BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers The WorkBC Employer’s Tool Kit: A Resource for British Columbia Businesses Booklet 2 It’s About Ability - How to Attract, Retain and Engage Mature Workers 2 1 2 3 4 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers It’s About Ability How to Attract, Retain and Engage Mature Workers A resource booklet for employers Why has the WorkBC Employer’s Tool Kit been produced for businesses in British Columbia? British Columbia has a booming economy and our unemployment rate is at a 30 year record low. Much like the rest of Canada and other developed nations around the globe, B.C. is beginning to feel the impact of an impending labour shortage. Canada is facing an unprecedented change in workforce demographics as the first wave of the baby boom generation begins to retire. In fact, for every two baby boomers who retire, there is less than one person to take their place. In British Columbia, more than one million jobs will be created by 2015. At the same time, more than one quarter of the current workforce will retire. This is a challenge for which there needs to be both short- and long-term solutions. Both developed and developing countries are experiencing similar demands for skilled labour. With this new global reality, British Columbia is in direct competition with other regions for skilled workers. This WorkBC Employer’s Tool Kit is provided by the Ministry of Economic Development to supply businesses in British Columbia with the necessary tools and resources to ensure they are properly equipped to attract, retain and, most importantly, engage their employees. By using this resource booklet and the three labour pool-specific resource booklets, businesses in British Columbia can develop a range of strategies to help address the current and upcoming labour shortages. BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Four Resource Booklets Booklet 2: It’s About Ability – The Mature Worker 1 2 Booklet 3: Under the Labour Radar – Aboriginal People, Women, Youth and People with Disabilities 3 Booklet 4: Diversity at Work - Recruiting and Retaining Immigrants 4 Booklet 1: How to Attract, Retain and Engage Employees Inside this booklet you will find the following: • Information on changing demographics and how they are relevant to your business • An updated profile of today’s older worker and how he/she is redefining what it means to be a mature worker • Provincial perspectives on the value of hiring mature workers, including the perspective of the workers and the companies that hired them • Practical tools for planning and implementing strategies to engage and attract mature workers • Techniques to uncover the potential of experienced workers to ensure they play a key role in strengthening an increasingly multigenerational workplace BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers “The ‘perfect storm’ has been created by an aging workforce, a declining 15-24 year old new entrant pool and stiff international competition for talent. Strong economic growth over the last five years has increased the skills gaps in B.C. Small businesses are particularly vulnerable when trying to deal with the impacts of labour shortages.” The Coalition of B.C. Businesses BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Table of Contents Demographics and the New Reality. . . . . . . . . . . . . . . . . . . . . . . . 6 Support for Mature Workers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Making It Happen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Demographics and the New Reality The Perfect Labour Storm Canadian demographers are concerned about the impacts of an aging population, declining birthrates and increasing longevity on various aspects of our work and life. The impending shortage of skilled and readily available workers is tangible. As a result, we have embarked on an unprecedented and fundamental shift in the generational composition of our communities and our workforce. While there is little doubt that society can adapt to these changes over time, the “perfect labour storm” requires organizations to create strategic and innovative approaches to retention and recruitment immediately, in order to position themselves for success. Telling Demographics Estimates reveal that before 2010, the number of British Columbians leaving the labour market will exceed those entering the market. In addition, the exodus of older workers from the labour force coincides with record levels of employment. British Columbia enjoys the highest life expectancy in Canada and one of the highest in the world. According to Statistics Canada, the average 65 year old Canadian who was born in the early 20th century could expect to live until they were 78 years old. In 2003, this individual could expect to live until the age of 84. Interestingly, the birth rate in B.C. is declining and directly affecting the numbers of future workers available for employment. The Urban Futures Institute projects the 50+ population will increase by 44% between 2005 and 2020 while the under 50 population will increase by 5% during this same period. “It is estimated that approximately one million job openings will be created in B.C. between 2003 and 2015, yet only 650,000 young people will progress through the province’s school system during the same period.” Rosalyn Kunin & Associates, Inc., 2010 Winter Games Labour Demand Analysis, April 2003. BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Making Demographic Change Work for You Although these demographic changes pose great challenges for business, they also have the potential to generate new and exciting opportunities. Changing demographics can: 1. Strengthen relationships with customers/clients As the population ages and mature consumers exercise greater spending power, it can be advantageous to present a mature face to your customers. This approach has been successful for financial planning and insurance companies as older clients appreciate dealing with those who share a similar life experience. 