Commentary by Hamlin Grange in Toronto
While working as a television journalist with Canada's public broadcaster, CBC, in Toronto, I produced a documentary series on how new immigrants were settling in Canada. It was part of an effort by the CBC to celebrate Pier 21, the point of entry for up to one million immigrants to Canada from 1928 to 1971. Pier 21 was often called the "Gateway to Canada." Today it is a national historic site and museum.
For the series, TV cameras followed a man and his wife on their journey from Shanghai to Canada, and in their early weeks of settlement in Toronto. They had worked as electrical engineers in power plants in China. Now, like all new immigrants, they were starting over.
We were there when they moved into their one-bedroom apartment above a convenience store. We were there when they went to the local job placement office to search for jobs and to update and print off their resumes. And we there when they bumped up against the stark reality of discrimination.
I knew him by his real name, which was, of course, Chinese. His accented English was quite good because he studied English in China. We talked frequently during those weeks, exchanging phone calls to catch up on his efforts to find a job.
Then one day I got a message that “Andrew” had called. I didn’t recognize the name. Once I called back, I recognized his voice right away. He was the same person I’d been talking to all those weeks, except his new name was Andrew. I asked him why he had changed his name. He said that acquaintances in Toronto’s Chinese community had advised him to change his Chinese name to a “Canadian name” if he wanted to get a job. That’s what Chinese immigrants have to do, he was told. Once he changed his name, his phone began to ring.
I recalled that story as I read a Toronto Star story about a new study by University of Toronto researchers. According to the study, 40 per cent of non-white job seekers are “whitening” their resumes in order to get called for job interviews. Names such as the Chinese “Lei” become “Luke”.
That’s not the only change applicants are making to their resumes in their effort to ‘whiten’ their profiles.
Only 10 per cent of African-Canadians who included experience with African-Canadian organizations were invited to interviews, but that rate jumped to 25.5 per cent when they deleted that experience from their resumes.
I can certainly relate to this. When I was recruited by the CBC in the late 80’s, a manager on the hiring panel asked me if I could be “objective” covering the black community because he noticed I had indicated on my resume that I had volunteered with a few black community organizations.
I told him I could be objective and that because of my involvement in that community I had unique access to a community other reporters did not have. I also pointed out that my resume also included my volunteer work with the YMCA and that I am certain I would be able to objectively cover stories about the Y. I got the job.
Sonia Kang, the lead author of “Whitened Resumes, Race and Self-Representation in the Labour Market” says the findings show that job applicants from racial minority groups are fighting back against discrimination.
In our practice at DiversiPro, we have heard these stories over and over. They are not new. We have been told of immigrants changing their names, their accents and their experience to be more acceptable to other Canadians.
We’ve also heard from immigrants from former British or French colonies in the Caribbean and elsewhere whose European names have disguised their race or ethnicities until they turn up for a job interview – only to find the welcome mat withdrawn.
In the current political climate in the United States, and to a lesser degree even in Canada, many individuals are cautious about how they identify themselves. In a time of "travel bans" and screening for "Canadian values", it's no surprise some new immigrants may decide to minimize their differences in order to be accepted.
The encouraging news is that new immigrants and people from racial minority backgrounds are finding ways to adapt and work around a system that is not often based on merit but how well a hiring manager believes a job candidate will “fit” into the organization.
I have no doubt that such short-sightedness has deprived companies of competent, hardworking individuals who could have contributed to the bottom line.
Commentary by Vivian Li in Toronto
In Romeo and Juliet, Shakespeare gave us the famous line “What is in a name? That which we call a rose by any other name would smell as sweet.” While he was stating, with a noble intention, that it’s not the name of a person but their content and character that truly matters, we know that in 2017 our relationship with our own names and how they’re perceived by others isn’t so simple.
Names matter. For many people they’re a major reflection of our identities, origins, family histories, and the expectations and wishes of our parents symbolized onto us by the very word we use to not only personally identify with but also to introduce ourselves to the world.
