Archive for the 'Workplace' Category

A Crystal Ball for the Workplace

Lina Ko April 12th, 2010

According to the Conference Board of Canada which has just released its two-year study on Navigating Through the Storm: Leaders and the World of Work in 2020, there are 10 major changes in our workplace that leaders need to understand from now. At least four of these changes are linked with baby boomers:

- Boomers won’t leave.
Once again, the misconception and the panic that the majority of boomers are going into retirement is a myth. Aging boomers will stay on the payroll either because they cannot afford to retire or because changes in government regulations will make retirement less attractive.

- Generations will mix.
The ‘perceived’ rift among generations will have to be narrowed. Because boomers are staying for a long time in the workplace, ‘generational mixing’ will be the norm. Instead of one generation succeeding another, boomers, Gen Xers and GenYers will share space, ideas, incomes and job titles.

- Contingent workers will become important.
More part-time, seasonal and contract workers will help companies adjust in advance to accommodate quick changes in the type and amount of work that needs to be done. This could translate into partially-retired boomers being integrated back into the workplace on a part-time basis, and wherever they like to work, instead of going into the office every day.

- The office will be where we say it is.
Work will be more and more detached from location. The evolution of technology will let boomers and others do a lot of productive work at a distance – at home, or Starbucks, or on a beach in Florida.

Looks like boomers will have no problem with maintaining their roles in the workplace 10 years from now!

How Should Firms Value Boomers?

Lina Ko March 8th, 2010

While most companies in North America are encouraging synergy among the various generations, a privately-held company in Watertown, Massachusetts, is showing the world that by valuing boomers, you can manage not only to survive throughout the Great Recession, but also thrive as well. According to the New York Times, Communispace started with only eight workers in 1999 offering online focus groups to blue-chip companies. Now, the company has 260 staff. Last year, at the height of the recession, 60 were hired.
 
There’s a place for boomers as well as other younger folks. While the President of the firm is 55 years old, and several of the eight pioneering members are boomers, the workplace is dominated by tech-savvy 20- and 30-somethings. There are 40 boomers, but there are also 25 who are under 25. Unlike most established companies where top layers of management are dominated by boomers, Communispace is different. Thirty-eight employees who are 40- or over report to someone younger. The company’s core jobs – the 104 community managers who oversee the online focus groups – start at $40,000 fresh from college, with the most experienced approaching six-figure salaries.
 
In the company’s early years, when the economy was strong, unemployment for boomers was under four percent and middle-aged people were less adept at social networking, hires skewed young. But this has changed. According to the President Diane Hessan, last year the company had 6,500 applicants for 60 positions. “We could hire 3,000 people in their 20s, but our clients don’t want to just understand younger people.” Jobs that were handled piecemeal, like proofreading, have required more experienced supervisors. Many boomers were subsequently hired for their seasoning and experience to get the growing firm to a new place.
 
When asked how younger supervisors oversee a team of older, more seasoned employees, a Gen-Xer said that the key is to recognize what everyone uniquely brings to the table, regardless of age. “We need to let boomers do their own thing,” she said. “Boomers need to be comfortable reporting to somebody much younger and we need to be comfortable working with a group of more experienced team members.”
 
Sounds like a recipe for success for other North American companies which are working on integrating boomers with other generations in the workplace.

Worker Deficit in Industry Sectors

Lina Ko August 6th, 2009

According to the National Post, sectors such as construction and mining are on the cusp of huge worker deficits and with the greying of Canada’s population, it’s just a matter of time before the problem spreads. Roughly 30 percent of the recent job losses have been in the construction sector during the global recession. Yet, this country’s Construction Sector Council said it will need 317,000 skilled workers between now and 2017. Of that number, 168,000 workers would be needed to replace retiring baby boomers.

The mining sector has said it will need 70,000 new workers over the next decade to meet projected growth needs. It is expected that 40 percent of the industry’s workforce will retire by 2014.

Studies abound about the impact of Canada’s ageing population. Yet, despite all the warnings, it appears Canadian employers haven’t done much to prepare. In a survey conducted by the Conference Board of Canada, more than three-quarters of organizations, or 77 percent, said the greying of the Canadian labour pool will be an issue for them. But the survey also indicated that just six percent are making efforts to hold on to mature workers.

The C.D. Howe Institute said higher compensation is likely to emerge once the economy recovers and more boomers start retiring. Policymakers are also aware of the coming population crunch. In May, the federal government announced changes to the Canadian Pension Plan that would encourage older workers to keep working until age 70 by paying out richer benefits.

According to a leading employment placement firm,  companies in the future are likely to focus much of their time on developing strategies that keep existing workers with the organization for longer periods. That likely requires tailoring work packages that allow more flexible work schedules and enhanced benefits that appeal to older workers. Some companies are trying not to cut jobs too much in this downturn because if the economy picks up again, they won’t have the workers and won’t be able to get them back.