2. Enhance/expand business capabilities Including mature workers as a part of a workforce brings experience to decision making, planning and problem solving. Carefully matching the experience of the mature worker with the more current viewpoints of newcomers is a strategy that can generate dynamic, new ideas and approaches. In addition, mature workers can significantly impact the performance and productivity of younger workers through coaching and mentoring. Implications for Businesses The “perfect labour storm” is affecting businesses considerably, particularly small and medium-sized organizations. While many business owners understand that on-the-job training and flexibility are key components for attracting and retaining talented people, they are often limited in the time, resources and finances required to implement these important components. Moreover, organizations of all sizes are raising the bar by offering attractive benefits and workplace “perks” to potential employees. Young candidates are particularly discriminating when searching for a workplace – their terms often include freedom to make decisions, frequent feedback, a sociable workplace, flexible schedules and ample time off. While this is beneficial for job seekers, it creates exceptionally high standards difficult for smaller businesses to meet and sustain. Mature workers are a growing pool of underutilized workers in British Columbia who bring experience, technical, interpersonal skills, and leadership capabilities to the workplace. Many of these workers are ready to start making an immediate contribution to the business community across B.C. Remember…. Thinking strategically about opportunities within the changing demographic landscape will enable you to respond quickly to the changes taking place around you. BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Optimizing an Under-Utilized Labour Pool Employers who are developing relationships with under-utilized labour pools are staying ahead of the ‘labour storm.’ Forward-thinking businesses understand the importance of maximizing mature workers’ skills and expertise in a time when retirees are starting to outnumber new workers; these businesses are also aware that a mature worker takes critical skills, knowledge, experience and valuable relationships with them when they retire. These businesses are redefining retirement throughout their organizations and encouraging valued, mature workers to remain engaged on mutually beneficial terms. Research Pays Off Research the larger organizations in your particular market and examine how they are adapting to the changing labour market. Larger organizations invest heavily in human resources and information about their recruitment/ employee satisfaction programs are often easily found on company websites. Wherever possible, adapt the programs and strategies developed by more resource-rich organizations to your own situation. “The Aging of the Population will accelerate over the next two decades, particularly as baby boomers begin turning 65. Between 2006 and 2026, the number of seniors is projected to increase from 4.3 million to 8.0 million. Their share of the population is expected to increase from 13.2% to 21.2%.” A Portrait of Seniors, Statistics Canada BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Support for Mature Workers What the Experts Say A growing body of research indicates that mature workers have a vital role to play in responding to the labour shortage in B.C. “Statistics Canada data shows that if older people choose to remain in the labour market even just two more years than the current average, our labour supply will not drop, but rather stay virtually stable.” Aging Well in British Columbia “Small business employers need to realize that the skills and experience of older workers are of great value and they should begin exploring various forms of phased or partial retirement and flexible working arrangements…in order to both recruit and retain them.” B.C. Skills Provincial Summary “How to prevent mass retirement from starving your business of talent? Replace the traditional notion of retirement – whereby people stop working at a certain age – with a more flexible one that encourages people to become lifelong contributors to your company”. Harvard Business Review, It’s Time To Retire Retirement “While postponing retirement will not solve the looming labour crunch, policies and practices designed to encourage older workers to remain in the workforce should be part of a broader strategy to temper demographic impacts.” Business Council of B.C., Encouraging workers to postpone retirement will help mitigate future labour shortages. Getting to Know the Mature Worker The profile of