METROPOLIS CONVERSATION SERIES

CONVERSATION FOUR

Brain Gain, Brain Waste, Brain Drain:
Using the Diversity Model to Attract and Keep Talent in Canada

Ottawa
January 23, 2001

Background

In recent years, claims that Canada is experiencing a "brain drain" of highly skilled workers, primarily to the United States, have been ubiquitous in the media, in policy circles, and in the academic community. Some argue that this loss is more than offset by the infusion of foreign skilled workers into the Canadian labour market (i.e., "brain gain"). However, knowledge workers are highly mobile and are more able to follow the most attractive opportunities, wherever those happen to be. In this context, it becomes increasingly important for Canada to capitalize on its comparative advantages, not only in relation to the United States, but also in relation to the rest of the world.

Arguably, one of Canada’s most valuable but underutilized assets is its reputation as a country that encourages and embraces diversity. Canada’s active immigration recruitment program, combined with liberal multiculturalism and citizenship policies, set the country apart from many of its international competitors. Rather than requiring newcomers to renounce their origins and assimilate into a homogeneous society, Canada fosters full integration into an already diverse society. As a result, Canada is better able than most countries to accommodate highly-skilled workers and their families.

In order to examine Canada’s competitiveness for international talent in the global market and the role that Canada’s diversity model might play in attracting skilled workers, the Metropolis Project, in collaboration with Canadian Heritage, hosted the Metropolis Conversation "Brain Gain, Brain Waste and Brain Drain in Canada: Using the Diversity Model to Attract and Keep Talent in Canada" on 23 January 2001 in Ottawa. Participants included experts from academia, government, the private sector, and non-governmental organizations (NGOs). (See Appendix 2 for the complete list of attendees). The aim of the conversation was twofold: to contribute to a more informed debate on skilled workers in Canada as well as to provide some practical approaches that will assist policymakers in this area. In order to create a candid and free-flowing exchange of ideas, the meeting did not include formal presentations, but instead encouraged discussion around a series of pre-prepared topics. (For a list of questions given to the participants before the meeting, see Appendix 1). The pages that follow outline various policy proposals that emerged from the discussion.

Strategies to Attract and Retain Talent

Fully utilize existing human capital.

The meeting participants generally agreed that Canada should pursue policies that capitalize on the skills of individuals already in Canada, both native and foreign-born. One suggestion was to more actively encourage foreign university students to stay in Canada once they have completed their studies. Easier access to work visas and more opportunities for temporary employment such as internships were mentioned as possible strategies in this regard. Participants also discussed the importance of recognizing professional credentials of foreign workers in Canada. Many highly-qualified workers end up in low-skill jobs because their foreign training is not recognized by employers or Canadian professional associations.

Develop proactive, sector-specific policies.

Canada currently takes a passive approach to recruiting workers from abroad, waiting for skilled workers to apply at widely dispersed locations. Conversation participants suggested that Canada should become more active in recruiting workers. This might include identifying those economic sectors that currently face skill shortages or those, such as education, that are likely to face skill shortages in the future and targeting worker recruitment policies toward these sectors. High-growth sectors should receive special attention. If Canada can accurately predict which sectors will soon face increased labour demand, then the government could aim to recruit skilled workers for these sectors while there is less worldwide demand for their skills. Others noted that sectoral variation is important to consider not only in determining the targets of recruitment efforts, but also in shaping the methods of recruitment. A skilled worker in the high tech sector has very different needs from workers in the health or education sectors. Recruitment policies must be sensitive to these varying needs in order to be successful.

Recognize workers’ motivations and target policies accordingly.

In order to effectively attract and retain workers, policies must address workers’ interests and motivations. These interests and motivations vary among individuals. The discussion focused on on how age and family status can affect individual motivations. Younger workers with fewer family responsibilities tend to be more motivated by pure financial gain, seeking to maximize their profit by moving where their skills are most highly rewarded. In contrast, as individuals age, family ties may reduce mobility. Individuals concerned with the prospects for their children may place higher premiums on stability and "quality of life" factors, such as educational opportunities, health care, safety, and social inclusiveness. Further research into the factors (including age and family status) that influence the migration decisions of high-skilled workers, particularly research into what motivates people to stay in Canada, is necessary if Canada hopes to draw and keep talent.

Evaluate existing policies in terms of their effects on worker recruitment and retention.

Conversation participants pointed out the need to improve the efficiency of the immigration system. Some participants also advocated reforming the Canadian tax system. Current taxation policies make it very expensive for companies to hire workers because workers often ask for additional compensation to offset high taxes. High taxation also puts a damper on innovation, some argued. One suggested reform was to tax different sectors at different rates. Across-the-board tax reform was seen as inefficient and not cost effective.

Marketing Canada

The strategy most discussed at the meeting was marketing Canada as a destination of choice by "branding" Canada. Other countries in close proximity to larger nations have managed to create a unique "brand" to attract talent. For example, Ireland markets its low corporate taxes, while Switzerland emphasizes its neutrality and strong banking sector. What should be the focus of a Canadian brand? One possibility that took centre stage at the meeting was Canada’s diversity model.