When it comes to employment, recent research has shown that names definitely do have an impact on how people are perceived and unfortunately this can manifest in a negative way.
A newly released joint University of Toronto and Ryerson study shows discrimination and hiring bias are present when it comes to applicants with Asian (defined in the study as Indian, Pakistani or Chinese) names. In a study of data from a 2011 Canadian employment audit, researchers analyzed nearly 13,000 job applications for over 3000 job postings in Toronto and Montreal.
Even when all qualifications were equal and the individual was Canadian in origin, the study found that applicants with an Asian name were 28 per cent less likely to get called for an interview compared to applicants with a more traditional Anglo-based name. The callback rate for an interview deteriorates even further when the applicant’s education or work experience was from outside of Canada.
Small vs. Big organizations
The study also shows that smaller companies exhibit even worse discrimination than larger organizations, likely due to lack of resources and internal diversity awareness programs. In companies with fewer than 500 employees, the chance of an applicant with an Asian name and of Canadian origin getting a call for an interview was 42% less, and this drops to a staggering 68% less when the applicant’s education and work history was international.
Following the release of the study, RBC and Ryerson University co-sponsored a panel discussion event moderated by Ratna Omidvar, Senator and Visiting Professor, Global Diversity Exchange at the Ted Rogers School of Management at Ryerson University. The goal was to explore the challenges discovered by the research and identify ways to eliminate these types of persisting hiring biases.
Hiring from the community
As an Asian Canadian and one of the RBCers who were invited to the event and discussion, my feelings were hopeful but also bittersweet. On the one hand, I continue to be very proud of working for a company like RBC where 33 per cent of our workforce is made up of visible minorities, surpassing the Canadians average of 25 per cent by a sizable margin.
In my role as Senior Manager, Inclusive Recruitment, I know from a wide range of personal experiences that hiring from the community to serve the community has always been one of our most effective and rewarding guiding principles. We’ve passionately built a suite of forward-thinking programs designed to help immigrants and new Canadians build their career at RBC, including ourCareer Edge internship and TRIEC mentoring programs, and RBC volunteers also actively participate in various speed-mentoring events with newcomers to help us look beyond a resume and meet the person behind the name.
Visible minorities are also highly represented in our own recruitment team, which helps us build the cultural competency needed to truly understand the nuanced needs of new Canadians and leads us to address unconscious bias when it comes to screening resumes.
On the other hand, if the study indicates that society in general still interprets minority status negatively then it unavoidably has a potentially negative impact in organizations all across Canada.
Canada is an immigrant country and by 2035, almost 100 per cent of the Canadian population growth will depend on immigration. Hiring bias against minorities will hugely impact our ability to build competitive advantage both as a company and a country.
So what can we do differently?
We often talk about how diversity is the mix and inclusion is how we make the mix work well together. The bottom line is that in order to make the mix work well together, each one of us needs to look within and examine our own conscious or unconscious bias. It is human nature to favour people who are most like us and view people who are in our own groups as being more favourable than “the others.” A lot of the time, addressing unconscious is about asking ourselves uncomfortable questions (see graphic alongside).
With that in mind, my challenge to everyone is this: the next time you’re looking at a resume and decide to put it aside, pause for a moment and ask yourself why you are doing it… and then look at the name.
Vivian Li is a Senior Manager responsible for inclusive recruitment at the Royal Bank of Canada (RBC). Prior to her experience in RBC, Vivian worked as an HR professional with Bell Canada.
by Don Curry in North Bay, Ontario
Economic development officers in the upper reaches of Northeastern Ontario have noticed a trend in the past few years — as businesses come up for sale the buyers are first generation immigrants to Canada.
They had no idea where the newcomers were coming from, how they found out about the business opportunity, how many businesses they own, how many people they employ, or much else.
Now they do.
I wrote about this trend for New Canadian Media in December, explaining why municipalities may be better off canvassing for new immigrants from within Canada's borders, rather than launching expensive international campaigns for potential newcomers from other regions of the world.
