Good morning.
The first issue we would like to address with you this morning is effectively recruiting and retaining workers and their skills. Dan McLean, in The Globe and Mail, says, “A good employee is hard to find and even tougher to keep.” The oil industry is one example. Employee turnover has a direct impact on a company's bottom line and can cost as much as 10% of revenue. In the case of logistics, the challenge of attracting and keeping skilled workers is even greater, as this sector must overcome a general lack of awareness and an understanding of the supply chain sector, while competing with other sectors facing equal workforce issues.
We know, however, that supply chain logistics workers are critical links in the Canadian economy, directly impacting Canada's ability to compete in what is in fact a global knowledge economy. Connecting people and job opportunities in a timely fashion is therefore absolutely critical. In the professional logistics community, networking or referral has been recorded at 36% as the most frequent means for locating employment, along with newspaper advertisements at 14% and Internet job boards at 7%. An emerging trend in opportunity for further corporate development may be the use of a company's website to offer current job postings and to attract potential employees.
In order to assist with recruitment, the Logistics Institute is offering post-secondary students free membership and is using a web-based career site to purposely connect these students with the professional logistics community. Through this career site, students can complete a skills inventory and can upload their resumés, thereby directly linking job seekers with job opportunities.
A second issue relates to training and mobility. Relevant training, designed to broaden experience and enhance skills, is a key career development tool that significantly impacts employee retention. According to the Hay Group, when challenging training is offered to new employees within their first two years of employment, these companies increase their chances of keeping these employees over time. Industry focus group participants in the 2006 labour market study suggest that employers should be committed and willing to invest in employee development and training. As well, participants recommended that this relevant training should connect to a clear path for succession and career planning within organizations. Over the last five years, the labour market information study that the Logistics Institute conducts indicates a great deal of mobility within the supply chain logistics sector--that movement between companies was more prevalent in 2006 than in 2005 and that personnel within the P.Log designation were very mobile within their company.
On transferable skills, a unique feature of the supply chain logistics sector is that there are understood key pillars or functions within this industry that are accepted on a national and international level. They are logistics information systems, warehousing, transportation, inventory and materiel control, and purchasing. Skill requirements don't appear to vary significantly in terms of company size, region, or in fact globally, indicating that supply chain logistics employees can move between regions and companies with some degree of ease. With more simplified competency standards that are accessible and applicable for a broader range of employees and employers, it becomes easier for employers to identify the skills that they are in fact seeking.
On competency standards, an overarching competency standard is particularly useful to small and medium organizations that may not have expert human resource personnel and for individuals managing their own career paths.
On school-to-work transition and career pathways in logistics, developing a career pathway in an industry as broad and wide as supply chain logistics is a significant challenge. Career path models are, however, essential to support workforce development. An example of a career pathway in logistics has been developed here in Alberta, providing a provincial snapshot of a broad range of logistics programs. This pathway creates linkages at the secondary level to post-secondary programs and then on to graduate studies and professional accreditation opportunities such as P.Log designations. This career pathway also creates a connection between academic learning and workplace learning or internship opportunities, both of which are critical elements in the development of a skilled logistics worker.
Women in logistics. In June 2006, the board of the Logistics Institute formally supported the creation and implementation of a three-year project that is designed to attract, support, and retain more women in the supply chain logistics sector. The goals of this project are to understand the issues women face in what has been largely a male-dominated field; to assist women to develop a career rather than to simply hold a job; to prepare women for leadership in the industry; to work with employers in order to create awareness of women as an underdeveloped talent pool; and as part of a larger human resources business strategy, to develop programs that will foster a network of professional support and will showcase women at all levels already in the industry, and will eventually bring more women into the P.Log program.
Dealing with skill shortages and foreign credentials. The Conference Board....
Am I getting the time signal, Mr. Chair?