Canada is one of the few industrialized countries that has an official policy of multiculturalism. The Multiculturalism Act, passed in 1988, recognizes cultural diversity as fundamental to Canadian society and seeks to ensure the equitable treatment of all individuals under the law. Canada’s emphasis on civic participation and social justice, as codified in the Multicultural Act, as well as Canada’s longstanding status as an immigrant-receiving nation have contributed to Canada’s international reputation as an inclusive, welcoming society. Canada’s citizenship policy also reflects Canada’s commitment to multiculturalism. The ability to acquire citizenship in only three years and the citizenship ceremony itself are policies that encourage a sense of Canadian identity and attachment.

Some of the conversation participants felt that Canada’s unique approach to diversity could be a strong selling point in the quest to attract and keep high-skilled workers in Canada. Other participants saw diversity policy as generally irrelevant to the decisions workers make about moving. They argued that for most people, and especially those who are young, single, or affluent, diversity is a background concern. Only once other fundamentals such as health care and education are taken care of does diversity become an issue. Some at the table also mentioned that although Canada’s official approach to diversity may be unique, the level of cultural inclusiveness in Canada is not necessarily any different than that in the US.

A portion of the conversation participants thought that while diversity could play an important role in a Canadian brand, other social benefits, such as universal health care and a strong education system, should be included as well. Canada’s small population was also mentioned as a possible marketing draw, since it allows for easier access to government, resulting in policies that are better able to represent the interests of new immigrants and native-born Canadians alike. Canadian peacekeeping efforts abroad and low crime rates at home might also serve as the basis for a campaign marketing Canada as a peaceful place.

How Canada markets its image is as important as what image is marketed. To effectively market a Canadian brand, participants noted, it is essential that there be cooperation among federal, provincial and municipal governments, the private sector, and immigrant and refugee communities. Furthermore, the components of the brand must be maintained and supported. For example, if universal health care, a strong education system, and multiculturalism are to be pillars of a Canadian brand, Canada must ensure that these areas have the resources to remain vibrant and effective. A large concern among many of the conversation participants was that the government would establish a Canadian brand without providing the necessary resources to maintain the fundamentals of the brand, hampering the country’s ability to attract skilled workers.

As mentioned above, ongoing partnerships and discussions involving multiple actors (private sector, government, universities, NGOs) are necessary to successfully market and implement a brand that will attract talented immigrants. These discussions and partnerships should be tied to high level research that addresses the needs of all parties involved.

Open dialogue between federal, provincial, and municipal ‘policy players’ is of utmost importance, especially considering that the federal, provincial and municipal governments share jurisdiction over immigration and related issues. Many of the factors being considered as the basis for a Canadian brand—most notably education and health care—fall under the purview of provincial governments, while local activities—such as protection—fall under municipal control. In addition to coordinating strategic objectives, ongoing dialogue among various levels of government should also encourage the sharing of best practices. For example, Quebec has a program that offers tax rebates to persuade academics who are teaching abroad (both foreign-born and Canadian-born) to accept job positions in Quebec. The results of this program and others like it should be shared among the provinces.

The conversation participants also called for the formation of more public-private partnerships. In particular, they suggested that Citizenship and Immigration Canada (CIC) work with private companies to help fast track certain workers whose skills are in high demand (as defined by industry in cooperation with the government) through the immigration process. Some of the private sector representatives at the meeting raised concern over the glacial pace with which many things are done in the public sector. A software development workers pilot project that began six years ago was cited as an example of a program that was too slow for the rapidly changing high-tech world. If future public-private partnerships are to be more successful, the government will have to take a more flexible approach that better addresses the actual needs of the private sector. More cooperation between the private sector and universities was also discussed. Such linkages could be a powerful tool to encourage innovation and ensure that the academic community is producing the kinds of skilled workers that the modern economy needs.

Conclusion

As the pace of technological development has increased over the past two decades, so too has the need for workers with specialized skills that require a high level of education. Although cyclical fluctuations in the economy may result in temporary changes in demand, the need for skilled workers is likely to continue, and probably grow, in the long-term. Many countries around the world find themselves in the position of being unable to meet their skill needs without bringing in talent from outside their borders. This is intensified by the fact that many of these countries have aging populations and are facing the possibility of shrinking labour forces in the near future.

Not surprisingly, competition among countries to recruit foreign workers as well as to keep their own trained workers from being recruited by others has heated up in recent years. Canada, with its large high-tech sector and its proximity to the US, is a central player in the international competition for talent. For Canada to remain competitive, it is crucial that the Canadian government, together with the private sector, universities, and community interests, develop forward-thinking strategies that address skills shortages from multiple angles. The policy ideas presented at the Metropolis Conversation and summarized in this report—such as further research into the motivations behind the mobility decisions of skilled workers, increased and new forms of collaboration among various interested parties in the competition for talent, and a more active and targeted approach to recruiting skilled workers—are an important start. Measures such as these are essential first steps toward building an economy that will ensure prosperity for Canadians today, as well as tomorrow.

Appendix 1. Preparatory Questions

The following list of questions was distributed to participants before the meeting to guide the discussion.

• What role, if any, is played by Canada’s ‘diversity model’ and by multiculturalism?
• What exactly do we mean when we refer to our "diversity model"? Should the concept be viewed as a whole, or can it be separated into component parts for purposes of this discussion?
• What role is played by tax policy? by immigration policy (e.g. family class)? by access and equity policies?
• What role does Canada’s failure to recognize foreign credentials and experience play in respect to skilled worker recruitment and retention?
• Does Canada adequately market its strengths (and are we honest about what we have to offer?).