Head and Regional Office Report Presenation

Research and Best Practices for Attracting and Retaining Head and Regional Offices

HALIFAX HEAD AND REGIONAL OFFICES

HALIFAX HEAD AND REGIONAL OFFICES

Research and Best Practices for Attracting and Retaining Head and Regional Offices

EMPOLYMENT CHARACTERISTICSIN THEBEGINNING

WHY STUDYHEAD AND REGIONAL OFFICES

Better understand the role of HROs in the economy GDP, income, jobs and supply chain Impact on quality of life Disproportionate impact?

HROs behavior during economic cycles

Find ways to retain and grow HROs

IMPACT OF THE INSURANCE INDUSTRY

HRO INSURANCE

HRO INSURANCE

EMPOLYMENT CHARACTERISTICSHALIFAX HROIMPACT

Presented by Funders

OBJECTIVES

A blueprint to attract, retain and grow HROs

Develop a value proposition for HRO growth

How do we best market Halifax for HROs

Raise awareness about HRO impact Develop an approach for HRO

outreach

APPROACH

Literature review Trends Benchmarking Best Practices

Impact analysis

EMPOLYMENT CHARACTERISTICSHROPROFILE

8.2CANADA

7.1BC 10.7

AB

8.9SK

8.7MB

8.5ON

7.21QC

7.1NB

8.2NS

7.0NL

HEAD OFFICES IN CANADA

Ratio of Head Offices per 100,000 Population

Source: Statistics Canada, Annual Head Office Survey, 2012, CANSIM Table 528-0001

HOW ARE OTHERS BUILDING THEIR HRO BASE?

Mississauga Building existing relationships

Calgary “Western Canada’s Head Office Centre”

Montréal Listed head offices as a priority sector

British Columbia International Head Office Attraction Strategy

OTHER JURISDICTIONS PAYING ATTENTION TO HEAD OFFICES

HEAD OFFICE TRENDS

EMPOLYMENT CHARACTERISTICS

IMPACTSECONOMIC

APPROACH

Impact Analysis 61 company cross section 32 interviews, 19 third party data Study included 24 of the 78 head

offices in NS Difficult to determine number of

regional offices

THE HRO SECTOR IS 3 TO 5 TIMES LARGER THAN THE CROSS SECTION

USED IN THIS STUDY

3x5x

To

Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013

30%MANUFACTURING

16%FINANCE,

INSURANCE, AND REAL ESTATE

21%PROFESSIONAL, SCIENTIFIC, AND

TECHNICAL SERVICES

8% INFORMATION & CULTURAL INDUSTRIES

7% CONSTRUCTION

5%ADMINISTRATIVE & SUPPORT, WASTE MANAGEMENT & REMEDIATION

3% UTILITIES

3%MINING, QUARRYING, & SUPPORT

3%TRANSPORTATION & WAREHOUSING

2% HEALTH CARE & SOCIAL ASSISTANCE

2% RETAIL TRADE

HEAD & REGIONAL OFFICES BY MAJOR SECTOR, HALIFAX

Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013

PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES

MANUFACTURING

FINANCE, INSURANCE & REAL ESTATE

OTHER(MINING, CONSTRUCTION,

RETAIL, HEALTH CARE)

INFORMATION & CULTURAL INDUSTRIES

TRANSPORTATION & WAREHOUSING

HRO EMPLOYMENT BY MAJOR SECTOR, HALIFAX

29%

24%18%

13%

11%

6%

13,460SPINOFF

Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013

IMPACTS ON THE NOVA SCOTIA ECONOMY

PERSON-YEARS OF

EMPLOYMENT

12,151DIRECT

TOTAL25,6

11 HOUSEHOLD

INCOME

$574.5MILLIONDIRECT

$744.1MILLIO

NSPINOF

F

TOTAL$1.3 BILLION

POTENTIAL HOUSEHOLD SPENDING IN NOVA SCOTIA

MORTGAGES

$77.5 M

RENT

$43.9 M

UTILITIES

$56.2 M

HOUSEHOLD MAINTENANCE

$8.5 M

BUYING CARS, VANS, TRUCKS

$83.7 M

POTENTIAL HOUSEHOLD SPENDING IN NOVA SCOTIA

RESTAURANT MEALS

$38.2 M

STORE-BOUGHT FOOD

$101.4 M

TOTAL

$139.6 MFOOD SPENDING

CHARITABLE CONTRIBUTIONS

$11.9 M

ENTERTAINMENT

$11.9 M

RETAIL ITEMS

$92 M

Source: Economics and Statistics Division, Nova Scotia Department of Finance, 2014

$1.1 BILLIONSPINOFF

GROSS DOMESTIC

PRODUCT

$1.3 BILLIONDIRECT

TOTAL$2.4

BILLION

FEDERAL$192.7 MILLION

PROVINCIAL$193.9 MILLION

GDP IMPACT TAX CONTRIBUTION

Source: Hoovers, InfoCanada, Greater Halifax Partnership, 2013

DIRECT GDP PER WORKER

TOTAL NOVA SCOTIA ECONOMY (2012) $93,350SAMPLED HROs IN HALIFAX (2013) $109,760

AVERAGE WAGES (2012)

ALL INDUSTRY AVERAGE, NOVA SCOTIA$790HEAD OFFICE OPERATIONS, HALIFAX$1,083

CHARITABLE GIVING & COMMUNITY DEVELOPMENT

Community Development Participation

Employee Giving

Corporate Giving

EMPOLYMENT CHARACTERISTICS

OBSERVATIONSKEY

“Head Offices are precious jewels in our economy. They provide high paid career development opportunities, job security, earnings as well as build supplier communities. Head offices build wealth and growth that stays here, in Nova Scotia.”

Steve Parker, Chairman & CEO, CCL Group

Source: National Household Survey 2011

HALIFAX’S SHARE OF N.S. PRIVATE SECTOR MANAGERS

SENIOR MANAGERS IN

FINANCIAL, COMMUNICATION

S, & OTHER BUSINESS SERVICES

72%61%

51%SENIOR MANAGEMENT OCCUPATIONS ALL

MANAGEMENT OCCUPATIONS

CHOOSING A HEAD OFFICE LOCATION

Auther D. Little

OBSERVATIONS

11 jobs for every additional $million in GDP

M&A means HROs are always disappearing

Creating new head offices means helping a handful of existing companies grow

HROs are heavily integrated into the Halifax economy

HROs are inter-dependent HROs are a source of community

pride

WHAT TO WORK ON

Quality of place Tax and regulation Support services (ICT, legal, PR,

accounting) Transportation links Community needs to engage with

HROs HROs need to engage with

community

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THANK YOU!