Older Workers At Risk of Withdrawing from the Labour Force or Becoming Unemployed: Employers' views on how to retain and attract older workers

Suggestions for Action

From June to October 2012, the National Seniors Council held consultations with employers and selected leaders of networks of employers. The consultations were held in person, via teleconference or through an online consultation. In these consultations the Council heard employers’ views and opinions of at-risk older workers (see Annex B for a list of employers consulted and Annex D for demographic and sector information about the employers consulted).

On October 19, 2012, the Chair of the Council, Mr. Jean-Guy Soulière, led a preliminary validation session during a workshop at the Canadian Association on Gerontology’s 41st Annual Scientific and Educational Meeting. Participants, academics and experts in health care and gerontology, were presented with a brief overview of what the Council had heard during the consultations.

To conclude the consultation process the Council held a national roundtable on December 7, 2012. The national roundtable brought together key academics, experts, and key employers (see Annex C for a list of participants) with the purpose of discussing the priorities from a national perspective and identifying any information gaps apparent from the findings from the consultations.

From the information collected during this consultation process, the Council developed the following suggestions for federal government action.Footnote 49 

Employers’ Perspective on the Labour Force Participation of At-Risk Older Workers

The aging workforce and labour force participation of older workers was an important issue of interest and concern for most employers and for all sector and network leaders consulted by NSC members.

Although the Council heard that the needs and forecasted labour and skills shortages differ according to geographic location and industry, the majority of employers and leaders mentioned the importance of encouraging labour force participation in light of upcoming, and in some cases existing, labour shortages, brought on by the departure of baby boomer workers.

Some employers noted that one of the ways to fill foreseeable labour shortages was by implementing programs and policies that targeted the involvement of older workers and key populations of older workers such as those who have a disability, older Aboriginal workers, and older immigrant workers. However, in general, employers were not ready to discuss how they were planning to address this reality. Indeed, most of the employers consulted did not have specific programs or policies targeted to engaging and retaining older workers nor had they developed specific initiatives to support older workers considered at risk.

When asked what they were doing to recruit older workers, the majority of employers stated that current hiring practices focused on attracting people with the right skills, abilities and fit with the corporate culture; not on factors such as age. Furthermore, while the focus of the consultation was on at-risk older workers, many employers did not provide views specific to this key population group. Most recommendations reflected policies and government action that could benefit all older workers, regardless of their specific needs. Employers reiterated that what benefits all older workers will benefit those most at-risk.

The consultations also revealed that the size of operations as well as geographical location or scope of business have a direct impact on the capacity of an organization to recruit and retain older workers. The Council heard from most employers representing medium and large-sized businesses that they offered extensive benefit plans and compensation programs and were more likely to have developed innovative human resource strategies. Even so, few of these employers had programs specific to accommodating older workers, and even less had programs targeting at-risk older workers. Employers representing smaller businesses or organizations with low-skilled workers or physically-demanding work were the most vocal in sharing their struggles to address the needs of older workers, particularly in providing opportunities to transfer employees who have been injured or are living with disabilities into more accommodating positions.

Nevertheless, there are some employers making special efforts to recruit older workers. For example, a Canadian retailer of hardware, home improvement and gardening products, has chosen to position itself clearly as a company favourable to hiring older workers by offering flexible working conditions. For example, this employer offers some of its full-time employees the opportunity to be part of a “32-hs per week” program that reduces their hours of work by 20 percent without affecting their pension.Footnote 50

An energy infrastructure company is another employer that has a number of programs that support the recruitment and retention of older workers. For example, this organization has created a Retiree Resource Pool that is made up of retired employees who may be contacted and asked to return to assist with projects on an as-needed basis. This program not only provides employment opportunities for retired employees, it also enables the company to continue to benefit from the experience and knowledge of these retirees.

One final employer to highlight is a not–for–profit provider of health, housing and community services for seniors and persons with disabilities. Recognizing the value that experienced older workers can bring to their organization; this health care provider has implemented a mentoring program that offers older experienced employees with the opportunity and training needed to mentor less experienced staff.

These employers, and a number of others, explained that they supported the recruitment and retention of older workers because they recognize the value that mature employees can add to their company’s day-to-day operations, service delivery, overall corporate culture and bottom line.