Working with the Timmins & District Multicultural Centre through a project sponsored by the Far Northeast Training Board, I travelled to Latchford, Temiskaming Shores, Earlton, Englehart, Kirkland Lake, Matheson, Timmins, Chapleau, Cochrane, Kapuskasing and Hearst in the summer and fall of 2016 to interview as many newcomer business people as possible. The full report is here.
Of a possible 55 business owners identified by economic development officers, 38 were interviewed, or 69 per cent. This extremely high sample number provides very reliable data.
So who are they?
The typical newcomer business owner in the Far Northeast Training Board catchment area is 44, originally from India but moved north from the Greater Toronto Area, owns a restaurant or fast food franchise, motel, convenience store, or gas station, has lived in Canada 13 years, has an average family size of 3.6, loves the beauty and tranquility of the north and plans to stay. The friendly people in the north, the lack of crime and congestion were the other top draws.
Together the 38 people interviewed own and operate 58 businesses, employ 206 people full-time, of whom 56 are family members, 139 part-time, and 20 seasonal. Almost half of them know people from southern Ontario who would move north for the right business opportunity.
Almost half found out about the business opportunity from friends or relatives, with real estate agents, franchise chains and online information cited by others. Two-thirds of those interviewed are originally from India, with the remainder from Pakistan, China, Egypt, the Philippines, Sri Lanka, Vietnam, Iran and Belgium.
Twenty own restaurants or fast food franchises, 15 own motels, 10 own convenience stores, seven own gas stations and two own pharmacies. Others owned a landscaping business, nail salon, strip mall and a movie theatre.
Where they come from
Twenty-four of the 38 people interviewed moved north from the GTA. The remainder came from Montreal, Saskatchewan, Windsor, Orillia, India, Kitchener-Waterloo, Gravenhurst, Hamilton, London England, Florida, Vancouver, Fenelon Falls and Belleville. Seventy-nine per cent say they feel connected to the town they live in and plan to stay.
Gejal Gandhi, 35, and her husband Keyur own the Casey’s Restaurant, Esso gas bar and convenience store and the Park Inn Motel in Kapuskasing. They employ 10 full-time and 25 part-time people. They moved to Kapuskasing from Cochrane and lived in Toronto prior to that. They have been in Canada 17 years, are from India, and have two children.
“We bought the Park Inn Motel first,” she says. “We had a motel in Cochrane and sold it. Once we were in Kapuskasing we found the Esso, and then the same thing for the restaurant. There was a sign and we contacted the owner and went through the process.” They have lived in Kapuskasing for four years.
Minesh Prajapati, 44, is originally from India and owns and operates the Subway franchise in Kirkland Lake. In addition he is in partnership with Indian friends in Mattawa who own the Subway there and together they own Subway franchises in Hearst and Englehart.
Change in careers
“I bought the business primarily for my wife,” he says. “She was working in a Subway but was just getting minimum wage. I was a banker doing lending and mortgages. Next year my wife will take over this store and I will be more like managing it. I can go back to banking if I want. They are still calling me.
“Right now, though, the way it is going, I don’t think I’m going back to the bank. Every year we are buying one more Subway.” He has lived in Canada 10 years and moved to Kirkland Lake from Brampton.
With six full-time and two part-time employees in Kirkland Lake, Prajapati says his two part-timers were hired through a special needs program and are doing very well. He says he attends Subway conventions twice a year “and that’s when people spread the news that they would like to sell.”
David Mohamed owns Willis Pharmacy in Matheson, where he is the sole pharmacist. Born in Egypt, he has been in Canada six years and moved to Matheson from Belleville. A couple of friends owned the business and he became a partner recently, after working at the Matheson location for 18 months.
“I decided to purchase because I like working with them and it was a good opportunity in the north,” he says. “Here you are alone in the business and we don’t have any nearby pharmacies.”
