Many organizations are struggling with the multiple impacts of the economic downturn on business continuity. Part of that continuity is our capacity to effectively project our workforce needs within the next 3, 5 and 10 years and this is an area that has many impacts due to the recessionary climate. Canada's economic outlook is good, however statistics are emerging on various demographic groups who have decided to delay their retirement. Given the compounded issues regarding the health industry in the US, this tendency to delay retirement is predicted to be even more dramatic than in Canada. Media outlets are actively promoting this trend.
A key question for those of us entrusted with creating as accurate as possible projections of natural attrition is: if the models used for these projections are pre-2009, are they still viable? Both projection and psychological models for retirement potential are being revised, which is good news for us. Key drivers for this decision such as pensions, RRSP and 401k plans are under constant change as are legislative changes such as the removal of the mandatory retirement age.
The impact on retirement projection changes have a huge HR system-wide effect in terms of the fluidity of people and how to transfer skills and innovation in organizations. Clarifying and updating who will be leaving and when, based on the emerging data, is a critical starting point in industries with aging workforces who have yet to translate these changing factors into their retirement projections.
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