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Overview of the Aging Workforce Challenges: Recommendations

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Overview of the Aging Workforce Challenges

Employers' Challenges and Options

Address negative attitudes towards older workers

• Ensure no age discrimination in Human Resources Management practices regarding:

  • Recruitment
  • Training and Retraining
  • Work Arrangements
  • Retention
  • Summary
    
    
• Address the main barrier: perceptions and attitudes
  
  
• Do not make assumptions; if in doubt, ask how the person can do the tasks, accomplish the functions
  
  
• Provide accommodations where feasible

Create supportive workplace culture promoting respect towards all employees, regardless of age, race, gender, ...

Recruitment

Negative perception persists about older workers, particularly during recruitment:

• Over a third of Human Resource managers and those responsible for hiring indicated there was an age they considered too old. The age limit varied from age 36 to age 70 (Underhill, S.C., Marshall, V. M. & Deliencourt, S., Options 45+ "HRCC Survey Final Report, Ottawa: One Voice: The Canadian Seniors Network", 1997, cited in Underhill, Susan C., "Aging Workers in the Workplace: a Canadian Perspective", 1999)
  
  
• Only 4% of employers reported targeting older workers to fill open positions (Robson, William B.P. "Aging Populations and the Workforce: Challenges for Employers"  (PDF Document), British-North American Committee 44, 2001)

Explore or develop new recruitment options:

• Post notices in senior citizens journals, centers, professional societies
  
  
• Develop a reputation as an active recruiter and a good employer of older workers
  
  
• Offer alternative working arrangements to provide flexibility that older employees may find attractive

Training and Retraining Workers

• Offering challenge and opportunity can benefit to both the employer and the older workers:

  • Broaden the range of employees' work experience
    
    
  • Stimulate employees' interest and creativity in their work
    
    

• Providing training to older workers

  • Design appropriate training program to help older workers learn
    
    

• Utilizing older workers as trainers/mentors

  • Transfer of knowledge and corporate memory
  • Excellent source of trainers/mentors for younger workers
  • A trainer who is an older worker may facilitate training for other older workers

Rethinking Work Arrangements

• Flexible work schedules

  • Flexible hours: (reduced, compressed, extended work weeks)
  • Job sharing
  • Part time
  • Self-funded leaves
    
    

• Adapting workplaces

  • Environment, Ergonomics, Lighting, Heat
  • Working at home
    
    
• Re-organization of work, Job redesign
  
  

• Family care support

  • Spousal care / Eldercare
    
    

• Health and wellness initiatives

  • Employee Assistance Program
  • Fitness facilities/promotion (e.g. aerobics, tai chi, ...)

Retention

• Mandatory retirement policies may work for or against employees
  
  
• A survey conducted in USA showed that three out of four workers ages 51 to 61 would rather reduce hours gradually than stop working at once (Herz, D. , "Work after retirement: An Increasing Trend among Men" Monthly Labor Review (April 1995) cited Robson, William B.P. "Aging Populations and the Workforce: Challenges for Employers", British-North American Committee 44, 2001)
  
  
• Flexible working arrangements facilitate the retention of experienced workers; the challenge is to conceive positive practices
  
  

Phased-in retirement:

• Not generally available; reduced hours may be negotiated or offered while maintaining full pension contributions
  
  
• Must be considered within the context of Canadian Income Tax Act, Regulations and relevant public pension program
  
  
• In Quebec (QPP*) employees 55+ may reduce hours and maintain full pension contributions; employees 60 to 65 may reduce hours by 20% or more, and apply for early pension

* Quebec Pension Plan

Post-retirement:

• Employees may work beyond age 65, depending on employer's retirement policy. They may apply for and receive their CPP* pension or they may choose not to apply for and continue to contribute to CPP until age 70.
  
  
• Employees may retire between 60 and 65, apply for and receive their CPP* pension. Once they receive CPP pension, they can work as much as they want without affecting their pension payment. However, they cannot contribute to CPP on any future earnings. (Individual's financial situation needs to be considered.)

* Canada Pension Plan. The amount of the pension is adjusted by 0.5% for each month before or after the employee's 65th birthday. The adjustment is permanent. This means that if the employee choose to take his/her pension before age 65, it will not be recalculated when he/she reaches age 65.

Summary: Adaptive measures accommodating an aging workforce

Policies and/or collective agreements may permit, enable and legitimize accommodating the needs of experienced workforce

• Elimination of age discrimination; adoption of proactive measures in the workplace, in human resources practices
  
  
• Safer workplaces, healthier environments, holistic approach to wellness
  
  
• Flexible work arrangements, job redesign
  
  
• Appropriate training opportunities
  
  
• Flexible retirement options