As if dealing with a global labour shortage isn’t challenging enough for HR departments, a recent survey by Manpower across 25 countries revealed that only 21 percent of companies have adjusted their human resource retention strategies to keep their senior employees participating in the workforce.
Over 28,000 companies were surveyed, and the vast majority are not prepared to reduce
the impact from the inevitable loss of their most valuable capital – human capital. Human capital is the term that refers to more than just the number of employees/volunteers; it includes their experience and knowledge developed on the job that increases their productivity and effectiveness.
As baby boomers prepare to retire, companies must consider how they can meet needs of their aging workforce to entice them to stay to share knowledge that can help develop new managers and new recruits. The expected loss of talent could cripple companies if they don’t begin to adjust retention strategies now.
Sharon Birkman-Fink, President and CEO of Birkman International, speaks to the challenges facing organizations that benefit from knowledge, skills and information held by their senior employees. The question is, how can you keep them interested in staying to train and develop younger or newer employees?
In an article posted on their website, she says, “Since senior employees are not enticed solely by money, using personality assessment and progressive retention strategies are part of a successful formula for retaining skilled talents which might otherwise be lost to retirement."
"And, given the demographics of the retiring baby boomers, the loss of this talent pool will put companies at a competitive disadvantage. By the time many businesses wake up to this loss, it may be too late.”
The report outlines how several industries, including oil and gas production, healthcare and the public sector, are already feeling the effects of baby boomer retirements. In a booming economy with a tight labour market, companies must consider how they can adjust to meet the personal interests, work styles, job preferences and communication styles of older workers.
Urban Aboriginal Youth - the next hot commodity in human capital?
This increasing labour market pressure may force companies to find ways to better connect existing employees to the fastest growing demographic in Canada...Urban Aboriginal Youth. A brief article on the Statistics Canada website called,
" National Aboriginal Day... by the numbers, "outlines demographic information from the 2001 Census that cannot be ignored by the private and public sector. Whether you're a recruiter, product developer or manager, the next hot commodity you might need to target is Urban Aboriginal Youth. Statistics show in 2001:
∞ Urban Aboriginal Youth are the fastest growing and youngest population group in Canada
∞ Nearly 7 in 10 Aboriginal people now live off reserve
∞ The median age of Aboriginal people is only 23.5 years old, compared to almost 38 years old for non-Aboriginal Canadians
∞ Census data for 1996 show that 34% of Aboriginal people aged 25 to 44 living in off-reserve areas had completed post-secondary studies. By 2001, this figure had risen to 39% - substantially closer to the total Canadian population of 55%. (See article,
http://www42.statcan.ca/smr08/smr08_007_e.htm at StatsCan website)
Facilitating connections to this growing younger yet diverse population and developing new relationships in an era where Aboriginal issues and opportunities are in an international spotlight will provide for interesting times for HR teams. "Workers approaching retirement are simply looking for different things than younger ones, and sometimes a different position within the same industry or company may be attractive enough to keep them engaged and productive, Birkman-Fink continues,”if the hours are right, and they are enthusiastic about the work... "
To read the rest of the release, called
Companies May Lose Older Workers with Shortsighted Policies, and learn more about the report, visit the Birkman International website at
http://www.birkman.com/news/news_OlderWorkers.php
RedWAY BC News asks you...What are YOU doing to retain the knowledge of your senior employees? What will you do to prepare for the baby boom retirement wave? Are YOU actively recruiting and connecting to the fastest growing demographic in Canada - Urban Aboriginal Youth? Email spiritlinking(at)shaw.ca to be included in a follow-up article.