Louiz Soliman is also a pharmacist from Egypt. He owns Smallman Pharmacy in Temiskaming Shores. He moved to Haileybury from Montreal to take over the business a year ago. He came to Canada from Greece seven years ago. I asked him if he knew Mr. Mohamed. He said he did not, and asked “where is Matheson?”
If people ask him about moving north to start or purchase a business he says “I would tell them it’s a good area. The people are very polite. It’s a safe area.”
Peter Patel, 67, owns three motels, a restaurant and convenience store in Chapleau, employing 25 to 30 people. He and his partners also own a motel in Fenelon Falls, near Peterborough.
Starting from scratch
Another large employer is Siva Mylvaganam, 49, of Timmins. His is a Canadian success story. He came to Canada as a refugee from Sri Lanka and Siva’s Family Restaurant in Timmins Square now employs 35 people with the restaurant and catering business. In addition, he has a commercial real estate sideline where he employs another one or two people, depending on business activity.
Very well known in Timmins, he started the business from scratch in 1996. “When I came to Canada I had no English so I worked as a dishwasher, and in a car factory. There were layoffs so I worked in a restaurant and became a cook, and then a chef, and then opened my own business. I found this location and I thought Timmins would never be really high, or really low, because it is a mining town.
“I loved smaller towns because I was born and raised in a small village. I lived in Toronto and it wasn’t my place to live. I always go back but I never enjoy it. It’s not like here. People always say ‘Hi Siva, how are you doing?’ and I ask them about their family. It’s not like that in Toronto.”
Amjinber Cheema , ( “the locals call me Ami”) is typical of the younger entrepreneurs from India settling in the north. Only 28, his wife just joined him in Latchford from India. He came to Canada as a student and in his seven years here he lived in Saskatoon, Regina and Toronto before arriving in Latchford to purchase The Dam Depot, a gas station and convenience store.
“There is value for money in the north,” he says. “The winters are harsher but you get used to it. Compared to the bigger cities like Toronto and Ottawa you get value for your money.” He feels connected to the people of Latchford and laughs that “after I was here for two months they appointed me the honourary Indian ambassador to Latchford. It was in the paper. It was very nice.”
Sam Singh, 24, owns the Mac’s franchise in New Liskeard and is another of the young people from India making their mark in the north. He also came to Canada as a student and started in his business a year ago. “Young people like me don’t have much opportunity,” he says. “From here I can get a start. I am learning a lot of things. It’s a small community and I get involved. In the future if I am going to buy a bigger business I won’t have a problem. For everyone, a small town is the best place to start a business.”
Roger Gandhi, 58, was born in India but has been in Canada 40 years. He is typical of the older immigrant from India who is now well established. He lives in Earlton and owns and operates the Earlton Motel and Coté’s Variety. In addition he owns the mall where the variety store operates, plus the Regal Motel in Timmins.
Navin Tamakuwala, 67, is another. He owns the Thriflodge and Terry’s Steakhouse in Cochrane and has 14 full-time and five part-time employees there. He lives in Montreal most of the year and owns a Sobey’s grocery store there. Also from India, he has lived in Canada for 44 years.
While North Bay was not part of the study area, it has more than 70 first-generation immigrant-owned businesses. Its cricket team is dominated by young entrepreneurs from India. The same is true of cricket teams in Sudbury, Sault Ste. Marie, Thunder Bay and Timmins. Together they are changing the face of Northern Ontario and investing in its future.
Don Curry is the president of Curry Consulting (www.curryconsulting.ca) He was the founding executive director of the North Bay & District Multicultural Centre and the Timmins & District Multicultural Centre and is now chair of the board of directors.
Commentary by Paul Wojda in Thunder Bay, Ontario
Immigration represents both an incredible opportunity and a challenge for Thunder Bay and Northwestern Ontario.
As skilled workers across a wide range of fields retire from the workforce in Northern Ontario, employers are struggling to find trained and experienced replacements who can step in to take their place.
Owners of small businesses throughout the region who would like to sell and retire are finding it challenging to find buyers. The inability to fill these gaps has a potentially devastating impact on smaller communities, leaving them with a reduced tax base and fewer services.
While the development of the local workforce to meet these needs is a necessary and desirable outcome, immigration can allow these businesses to survive and flourish while this training takes place.
Net negative migration
The number of immigrants arriving in the region has remained fairly steady over the past few years, but overall, the region has been experiencing negative net migration. This has sparked a number of efforts to reverse this trend and to encourage immigration both from other parts of Canada and other countries.
The Common Voice Northwest conference in September 2016 brought together stakeholders from across the region to analyze the topic and to develop a series of next steps to address it. The creation of the Northwestern Ontario Immigration portal represents an effort to provide newcomers with an accurate picture of the advantages and resources available should they move to the region.
Job opportunities, businesses for sale, funding opportunities and other resources are centralized in one location to make the immigration pathway a seamless process for prospective newcomers.
In addition, city and regional representatives have been attending job fairs, conferences and expositions around the world to showcase the opportunities available. The emphasis of these marketing efforts focuses primarily on the unique benefits of life in Northwestern Ontario.
There are a number of distinct advantages for immigrants looking to move to a smaller community outside of the larger metropolitan areas. One of the key messages that is repeatedly heard from newcomers is the personalized attention and support they receive upon their arrival.
In Northwestern Ontario, there is often more of a communal effort to help welcome newcomers and support their integration, since they are seen as essential to the survival and growth of the community. While there is a vast representation of different cultural groups from around the world, they do not tend to be grouped into enclaves as they might in large cities, resulting in a fuller integration into the community as a whole.
Recently, Thunder Bay has seen a rapid increase in the number and variety of restaurants and grocery options to meet the needs and desires of newcomers from diverse backgrounds to the area. The overall high quality of life with affordable housing, excellent health care facilities and a wide range of entertainment and dining options also plays a role in attracting and retaining newcomers.
Local residents can enjoy all the amenities of a bigger urban centre while still being only minutes away from a vast array of outdoor recreation opportunities. While some may see the area as being isolated, it is easy to connect to larger centres such as Toronto, Winnipeg or Minneapolis through several daily flights from the international airport or by ground transportation.
Keep students here
Encouraging newcomers to choose a smaller community can be a challenging process. A main obstacle can be convincing them to visit, tour and see the area with their own eyes.
One way to address this is by building on the success of Confederation College and Lakehead University in attracting international students.
These students are often highly skilled, motivated and bring a wealth of previous experience. Since they have already overcome that first step of visiting and living in the area, it would be advisable to create more programs to encourage them to stay rather than leaving upon graduation for larger urban centres.
The creation and enhancement of economic incentives for newcomers to settle in smaller communities can help to stimulate the purchase of businesses for sale, allowing those communities to continue to benefit from the services and jobs they provide.
Expansion of the Provincial Nominee Program could allow more discretion in this area, to both support the settlement of newcomers and to help sustain the existence and quality of life in smaller communities.
With affordable housing, employment opportunities, diverse recreational pursuits and an exceptionally high quality of life, Thunder Bay and Northwestern Ontario represent an incredible destination for immigrants to create a new life in Canada.
Paul Wojda is the youth programs facilitator of the Thunder Bay Multicultural Association
Commentary by Evelina Silveira in London, Ontario
A recent study published by the Western University's Centre for Research on Migration and Ethnic Relations found a severe lack of visible minorities in leadership roles in organizations in London, Ontario.
While the study made headlines, the findings came as no surprise to me. I have lived in London all my life, working as a diversity consultant for the 10 years. I would like to offer an explanation as to why inroads have not been made in visible minority leadership in London, Ontario.
Flashback to about 13 years ago, when I started to work on a business plan for Diversity at Work: I interviewed many leaders in London asking them whether my idea of having a business which promoted hiring and supporting diverse candidates would ever fly.
