Alan C. Middleton

The genesis of Canadian CEO was a series of cross-country presentations conducted last year by Tim O’Neill, executive vice-president and chief economist of BMO Financial Group, who spoke to senior business leaders about the direct link between corporate Canada’s future economic prosperity and the literacy levels of its workforce.

Literacy is one of the key attributes necessary for an individual’s social and economic success. More specific to your business, making sure employees have the requisite workplace literacy skills has become an economic imperative to address the challenges facing corporate Canada today. The information-technology revolution has significantly raised the bar on the minimum skill levels necessary to enter, perform and progress in the workplace. We are demanding that today’s workers use their skills in increasingly sophisticated ways.

In his presentations, O’Neill cited some alarming statistics about literacy rates in this country. Reports published by the Organization for Economic Co-operation and Development, Statistics Canada and Canada’s National Literacy Secretariat show that 48 per cent of adults aged 16 to 65 fall below the level of literacy considered appropriate to function in today’s society, and that the literacy skills of 20 per cent of recent high school graduates are too low for entry-level jobs. It’s only a matter of time before the issues raised by such statistics start to undermine the financial prospects and productivity of your business - if they aren’t already doing so.

O’Neill’s message was a wake-up call for many of the CEOs at the meetings, who wondered aloud what more could be done to educate Canada’s corporate leaders on the importance and impact of improving workforce skills. One common conclusion was that there is a need for CEOs who have implemented successful workplace education programs to talk about and share their experiences with other CEOs.

The series of feature articles in Canadian CEO is a direct result of these meetings. The efforts of the six CEOs profiled have all been recognized with Awards for Excellence in Workplace Literacy, sponsored annually by The Conference Board of Canada to highlight exemplary workplace education initiatives developed by companies across the country.

The first things you’ll notice about these success stories is that the need for workplace basic skills programs isn’t province- or industry-specific, and the nature of the programs varies widely. Despite the diversity, however, the underlying message is the same: Workplace literacy programs are good for business.

As DME founder and president Peter Toombs explains it: “Business is about dealing with good, competent people, and motivating and educating them to perform at a high level… If you can do something to get an extra 20-to-30 per cent out of an individual on an ongoing basis, I guarantee you that you’re beating your competitors.”

Research confirms Toombs’ view that improving employees’ basic skills is a win-win proposition. The bottom-line results can be expressed in terms that are necessary conditions for success in any business: higher profitability, increased productivity, reduced error rates, a keener ability to use technology, improved morale and greater job security for employees.

And yet, in spite of these proven benefits and the demonstrable importance of basic skills education to the growth of Canada’s business economy, workplace literacy programs are still relatively uncommon. In Canada, only 31 per cent of employers pay for training, compared to more than 80 per cent in Britain and 75 per cent in Japan. Although provincial and federal governments have a role to play, the challenge we face in the business community is to shoulder our share of the responsibility for investing in the workforce. We hope Canadian CEO will inspire you to look within your own organization to make sure your employees have the fundamental skills they need to meet the ever-changing demands of your business - and the expectations of your current and future customers. In today’s environment, the success of your business depends upon it.

Alan C. Middleton
Schulich School of Business, York University
Chair, ABC CANADA Literacy Foundation