a senior citizen has changed dramatically over the last few decades, due in large part to the Baby Boomer generation. Seniors today live longer, enjoy good health and physical activity and are increasingly becoming technologically savvy. They are well educated, with more than half the Canadians who turn 65 over the next decade having a post-secondary certificate, diploma or university degree. Mature workers typically hold traditional beliefs in authority and the role of government and tend to value structure and fairness in following rules. Studies show mature workers have high job satisfaction rates and take pride in their work and careers. Mature workers offer experience, emotional maturity and loyalty in the workplace. They practice teamwork and believe in service to others. Furthermore, mature workers care about the fate of their organizations and invest themselves to help it succeed. Between 2000 and 2003, the share of individuals aged 65 to 74 using the internet more than doubled from 11% to 28%. Statistics Canada “Lawyers who spend their entire careers putting together profoundly complex business transactions have accumulated enormous intellectual capital. This knowledge asset isn’t easily replaced. In the legal profession, judges are typically appointed late in their careers because it takes time to build up the breadth and depth of knowledge required in order to carry out the role.” Brad Daisley, Public Affairs Manager, Law Society of B.C. BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Mature Worker Misconceptions It is awkward for young employees to manage older workers. A multigenerational workforce provides an excellent opportunity for mutually beneficial relationships. A commitment to ongoing and open communication creates an environment where respect and understanding can thrive. All mature workers want to work part time. Mature workers are often interested in flexible work options. Providing flexibility to your employees will help distinguish you as an employer of choice, not only for mature workers, but to other potential labour pools such as immigrants, First Nations, young people and people with disabilities. Making a strategic decision to better engage and recruit mature workers may be new to your business. Common misconceptions about mature workers include: Older workers have difficulty learning new skills, particularly with respect to technology. Many experienced workers are eager to learn new skills, but are often overlooked for professional development opportunities as a result of outdated assumptions about willingness to learn new skills. Discussing and offering new training opportunities is vital to creating an environment where learning can comfortably occur. Older employees will not work for many years. Research suggests that mature workers sustain the highest job tenure overall. Their traditional values of dedication and service translates into loyalty for your company. Older workers have more health problems that will cause them to miss work. Employees aged 50+ do not sustain more injuries or absences than their younger counterparts. Many mature workers remain employed because of the psychological and social benefits a workplace community provides. This positive correlation between work and health has been well-documented and indicates that people who stay engaged in work (either paid or unpaid) tend to remain in better health and live longer – in all age groups. “Seniors are phenomenal employees. Some people say that mature workers don’t like change but in my opinion that’s absolutely not the case. When you teach them something they pick it up quickly and then they can run with it. You don’t have to be standing over them constantly.” Lori Keetch, Editor/Owner, Senior Connector 10 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Elimination of Mandatory Retirement “Many seniors are capable and interested in remaining employed and/or finding a different type of employment after retirement. Most seniors express that they wish to stay active, keep their minds engaged and feel connected to their community. They aren’t necessarily looking for big salaries or lots of responsibility, but more of an opportunity to be productive and utilize their life skills.” The notion of mandatory retirement is being widely challenged as a form of age discrimination. As of January 1, 2008, British Columbia eliminated mandatory retirement in both the public and private sectors by revising the provincial Human Rights Code. Workers are now able to choose to retire whenever they wish. The change is about allowing people to continue to work past age 65 if they desire to do so. The amendment ensures people over 65 have protection from age discrimination and will potentially help employers to retain the corporate memory and experience mature workers possess by enabling them to remain in the workplace past 65. Mature workers will be subject to the same standard of accommodation as other workers. For more information please contact the Ministry of Attorney General ‘s Mandatory Retirement Hotline toll free at 1-866-666-1165, or e-mail mandatoryretirement@gov.bc.ca. Information is also available on the web at www. ag.gov.bc.ca/mandatory-retirement/index.htm. Brenda Prevost, Executive Director, Seniors Information Centre 11 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Personal Perspectives Mel de Cook is