Looking Past the Myths

The idea that older workers are biding their time until retirement is a myth, according to a report published by Human Resources and Skills Development Canada (HRSDC). Meanwhile, a major survey conducted in the United States shows that a whopping 34 percent of Americans say they may never retire. Equally significant numbers of Canadians also indicate they plan to continue working, either full- or part-time, past the traditional retirement age.

A recent survey of the American workforce says those over age 55 have "the most passion" for work. The New Employer/Employee Equation Survey conducted by Harris Interactive Inc. reports that "inspired mature workers" are the most engaged and willing to put forward extra effort in their jobs. Younger workers, on the other hand, are more dissatisfied with their careers and looking for a change, while 'mid-career' employees are "working more and enjoying it less."

Mature workers 55 and older are more likely to say their organization inspires the best in them by a margin of 43 to 28 percent over younger workers, according to the survey of 7,718 American workers. The poll was conducted for Age Wave, an independent think tank, and The Concours Group, a global consultancy to senior executives.

It says employees 55 years of age and older are by far the most satisfied and engaged segment of the workforce. They are "inspired and passionate about their work. Mature workers want to work, but on their terms and not in place-holder jobs," it adds.

Companies must wake up to the fact their young workers are the most dissatisfied and least engaged today, says Tamara Erickson, executive officer of The Concours Group. "At the same time, workers approaching retirement are the most energetic, focused and loyal," she says. "The question companies need to answer as we approach a skilled labour shortage is 'how do we better engage the younger workers, while retaining the older workers, or at least postponing their retirement?'"

According to 2003 Statistics Canada figures, almost one-third of Canadians between the ages of 45 and 59 said either they did not know when they plan to retire or they did not intend to retire ever. The majority fell into the latter category.

In its report, Overview of the Aging Workforce Challenges, HRSDC says a persistent myth is that older workers are less productive. The reality is that "there is no significant overall difference between the job performance of older and younger workers." In almost every study, it says, variations within an age group far exceed the average differences in productivity between younger and older employees.

It also puts to rest the belief that older employees will retire before the investment in their training pays off. In fact, the term for return on investment in training is getting shorter. Workers of any age need to upgrade their skills on an ongoing basis in order to be productive in the rapidly-changing knowledge economy. "Skills and knowledge become obsolete faster if they are not upgraded regularly," the report says.

Another fallacy is that older employees are unwilling or unable to adapt to new technologies. But the report explains more senior people generally recognize the need for continuous learning and keep pace with their younger counterparts. Older Canadians also have the same personal and financial motivation as younger people for wanting to continue working, the report says, adding that late-career or experienced employees are less subject to work-related accidents.

It acknowledges that age discrimination still exists among many Canadian places of employment. Over one-third of human resource managers and those responsible for hiring indicated there was an age they considered "too old." One survey conducted in the 1990s suggested that age limits imposed by some recruiters varied from as young as 35 years up to 70.

The federal government report lists several recommendations to overcome bias against hiring mature employees: