Tuesday, October 14, 2008

Is Your Business Ready for Retirees?

The “baby boomer” population is growing, but are businesses taking this into account when planning for the future? According to a recent study conducted by The Human Resources Professionals Association (HRPA), most don’t, despite that fact that 20% or more will face employee retirement within the next five years.

Of the remaining companies in the study, 15 per cent say up to 30 per cent of their workforce will retire in five years; and 8 per cent expect up to 40 per cent will hit retirement age. Despite this knowledge, 23 per cent of companies admit to being “poorly prepared”, while 60 per cent feel they’re “somewhat prepared”. Those that are somewhat prepared may have bought themselves more time as Canadian’s stomach an economic meltdown that has seen Canadian stocks drop 30.6% since January 1st. Those that thought they were retiring may be working for another few years in hope of their investment portfolios recover.

Statistics Canada reports that 15 per cent of Canadians are now 55 and older; and, for the first time, half are over the age of 40. In less than 10 years, one in five people in the workforce will be between 55 and 64.

What’s more, the study refers to a pending “talent shortage” that will leave companies looking for worthwhile staff.

How are you prepared to handle retiree-fever and talent shortages?

In all, 627 HR professionals were surveyed for the study.

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