the Tourism Labour Market

DARRENREEDER

TONYPOLLARD

DARLENEGRANT

FIANDER

JUDITHANDREW

The Panel

A Passionate Workforce Drives

Memorable Visitor Experiences

AlbertaAn Altered Landscape

Tourism: Banff & Lake Louise’s Only Economy

20% to

30%+

Total Compensation

Paid Above Base Hourly Rate

20% to

40%+

% Above Hourly Minimum Wage

Most Employees Are Paid

TIAC/BLLHA Study

• Survey: 61 Employers

Representing 2125 Employees

• Labour Force Turnover

Statistics – By NOC Code

Labour Shortages Quantified (July)

404 Workers

= to 17% of Existing Workforce

Average Worker Shortfall Per Business

21

JULY

Shortage Of

106 Employees

1136 Room Hotel Rooms

That Cannot Be Cleaned

20% of Destination Room Base

Light Duty Cleaners

Employees Hired to Job Vacancy Ratio

1:1

Service Level Impacts

• Diminished Service Levels

• Financial Appeasement

• Curtailed Hours of Operation

Administrative

New Hires/Term.

Housing

Recruitment

July Overtime

9,324 Hrs

YTD OT

CostsUp 24%

Additional Impacts

Contracted Labour Costs

30% to 80% Above Prevailing Wages

Added Demands on Existing WorkforceAttrition Up as High as 28% YTD

Recommendations

Short & Long-Term Measures

• TFW Tourism Stream

• International Experience Canada (Working Holiday)

• Immigration Reform

• Housing Investment

We all have a role.Shared voice, common

mission.

Thank you

Information, Collaboration, Inquiries:TourismHr.ca

tourismhr.ca