For decades, baby boomers fueled Canada’s economic and corporate growth. But now, the generation is leaving the workforce—in droves. As they retire, what could follow is an economic slowdown, strains on healthcare and pension plans and a shrinkage in the labour force, experts say. To counteract these effects, Canadian employers need to find a way to retain their aging employees.
Back in 2015, an estimated 250,000 baby boomers retired each year. Over the next few years, retirement rates for the age group will nearly double, reaching 400,000 annually, as reported by the Globe and Mail. To hold on to older workers, Farell argues flexibility will be key. Companies need to consider offering flexible hours and part-time work to their senior employees. “The theme of workplace flexibility is only going to grow in significance and power across generations,” he said.
Parisa Mahboubi, senior policy analyst with the C.D. Howe Institute, says training and recruitment programs will help equip the post-boomer generations with the skills needed to be as successful as their labour force predecessors. These training programs also allow senior employees to upgrade their skills and stay relevant. Mahboubi warns most employers haven’t yet provided these resources in way that leads to a “meaningful impact.
Still, as employers plan to counteract these risks, they should bank on having some seniors sticking around. “The notion that you would go to school, work hard for 30 years, then retire just doesn’t exist anymore,” said Farrell.
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