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ZOOH L A Workforce Strategy eor alberta’s Tourism AND Hospitality Industry Building and Educating Tomorrow’s Workforce Alberta’s 10 Year Strategy Digitized by the Internet Archive 2016 in https://archive.org/details/workforcestrateg00albe_7 FOREWORD AWorkforce StrategyforAlberta’sTourismand HospitalityIndustrywas developed collaborativelywith governmentand stakeholders from the tourism and hospitalityindustry. Invitedindustryrepresentatives participatedin focusgroups to develop theinitial strategydraft. Subsequentmeetingswere heldwith industrysectorassociations to provide furtherinput,validationandidentifylead contributors forthe priority actions before finalizingthis document. Wewouldlike to acknowledge the contributions of the followingparticipatingorganizations: • Alberta HotelandLodgingAssociation (AHLA) • BostonPizza • Canadian Federationof IndependentBusiness (CFIB) • CanadianRestaurantand FoodservicesAssociation (CRFA) • Decore Hotels • FairmontHotels andResorts • Lakeland College • McDonald’s Restaurants • TimHortons (TDLGroup) • Tourism Calgary • WestEdmontonMall A Workforce Strategy forAlberta's Tourism and FIospitality Industry BACKGROUND Albertais aleaderineconomicgrowthin Canadaandtheworld. However,Albertais facedwithlabourand skill shortages,whichif notaddressed,willconstrainourprovince’s continuedeconomicgrowth and prosperity. BuildingandEducating Tomorrow's Workforce (BETW) isAlberta’s 10yearlabourforcedevelopmentstrategy. This strategyidendfies 17government-ledpriorityactions to ensureAlbertahas moreworkers,bettertrained people andinnovadveworkplaces. Thesegovernmentactions addresslabourforceissues across several industrysectors. MeetingAlberta’slabour force challenges overthe nextdecaderequires theparticipation andinvolvementof aUstakeholders. Governmentcannotdoitalone. Stakeholders includeindustry,labourgroups,professional organizations,volunteerandcommunityagencies, educationand trainingproviders.Aboriginalgroups and whereappropriate, otherorders ofgovernment. Each stakeholderhas animportantroletoplay. Strong collaborationandpartnerships betweengovernmentandvarious stakeholdergroupsis keyto successful implementationof this strategy. INDUSTRY WORKFORCE STRATEGIES While there aremanycommonlabourforcepressures across industrysectorsinAlberta, someindustries are feelingcertainpressures more acutelythan others. Actions areneeded to address theuniquelabourforce issues and challenges of eachindustrysector. Industrystakeholders areworkingwiththeAlbertagovernmentto developindustry-specificworkforce development strategies. These strategieswillprovideindustryassociations andindividualemployerswitha frameworkof industry-ledactions to build thelabour forceneeded to supportcontinuedgrowth overthe next 10years. As circumstances andpriorities shift,itcanbe expectedthatindustrywillrevisittheir strategyto ensure its relevancy. Industryisleadingtheimplementationof strategyactions. Highlevels of co-operationand collaboration amongstakeholderswithinanindustrysectoris required forsuccessfulimplementationof the strategies. Creative solutions and a synergistic approach toimplementinginitiativesworkbestwhen stakeholders come togetherinpartnership. Therefore,governmentisworkingwith industrytobringstakeholders togetherto work on commonprojects andinitiatives. Albertans are the long-termbeneficiaries of this importantcollaboration to build Alberta’s workforce over the nextdecade. A WORKFORCE STRATEGY FOR ALBERTA'S TOURISM AND HOSPITALITY INDUSTRY ' PROFILE OF ALBERTA'S TOURISM AND HOSPITALITY INDUSTRY Industry Definition Alberta’s tourismandhospitalityindustryis broad. Itincludes establishments thatprovide short-term lodging, food andbeverage,recreationand entertainment, travel andtransportation services throughoutthe province. Importance to the Provincial Economy The tourismandhospitalityindustryis animportantcontributortoAlberta’s economyandis identified as a priorityvalue-added sectorin theprovince’s economicdevelopment strategy. Securing TomorrowsProsperity. In2006, tourismrevenueswere estimatedtobein the orderof $5.3 billion. BusinessesinAlberta’s tourism andhospitalityindustryrange from small, family-runestablishments to propertiesinlarge,internationalhotelandresortchains. In the accommodation and food services segment —thelargestcomponentof theindustry—smallandmedium-sizedbusinesses employingless than 50 employees accountfora significant share of businesses (90percent).