As the population ages, the positions to remain hard to fill as the population ages are skilled trades, sales representatives, engineers, technicians, secretaries and administrative assistants, teachers, drivers, accounting and finance staff, labourers and nurses. Now is the time for employers to make long-term plans to keep their boomer employees.

No More Retirement?

Lina Ko July 6th, 2009

According to The Economist, when Otto von Bismarck introduced the first pension for workers over 70 in 1889, the life expectancy of a Prussian was 45.

Now retirement is for everyone, and often as long as whole lives once were. In Canada, the official pension age is 65, but the average Canadian retires at 61 even though there’s no more mandatory retirement age for many provinces. A retired Canadian at 61 can then expect to live for another 20 years. Average spending on public pensions across the Organization for Economic Co-Operation and Development is now the equivalent of more than seven per cent of gross domestic product. In some countries, the current figure could double by 2050, to say nothing of the cost of private pensions and extra spending on health and long-term care.

Whether we like it or not, we’re going back to the pre-Bismarckian world, where work had no formal stopping point. Life expectancy has been rising by two or three years for every 10 that pass, despite repeated forecasts that it was about to reach its limit. This imminent greying of society is compounded by two other demographic shifts. In most developed countries, women no longer have enough babies to keep up the numbers; and the huge baby boomer generation has begun to retire. In 1950 the OECD countries had seven people aged 20 years to 64 years for every one of 65 years and older. Now it is four to one – and on course to be two to one by 2050. That will upset the pay-as-you-go state pension schemes that provide the bulk of retirement income in developed countries. It has also been a worry in Canada that the ageing population will drain the CPP system.

So individuals, companies and governments in developed countries will have to adapt. Many employers remain prejudiced against older workers, but people past retirement age would not necessarily carry on the same jobs as before. In Japan, where pensions are scarce and lots of people are still working into their late 60s and even 70s, big companies like Hitachi have found ways of re-employing staff after retirement – but in a different capacity and, significantly, at lower pay.

Retailers in Britain and the U.S. have started hiring pensioners because their customers find them friendlier and more helpful. And skills shortages are already creating opportunities: in the past year or two, the lack of German engineers has caused companies to bring back older workers. Once labour forces start declining in about 2020, employers will no longer have much choice.

As for the older workers themselves, many of them seem keen enough to carry on beyond retirement. Many baby boomers say they never want to bow out altogether, though they would often prefer to put in shorter hours. Some are even willing to accept that pay can go down as well as up if they want to go on working. Two years ago when I blogged about allowing boomers to double-dip, one Millennial wrote me an angry response. But whether we like it or not, individuals, Corporate Canada and the government will all have to adapt for change.

Boomers Hunt for Jobs Via Social Networking

Lina Ko June 25th, 2009

A recent article in the Globe and Mail reported that job-seeking boomers are joining the ranks of social networkers to hunt for jobs. Until recently, social media such as Facebook were only places to connect with old friends or schoolmates. But when the economy took a nosedive, many boomers have been leveraging social media not just a place for online chatter, but as a crucial job-hunting tool.

Boomers feel that if they are not online, they might be overlooked – a frightening prospect to the middle boomers: the 50-plus crowd. Experts say that baby boomers are joining the ranks of social networkers faster than any other demographic. They are building professional profiles and as a result, many are finding jobs.  A January report from Forrester Research shows 60 percent of Americans over age 50 regularly use social media such as blogs, podcasts and online videos. While boomers know sites like LinkedIn are purely professional, they are often shocked to learn Twitter and Facebook can be useful on the job hunt.

According to some recruiters, being active on these social-networking sites can really give a boomer-aged job hunter an edge. Because most people assume boomers are not digital, any boomers who are well connected online will be perceived as progressive. One of the key attributes that somebody of that age can use to differentiate themselves is to demonstrate a comfort zone for using those tools and actually using them frequently.

Health is Wealth

Lina Ko April 21st, 2009

According to the Toronto Sun, forget a degree in business administration, finance or economics. And don’t bother with an MBA – at least for now.

If you want a job, health is wealth. A trend forecaster, Gerald Celente of the Trends Research Institute, predicted that with all the baby boomers going deaf, blind and out of their minds, they will need help.

According to a study by the U.S. Labor Department, 13 of the 20 fastest-growing occupations between 2004 and 2014 are related to health care. Canada is not far off either. Home health aides, medical assistants and physician assistants are in the top five. “The university system is very much geared to the 20th century, not the 21st century,” said Celente. “It’s been decades since a college degree served as an automatic passport to a good job.”

Among the top future jobs are: the health, nutrition and fitness fields – meeting spiritual, emotional or physical needs will provide employment opportunities at all levels, from services to products. The whole developing world is ageing and they are not in good shape overall – they are overweight, stressed out and addicted to prescription drugs. It looks like they are prime candidates for extensive care.