a civil technician and former partner in Urban Systems, an engineering, planning and landscape architecture firm in British Columbia. At the age of 60, Mr. de Cook opted to reduce his workload to 50% before shifting into a contract arrangement with the firm. Now that he works on contract, his role has been redefined to provide the flexibility he desires. Presently, Mr. de Cook provides assistance to Project Managers with civil design, senior technical review and consulting advice. “After retiring from a full-time secretarial job I found I missed the workplace interaction. An opportunity came along that allows me to work on an on-call basis. This job gives me all the benefits of working as much or as little as I want, meeting other people, travelling and earning a small salary. I also stay connected to and remain a contributor in the workforce. It is a great arrangement.” S.M., Mature Worker The ongoing relationship has been beneficial for many: • Clients - the firm has retained Mr. de Cook’s valuable technical, project and client-related expertise • Staff - Project Managers can access and learn from his 35+ years in consulting engineering • Mr. de Cook - working part-time keeps him physically and mentally active and provides additional resources for travel and other interests Why This Arrangement Works - Worker and employer benefit from flexibility of on-call work - Position combines social interaction with light responsibility - worker appreciates low stress while enjoying connection with others - Salary and benefits arrangement – worker is not overly concerned with remuneration; company is not obligated to pay benefits Why This Arrangement Works - Urban Systems opened a discussion about Mr. de Cook’s ongoing role well before he reached retirement age - Mr. de Cook’s responsibilities were tailored to his desire for flexibility - Urban Systems and Mr. de Cook worked closely together to develop a mutually beneficial arrangement tailored to his unique skills, interests and priorities 12 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Employer Perspectives “I had my own biases about the value of seniors when I “Mature workers are very took over the newspaper, but valuable to our firm because I’ve learned so much about they offer their experience and the incredible energy, skill and knowledge directly to our clients commitment they bring to all of to solve their problems and they the great work that they do in offer experience and knowledge this community. It’s been a great to our young people to help eye opener and I think there are them build their own base. It’s so many businesses that could the combination of what mature benefit from their expertise.” workers have to offer that is the Lori Keetch, most powerful.” Editor/Owner, Cameron Gatey, CEO, Senior Connector Newspaper Urban Systems Ltd. “There’s no question we need mature workers in our business. Our customers appreciate and have confidence in the advice they are given when it’s dispensed by someone with some life experience behind them.” Kevin Peck, General Manager, Canadian Tire According to Statistics Canada, 55% of retirees surveyed cited at least one of the following non-financial reasons for returning to employment: 22% did not like retirements; 19% cited intrinsic rewards offered by work (e.g. challenging tasks, social contacts, sense of purpose); and 14% felt they were needed or wanted to help out. 13 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Making it Happen Taking Early Action If hiring mature workers could benefit your business, adjustments should be undertaken as soon as possible. It takes time to develop a working environment attractive to the most talented candidates. Each generation brings its own set of values and expectations and markedly different attitudes towards work, authority, careers and work life/balance. It is an ongoing challenge for businesses to meet the diverse needs and expectations of these four generations. Listed below are some suggestions to assist you in managing people across the generational spectrum. Winston Churchill was 65 when he became Prime Minister. • Think Skills – Not Age Identify ways to apply people’s skills to address gaps regardless of their age. For example, vacancies created by young workers moving into other positions may be ideal for mature workers heading into retirement. The New Normal – Multigenerational Workplace We are entering a new era where four generations of employees are working together. In order to attract and retain individuals from each generation it is critical to understand what keeps them inspired and engaged. Leaders and managers will require strong communication skills to ensure the different age groups work together in cohesive and productive ways. Refer to pages 7 – 11 in Booklet 1 for more information on the specific characteristics of each generation. 