^ The tourismindustryis also an importantsource of employmentinruralcommunities. Employment Approximately 10percentofAlberta’sworkforce-over 180,000people—workinthe tourism and hospitalityindustry.^ The accommodationand food services segmentaccounts fora significantshare- approximately60percent—of totalindustryemployment. Part-timeand seasonalworkis moreprevalentin the tourism andhospitalityindustrythaninmanyother industries. Nationally, approximately38 percentof thoseworkingintheindustryworkfull-time,year-round, comparedto 54percentofworkers in allindustries.'^ The seasonalnature of some jobs in the tourismandhospitalityindustryresults inperiods of unemploymentforsomeworkers. Theunemploymentrate forworkers inthe accommodationand food services segmentof theindustrywas 4.4percentin2006, considerablyhigherthanthe provincialaverage unemploymentrate of 3.4percentthatyear.^ ' StatisticsCanadaandAlbertaTourism,Parks,RecreationandCulture ^ CanadianBusinessPatterns—BusinessRegisterMarch2006,StatisticsCanada ^ TotalTourismSectorEmploymentinCanada:2004 Update —ExecutiveSummary,CanadianTourismHumanResourceCouncil,March 2005 Ibid ^ LabourForceSurvey2006,StatisticsCanada A WORKFORCE STRATEGY FORALBERTA'S TOURISM AND HOSPITALITY INDUSTRY Although theindustry’s unemploymentratemightnotsuggesta severelabour shortage situation,businesses are facingstaff shortages, especiallyduringpeaktourism seasons and forthe followingoccupations; food service supervisors, cooks, foodcounterattendants and kitchenhelpers, food andbeverage servers, andhotel frontdeskagents.*^ Employersinthis sectoralsoreportacriticalneed forroom/housekeepingattendants due to the currentshortage. Thetourism andhospitalityindustryrelies heavilyonyouth foritsworkforce. Whileworkers betweenthe ages of 15 and24account for 18percentof theoverallprovincialworkforce, theyaccountfor47 percent ofworkers inaccommodation and food services.^ FormanyyoungAlbertans, their firstworkexperienceis inthe tourismand hospitalityindustry. Thepart-time and seasonalworkopportunitiesintheindustryappeals toyouth combiningworkand secondaryorpost-secondarystudies. Theindustryalso reports thatalarge numberofimmigrants access these jobs as anentry-pointinto theprovinciallabourmarket. Proportionatelymorewomenthanmenworkinthe accommodationand food services segmentof the industry. Forty-five percentof theprovincialworkforceis female,whileapproximately62percentof accommodation and food servicesworkers are female.* Theindustry’s part-timeworkopportunities are attractive tomanywomenwantingtobalanceworkwithotherobligations andinterests. Wages formanyjobsinthe tourismandhospitalityindustryfallbelowthe averagewageinAlberta. However, theindustryis agoodentrypointfor first-timeworkers joiningtheworkforce and allows individuals onlyseekingsupplementalincome the flexibilitytoworkpart-time. Due tothe manypart-time entry-levelpositionsintheindustry, the averagewageinaccommodationand food serviceswas almost $12in2006—roughly43 percentlowerthantheprovincialaverage hourlywage of justover$21.^ TheAlbertaaveragewagein this category,however,has beenrisingconsiderablyoverthelast fiveyears. In comparisonto therestof Canada,Albertareported the highestprovincialaveragewageinaccommodation and food services atalmost$12perhourin2006. In2002Albertaranked fourthinthiswage rate behind British Columbia, Ontario and Quebec.'