Canada'a Ageing Workforce

While today’s workplace is unique in that it is
represented by five generations of workers, research indicates that in 2011,
42.4% of the working-age population in Canada was 45—64 years old and that
employees over the age of 55 will comprise 18—20% of the workforce in 2021.

While this ageing workforce presents several
challenges to employers, there are also certain benefits that come with having
older workers in the workplace.

Advantages of Older Workers

Older workers have Institutional knowledge and corporate
memory. As a result, they know “how things work” and “how to get things done”.
Other advantages include the fact that older workers:

•       are more stable and more likely to stay
on with the same employer;

•       are conscientious;

•       require less supervision;

•       produce a higher quality of work, because
they know the job well; and

•       have a good work ethic

 

Challenges
of an Ageing Workforce

•       Increased wages – generally older
workers have more seniority and get higher salaries than newer, younger
workers.

•       Age related physical and mental decline
– as employees age they are likely to have more health issues.

•       Tension between older workers and
younger workers.

•       Performance issues related to new ways
of doing things and a reluctance on the part of older workers to accept change.

•       Discomfort with new technologies.

•       Reluctance on the part of employers to
train older workers.

Key
Issues

In addition to the challenges described above, some of
the key issues that employers need to think about in the context of the ageing
workforce, relate to:

•       human rights and accommodation

•       benefits

•       severance

•       succession planning

•       retention

 

Human Rights

While many employers are reluctant to hire older
workers because of the increased costs of benefits and wages, employers
must be careful not to
discriminate against older workers when they are making decisions around hiring,
promoting, or terminating employees.

This does not mean that an employer can never
terminate an older worker, or that an employer must always hire, or promote, an
older worker over a younger worker. It does mean, however, that an employer
must be able to defend its decision, if the decision is challenged.

With the elimination of mandatory retirement in BC on January 1, 2008, requiring an employee to retire when he/she
reaches a certain age, would also amount to discrimination except in certain
limited situations, for example, if the employee is working in a safety
sensitive position.