Faced with labor shortages that border on critical in some parts of the country, Canadian employers are moving quickly to increase flexible work programs ranging from phased retirement to compressed workweeks.

Hewitt’s extensive survey of more than 230 leading Canadian employers revealed that three-quarters of organizations are having problems attracting and retaining employees. The situation is most acute in the province of Alberta, whose booming economy is driving an unprecedented labor shortage, which affects 97% of employers. And with half of employees of these companies being 40 or older, the problem is only expected to worsen, especially if many of these employees take early retirement.

“The good news is that HR professionals across Canada are looking at new ways to adapt workplace policies and practices to appeal to workers in this extremely tight talent market,” says Cathy Course, a benefits consultant in Hewitt’s Calgary office. More than half of the companies in the survey believe that flexible hours and benefits will have the most positive impact on attracting and retaining a strong employee base.

To combat a drain of mature workers, nearly 55% of the organizations are planning to offer formal phased retirement programs by 2009. These programs allow older employees to work fewer hours per week as they approach retirement. “Organizations are realizing the need to entice older workers to stay on the job,” says John Tompkins, of Hewitt’s Toronto office. “Employers who can meet the different needs of their employees will be most successful in staving off labor shortages.”

Course recommends that companies take a disciplined approach to deciding what change to make in their workforce programs. “Employers should balance their need to have the right talent with the reality of their financial situation. A good process starts with an audit of an organization’s current talent pool and assessment of future workforce needs.”

 Back to Top