® In the food services sub-sectorthe hourlywageis dependantonwhethertheworkeris employedin the quick service (fast-food) versus fuU-servicerestaurants,withwages beinghigherinthelatter. Forindividuals lookingforrewardinglong-termcareeropportunities, the averagewageis also higherin the skilled occupations (i.e. cooks,hotelmanagers). In addition, manyworkers in theindustryare able to supplement theirwageswithtips and enjoyperks such as meals, accommodation and travelatreduced costs. ® Top50OccupationsinAlbertaby Vacancy Kate,2005AlbertaWageandSahuySurvey,yVlbertaIlumanResourcesandEmployment ^ LabourI'orceSurvey2006,StatisticsCanada * Ibid ® Ibid Ibid A WORKFORCE STRATEGY FOR ALBERTA'S TOURISM AND HOSPITALITY INDUSTRY , , Outlook Alberta’s tourismand hospitalityindustryis expected to experience stronggrowth overthe next 10years. Employmentin the accommodation and food services segmentof theindustryis expected togrowon average by2.2percentannuallyoverthe next fiveyears andgenerate almost 10,913 newjobs by2011." Factors thatbodewell forthe future ofAlberta’s tourismandhospitalityindustryinclude the rising disposableincomelevelsin theprovince, the expandingmarket segmentof affluentmiddle-agedAlbertans and tourists, and the emergence of newtouristmarkets such as China. However, Canada’s strongdollar, continuedhigh fuelcosts and the newU.S. borderrequirements mighttemperindustrygrowthto some extent. Theindustryis alsovulnerable to shocks, forexample from terroristand communicable disease threats. Challenges and Issues Alberta’s tourismandhospitalityindustryis currently facinganumberof significantlabour force challenges. Theseinclude; • Strongcompetitionforentry-levelworkers. Businesses inAlberta’s tourismand hospitality industryare facingfierce competition forentry-levelworkers. Some employersin theindustryhave beenabletoincreasewages andbenefits to attractandkeepworkers andpass alongtheseincreases to customerswithoutloosingmarketshare. Others arecopingbyputtingextrapressure onexistingstaff orcuttingbackontheirhours of operation. • Availabilityof youthworkers. The tourismandhospitalityindustryrelies heavilyonyouthworkers, whichpresents significantchallenges fortheindustry. The accommodation and food services segment of theindustryis expected togrowby2.2percentannuallyoverthenext fiveyears. However, Alberta’s population,between the ages of 15 and24,isprojected togrowatthe muchlowerannual rate of 0.9 percent.'^ Theindustryis highlylabourintensive andindustrygrowthwillbe constrained withoutanincreased supplyofworkers fromoutside the traditionalyouthlabourpool. • Declininglabourforceparticipation of youngerwomeninAlberta. Womenaccount fora relativelylargeproportionof Alberta’s tourism andhospitalityindustryworkforce. The declining labour forceparticipationof youngerwomenwith childreninAlberta*^*couldintensifvtheindustry’s laboursupplychallenges. "AlbertaModifiedCanadianOccupationalProjectionSystemOutlook2006-2011 AlbertaEmployment,ImmigrationandIndustry ChinaandCanadaarecurrentlynegotiatingtermsforApprovedDestinationStatus AlbertaKegionalPopulationForecast2006-2011 AlbertaHumanResourcesandEmployment,August2006 ThelabourforceparticipationrateforwomenwithatleastonechildundertheageofsixyearsinAlbertafellbyafullpercentagepointto64.9 percentin2005. Thisisthreepointslowerthanthe 1999participationrateand10pointsbelowtheratesinQuebecandAtlanticCanada. CanadianEconomicObserver,StatisdcsCanada,June2006 A WORKFORCE STRATEGY FORALBERTA'S TOURISM AND E40SP1TAL1TY INDUSTRY • Attractionofworkers fromunder-representedgroups. Withthe slowinggrowthrate of Alberta’syouthpopulationanddecliningparticipation ofyoungerwomeninAlberta’slabourmarket, tourism andhospitalitybusinessesincreasinglyneedtolookto otherpotentialpools ofworkers, such as mamreworkers,personswith disabilities.Aboriginals,immigrants andincome supportclients, to meettheirlabourforce needs. However, there arebarriers andunique challenges associatedwiththe recruitmentandretention ofworkers fromthesegroups. Forexample: - somepensionregulations are adisincentiveto thoseworkingpart-time andreceivingapension; - accommodatingworkerswithdisabilities atworkplaces requires investments in specialized equipmentandtraining; - more effective approaches areneededtointegrateAboriginalworkersinto theirworkplaces, and - integratingsomeimmigrantsintoworkplaces requiresinvestments inEnglishlanguage training. • Immigrationprograms are unresponsive to industryneeds. Currentimmigrationlegislation, policies andprocesses arelimitingthepotential supplyofworkers to meettheneeds of Alberta’s tourism andhospitalityindustry. Canada’simmigrationpolicies favourskilledworkers overlower- skilledworkerswho are sufficientlyqualified formanyjobsinthe tourism andhospitalityindustry. The ProvincialNomineeProgram (PNP) also favours higher skilledworkers