Fact sheet
and analysis
Issue: The Ending Mandatory Retirement
Statute Law Amendment Act, 2005 was passed in December 2005 and
will take effect on December 12, 2006. Once established, the law
will amend the Ontario Human Rights Code to protect people aged 65
and over from age discrimination for most employment purposes.
Objective: Determine if HR professionals
are prepared and support the change in legislation related to
mandatory retirement.Method: 173 Human Resources
professionals in Ontario participated in an online survey in
November 2006 on the topic of mandatory retirement.
Key findings:
- 3 of 4 HR professionals surveyed support the abolishment of
mandatory retirement
7 of 10 companies surveyed are already prepared or are
making the necessary; arrangements to accommodate the
legislative changes regarding mandatory retirement
- Companies are considering a variety of initiatives, such as
job modifications for mature workers, to best respond to the
new regulations
Results summary1. I personally agree with abolishing mandatory retirement.
- 23.1% Strongly agree
52.6% Agree
21.4% Disagree
- 2.9% Strongly disagree
2. Senior management in my organization supports the shift away
from mandatory retirement.
- 11.0% Strongly agree
39.3% Agree
22.5% Disagree
6.9% Strongly disagree
- 20.2% I don’t know
3. My organization is prepared for the legislative changes
concerning mandatory retirement coming into effect on December 12,
2006.
- 12.7% Strongly agree
45.1% Agree
12.7% We are not currently prepared but preparations are in
process
18.5% Disagree
1.7% Strongly disagree
- 9.2% I don’t know
4. What is the primary source of your communications with
employees regarding the changes to the mandatory retirement
legislation?
- 20.5% Department or team meetings
18.6% Company meetings
16.7% Email
16.7% Other
14.7% Company intranet
- 12.8% Newsletter
5. Which of the following initiatives are you considering in
response to the abolishment of mandatory retirement?
- 40.5% Increased performance management and monitoring
37.6% Job accommodations for mature workers
37.0% Benefits coverage for employees aged 65 and over
32.9% Phased-retirement
28.3% Flex-time
15.6% None
13.3% Inclusion of retirement incentives
- 12.1% Rehiring of former employees who had already retired
6. Top position titles of respondents:
- 37.6% HR Manager, Intermediate Management
- 26.6% HR Coordinator, Assistant, Associate, Generalist
7. Top industries of respondents:
- 38.7% Corporation
34.7% Small- to Medium-sized business
15.0% Not-for-profit
- 11.6% Government
8. Top 3 sectors of respondents:
- 17.9% Manufacturing
13.9% Consulting and professional services
- 10.4% Healthcare
Analysis:Attitudes toward the new mandatory retirement
legislation (MR)
- 100% of the HR professionals who said their own senior
management supported mandatory retirement said they strongly
agreed with the legislation themselves.
There was strong correlation between HR support and
managerial support for the new legislation.
- A strong correlation between HR professionals who are pro-MR-legislation
and those who report that their organization is prepared for
the legislative changes.
Employee communications and preparation regarding the
new legislation
- Employee communication regarding the end of mandatory
retirement is more prevalent in companies where senior
management strongly supports the legislation
Non-profit organizations are twice as like to communicate
the changes of mandatory retirement with their employees.
Government departments and large corporations were also more
likely to communicate policy changes to their employees, as
compared to smaller organizations
Companies who are not prepared for the MR changes have been
less likely to communicate the issue to their employees
HR professionals who are personally supportive about MR were
twice as likely to report receiving positive comments from
employees and reported fewer neutral comments
HR professionals who are personally negative about MR
reported almost twice as many neutral or negative comments
from employees
- Small business (fewer than 100 employees) report strong
agreement with statement, “My organization is prepared for
the legislative changes concerning mandatory retirement”
Specific preparations
- Smaller businesses less likely to be considering new
initiatives related to aging workforce and MR.
Finance and consulting sector more likely to extend benefits
coverage
Consulting firms are more likely to use flex-time
Manufacturing organizations are more likely to use increased
performance management
Retail sector is most likely to use phased-retirement
- Large companies (more than 2,500 employees) are most likely
to be considering rehiring former employees
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