I will never forget the answer I received from a human resources consultant who had previously held many jobs in the recruitment and leadership fields. She said: “Evelina, as long as there are enough white people to fill the jobs, no one will ever consider anyone else, because they don't have to.”
Essentially, she conveyed that there really was no need to change the recruitment process and that it was too much work to do so.
A late joiner
In comparison to other cities, London has lagged behind. Perhaps it is because the jobs could easily be filled as the human resources consultant suggested, or maybe we ignore the ever-growing presence of visible minorities which started in the mid-1980's.
Some of our largest employers and institutions have only recently developed diversity policies, later than their counterparts in other comparable cities which have a high number of visible minorities and immigrants. I often scan the diversity plans of the public service organizations in London and it would appear that the effort or the kind of approach being used – if at all – are not producing much in terms of achieving a representative workforce, let alone diversity in leadership.
My observations are consistent with the findings which indicate a very low level of visible minority participation, notably 5.3 per cent on agencies, boards, and commissions. Their lack of participation at these levels can have ramifications for how services are delivered, in addition to resource allocation.
Furthermore, there is a tendency, especially with boards, to recruit people they know, often friends and co-workers, to fill vacancies. This can perpetuate the lack of representation and the effort to create a more diversified board and committees.
It is startling how many workplaces have not implemented the strategies and best practices that can help mitigate these gaps. How might we explain the disconnect? There are a multitude of reasons why this occurs and this is key to understanding the problem of under-representation in London’s publicly-funded organizations.
Consider these possibilities:
· Foreign credentials and work experience are not recognized. Generally speaking, if an applicant has not graduated from a leadership program in North America or the U.K , there is a good chance their education in leadership may not be recognized. Leadership experience from other parts of the world may not be taken into consideration for a host of reasons, including cultural differences in how we do business and interact with employees.
· Effective leadership requires highly developed communication skills: in person, in writing and over the phone. An internationally-trained applicant is disadvantaged if they have a pronounced accent and have an indirect style of communication. Interviewer bias can hamper heavily-accented applicants, who may be mistaken as unqualified because they speak differently. Across cultures, there are variations in how we conduct meetings, presentations and write reports. The Canadian standards are often learned in school or through work experience.
At civic level: zero
The number of visible minorities and immigrant leaders in municipal organizations is at a glaring zero per cent!
Given that government organizations are held to a higher standard than the private sector to have a reflective workforce, as well as to meet Employment Equity standards, this represents a failure of implementation and consequently lost opportunities for diversifying the workforce and gaining new skills and perspectives.
With increasing job insecurity, good benefits and salaries, public service employees are not likely to leave their jobs. Understandably, this represents fewer opportunities for external applicants to get hired.
It would be interesting to know if the City of London has an internal mentoring program to assist aspiring leaders. Research consistently indicates that visible minorities and immigrants find a lack of mentors in the workplace.
Successful leaders often attest to the significance of mentors throughout their careers. There have been some attempts over the last few years to develop internships for immigrant professionals at the City of London. However, it is hard to know if this experience translated into permanent employment with the City.
Finally, we cannot overlook bias and racism in the recruitment and selection process, although it does not probably explain the huge disconnect between the population and their representation in the workforce. In my experience, if the leadership in an organization is not familiar with the business benefits of a diverse workforce, they are very unlikely to support and initiate programs which can facilitate the entry and promotion of visible minorities within their organizations.
Evelina Silveira is the President of Diversity at Work in London, a three-time award winning firm which specializes in creating inclusive workplaces and diverse customer bases. She has co-authored two globally acclaimed books and is the publisher of the Inclusion Quarterly.
AT Thursday’s Surrey Board of Trade Innovation Awards Lunch, the winners were: Young Innovator Category Recognizes the entrepreneurial spirit of an individual less than 30 years of age who has demonstrated innovative thinking through the research and / or development of a technology-related product or service Winner: Shawn Davis – Compy Inc. Compy […]
Commentary by Bernice Cheung in Toronto
For many of us, the first thing that comes to mind when we think of immigrants is a struggling population — those who come here with little understanding of the culture they’re entering into, only to spend a generation struggling so they can give their children a better future. It’s a story that Saima Naz knows all too well.
Saima moved to Montreal from Pakistan with her family when she was a small child. Her parents came here with an attitude that paying cash is always best. They had little understanding of the way finances worked in the developed Western world, and were wary of taking on any debt.
As Saima describes it, her family always had enough to survive, but they were missing out on opportunities. If her parents had had a better understanding of finance and not been so averse to debt, they could have been much better off — and Saima was determined not to make the same mistakes. At 15, she opened her first bank account, and by 21 she had taken out a $5,000 loan to start a small business. She purchased her first family home for about $500,000 when she was 23 and today, 11 years later, that property is valued at well over $1 million.
It’s a familiar story, considered by many to be the norm for a successful immigration cycle. An immigrant generation struggles and sacrifices so that their children can build the knowledge they need to thrive in the following generation.
Today, though, that narrative seems to apply less and less. In actuality, our data suggest that emerging technologies in today’s highly connected world have significantly widened the spectrum of a typical immigrant success story. Having conducted an annual survey to understand new Canadians’ financial habits, product usage, attitudes and satisfaction towards their financial institutions since 2010, the Cultural Markets team at Environics Research has kept a close eye on this recent new trend.
Rather than observing more of the same struggling newcomer narrative over and over, our team has discovered a new story emerging — one that tells the tale of a more prepared population, ready and excited for the challenges of entering a new cultural situation. Our data shows that, even before their arrival, this new generation of immigrants is doing their research and diligently preparing for upcoming challenges. When we asked newcomers who arrived in the past five years when they opened their first bank account, almost three in 10 (28%) say they had done so before they made the move.
Moreover, we’ve seen a steadily increasing proportion of newcomers agreeing with the statement “I feel as though [we] have the knowledge to get the most out of the financial services choices available in Canada”— revealing a confidence we’ve rarely seen from past generations of newcomers.
It’s much more than simply being prepared ahead of time, though. This generation of immigrants also appears to be much more financially savvy than their previous generational counterparts, and they expect more from their financial institutions. Of those newcomers that came here in the past five years, a whopping 75% have opened a second Canadian bank account with a different financial institution within a year of moving, and 11% had switched institutions completely.
When asked why they switched from their first financial institution, just over four in ten (43%) stated that they wanted better rates, while many others cited better customer service/tone or attitude as key factors.
This move away from financial complacency shows that, for this new generation, the research doesn’t stop. They study ahead of time and continue to actively evaluate the quality of their financial institution from the moment they arrive. They are constantly learning and making changes to better their situation.
Perhaps unsurprisingly, this new financial sophistication also appears to be moving beyond just banking and into investment practices. Of the newcomers that came to Canada within the last three years, 46% now use a mutual fund company. It’s a trend that reveals a major opportunity for not only mutual fund companies, but also for financial advisors. Newcomers that came to Canada in the past 10 years represent a total of $55 billion in portfolio investments, but over half of those newcomers still do not have a dedicated advisor. By any standard, that is a massive, potentially missed market for advisors to build a strategy around.
These savvy newcomer investors need products that are geared to their needs, and advisors that can speak their language, both literally and figuratively. Customer service, and the right tone and attitude, rank high on the list of things newcomers look for in an institution. Advisors can significantly differentiate themselves among these groups of newcomers by simply gaining an understanding of cultural differences towards financial planning and investments.
It may seem counter to the popular narrative surrounding immigration, but newcomers to Canada in the past 10 years from South Asia alone hold $17 billion in their investment portfolios. That’s a far cry from the days of Saima’s parents being averse to the idea of even taking a loan — and it’s a figure that financial advisors should take note of.
