Canadian businesses are struggling to structure the transition to retirement by their employees, according to a recent study conducted by Morneau Shepell, a human resources consulting and services firm. Although some offer comprehensive planning programs, most only study requests case by case.
What importance do companies give to their employees’ transition to retirement? If we are to believe the 60 Second Survey conducted by Morneau Shepell among 62 employers, published last December, they only occupy a tiny place in human resources management. Indeed, only 6% of businesses have implemented a program to reduce the number of hours for their employees approaching retirement. 53% are taking a passive approach: without any formal program in place, they nonetheless study requests on an individual basis. And close to one-third (31%) are not offering any opportunity to reduce hours.
Rather tentative initiatives
Establishing genuine planning programs to lead employees to a phased retirement appears to be patchy. For employees who will be retiring in the next five to ten years, 55% of businesses say they inform them using tools such as a website or external supplier. While 48% offer group information and financial planning sessions, only 19% offer individual sessions. Only 11% of the organizations surveyed include counselling as a subject of programs that have been established. Finally, 27% of businesses provide no planning program for their future retirees.
Beneficial consequences
Encouraging employees to participate in preparing for their retirement remains paramount. On the one hand, future retirees will increase their chances of successful retirement, both financially and psychologically. On the other hand, businesses can therefore plan succession, improve productivity within the organization and increase their employees’ satisfaction.