Canadian Employment Law Today

CAse iN PoiNt: Accommodation 4 Canadian HR Reporter, a Thomson Reuters business 2014 MANDATORY RETIREMENT has pretty much been abolished in all Canadian jurisdictions, which means employees can essentially remain on the job for as long as they want. If the job isn't getting done, employers have to be careful not to be seen as using age as a factor in termination — in fact, they may fi nd they have to accommodate workers due to their age. Accommodation is just one thing that employers may fi nd a necessity, as not only are workers free from being forced out at age 65, but a greater proportion of workers — along with the population as a whole — is older, thanks to the greying of the baby boom generation. Some employers might be preparing themselves for this new demographic reality, but others still have some work to do. BACKGROUND Preparing for the aging workforce No mandatory retirement and an aging population means employers must adapt to having older workers By LaUra WiLLiaMS MOsT CAnAdIAn organizations are woefully unprepared for an upcoming shift in workplace demographics. Specifi - cally, that is the bulge of baby boomers set to change workplace dynamics before sparking an eventual labour shortage, not to mention a knowledge and skills gap, as this greying cohort eventually exits the workforce. Why? Some sources have estimated that more than 40 per cent of the Cana- dian workforce is currently comprised of baby boomers — individuals born be- tween 1946 and 1964 — the fi rst wave of which has just recently reached retire- ment age. According to Statistics Can- ada, one in three Canadians older than age 55 was still working in 2010. By 2021, nearly one in four workers will be aged 55 or older. Unlike their parents, the boomers are taking a diff erent approach to their gold- en years for varying reasons — the most signifi cant being the outlawing of manda- tory retirement across virtually all Cana- dian jurisdictions, unless there is a bona fi de occupational reason for requiring an exit based on age. With no mandatory re- tirement dictating the end of the employ- ment relationship, many older employees are working (and will work much longer) than their parents, with statistics show- ing that about 44 per cent will re-enter the labour market within 10 years of re- tirement. Some will decide to work lon- ger or return to work simply due to bore- dom — today's retirees are living longer, enjoy better healthcare and are more ac- tive than their forebears, and many prefer to keep participating in the workforce to maintain a sense of contribution, pur- pose, connection and camaraderie with their peers. Others will work longer or return to the workforce because they have no choice. According to a 2013 global retirement survey by London-based bank HSBC, 55 per cent of those at or near retirement age revealed that their fi nancial prepara- tions were inadequate, while 23 per cent said they were completely fi nancially unprepared for retirement. HSBC esti- mates that retirees need approximately 81 per cent of their current income to live comfortably during retirement. Still, the survey found that one in six people (17 per cent) who are not yet fully retired will never have adequate savings to stop working in their golden years. is demographic wave of older work- ers will have profound eff ects on organi- zations of all sizes and across industries. Employers will be forced to manage sev- eral key challenges related to an aging workforce, including overcoming ageist stereotypes that can create exposures to human rights and constructive dis- missal allegations; managing the transi- tion of older workers from employment to voluntary retirement; understanding that development, talent management and succession planning are critical; and managing the issues that exist within multigenerational workplace environ- ments. en, when the boomers eventu- ally do leave the workforce, organizations will need to overcome an acute labour shortage and a skills and knowledge gap as they seek to maintain business conti- nuity. Unlike most HR challenges, overcom- ing the issues that these demographic ob- stacles present cannot be avoided. at said, employers can turn the issues and potential liabilities related to a workplace full of aging employees to their advantage — and even make their organizations more effi cient, innovative, productive and profi table than ever. While they will have to overcome several key hurdles, a strategic and proactive approach to HR law and policy design can turn this de- mographic dilemma into opportunity. Here are three best practices for manag- ing through aging workforce issues: Beware of ageist assumptions. A ma- jor challenge for many employers when dealing with new demographic realities is learning how to properly performance- manage older workers. When older workers face challenges in performing their responsibilities, many employers assume that it is due to their age. What they often overlook is the fact that the older worker may be disengaging from the workplace because their value and institutional knowledge is being under- recognized in favour of the newer gen- erations in the workplace, which may be viewed as bringing new and current skills. at could be the case, particularly for roles that have physical requirements which older workers — who may be "slowing down" — are unable to perform as they had in earlier years. However, employers have to be careful to manage the performance of every employee in the same way. is includes approaching requests for accommodation of disabili- ties consistently across the workplace, regardless of the employee's age. Employ- Today's retirees are living longer, enjoy better healthcare and are more active than their forebears, and many prefer to keep participating in the workforce to maintain a sense of contribution, purpose, connection and camaraderie.

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