The Council heard that employers value older workers for their:

• Flexibility in scheduling;
• Passion for the work;
• Proven ability to work with others;
• Reliability;
• Strong judgement skills, particularly in difficult situations;
• Strong work ethic;
• Trainability for front line positions; and
• Unparalleled knowledge and skills.

The general consensus from these consultations was the need to support the labour force participation of older worker, including at-risk groups of mature workers. This finding was used as a guiding principle in the development of the suggestions for action that follow.

A Workforce Aging Strategy

As mentioned in the last NSC report, countries, such as Australia, and some provinces, such as Alberta, have taken significant steps to devise a comprehensive and coordinated action plan to help mature workers stay in the labour market.Footnote 51 

The Government of Canada’s development and adoption of a national workforce aging strategy would help employers to engage and retain older workers, including at-risk groups of older workers, which in turn would help sustain labour force growth and support the Canadian economy.

1. Raising Awareness of and Recognizing the Value and Benefits of Encouraging the Active Participation of Older Workers

With the presence of up to five different generations of workers within today’s workplace, ageismFootnote 52  and potential or perceived intergenerational conflicts within the labour force are key concerns for a majority of employers. Negative stereotypes about older workers, ageism and intergenerational conflict in the workplace and in society at large most often goes unrecognized and unaddressed, however, it can have serious repercussions for seniors and older workers participation in the workforce. For example, according to the 2008 Survey of Older Workers, 15 percent of older displaced workers indicated that their largest barrier to re-employment was an “age barrier”.Footnote 53  Furthermore a 2012 national survey found that one-in-five (20 percent) of seniors aged 66 years and older experienced age discrimination from an employer.Footnote 54 

Participants of the validation session held during a workshop at the Canadian Association on Gerontology’s (CAG) 41st Annual Scientific and Educational Meeting commented that, in their opinion, many older workers felt overlooked by employers or were not privy to the same opportunities younger workers were getting. For example, training was more likely to be provided to younger employees as they were seen as a better investment given they were more likely to work longer for the organization than an older worker. This kind of treatment was a deterrent for older workers to stay engaged.

These participants also noted that older workers need to feel engaged in their work. Older workers want to feel that they are significantly contributing to the organization and that their involvement is valued. If an older worker loses that feeling of engagement in their work, they will subsequently lose interest in their job and may choose to withdraw from the workforce given their option to retire.

Participants of the national roundtable also noted that the issues facing older workers are often a by-product of myths and misconceptions.

To address the issue of ageism in the workplace, consulted employers and network representatives, as well as the participants of the CAG validation session and national roundtable, recommended that the federal government lead an awareness campaign to highlight the value of older workers.

It was suggested that an awareness campaign could inform and educate employers of the value and benefits of engaging and retaining older workers, highlighting the unique skills and experience they bring to the workplace, their trainability, and the economic benefits associated with keeping them involved. A campaign could also help to promote the involvement of older workers from all walks of life, and potentially serve as a recruitment mechanism for encouraging at-risk older workers to re-enter the workforce. Furthermore, it could help to dispel myths still associated with this generation of mature employees.

The Campaign could be modeled on the Federal Elder Abuse InitiativeFootnote 55 , the work led by the Positive Images of Aging working groupFootnote 56  of the Forum of Federal/Provincial/Territorial Ministers Responsible for Seniors, as well as the anti-ageism campaign currently led by the Association québécoise de gerontology.Footnote 57 

According to network leaders and employers, a key component of this awareness campaign would be to communicate a clear and consistent message to a wide and diverse audience including: post-secondary programs focusing on human resources and business administration, federal, provincial and territorial employer outreach initiatives, social media, as well as traditional channels and media.

It was also recommended that the federal government work closely with provinces and territories, established networks of employers, employers and key experts and stakeholders to lead a campaign.

The participants of the national roundtable also recommended that the awareness efforts should focus on intergenerational relations, including the development of training and workshop opportunities that foster collaboration between younger (newer) and older (experienced) employees.

This recommendation is consistent with the findings from past Human Resources and Skills Development Canada (HRSDC) reports on older workers. For example, in theHRSDC Consultations with Older Workers and Employers: Summary of What We Heard(2011), the older workers and employers consulted identified the need to raise awareness of the strategic importance of retaining mature workers and to foster a general change in attitude towards older employees (and aging) in workplaces, and in society more generally. They recommended doing so by implementing a public awareness campaign that both promotes the strategic value of retaining, investing in, and more readily hiring older workers and raises older workers’ awareness of their own potential and of the opportunities available to them.