I don’t envy young students who are about to graduate from universities or colleges this year. The economy is still looking vulnerable and finding a permanent job is challenging. Jobs in education and health care seem to be good bets since they are recession-proof. When all else fails, start a business geared towards boomers, and you’re in the right direction!

Boomers A Difficult Audience To Enlist As Volunteers

Lina Ko February 4th, 2008

I read with interest the findings of an 18-month Ottawa pilot project that looked at new ways to engage baby boomer volunteers. The study was conducted by the Catholic Immigration Centre in Ottawa and included two focus groups and a survey of the members of Ottawa Lifelong Learning, a group of 55-plus volunteers, as well as a review of studies from all over the world.
 
While baby boomers make up almost a third of the Canadian population, older boomers who are possibly heading towards retirement and therefore in their prime volunteering years have been reluctant to sign up. And when they do, they want to know what’s in it for them.
 
According to the study, older boomers are more likely than previous generations to work part-time or into their retirement years. They have ageing parents and boomerang children to look after. They are not volunteering out of a sense of obligation, but because they like socializing.
 
For a boomer, the biggest inducement to volunteering is being asked by someone they know. One of the best places to recruit boomers to volunteer is at work. Boomers think of volunteerism as a transition out of work. Boomer volunteers also want immediate feedback. They appreciate it when celebrities and politicians come to volunteer appreciation events.
 
Agencies are going to have to change their ways and spend money to attract boomer volunteers. They should perhaps start with calling boomers ’seasoned professionals’ rather than ‘retirees’.

Canada’s Population Younger Than What We Thought

Lina Ko December 11th, 2007

Stats Canada has just released the latest on Canada’s ageing population. Yes, while our population continues to age, Canada is still one of the youngest of the world’s developed nations, according to these new preliminary estimates.

As of July 1, 2007, the population’s median age was estimated at 39 years. In 2002, it was 37.6 years. Nationally, 13.4 per cent of Canada’s population comprised seniors aged 65 and over, up from 12.7 per cent in 2002. At the other end of the age scale, the proportion of children aged 14 and under fell from 18.6 per cent to 17 per cent during this five-year period.

Even so, according to Stats Canada, our country is one of the youngest of the 30 developed countries that are members of the Organization for Economic Cooperation and Development (OECD). Canada’s proportion of seniors ranks in 22nd place, and it is still far behind Japan, which has the OECD’s oldest population. One-fifth of Japan’s population is aged 65 and over.

As of July 1, 2007, Canada had an estimated 4.4 million seniors, over 100,000 more than on July 1, 2006. However, between July 1, 2007 and July 1, 2008, nearly 300,000 people will turn 65 in Canada, the highest annual level on record. This number should increase for another 20 years, when people born during the peak of the baby-boom generation reach retirement age. At that time, more than half a million people will turn 65 each year. Regionally, Canada’s population is older east of Ontario whereas Alberta had the lowest media age among the provinces as well as the lowest proportion of seniors.

It will be interesting to see how the impact of the leading-edge boomers will be felt across the country in the next five years.

Generation Divide Even Over The Holidays

Lina Ko November 26th, 2007

According to a recent American Express survey, baby boomers are the bosses least likely to throw a Holiday party, dole out business or send a fruit basket.
 
The survey indicated that there are now four generations showing up at Christmas parties in workplaces. They all have their different attitudes and expectations and different ways they wish the party would happen. Either they don’t come to the party, or they come and complain.
 
It’s not just parties, according to the survey. Younger bosses are likely to consider bonuses this year. Older bosses, on the other hand, are less willing to give workers extra time off than their younger counterparts.

Even more disturbing, baby boomer business owners and manager stand out as miserly. Millenials – those born from 1980 on – have been described as the most self-centred of the four generations now in the workplace. Boomers are shown to be fed up in this survey – they are greying, they are in charge, and this Holiday, they choose to be cheap. I wonder why?

Young Workers to Replace Retiring Boomers

Lina Ko November 19th, 2007

I read with interest in The Record that my friend David Foot, the renowned demographer who wrote Boom Bust and Echo, said that there’s no looming labour shortage in Canada at a conference in Kitchener last week.
 
According to Foot, politicians and business representatives shouldn’t worry about a critical skills shortage as the country’s demographics don’t suggest it. He pointed out that the leading-edge boomers are leaving but the trailing-edge boomers aren’t going anywhere for at least 10 years. The trailing-edge boomers include work professionals in their 40s who are raising teenagers and paying off their mortgages.
 
Contrary to popular belief, Foot also pointed out that too much has been made of Canada’s declining birth rate. Experts seem to forget that the baby boom echo is having a profound impact on enrolment rates at universities. This means that there will be more than enough qualified professionals to pick up the slack as the leading-edge boomers retire in the coming years.
 
Whether there is a labour shortage or not in the next decade, it is important for Corporate Canada to start creating a formal process to pass on boomers’ knowledge to the younger generation of workers before they retire. Boomers’ knowledge needs to be tapped to prevent the loss of institutional know-how and expertise.

Next »