Establishing A Competitive Edge With An Aging Workforce
By: Barbara Jaworski
Did you know that every second, someone in
Canada turns 50? The average age of Canadian employees is escalating at a rapid
pace and the ‘retirement wave,’ as it’s been coined, will see thousands of aging
baby boomers approach retirement in the next decade. Human Resources Development
Canada (HRDC) estimates that approximately 41 per cent of the working population
will be between the ages of 45 and 64, compared to 29 per cent in 1991. In fact,
the percentage of actual workers over 45 could be even higher since the federal
government has now banished the mandatory retirement age of 65. Linked to this
is the somewhat remarkable fact that for the first time in history, more
Canadian adults have parents that are alive and well than have children, posing
serious potential labour shortage challenges among other issues.
For Canadian organizations, the implications
are significant. The face of not only the labour force but also of the greying
group within it is changing, and the way this is handled may determine the
future success of an organization. Today’s older adults are very different from
their counterparts of even just a decade ago, and tomorrow’s organizational
winners will be the employers who recognize the potential benefits that this
affords for business, productivity, retention, and for corporate citizenship.
Certainly, an aging workforce presents challenges that must be addressed, but by
beginning to implement the right systems now, smart employers can channel the
older group’s energy, commitment, and experience into brand new opportunities
for their organizations.
The Changing Value Of An Older Workforce
The necessity to attract and retain mature
workers goes beyond the requirements of a knowledge-based economy and the
looming labour shortage crisis. The age of 49 is, for many, one of the peak
years of their productivity in the workplace. Ironically, it is also the average
age when workers begin to face age discrimination, an issue that needs to be
addressed as aging workplaces expand. The truth is that today’s older workers
bring a great deal of new value to the table that goes beyond experience and
maturity.
A healthier and more active group than
previously seen in this age stage, today’s seniors increasingly see their golden
years not as a time to retire from active life, but rather as an opportunity to
commit to a second career with passion and vigour. According to The AARP Work
& Career Study,* aging workers want to continue working as well as have
viable work options later in life. They are not working because they have to,
but because they feel they still have a lot to offer.
From an educational point of view, for
example, highly educated retirees are far more likely to choose to return to the
workplace than those with lesser schooling. Additionally, those who choose to
stay in their jobs past 65 are typically the most highly educated employees.
As a result of this unique combination of
superior education, skills, and accumulative experience, employers have multiple
benefits:
-
Older workers contribute
experience and knowledge to an organization, without the supervision required
by their more inexperienced counterparts. At the same time, a deeper level of
experience generally leads to business solutions that are both cost-effective
and time-saving.
-
Employing seniors, even
on a part-time basis, provides employers with more flexibility in terms of
work arrangements and business project needs.
-
Retaining mature workers
on a part-time basis means there is less of a learning curve in terms of
processes and systems, resulting in a reduction in training costs and valuable
time saved.
-
By employing older
workers on a contract basis, employers are less likely to require buy-in and
more likely to save project ramp-up time.
-
Today’s mature workers
come with a high level of commitment, dedication, and energy. This element
makes an impact on productivity, ultimately affecting an organization’s bottom
line.
A New Set Of Challenges
In order for these benefits to be realized,
the unique needs of the new workforce must be addressed by employers. Most
obvious are the health concerns that become prevalent as individuals begin to
age. For many who are approaching retirement, financial concerns and anticipated
lifestyle changes may also impact on stress levels. Many older workers are
concerned about how they will be able to afford to retire. They may still have
dependents to support, and are increasingly likely to be caregivers. In fact,
more Canadians are caring for adults today than are caring for children,
bringing widespread concerns about housing, homecare, and extended care options
for older family members or partners who may be ill.
For others approaching retirement, their
sense of self-worth and self-esteem is strongly linked to their career. These
individuals feel they have much to offer and may be considering second careers,
starting small businesses, or turning hobbies into contract jobs. Planning for
the future after retirement can take a great deal of time, and these individuals
may feel a need for increased work-life balance in order to accomplish their
goals and put plans in place.
Organizations that design their workplace
with these challenges in mind will be able to avoid the potential adverse
consequences – such as increases in sick days; prescription drug costs; leaves
of absence; and short-term disability as well as the shift from full-time to
part-time work or a premature departure from the workforce altogether – faced by
employers with less insight.