andneeds tobe expanded toincludelower-skilledimmigrants tomeettheindustry’s needs. Canada’s temporaryforeignworkerprogramis alsounresponsive to the needs of theindustry. Many employers simplydo nothave the financialresources ortime to devote to the complexapplication process requiredtobringin temporaryforeignworkers. • High staff turnoverrates. The tourismandhospitalitysectorhas historicallyhadarelativelyhigh staff turnoverratebasedonthe structuralnature of theindustry (i.e. workforce demographics and seasonalwork). Youth employedinthe sectorconsidertheir sevicepositions as steppingstonesin their careerpaths. The turnoverrate forthis sectoris difficultto calculate since manyyouthworkers,who gobackto schoolandremrnto the same employerthe followingsummer,areincludedin the calculation. This maydistorttherealturnoverrate. Manyemployers have experienced anincreasein their staff turnoverrateinrecentyears,inboth entry-levelpositions andhigher skilledpositions such as cooks. Factors contributingto theindustry’s high staff turnoverrateinclude thelure of higherwages inotherindustries, anapparentweakeningin workethic amongsomeyouth,andthehigh expectations of someyouth regardingworkenvironments and advancementopportunities. A WORKFORCE STRATEGY FOR ALBERTA’S TOURISM AND HOSPITALITY INDUSTRY High staff turnoverrates are raisingtheimportance of supervisoryskills and humanresource managementpracticesin theindustry. The tourism and hospitalitysectoras a serviceindustryis labourintensive. Therefore, thereis acriticalneed forgood humanresources practices and leadership competencies to supportand manage theworkforce. However,itis challengingto develop human resource capacityin the tourism andhospitalityindustrysince the sectoris characterizedbysmall and medium-sizedcompanieswithlimitedresources to supportthis function. • Shortage of affordable housing. Thereis a shortage of affordable housinginmanycommunities in Alberta,includingkeytouristdestinations such as Banff, Canmore andJasper. This is contributing tothe challenge of recruitingandretainingworkers. The situationis evenmore acutein remote or ruralcommunities suchas GrandePrairie, Hinton andFortMcMurray. As theAlbertaeconomy continues togrow, affordablehousingis alsobecominganissueinurban centres such as Calgary and Edmonton. A WORKFORCE STRATEGY FORALBERTA’S TOURISM AND EiOSPITALITY INDUSTRY INDUSTRY PRIORITY ACTIONS Industryhasleadresponsibility forimplementingthepriorityactions inthe tourism andhospitality workforce strategy. Industryassociationsworkinginthis sectorarebestpositionedto address thelabour forceissues and challenges experiencedbythis sector. Anumberof organizationswithinthe tourismandhospitalitysectorhaveindicatedtheirwillingness tobe a contributorto one ormore priorityactions. These organizations areinvolvedineitheractivities orprojects whichcontributeto one ormorepriorityactions. Theyinclude: • AlbertaHotelandLodgingAssociation (AHLA) • CanadianFederationof IndependentBusiness (CFIB) • CanadianRestaurantandFoodservicesAssociation (CRFA) INFORM Information sharingwillplayavitalroleinaddressinglabourforcepressuresinAlberta’s tourismand hospitalityindustry. The Informtheme focuses onincreased access toinformation to supportinformed decision-makingonthepartof employers,workers,youth enteringtheworkforce andindividuals considering employmentinthis industry. 1.1 InformAlbertans aboutthe magnitude of thelabour supplyissues facingthe tourism and hospitalityindustrytobuildpublic understandingand support forindustryinitiatives to address labourneeds (i.e. bringingin temporaryforeignworkers). AHLA, CFIB, CRFA 1.2 Develop a strategytopromote employmentin the tourismand hospitalityindustryto different targetgroups of potentialemployees,includingimmigrants.Aboriginals, peoplewith disabilities, semi-retiredpeople,womenwithchildrenathome and students. Emphasize the benefits of tourism and hospitalityjobs fordifferenttargetgroups (i.e. opportunities forsocialinteraction and experience sharingforsemi-retiredpeople; flexiblework hours and supplementaryincome opportunities for students and stay-at-homeparents; fun and flexibleworkenvironments for youth). AHLA, CRFA A WORKFORCE STRATEGY FORALBERTA’S TOURISM AND HOSPITALITY INDUSTRY