Labour crunch looms
By Paula Trotter
Published: Red Deer Advocate, June 13, 2011
The workforce is greying, there's no denying that.
But how the aging population will impact the workplace is up for debate.
The oldest of the baby boomers are 65 this year and a growing number of people will hit this traditional age of retirement in the coming decades.
Trying to determine career trends of the future, however, can only be partially answered by the looming influx of retirement.
The other part of the equation is the declining national birth rate, which Statistics Canada noted has not significantly spiked since taking a drastic dip in the mid-1960s.
These two factors have led to one agreed upon conclusion: there will be a labour shortage.
Predominate shortfalls are expected in the fields of health care — physicians, nurses, psychologists, social workers, counsellors, pharmacists — agriculture, engineering and educational services, according to Alberta Employment and Immigration.
Not only will there be fewer people to fill positions left vacant by retired boomers, but there will be a greater need for workers to care for the increasing elderly population.
Immigration and recruitment programs that specifically target seniors are two solutions to avoid a dip in staffing levels, said Red Deer College business instructor Dave Inkster.
But finding ways to retain the younger, noncommittal generation entering the workforce is another imperative step, he added.
Inkster was careful not to generalize "millennials", explaining this is the most diverse population cohort as people born between 1978 and 1997 have been exposed to a much wider range of opinions and information than previous generations.
Still, he said this group is commonly less loyal to a single employer than boomers have been.
"Organizations have to be more conscious of the fact that they have to earn the commitment of the younger employee, it doesn't come naturally," Inkster said.
Businesses that show they value the input, feedback and suggestions of younger recruits will be in a better position to gain dedicated staff, he explained.
This generation's commitment issues partly stem from the desire to change careers and experts now say millennials may have up to 10 significantly different jobs in their lifetime.
Demographics at RDC reflect this trend as more mature students are returning to school, particularly enrolling in two-year programs, to gain the skills needed to switch careers, Inkster said.
"We are the result of the environment we grew up in," he explained. "If I'm exposed to things that are changing really, really rapidly, then my mind is likely to do that."
Millennials are also less committed to employers because jobs have become unstable over time, Inkster argued.
"We're looking at a group of people that have grown up in an environment where businesses essentially make less commitments to individuals than they did 50 or 60 years ago," he said, pointing to layoffs.
Organizations that "bend over backwards" to get the best people they can are likely to see more of a long-term work commitment from staff while businesses that treat employees only as a cost will suffer, he said.
Possible incentives to gain loyalty include flexible work schedules and telecommuting, as Inkster said both strike a balance between work and home.
Having more time to enjoy activities outside of work is a value commonly shared by millennials, said Krista Robson, a RDC sociology instructor.
This generation is also generalized as being more concerned with doing work that is meaningful to them than about money and rank.
These priorities are noticeable different from those of boomers (1946 to 1966) — workaholics who to tend to focus on financial recognition — and generation Xers (after the boomers until about 1982) — self-reliant workers who enjoy the freedom to do their tasks — Robson said.
Despite the differences in values, Robson does not believe businesses will have to drastically change to attract and keep the younger workforce.
"Workplaces have to be more fun, less rigid, less nine to five," she said, referring to commonly touted ways to cater to millennials. "It works for some, but it doesn't always work.
"What's traditional is what's the most productive, and that's what will survive economic recessions."
The economy is always fluctuating and needs to be even more competitive, she said.
"A more relaxed approach to work, it's called relaxing into productivity, many economists say that's not going to get us anywhere on the world economy. So young workers need to sort of come on board with the traditional relationship between effort and discipline and success."
She anticipates that millennials — a generation that, for the most part, hasn't yet had to worry about money as they're delaying post secondary education and leaving the family home later in life — will change their values once faced with the rising cost of living.
Robson, therefore, predicts the greatest workplace changes will not be a result of different generational values but instead from ever-evolving technology.