The CEO Poll: The looming labour shortage
Joe Castaldo
Canadian Business Online
January 17, 2008
Companies will be left struggling to find skilled workers when baby boomers start retiring, and that will be soon, with the first wave of them hitting 65 in 2011. Statistics Canada estimates the participation rate (the proportion of the population over 15 actively working) is set to fall to 58% in 2031 from 67% in 2005, proving why it’s important for companies to retain experienced workers for as long as possible. In a web survey conducted by COMPAS Inc., Canadian CEOs provide some advice about how to do that.
The 158 respondents believe the experience and knowledge of older workers is necessary for a company, and that they have a significant role to play in mentoring younger employees. “It is rather sad to see major companies screw themselves in their efforts to cut costs by eliminating knowledgeable and dedicated staff,” wrote one respondent. However, CEOs were split on whether the higher salaries and benefits provided to older workers could actually be harmful to companies. “The problems we see are long holiday entitlement, insurance costs and huge severance costs, if needed,” wrote one.
But for the majority of respondents who do want to retain older workers, the belief is that money isn’t necessarily what workers want. The respondents felt that other factors — allowing for custom schedules, ensuring work is perceived as meaningful, and simply showing senior executives and managers respect — would be more effective than offering older workers a bonus to stay. One respondent rejected the notion of offering any incentives at all: “No inducements are required because being allowed to stay is the inducement.”
Retaining older workers is only a temporary measure against the impending talent shortage, however, and one respondent said such strategies are only useful to a degree. “The reality of any such program must be that these people are communicators and will not stand in the way of advancement for the younger ones,” wrote the CEO. Despite the concerns over generational conflict that are often brought up when discussing the shifting demographics of the workplace, the majority of respondents disagreed with the notion that bringing in new blood causes difficulties. “The key is balance,” wrote one business leader. “There is a need to maintain corporate memory and experience, and at the same time enable the transition to the younger generation.
These are the key findings from the current web-survey of the panel of CEOs and business leaders undertaken for Canadian Business under sponsorship of BDO Dunwoody LLP.
To view complete results and additional polls, please click here.
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