14 • Tailoring Move away from the ‘one size fits all’ approach to communication and create roles, benefits and incentives with generational differences in mind. • Understanding Take time to learn about the four generations and use this information to gain insight into your own workforce. • Mentoring/Knowledge Transfer Facilitate mentoring between workers of different generations to forge positive linkages and mutual appreciation. These relationships often provide fresh challenges to older workers while they transfer organizational knowledge to younger employees. “Life expectancy is increasing two years per decade and people are a lot healthier. There is a huge opportunity for people to work through their 60’s but not full-time, and workplaces have to be flexible. These people will want to play golf and travel half the time.” David Foot, Author, Boom, Bust and Echo BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Flexibility Remember… By learning about flexible work options and becoming skilled in communicating and managing flexible schedules, not only will you be attractive to mature workers, but you will also appeal to the broadest spectrum of skilled candidates possible. Offering flexible work arrangements to your staff will help engage, retain and attract the best people. It requires high levels of trust in your employees as well as careful planning and ongoing communication. The potential benefits of a flexible work arrangement include: • Increased engagement and association Here are a few things to keep in mind as you map out your flexible work strategy: • Assess your situation • Increased retention and decreased hiring costs Flexible Work Options • Establish an approach The most common flexible work arrangements are: • Flexible time – providing employees with some options as to when they start and finish work • Compressed work week – working longer days in a shorter work week, e.g. 40 hours in 4 days rather than over five 8 hour days Do you have existing flexible arrangements? If so, how can you build on what is working and what lessons you have learned? Develop guiding principles for the application of flexible work arrangements throughout your organization. Consider issues such as eligibility, options and expectations of the employer/employee. • Track progress Evaluate how flexible arrangements contribute to business goals, e.g. what impact are they having on performance, customer retention, and employee engagement? • Part-time – this comes in a myriad of forms and includes seasonal work • Job sharing – two part-time employees sharing responsibility for one full time, salaried position • Contract work – the worker is engaged on an as-needed basis • Flexible place/telecommuting – includes all forms of off-site work (e.g. home office, temporary secondments, etc.) • Leave of absence – can be paid or unpaid with a guarantee the employee’s job will be held for them upon return The New Normal – Flexibility Flexibility in the workplace has evolved from a workplace “perk” into a critical determinant in the employee/employer relationship. Given the choice, many employees would choose to work for a company that provides a flexible work environment over an inflexible work arrangement with additional compensation. 15 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Flexible Retirement Options Many retirees return to work as they find themselves in good health and in possession of the skills and expertise needed in the current job market. However, most prefer to reduce their responsibilities and continue working rather than leave the workforce altogether. This requires some creativity with respect to addressing the following questions: 1. Current Reality – Where Are We Now? Take stock of your current employee base to examine individual priorities and career plans, generational composition and skills. Consider the following: • What is the demographic profile of our employee base? What challenges and opportunities are we facing as a result of the changes in demographics? • Flexible roles – does the job or role need to be redesigned? • What skill shortages will we face and when? • Work assignments – what projects are suited to the individual’s interests and experience? • When will retirement(s) impact the organization? What skills and experience must be retained? • Reduced hours – what kind of flexible work option would suit their needs? • What motivates people in the organization? Why do employees join, why do they stay and why do they leave? • Control over scheduling – can we put more decision-making control in their hands? • What are the plans and priorities of those nearing retirement? • Which positions or projects may be better suited to older, project-based or part-time workers? Workforce Planning Mature Workers Workforce planning ensures you have the skilled workers required to meet your business objectives. This kind of planning is best done when key leaders in the business are brought together to discuss and commit to specific, measurable, achievable and timely action. • What are our current sources of labour? Are they meeting our needs? Why or why not? • What is working well in terms of attraction and retention and how can we build on it? With flexible retirement options your company retains: - the service of key employees and high performers - valuable customer and industry knowledge and technical skill - access to highly productive and experienced talent pools - leadership talent to fill unexpected gaps – “leaders on demand” 16 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers 2. Vision for the Future - Where Do We Want To Go? Attracting Mature Workers Determine the direction for your business and how you can ensure you have the right people in place to carry out that vision. Look at your business communications and recruitment practices to ensure they are inclusive of all generations. For mature workers in particular, it