Balancing the Strains of Time

Experience is Key

The aging workforce is creating new opportunities for older workers. Survey results from the US show that some older workers are thinking about delaying their retirement. Two major bear markets in the past eight years, combined with the splurging habits of the boomer generation, have left very little in their wallets. However, the positive part is that the labour market will need their skills and experience in the upcoming years.

[pullquote]Companies that don’t harness this knowledge will have to discover it all over again, wasting precious time.[/pullquote]

Research shows that productivity levels are the same amongst older and younger workers. The only difference is in physical ability. Thus, it becomes in the company’s best interest to overcome the age bias in the labour force and develop a reputation as a matureworker–friendly organization. Based on this knowledge, companies are trying out new strategies to retain their older employees past the traditional retirement age.

Part-time work and flexible work arrangements are one solution. Older employees can work less hours or work on a project-to-project basis in a consulting role. This will ensure that their human capital remains intact while at the same time they are more comfortable.

Monica Belcourt’s vision of the future workplace is similar. She says, “The old model (going to an office, working for a company for a decade from 9 to 6 daily) will be obsolete. With technology, workers will now choose or negotiate contracts with employers that are project based …not based on location, or face hours. Workers will choose, when, where, how and with whom they will work.”

She adds, “Assignments, short term contracts and projects will be easier to find. Basically, there will no longer be ‘cradle to grave’ employment.” Old and young workers alike will be following this model in the future, and because the nature of work is changing, it will make it easy to “hire” older workers for short-term work.

To solve the problem of older workers’ often outdated skills, companies are providing additional training to older workers to help them deal with these changes. Companies are also realizing the advantage of having a multi-generational workforce. Younger workers usually provide more energy and enthusiasm while older workers provide experience.

Companies such as General Electric are leveraging their workforce’s capabilities by creating mentoring relationships between older senior-level employees and younger employees.

There is also the fear that the knowledge that older workers possess, such as how to do their jobs effectively, will be lost once they leave the company. Companies that don’t harness this knowledge will have to discover it all over again, wasting precious time. To increase the company’s knowledge base and productivity, organizations like the World Bank are creating videos and audio recordings of employees in challenging projects so that they can be used when needed for reference.

Solutions like these will help companies to deal with masses of older workers who plan to retire. For older workers, however, it means increased opportunities and a gradual retirement which eases their financial burdens.

More Opportunities for Immigrants

One area in which the Canadian government needs to step in is immigration. As the economy continues to grow, Canada will need more workers and will have to rely on immigrants to fill the void.

“I think we will continue to see changes in immigration policies that favour qualified workers over family members for the immigrant quotas,” says Belcourt. “As you know, a key issue continues to be that Canada certainly is capable of attracting qualified immigrants (doctors, engineers) in areas that we have need; Canadian employers, however, seem to have difficulty recognizing, appreciating, and paying for the education and work experiences acquired in other countries.”

She further explains, “Some not-for-profit organizations, such as Career Edge, or TRIEC, have been quite successful at creating programs that allow employers to ‘test’ immigrants for a year. In nearly every case, the immigrant, given a chance to prove himself in a Canadian workplace, receives a job offer in his field, commensurate with his qualifications.”

However, with big shortages coming in the labour market, all this should change. Canada will have a shortage of not only workers but also skills. New immigrants will be able to fill these needs and employers will be more willing to accept their qualifications.

The Silver Lining

After emerging from one of the worst economic downturns in the century, it is hard to be positive about anything. With an unemployment rate of 8.1%, it seems even harder to imagine that we will be facing a labour shortage in a decade. However, economists are certain that this is cyclical and in the upcoming decades the workforce will be too small.

Younger workers and those currently preparing to enter the workforce should take advantage of this knowledge by looking towards more education. In the coming years, higher-skilled jobs will grow, whereas low skilled jobs will decline, meaning that despite the shortage of workers, employers will be looking at candidates who possess those skills that are needed.

The boomers need to prepare for the new labour environment also by upgrading their skills. However, the workplace needs to adapt more towards them. This means that employers need to create flexible and more viable opportunities for older workers so that they are comfortable in their jobs. Employers also need to focus on retaining this human capital before it’s too late or else they will be losing their company’s most precious assets.

Although there are plenty of opportunities that will arise in the coming decades, it’s up to the members of the future workforce to be ready to grab them.

ARB Team
Arbitrage Magazine
Business News with BITE.

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