According to a recent Royal Bank of Canada study, 28% of baby boomers have delayed retirement, thanks to low portfolio balances and a turbulent economy. Forty-three percent said they are delaying by one to two years, 37% are postponing retirement by three to five years, and nearly 10% said the delay could be even longer.
This isn’t good news for a lot of boomers, but it’s great news for organizations hoping to hang on to skilled employees. It’s also great news for employers that want to increase their skills base and thus be ready to grow their businesses when the economy rebounds and the talent war heats up again.
Fortunately for organizations, even though older employees may be ticked at their tanking portfolios and frustrated at shelving their plans, they’re used to change and, as a result, are a pretty resilient group. They also possess a solid work ethic and are the healthiest generation in history—in many respects, healthier than their children. For many boomers, traditional retirement was never in the cards anyway. They were always planning to start their own businesses, begin second careers, continue to work part-time, volunteer in the community or become consultants.
Most boomers remain engaged and productive, but the employer can also play a role in supporting them. The No. 1 factor that will help motivate and engage mature workers is the knowledge that they are valued and appreciated.
Recognition goes far beyond traditional long-term service awards, although such celebrations are important. It means being promoted on merit and having equal access to career development and training opportunities. It means that age is not a consideration in the hiring process and that older individuals are regularly recruited. While most organizations would never discriminate on the basis of race, religion, gender or culture, many focus their career development programs on younger workers. Yet most boomers still aspire to achieve, learn and climb the corporate ladder. If they feel shut out of training or advancement possibilities, they’ll leave—possibly to a competitor—once the economy recovers.
Another way to send a clear message that an organization appreciates its over-50 employees is to establish mentoring programs. Not only do such programs enable the transfer of wisdom, industry insight and skills to younger workers, they also cost little and are a win-win situation for all involved. Older workers feel valued and respected, younger workers have the opportunity to learn and develop, and organizations reap the benefits of a large pool from which to develop future leaders and a more capable workforce.
Workers of all ages appreciate the option to work in non-traditional ways, including telecommuting, flex time and compressed workweeks. Older workers also appreciate getting information and support on preparing for retirement. Workshops, seminars, RRSPs and share purchase programs, top-ups on corporate pension plans through extra lump sum payments and investment advice are attractive offerings to older workers who are trying to recoup investment losses.
However, all of these programs are useless if workers don’t know about them.
It’s essential that organizations effectively communicate what’s available and why. All employees should be aware of the company’s succession planning and mentoring initiatives. Companies should also communicate through action, demonstrating that mature employees are not just long-term staff members but are also new hires.
The recession has demolished the dreams of many older employees, but organizations can help rebuild these dreams while reaping the benefit of decades of experience. Together, both can prepare for an economic recovery.
Barbara Jaworski is CEO of the Workplace Institute.
bjaworski@workplaceinstitute.org
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© Copyright 2009 Rogers Publishing Ltd. This article first appeared in the September 2009 edition of BENEFITS CANADA magazine.