While some organizations are looking to recruit younger employees to compensate for the impending mass retirement of baby boomers, Canadian CEOs are taking a different approach.
According to a recent PwC report, 60% of Canadian CEOs plan to increase recruitment and retention efforts of older employees, compared to just 42% of CEOs globally.
This is due, in part, to the challenges that organizations have with keeping people under 30. Seventy-five percent of Canadian CEOs expect challenges in recruiting and integrating younger workers into their business, compared to just 54% of their global counterparts. Despite this, less than 40% of those surveyed are planning to change the incentives they offer to younger workers.
“In terms of attracting and holding onto the new generation of workers, companies haven’t quite figured it out yet. As a result, they are focusing on the talent they know best—older workers,” says Ellen Corkery-Dooher, national people and change leader with PwC. “At the same time, there is a growing thirst among older workers to either stay on or opt for a career change rather than retiring.”
Shortage of talent expected
It might be easier for organizations to hire older workers with more experience but this practice, if not counterbalanced with retention of younger workers, is expected to be problematic in the long term.
The report found 83% of Canadian CEOs expect that over the next three years, there will be limited supply of skilled candidates in the talent pool, compared to 66% globally. A majority (65%) of Canadian CEOs are worried that competition will lure away their top talent.
Another 58% expect to face challenges with technically skilled talent who lack flexibility and creativity in the next three years—areas that traditionally are led by younger generation workers.
“Younger employees play a big part in infusing creativity and ingenuity into an organization,” says Corkery-Dooher. “CEOs will need to tailor recruitment, rewards and performance programs so that they are not only aligned with the business strategy, but also to the differing characteristics of their workforce.”