Three years ago, vancouver-based HSBC Bank Canada introduced some changes aimed at retaining its mature workers.

The bank was concerned that its employee base of about 6,000 across the country would be at risk of erosion as Canada’s baby boomers approached their 60s — and possible retirement. After all, 13.5% of the Canadian labour force is over the age of 55. This percentage will grow steadily as the boomers march into their 60s and beyond.

“We decided to address this before it became an issue,” Robin Davison, HSBC’s assistant vice president of human resources in Toronto, told the recent second annual Summit on the Mature Workforce. “We’re making it as attractive as possible for people to stay with us so we won’t lose them to retirement or to a competitor.”

Like HSBC, you may not be able to afford to lose your valuable mature employees or team members. Retaining them saves the cost, including business downtime, of training replacements. And these employees know your clients, their needs and their preferences. Your mature workers have excellent people skills. It will take newcomers a long time to gain their level of insight and experience.

You might also want to remind your 50-plus clients who need or want to work that opportunities are becoming available.

HSBC started making changes in October 2003, when it introduced its defined-contribution pension plan. This move was motivated by the widespread trend toward DC plans in the private sector, the need for portable pension plans and the need for transparency of employer-paid value and cost of benefits. Employees could choose between joining the DC plan or remaining in the defined-benefit plan.

“The DC plan was the first major step in our vision of sponsoring benefits and workplace practices that respect diversity by giving choice and flexibility,” Davison says. “With a DC plan, there is less focus on ‘early’ and ‘normal’ retirement. And the plan doesn’t encourage employees to leave at predetermined and arbitrary milestones — such as age 65 — the way DB plans do.”

The bank also introduced a slate of new workplace policies last month. Initially conceived to retain older workers, the measures are available to all employees. Employees now can have flexible work arrangements and schedules. For example, Davison works nine days out of a 10 business-day schedule, including working at home one of the nine days. And part-time work can taper gradually into full retirement.

As well, a new flexible benefits plan includes core life insurance and disability coverage for all employees. The bank provides credits, based on part-time or full-time status, and employees can choose health and/or dental coverage, put money into a health spending account or take some credits in cash. There’s also a benefits plan for retired employees, with credits based on length of service.

HSBC keeps in touch with former employees. A small number of retirees have been hired back, and the bank plans to introduce policies in 2007 to facilitate this process.

“Since the economic downturn around 2000, pension coverage has declined in many places, placing the burden of delivering adequate retirement income on the shoulders of families and individuals,” Leroy Stone, associate director general of Statistics Canada and adjunct professor of demography at the University of Montreal, told the summit. “Hence, the increased likelihood of working to an advanced age.”

The summit was organized by Barbara Jaworski, principal of Toronto-based Workplace Institute, a human resources consultancy specializing in mature workplace issues. Designed to educate employers on the need to retain and recruit mature workers, this year’s event was held just weeks before the Dec. 12 enactment in Ontario of Bill 211, which prohibits mandatory retirement in the province.

The greying of Canada’s workforce will result in a labour pinch in some industries and job categories. The solution clearly requires the adoption of strategies to slow down the boomers’ exit from the labour market and the fostering of a multi-generational workforce.

“Mature workers are the new competitive advantage for companies,” Bruce Kinney, director of enterprises and staff at Canadian job search and recruiting portal www.monster.ca in Toronto, told the summit.

Nancy Conroy, a retirement planner and president of the Conroy Group in Ottawa, says employers should look to the obvious to solve their staffing shortages — their former employees. “Keep in contact with former workers with newsletters or lunches,” she told the summit. “If they don’t want to return, they may refer you to someone who does.”

@page_break@Conroy suggests other ways to retain or attract older workers:

> Make returning to work worth their while. They won’t come back just for the money. Rethink the structure of your workplace and consider part-time work, flexible hours or some work done at home.

> Know your current staff. An older employee may be considering early retirement because of a physical problem that could be solved by voice-activated software or an ergonomic chair.

> When recruiting, employers should consider women who have spent years as homemakers and may want to top up their retirement income.

> Employers need to change negative attitudes toward mature workers. “If you want to retain them, don’t think of them as ‘older’ workers,” Conroy says. “And the boomers will not put up with employers who don’t treat them with respect.” IE