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June 9, 2008

Construction Sector Council forum

Construction industry needs strategy to address aging workforce, expert warns

The construction industry needs to prepare a strategy on how to get the most out of its aging workforce and retiring workers, says a workplace expert.

“There are a lot of relationships and knowledge walking out the door with retiring workers,” said Barbara Jaworski, president of the Workplace Institute. “Boomers are changing the workforce and organizations are starting to understand they want to engage these workers.”

Jaworski spoke at the recent Construction Sector Council (CSC) National Owners Forum about how industries must develop plans to retain older workers so “knowledge capital” and talent is not completely lost.

The CSC’s recent 2008 Construction Looking Forward labour forecast found that an additional 162,000 workers are required to replace retiring workers by 2016. Filling this gap is compounded by the need for another 94,000 to help keep pace with new projects over the next eight years.

“Clearly older workers are an issue for construction,” said George Gritziotis, executive director of the CSC. “We are right now nibbling on the margins of the issue.”

Jaworski explained that the labour force in Canada grew by 226,000 per year for the last 25 years but by 2010 that will drop to an estimated 42,000 annual growth.

By 2016 that growth is projected to be at zero.

“Within the next decade for every two people who are retiring there will be less than one person to take their place,” said Jaworski. “For every two Boomers retiring you will need three people to make up for that lost knowledge and skill.”

Gritziotis noted that approximately 80 per cent of construction firms have less than 15 employees, which also make it difficult to retain an older worker.

The CSC has looked at having the “construction mentor” job designation established as an avenue to help retain experience and knowledge in the industry.

Some CSC research has indicated keeping older workers on a part-time basis and responsible for an aspect of a site or project is a tool the industry can use. Transition from workers “being on the tools” to a supervisory role is another path. Also, advancements in technology and machinery for heavy equipment opens the operator door for some workers.

Some suggestions made at the forum included teaming up older workers with temporary foreign workers on a job site or using older workers as translators.

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