Co-authored with Brian Foster
What we are all looking for…is the readymade, competent man [sic]; the man whom some one else has trained. It is only when we fully realize that our duty, as well as our opportunity, lies in systematically cooperating to train and to make this competent man, instead of in hunting for a man whom some one else has trained, that we shall be on the road to national efficiency.
Frederick Winslow Taylor, Principles of Scientific Management (1911)
Once again, the topic of Nova Scotia’s economic future is front-and-centre in the provincial discourse [‘An Economic GPS for Atlantic Canada,’ Opinions, May 25th, 2013]. From the Ivany Commission to the 4Front Atlantic conference, to the Greater Halifax Partnership’s Halifax Index, representatives of business, government and higher education have put their heads together to come up with solutions to our long-lived economic challenges: an ageing population, high youth outmigration (and now unemployment), and slow economic growth compared to the booming economies in some other provinces. They have assumed a common set of goals: we need to attract and retain young workers, especially “recent graduates”; we have to figure out ways to see older people as valuable resources, not liabilities; we have to be “competitive”, “innovative” and “more productive”.
They have arrived, separately, at some common proposals: we need a “friendlier” business environment and streamlining in government processes; we need to figure out ways to get people to start businesses, root them here, and hire Nova Scotians; we need a skilled and willing workforce.
But there’s one thing they’re a little reluctant to say, despite the mounting evidence that it must be said because it is key to our present economic problem: employers here, as elsewhere, either are not willing to invest in worker training to the extent that it is needed, or do not see workplace training as a priority.
And so, among the 4Front conference’s key recommendations is “an educational environment where universities and colleges play a lead role in developing the talent…Canada needs.” In other words, they are doing what businesses have been doing since F.W. Taylor’s time: looking for the “ready-made” worker, trained in a university or college or, better yet, someone else’s business, rather than committing to hire smart, promising young talent and cough up the funds to mold them into the employees they need. As a recent article in MacLean’s [March 15th, 2013] put it, employers, in Nova Scotia and elsewhere, are “outsourcing their workplace training to colleges.”
The data we have on this matter is, unfortunately, quite sparse. We do know that Canadian businesses, overall, invest just 1.5% of their payroll in education and training – 50% less than what firms in the US spend. But the latest available provincial data from Statistics Canada is pre-recession. As the Greater Halifax Partnership’s Halifax Index also reports, at that time, 40% of Nova Scotian workers aged 25-64 participated in some form of employer-supported work-related training (Access and Support to Education and Training Survey (ASETS)), which was above the Canadian average of 36%. But looking deeper, Nova Scotia workers spent less time in such training – just 36 hours per year, compared to the still-low Canadian average of 49.
Beyond this, we know little about what has changed since the recession, who is getting trained – e.g., younger workers vs. older workers – and for what. Some insight can be gained from the Greater Halifax Partnership’s Halifax Index, released last week. The Index revealed that while the employment rate rose in Halifax in 2012, the vast majority of the job gains went to people aged 45 and older, and the employment rate among 15-24-year-olds actually fell. Qualitative evidence from Nova Scotia and other Canadian provinces, moreover, consistently shows that employers are especially risk-averse about training new (usually young) workers; businesses fear that they will train an employee only to have them leave or be “poached” by another company. Perhaps not coincidentally, much of the training offered by Canadian employers relates to things like workplace safety rather than basic job skills that could substantively increase productivity, spur innovation and build the skilled workforce our businesses say they need.
It’s time for Nova Scotia businesses to do more than simply push our education system to create the workers they so desperately want. They must commit, somewhere in their policy recommendations and economic plans, to make a serious investment in the province’s “human capital.” If they truly value training, and need it to fill the “skills gaps” we hear so much about, it’s time for them to do what they supposedly do best and put some skin in the game.