Another means to bring awareness to the value of recruiting and retaining older workers is to publicly recognize employers who accommodate older workers, such as employees with significant caregiving responsibilities. Bringing positive attention to these exemplary employers may also help to encourage more employers to better accommodate this growing population of employees.

2. Building on the Successes of Federal Programs and Initiatives

Employers suggested looking into ways of adjusting or expanding existing federal supports to better support older workers, including those at risk of withdrawing from the workforce or becoming unemployed.

For many at-risk older workers, a lack of access to information about employment opportunities that offer them the accommodations needed to actively participate is seen as a barrier. Seniors need to have access to appropriate tools in order to seek meaningful employment matched to their skill sets.

Employers also noted that older workers contemplate retirement when retraining may be an alternative option for them. Retraining initiatives provide older workers with the opportunity to update their skills to remain productive and develop the knowledge and competencies that can be applied to a new job. The Council heard from employers that their intent is to offer training and retraining programs, however, they would appreciate support from the federal government to do so.

In recent years, the Government has developed a number of initiatives focused on such activities as job matching and skills upgrading that successfully support the active involvement of older workers and seniors, including those at greatest risk of exiting the workforce. These include the ThirdQuarterFootnote 58  and Targeted Initiative for Older WorkersFootnote 59  (TIOW) programs, which are scheduled to sunset in March 2013 and March 2014 respectively.

There are a number of other Government of Canada job bank and job placement initiatives that exist that may not specifically target older workers and seniors, but could be a great vehicle to engage mature Canadians, and in particular those who are at greater risk of exiting the labour force. For example, Working in Canada is the Government of Canada's leading source for jobs and labour market information. It offers users free occupational and career information such as job opportunities, educational requirements, main duties, wage rates and salaries, current employment trends, and outlooks. Another interesting federal government resource is the Office of Disability Issues’ Accessibility Resource Centre. It is a one-stop website that contains useful tools to help improve accessibility, including resources to help employers accommodate persons with a disability in the workplace. Efforts need to be made to ensure that these initiatives are “older worker friendly” and consider the specific needs of older workers at risk of withdrawing from the labour force.

3. Engaging Employers in Planning for the Aging Workforce

The federal government and a number of governments, businesses and community organizations have developed tools and resources to support the labour force participation of older workers.

However, employers and human resource professionals continue to identify access to this information as a key challenge. This is particularly true for employers representing smaller businesses or organizations who have fewer resources (financial, human, and corporate) than larger operations and therefore find it more challenging to develop mechanisms to support older workers, particularly those who became injured or aged into a disability or chronic illness.

Participants of the national roundtable highlighted the importance of educating employers by sharing best/promising practices. Employers also suggested that the federal government create and promote access to a centralized repository of sample practices, research and tools to support the active participation of older workers in the labour force that would be accessible to employers.

The need to provide easy access to information for employers was further highlighted by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities in its December 2012 Report on Labour and Skills Shortages in Canada: Addressing Current and Future Challenges.Footnote 65  One of the key recommendations made by the Parliamentary Committee was: “that the Government of Canada raise awareness about promising best practices to retain mature workers in the workforce including mentorship programs, flexible work arrangements (e.g. telework and reduced work hours), and flexibility through changes in the pension system.” Footnote 66 

The Council also heard about the challenges that employers face in trying to recruit and retain older workers, many of which are influenced by third party policies or legislation.

Most employers noted that their current benefits plans were limiting the support they could offer older workers. For example, many mentioned that the coverage of long term disability benefits ended at age 65, making it difficult to accommodate older workers who may have chronic health issues and require long term health/disability benefits.

Some provincially-based employers identified current provincial legislation as barriers to recruiting employees who had retired. In some provinces, legislation still restricts “double‑dipping” therefore not allowing employees to receive pension benefits and also be paid a salary.

Employers also mentioned that collective agreements can make it difficult to accommodate older workers. For example, a couple of employers mentioned that because of collective agreements with age-restriction clauses or health benefit limitations, they are often unable to retain or rehire their older workers.

Determining ways to facilitate the continued participation of older workers at-risk of withdrawing from the labour force or becoming unemployed because of particular barriers and challenges is best accomplished through the collaboration of all levels of government, employers, and key partners including professional networks and associations, labour unions, human resources specialists, and benefits providers, among others.