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.

Digital Divide in Canadian Internet Usage

A recent StatsCan survey discovered a digital divide in the use of the Internet across Canada: people who are younger, live in urban areas, make more money, and have more education, tend to use the Internet more often than those who are older, live in rural areas, make less money, and have less education. This isn't surprising: would you really have thought any different? But let's examine some of the potentially less-obvious reasons.

When it comes to living situation, it's possible that many of the people in rural areas simply don't have the option to use high-speed. 65% said they used the Internet vs. 76% of urban residents. Naturally, it isn't as enticing to use the 'net if it takes two-minutes to load every page versus a fraction of a second. It might also be linked to lifestyle: people who choose to live in rural areas often do so because they want to get away from the fast-paced life of the city. Part of the Internet's appeal is being able to access information quickly and when you want it. People don't tend to pore over stories on the 'net like they would a good book! Also, I'd argue that a large percentage of rural residents are older folks who, according to this survey, are also less likely to use the 'net (96% of 16-24 year olds vs. just 29% of those 65 and older).

What about income levels? Of those who made $95,000 or more, 91 per cent used the Internet; versus just 47% of those who made less than $24,000. One connection there might not be so obvious: it's not just about education level or interest. If you don't make as much money, you're less likely to indulge in frivolous expenses at home, like Internet usage.

As for education, 84% of those who have some post-secondary schooling use the 'net compared to 58% of those with less education. It's important to consider that the older generation wasn't exposed to computers at all, or not until they reached a higher level of education. So if they didn't go to college or university, they wouldn't have been exposed to the Internet at all, and thus never really caught on to the technology. This is especially so if the person now works in an environment where he doesn't directly use the Internet. My parents didn't learn about computers through school; but both had office jobs, and they picked up on the technology there. My uncle, however, who works as a car mechanic, was only ever exposed to the 'net when his grandson taught him how to use it.

Overall, the Statistics Canada study, which was conducted in October and November 2007, found that Internet usage rose across the board when compared to 2005, with BC, Alberta, and Ontario actually surpassing the national average of 73%.

So how do we increase usage rates going forward? Make the Internet more affordable and more accessible will help. New services like WiMAX will also make it easier to connect online from some rural areas.

In looking at the older generation, it would be beneficial for younger folks, whether friends, family members, or even sales associates, to take the time and explain the 'net to those who aren't familiar with it. Show them how easy it is to use. I recall years ago when my father would simply open up Internet Explorer, type in a search word into the address bar and then wonder why he was getting an error message. With the family's help, he's now a whiz at surfing online, sending e-mails, and even downloading music! Keep in mind that there will always be nay-sayers that want nothing to do with that dreaded "box" of a computer. But for those who want to learn, it's amazing what a little patience can do.

Work While Commuting, says Survey

If Canadians just worked through the commute to the office, we’d be one step closer to closing the supposed productivity gap between us and our neighbours to the south. This is according to a recent survey conducted by Decima Research on behalf of Intel of Canada.

The survey reports that Canadians spend, on average, 240 hours per year traveling to and from work. For those who travel via public transportation (approx. 12%), this time could be used to catch up on work. Of course this would require high-tech devices like notebook PCs, and mobile devices, which Intel says only 11 per cent of companies provide to their employees.

“It’s not about working longer,” says Intel of Canada’s Country Manager Doug Cooper, “It’s about Canadian commuters making better use of their time.”

Cooper says using commuting time or, better yet, adding work-from-home options to a business, will help reduce the need for employees to work overtime at the office. Twenty-six per cent of respondents said their employers have a work-from-home policy, compared to 40% of private sector companies; and 100% of public sector agencies in the U.S. The survey cites interesting Institute for Competitiveness and Prosperity data that says Americans work 164 more hours per year than Canadians. (Although, in all fairness, no definition was provided for the term “work”, so this could be subject to interpretation!).

The Institute also claims that closing the work gap between Canada and the U.S. could potentially lead to an increase of almost $12,000 in disposable income to an average household.
Perhaps such initiatives will also help boost Canada’s reputation with our own Conference Board (see related story).

Although I personally don’t commute to work via public transportation, I can’t imagine wanting to use a one-hour morning and afternoon trip home to log on to my PC and start penning an article; or write follow-up e-mails. Nor can I imagine working on a Toronto subway or crowded bus as an even remote possibility during the rush hours. This time is all-important un-wind time. But for those who struggle with extra-long commutes into the office, it’s a no-brainer that work-at-home schedules can only increase productivity rather than reduce it.

The results are based on a total of 4,292 surveys completed online between April 9 and May 31, 2007.

Photo: Toronto Mayor David Miller and Toronto Hydro Telecom President, David Dobbin.