Building A Healthy, ‘Mature’ Workplace
In order to take advantage of the new
opportunities of a ‘mature’ workplace, employers need to provide a work
environment that recognizes and accommodates the needs of their new workforce. A
strong recruitment and retention strategy for mature workers will also
demonstrate that the organization integrates and values these employees and
expects them to be up to the challenge, building corporate citizenship all the
while. Here are some suggestions for accomplishing these multiple objectives:
-
Flex-work arrangements
assist those with care-giving responsibilities as well as those who need time
to plan post-retirement activities.
-
Telework arrangements
for those tasks that lend themselves to service, knowledge creation, or global
connectivity.
-
Career development and
training opportunities can be offered to mature workers who want to work or
aren’t ready or able to retire.
-
Provide opportunities
for mature workers to become mentors in the workplace in order to facilitate
the transfer of knowledge and skills.
-
Pre-retirement planning
programs provide consultation and information that help older employees plan
for the financial and lifestyle changes that go hand-in-hand with retirement.
-
Work-life services allow
individuals to pro-actively manage concrete concerns via the delivery of time
saving information and consultation on life cycle and other issues.
-
Individual resiliency
coaching for those who want to remain high performers.
-
Customized nutrition
programs to help older adults maintain healthy lifestyles or change bad eating
habits to reduce health risks.
-
Encourage use of the
‘magic bullet’ to health – exercise.
-
Regular lunch-and-learn
sessions can provide older workers with education on issues such as stress
management and achieving work-life balance.
-
For mature workers with
older family members who require full- or part-time care, eldercare programs
can assist with practical resources and support.
-
Homecare services can
provide information on – and access to – free, subsidized, and private
services in specific communities.
-
The forthcoming
government instituted Compassionate Leave benefit can be enhanced to assist
those who need time to support critically ill family members.
-
Education for managers
on how to support employees going through life-changing issues.
-
Retiree relations
programs are an opportunity for a company’s alumni to stay in touch socially,
volunteer, or even become spokespeople for the organization at company events.
-
If an EAP is in place,
those who have already retired may find it useful and a means of support as
part of their extended benefits/pension package.
Some organizations may offer variations on
these initiatives, including combining more flexible work options with sick day
banks or expanding the eldercare offering to include co-ordination with
homecare. Some are focusing on prevention to ‘move the culture’ and build
resiliency, and are developing strategic partnerships with their work-life
services partners to meet their goals. Those organizations with work-life
service offerings can provide more hands-on preventive support to assist older
workers in improving their coping skills. This can be accomplished by simply
recognizing, for example, that employees need help negotiating the healthcare
system and keeping them informed about what is available to support them. For
other employers, strategic planning might begin with exploring solutions for
those who want to continue working.
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The Road To Retirement
Like any new road, the road to retirement can
have bumps and turns along the way for both organizations and their employees.
However, by providing older workers with the resources they need to make choices
and by working with their service provider to promote these initiatives
internally, the journey can ultimately be a smooth one that leads to exciting
new horizons. Unfortunately, few employers are ahead of the curve right now in
creating workplaces that integrate and place strong emphasis on older workers.
And soon, businesses will face critical shortages of talent, leadership, and
skills. By capturing and nurturing the strengths and skills of the older
generation in the workplace, the best leaders and producers will be less likely
to slip away.
Remember that at the end of the business day,
listening to your mature workforce and building and implementing programs in
response to their needs is the smartest thing employers can do. The cost savings
will be enormous. Through developing and sharing of best practices and careful
planning for the future, employers can manage the demographic changes to come
and capitalize on the potential of an aging workforce. Indeed, this could be the
defining factor that determines true corporate competitive edge in the not too
distant future. Tomorrow’s winners will be the employers who start preparing
today.
Barbara Jaworski is
director, worklife solutions and well-being, for FGI (bjaworski@fgiworld.com).
*American Association of Retired Persons (AARP), Work & Career Study, 2002.
First published in Benefits & Pensions Monitor Magazine, 2003.
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For further information, please contact
the EAPAT office at (416) 410-8913
or e-mail us at
pres@eapat.org
EMPLOYEE ASSISTANCE PROGRAM
ASSOCIATION OF TORONTO (EAPAT)
101 - 33 Hazelton Avenue, Lower Level, Box 35
Toronto, Ontario M5R 2E3
(416) 410-8913
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