Too Young to Retire, But Tired of The Same Old 

By Wallace Immen, ReportonBusiness.com

Canada

October 5, 2007

Jean-Luc Blais had a dream. But in order to make it come true, he thought he might have to retire.

The avid boater was eager to take a long-planned journey from Montreal to the Caribbean and back that would require at least four months away from his job as director of public affairs with Merck Frosst Canada Ltd.

But he hit a snag. His manager told him the company couldn't allow him to take that much time off and guarantee his job would still be available when he got back.

However, the winds of change were in his favour. Merck Frosst had been working on ways to encourage employees over the age of 50 to stay at work rather than retire early. And management realized long-time employees like Mr. Blais would stay with the company if they could get the flexibility to take time if they needed it.

Last year, the company adopted a policy that allows managers to make individual arrangements for older workers who need to take as much as a year of unpaid leave for personal reasons.

As a result, Mr. Blais, 54, enjoyed his high-seas adventure. And the company also benefited, he says. "When I came back last year, I had a new outlook. After taking time to recharge my batteries, I realized how much I enjoy working for the company."

Now, he's shelved any thoughts of retiring.

It's the kind of approach managers will need to adopt to keep their organizations competitive, says Barbara Jaworski, president of Workplace Institute in Toronto, a human resources consultancy.

It's a sharp reversal from perceptions that still persist about mature workers, she explained in an interview about her new book, Kaa Boom, How to Engage the 50-plus Worker and Beat the Workforce Crisis." Managers still cling to an attitude that you give older workers a buyout and wave them goodbye," she says.

But managers who think that way are going to find it difficult to stay competitive, Ms. Jaworski warns. "That's because of the kaa-boom. Literally, it's the threat of an implosion of talent available in Canada's work force due to sheer demographics."

Baby boomers are beginning to think seriously about retiring, she explains. But there are fewer people in the younger generations to replace them. And most younger workers don't yet have the experience they need to fill key roles.

"So the longer we can keep kaa-boomers active in the work force, and the more that managers can encourage them to transfer their experience to younger workers, the better off everyone will be."

Companies such as Merck Frosst, Home Depot Inc., Direct Energy and Royal Bank of Canada have started programs to retain employees over 50.

Many of the moves these companies are making should be fodder for how managers can keep their mature workers motivated, Ms. Jaworski says. Among them:

Flexibility

Managers will have to be more open to requests for less-structured working hours and more time off for outside interests or home responsibilities.

Training

Many organizations have not spent money to develop skills of over-50 workers, thinking it better invested in those in their 20s and 30s, Ms. Jaworski says. "But that's a stereotype. In fact, there's more likelihood that the younger workers will use the training as an opportunity to make a move to a better job with another company. But the older veteran will likely stay longer with the organization."

Career development

"Let them know that there is still a place for them in the organization," she says. But on the flip side, older workers need to realize "that, as needs change, they can't rest on their laurels and should be seeking out opportunities to be continually learning and honing their skills."

Adaptation

Workplaces that involve physical activity may need to be redesigned to accommodate an aging work force, she says. For example, in health care facilities, hoists could be installed so that older nurses don't have to manually lift patients. Or, in offices, ergonomic furniture may have to be employed to guard against the repetitive strain of using a keyboard all day.

Recognition

The contributions of experienced workers may be overlooked because management is taking their loyalty for granted, Ms. Jaworski says. "If managers are not careful, it can lead to disengagement."

Financial guidance

"Many people nearing retirement can become preoccupied about whether they are secure enough to live comfortably in their old age." Ms. Jaworski suggests that companies provide financial advisers for over-50 people. Many will shun help because it takes effort and often with financial advisers the help comes with an unwanted pitch to buy a fund.

Wellness promotion

Working with employees in illness prevention and encouraging healthy living can help them stay more active and energetic at work, she says. This can include fitness centres, health club memberships and nutrition counselling.

Work-life balance

Managers must recognize that people have lives outside work and should provide flexibility in work schedules - for both young and old. As a result, managers should become familiar with workers' concerns about family care, for instance, and their need to attend to events during work hours.

Communication

In all areas, make sure people are on the same page in terms of what is going on in the business so that they understand the company's goals. If a big project or major change to the workflow is in the works, it's important for staff to know what will be required of them and how they will benefit.

Phased retirement

After a long career, many workaholics would like to ease out rather than jump off the treadmill entirely, Ms. Jaworski says. Options to that end can include part-time work or moving into a role in which they can mentor younger employees.

Line managers may resist the time it takes to plan individual programs and schedules "but they should keep the bigger picture in mind. Retaining skilled employees can make them and their department more successful," Ms. Jaworski recommends.

This new philosophy to retain older workers has already paid dividends for Merck Frosst, says Brigitte Charest, the company's Montreal-based manager of pensions and benefits. While the company has no long-term statistics on retention of older employees, she says she knows of many employees who have told her that their ability to get new experiences and training and have flexibility at work encourages them to continue to work rather than retire.

"Very often people say: 'When I retire, I'll do this trip or take this opportunity or [spend] more time with my parents or grandchildren.' Sometimes that's the only reason why they want to retire," Ms. Charest says. "If you can give them the chance to realize their dream, they will come back. It's a win for both the employee and the employer."

And another plus for the employer and manager is that older workers who feel appreciated and needed are going to be motivated employees, Ms. Jaworski says.

"People who are satisfied in their work aren't likely to want to retire. But those who don't think the organization cares about having them stay will be counting the days."

Hail the greybeards

Canada's population is greying. Here are factors behind the trends, from Barbara Jaworski, president of the Workplace Institute.

The population is aging. Most of Canada's two million baby boomers are already over 50 and some have reached their 60s. Meanwhile, Canada's birth rate is slipping behind the two babies per woman level needed to ensure there are as many young people getting into the work force as there are leaving it.

Lifespans are stretching.

Average life expectancy is rising year by year and stands at 82.6 years for women and 77.8 years for men. Baby boomers are not as apt as previous generations to consider themselves senior citizens and have continued to pursue youthful activities.

More women are working. Statistics Canada shows that 76 per cent of women between 45 and 54 work full- or part-time, a dramatic increase from previous generations, when fewer than half of women worked.

Nuclear families decayed

High divorce rates, couples delaying having a family and longer lifespans of parents have created more care-giving demands on older workers and more need to earn income for support.

Lengthier down time. When the U.S. Social Security system was established in the 1930s, it was assumed that a person leaving the work force would need to draw on it only one or two years before dying. Today, retirement can easily last more than 20 years. That leads to increased possibilities for people to fill some of that time with work. Statistics Canada reports nearly 69 per cent of people who retire between the ages of 50 and 54 return to work within two years. Many over 65 are hoping to continue working part time

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