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June 20 2006 - A survey by Hewitt Associates, a global HR services company, has found that big and small organizations in all industries throughout Canada are finding it challenging to attract and retain workers. Most of the 232 employers in the survey are focusing on flexibility as a means of addressing the problem.

While three-quarters of Canadian companies are finding difficulties in attracting or retaining employees, 44% have problems with both. The situation is worst in Alberta where 97% of respondents were having difficulties and almost two-thirds reported that both attraction and retention were challenging. With an aging workforce - half are over 40 - the problem can only get worse.

According to Cathy Course, a senior benefits consultant in Hewitt's Calgary office: "Canadian employers understand that they will all soon be facing the labour shortages companies in Alberta are already experiencing. As a result, we're working with HR professionals across the country to look at new ways to adapt workplace policies and practices to appeal to workers in a competitive environment."

Flexibility offers a solution, according to the survey. More than half (52%) of respondents said that flexible hours and benefits will help attract and keep the best employees.

John Tompkins, a principal in Hewitt's Toronto benefits consulting group says that: "Organizations are beginning to realize the need to convince older workers to stay on the job longer. At the same time, they want to convince Generation X and Y employees - those under age 40 - to join them. With an employee population so diverse in terms of age, a 'one size fits all' approach is no longer effective. Employers who can identify and meet the different needs of their employees will be most successful in the current labour market."

Hewitt's survey indicates that 55% of organizations are intending to introduce formal phased retirement programs, offering shorter working weeks for older employees near retirement, by 2009. This compares with the 26% that have such schemes at present. Additionally, there is increasing interest in offering other flexible arrangements such as:

• Job sharing
• Flexible hours
• Compressed work schedules
• Vacation buying and selling
• Working from home
• Elder care support
• Wellness accounts
• Unpaid time off for charitable work
• Assistance with home technology purchases

Hewitt advises employers to take a disciplined approach to such working arrangements. "Employers need to balance their need to have the right talent with the reality of their financial situation. We recommend organizations undergo a process to audit their current talent pool, assess their future workforce needs, and then determine what they want to change and how that fits within their budget," said Cathy Course.

"Workers need to really understand the value of what employers are providing over and above wages and salary," she said. "With the labour shortage, organizations can't afford to lose employees because they don't know the extent of their full compensation package."