means that criteria like “high energy” and “motivated” needs to be balanced with references to “experience” and “skills”. • What is our vision for our business in one, five and ten years? (Consider all aspects of your business – financial, client, organizational, etc.) What is the ideal scenario? How will we know if we have been successful? • What skills will we need to move toward this vision? What values and attributes will be essential in our employee base? • Where are we likely to find the skilled workers we require? • What are the best sources? What additional sources or approaches could be used? 3. Action Plan – What Do We Need To Do? Reality and vision are brought together at this stage to generate tangible actions that engage, retain and attract mature workers. Other recruitment strategies include: • Use terminology like “all candidates welcome” or “this company values workers of all ages” in recruitment advertising. • Post part-time as well as full-time positions. Make reference to workplace flexibility. • Populate your website and marketing materials with images of staff of all ages. • Explore ways in which the skills of older workers can be transferred across roles, businesses and even industries. • Offer flexible benefit packages wherever possible. For example: ACTION – Jeff will meet individually with Carolyn (high performing mature worker nearing retirement) by (date) to explore flexible retirement options with her and reinforce our commitment to working with her to find a suitable arrangement. A good plan today is better than a perfect plan tomorrow. ACTION – Shelley will review our recruitment materials, website and other communications by (date) to ensure our public messages are reflective of our desire for a multigenerational workforce. Proverb ACTION – Ben will analyze the gaps created by the advancement of young workers to determine if they could be filled by one or more of our mature workers wanting to move into a flexible work arrangement. “Many older workers aren’t interested in a life of pure leisure. They hunger to learn, grow and try new things.” Harvard Business Review, It’s Time to Retire Retirement. 17 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Where to Find Mature Workers • Under Your Nose The best pool of skilled labour is the people you already know. Look around your organization to identify people with the skills your organization needs. • Affiliations Professional associations and their related publications, university alumni associations, churches and seniors’ groups can be good places to connect with mature workers. • Publications There is a growing pool of publications that target the 50+ demographic. Special interest publications such as those focused on financial management, gardening, or travel are other possible sources for connecting with the older worker. Engaging and Retaining Mature Workers Become known as an employer of choice for mature workers. Talk About Flexibility Introduce some of the concepts of flexibility discussed earlier in this booklet, share appreciation for their skills and experience, and keep the door open for ongoing discussion. Most mature workers will be delighted that you asked! Honour Experience Smart organizations pay close attention to the language used in their work environment. Highlighting the productivity and effectiveness of mature workers alongside younger workers ensures the skills of all generations are appreciated and valued by everyone in the organization. Offer Ongoing Learning Career development planning, mentoring, peer-to-peer programs and training courses, both internal and external, all contribute to satisfaction levels and overall engagement in the organization. “Use [mature workers] as a backup or resource rather than a front line soldier. Provide them with a cushion from the stress.” M.D., Mature Worker 18 BookLET 2 - It’s About Ability - How to Attract, Retain and Engage Mature Workers Way forward... “It’s About Ability – How to Attract, Retain and Engage Mature Workers” is the second booklet in a series of four booklets designed for British Columbia’s business community. As you move forward in developing strategies to address the labour shortage, be sure to make use of the foundation booklet in this series, “How to Attract, Retain and Engage Employees”. When looking to optimize existing labour pools, remember that, in particular, mature workers represent new hope and possibilities for employers in British Columbia. They are interested, capable and skilled, and bring a depth of experience that is particularly valuable when facing skills and labour shortages. The businesses that embrace and commit to employee engagement, developing great leaders, becoming employers of choice and tapping into specific labour pools will have the greatest success in dealing with the challenges of the labour storm that British Columbia and the rest of business world is facing. Good luck in your journey! 19 The Ministry of Economic Development gratefully acknowledges the contributions of the following organizations in the development and production of the WorkBC Employer’s Tool Kit. Communication Solutions Inc., New Quest Coaching & Consulting, City of Kamloops, CFDC – CIFN, SPH Consultancy © 2008 Province of British Columbia. Portions of these materials are reproduced under license from the Venture Kamloops Business Development Society.