Bernice is VP of Cultural Markets and Financial Services at Environics Research Group. She brings over 12 years of marketing and management consulting experience from financial services and consumer goods, helping clients with quantitative and qualitative market research, organizational strategy, segmentation and targeting. Prior to leading Environics' Cultural Markets group, Bernice led the Ethnic Practice Areas at Nielsen and Altus Strategy Group. Contact Bernice.Cheung@Environics.ca
by Shan Qiao in Toronto
Hiring multi-language speaking staff, creating real-time interpretation apps, even launching an ethnic bank to serve primarily immigrants, Canadian banking business operators are getting fiercely competitive to woo business from immigrants.
Aiming to “become a preferred bank for the Chinese community in Canada”, Wealth One Bank of Canada (WOBC) has begun operations in Vancouver and Toronto. It is the very first Chinese-founded and -invested bank in Canada, a federally chartered Schedule I Bank under the Bank Act and regulated by the Office of the Superintendent of Financial Institutions.
The man behind it, the founder and also the Vice Chair of the WOBC Board, Shenglin Xian, says from his Vancouver office that there are only 28 such foreign banks in Canada. “It is a historic moment for the Chinese community.”
Shenglin Xian, who is a well-known Chinese community financial advisor, has his own company Shenglin Financial Group Inc. located in North York, Toronto. He got into financial consultancy after he immigrated to Canada in 1990.
Same language, better understanding
“Currently, we will focus on serving the Chinese Canadians from the Great Vancouver Area and the Great Toronto Area. We will hire Mandarin and Cantonese speaking employees. Our service slogan is ‘same language, better understanding (translation)’,” he continues, explaining what he envisions as a respect for Chinese values and culture.
“Although all five major banks in Canada provide Chinese language service, the banking system is still operated under mainstream preference. We want to favour our Chinese clients with a tailored and Asian-styled service,” he continues.
Ming Gu, a senior news producer from Toronto, also a Chinese immigrant who came to Canada in early 90's like Shenglin, has worked on a couple of translation projects for one of the five major banks for their Chinese language website.
He completely agrees with the fact that providing ethnic language service is not quite the same as bridging two different banking systems: Canada’s and the immigrant source country's.
“China’s (banking system) is even more different. The policy and products are very much in the different zones as well. Service literally translated into Chinese language might not be helpful for immigrants to understand the meaning behind. For example, credit rating in Canada is very critical for banks to determine whether or not applicants can apply for line of credit and how much they can get. One SIN number check will bring up a very detailed credit history of the applicant. However, it doesn’t really exist in China’s banking system, letting along for Chinese newcomers to understand the importance of credit rating,” Ming explains.
Maggie Yuan works at a public relations firm which provides multi-language translation services for corporate Canada's ethnic marketing needs in the Chinese and South Asian markets.
“For economic reasons, mainstream comapnies can’t afford to overlook the needs of immigrant communities. For big corporate accounts, I have been dealing with, especially in bank, insurance, public service, entertainment industry, the needs to have Chinese language translation have always been increasing. Companies strategically promote their investment in diversity to gain positive image in immigrant community. It’s quite political, but it’s also about business,” she says.
Overcoming language, culture barriers
The major Canadian banks are also stepping up, developing faster and more convenient tools to woo immigrant clients who face a language barrier. Just last month, Royal Bank of Canada, which already has a Chinese version of its website besides the official English and French language, introduced a new app – the first of its kind in North America – that provides clients with real-time video access to qualified interpreters.
Christine Shisler, RBC's Senior Director of Cultural Markets, explains why such a language app makes business sense.
“Regardless of which RBC branch a client visits, we’ll be able to offer service in the language of choice. This is critical in helping our client – especially newcomers – understand how banking works in Canada.”
Shisler stresses out that RBC wants to be the bank that newcomers turn to for all of the important firsts – from first bank account to first home purchase. That means a lot of tailored service in language and cultural senses.
Going further, the bank’s Beijing staff, for example, will help students and family initiate their financial transition even before they arrive in Canada, a more aggressive business approach similar to what Wealth One Bank of Canada is doing in the reverse direction.
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