February 21, 2003
Executive Summary
Introduction
The tele-service industry in the CBRM has grown since 1998 to include six major call centres:
- ICT Group in Sydney, opened 1998
- Ron Weber and Associates in Sydney River, opened 1999
- EDS in Sydney, August 2000
- Upsource in North Sydney, September 2001
- Stream International in Glace Bay, October 2001
- Spiegel in Sydney (at NSCC Marconi Campus), October 2002
Key Study Findings
The overall study conclusion is that the Cape Breton Regional Municipality labour force will be able to support the expected labour demands for the existing operators, and there will continue to be a surplus of unemployed with tele-service related skill sets over the next five years. There is a continued need for industry, government and educational institutions to work together to ensure that potential candidates have basic qualifications suitable for the type of work found in the tele-service industry. Programs should also be targeted to people who do not currently participate in the labour force.
Labour Market
The potential labour force in the CBRM consists of unemployed, underemployed, and already employed workforce. Tele-service centres also continue to attract persons working part-time involuntarily.
EI Claimant data from 2002 show some unemployment in tele-service related sectors. Cape Breton Skills Inventory reflects a diversity of transferable skills available in non-tele-service occupations.
Slightly declining unemployment rates and new job opportunities may encourage people to re-enter the labour market.
Tele-Service Employment
The tele-service industry currently employs around 3,700 people (part-time and full-time). CSRs/Agents account for the majority of the employees (around 3,000). Expansion plans for the existing tele-service companies over the next two years are to increase employment levels to approximately 4,500 people and to 4,800 in five years. Client-driven needs of the industry can quickly influence labour demand and expansion.
Employees with customer service experience and computer aptitude are preferred, though in-house training can assist those who lack basic computing skills.
Turnover Rates
The CBRM tele-service industry has an average labour turnover of about 23%, lower than US and Canada industry averages. Turnover rates will stabilize as the tele-service sector settles into the community.
About 40 percent of turnover is attributable to movement between tele-service centres. Movement between centres is expected to continue, as illustrated in larger markets in North America.
Major Workforce – CSRs/Agents/Reps
Grade 12 or equivalent education is usually required for most CSR positions. In-house and on-the-job training is provided at all centres. Pay ranges from $9.00 - $10.25 to start, plus bonuses and incentives. Benefits are offered at all centres.
Technological advancement in client-interface will require certain CSR/Agent positions to have intermediate and advanced computing skill sets. Some of these skills can be learned through in-house training, or with local education and training institutions.
Education and Training
In-house training provided at all tele-service centres for most occupations.
The University College of Cape Breton, Nova Scotia Community College (Marconi Campus) and the Cape Breton Business College all have programs which put skilled and qualified employees into the labour market.
Collaborative efforts between industry, government, and educational institutions continue to grow to provide specific and general training opportunities. The tele-service industry and the training institutions have expressed an interest to collaborate, in order to provide the workforce with the necessary background skills.
Labour Supply
- Total available to tele-service industry from unemployed sources: 2,900 Labour Demand
- Current filled demand: 3,700
- Planned expansion in next two years: 800
- Planned expansion in next five years: 1,100
- Annual replacement requirement due to turnover: 510-665
The tele-service industry will have access to about 3,000 potential employees based on current unemployment rates. Within two years, planned expansions and regular turnover will create the need for about 2,000 new recruits. Fifty percent of this demand will be met through the hiring of people who are unemployed with tele-service related occupations. The remaining 50% are assumed to be attracted to tele-service jobs from the existing employed labour force. The Table below shows that after five years, the unemployed with tele-service related occupations remains above 1,200 persons.
Tele-Service Labour Demand on Unemployed Sector and Remaining Unemployed, CBRM
Year New Growth and Turnover-demand on Unemployed Sector* Revised Unemployed Labour Supply** Total Remaining Unemployed with Tele-service Related Occupations
2003 255 2,900 2,645
2004 500 2,745 2,245
2005 530 2,345 1,815
2006 385 1,915 1,530
2007 395 1,630 1,235
*assumed to be about 50% of total demand
** base number increases each year due to an increase in participation rate