Reducing Work-Life Conflict: What Works? What Doesn't?

3.1 Why Do Canadian Organizations Need to Focus on Work-Life Balance?

The link between recruitment and retention of knowledge workers and the availability of work-life policies and supports (Duxbury & Higgins, 2001, Kurland & Bailey, 1999) provides a compelling reason for Canadian organizations to take another look at this issue. The need to benchmark human resource initiatives such as the implementation of flexible work arrangements and family-friendly benefits and policies against competitors, both within and outside the country, has increased dramatically as Canada, and the rest of the industrialized world, enters a "sellers" market for workers in general and skilled labour in particular (AFT Public Employees, 2002; Certified General Accountants Association of Canada, 2005). A number of demographic trends have contributed to these projected labour force shortages, the chief of which is a global aging of the population due to a worldwide transition over time from "high fertility and mortality rates to low fertility and delayed mortality" (Certified General Accountants Association of Canada, 2005, p. 35). The magnitude of these changes can be illustrated by considering the situation in Europe and Canada.

Europe is currently facing unprecedented demographic change. In 2003, it reported a natural increase in population of just 0.04% per annum (Commission of the EU, 2005). In 2005, the fertility rate in all EU 25 nations was well below the 2.1 rate needed for population replacement and had fallen below 1.5 in two thirds of the EU 25 states (Commission of the EU, 2005). EU projections indicate that by 2010, the working aged population (age 15 to 64) will be in decline in all EU 15 and EU 25 nations and older cohorts will become more numerous than younger cohorts as baby boomers move through the age pyramid (Commission of the EU, 2005). It is estimated, in fact, that the working age population will drop by 20.8 million between 2005 and 2030 (Commission of the EU, 2005).

The situation in Canada is very similar to that reported in the EU. Canada's fertility rate dropped below 2.1 in 1972 and has not done much better than 1.5 since 1998 (Beaujot, 2001). Government forecasts indicate that between 2011 and 2015 the Canadian labour force will grow only by 0.5%. No labour force growth is expected from 2016 to 2025 (Certified General Accountants Association of Canada, 2005). These trends can be attributed to two factors: a decline in the labour force participation rate for baby boomers, and the fact that the "millennium bust cohort" that is due to enter the labour market is relatively small because of the decline in fertility rates. Mass exits and retirements from the workforce will create a shortage of skilled workers which, combined with an older workforce, is expected to hinder efforts to increase economic output and productivity in Canada (Certified General Accountants Association of Canada, 2005). The magnitude of the problem in Canada is reflected in estimates that suggest that within the next decade Canadian employers will be faced with a situation where for every two people who are retiring there will be less than one person to take their place.

This phenomenon (aging populations, lower birth rates) is (with the exception of Africa) going to become a global challenge over the next three decades. While pressure is going to be highest in the EU, Japan and North America, the Commission of the EU (2005, p. 17) notes that all developed regions of the world will "need to redesign policies and institutional arrangements to resolve the problems." Specifically, organizations and policy makers will need to focus on implementing employee-friendly benefits, policies and practices that can be linked to more effective recruitment and retention of employees in general and younger employees in particular.

Key factors that have been found to affect skill shortages include the geographic mobility of workers and working conditions that make it difficult to attract and/or retain workers (Certified General Accountants Association of Canada, 2005). Canadian organizations with cultures that focus on hours (i.e. advancement limited if you do not work long hours or if you say no to more work), emphasize work or family (i.e. family responsibilities and family leave are perceived to limit advancement) and are non-supportive of balance, are likely to experience problems recruiting and retaining talent in such a market.¹³ While immigration, on its own, is unlikely to solve this problem (projections by the Commission of the EU (2005) indicate that the global need for skilled labour will far outstrip supply), countries able to attract skilled immigrants will be more competitive than those that cannot. The EU has recognized this fact and in the Lisbon Agenda pledges to "resolutely implement policies designed to get people into jobs" -- and attract skilled immigrants to work in the EU (Commission of the EU, 2005, p. 18). The policies being considered by the EU include flexible work arrangements, paid personal leave and on-site day care, to name a few. The link between flexible work arrangements and a greater ability to attract skilled labour has been recognized by policy makers and researchers (OECD, 2005).

The retention of competent employees, particularly baby boomers, is also fundamental to survival in a "sellers" market for labour. Substantial movement of the baby boomers out of the workforce strains businesses, which then need to devote resources to recruit and retain talent (Christensen & Pitts Catsouphes, 2005). Reversing the early retirement trend (the average age of retirement in Canada in 2002 was 61.2 years) and implementing policies that encourage older employees to delay retirement have been identified as effective ways to enlarge the effective labour force and combat skill shortages (Certified General Accountants Association of Canada, 2005; Commission of the EU, 2005).

The question then becomes, how do we retain the services of our skilled baby boomers? At the present time, a mismatch exists between the need for organizations to retain the talent of older workers and the availability of viable options that would keep them in the workforce. Motivating workers to stay longer in the workforce requires progressive policies that balance work and family life and introduce greater choice (Certified General Accountants Association of Canada, 2005, p. 80). Similarly, the Organisation for Economic Co-operation and Development (OECD) (2005) has recommended that policies geared to extending work life be a priority for countries with an aging population.

Now is clearly the time for countries and organizations worried about impending labour force shortages to consider implementing flexible work arrangements (Christensen & Pitts Catsouphes, 2005). A number of sources report that the implementation of flexible work arrangements such as compressed work weeks, pro-rated part time work, job sharing and tele-work are being explored in many countries (Certified General Accountants Association of Canada, 2005; OECD, 2005, Commission of the EU, 2005). In such an environment, it is important that organizations and policy makers know how the benefits they offer compare with employment opportunities elsewhere (AFT Public Employees, 2002). To this end, this report provides relevant benchmark data on the use of the following employee-friendly benefits in Canada in 2001: alternative work arrangements, flexible work environments, supportive managers, and formal benefits and policies such as paid personal days off work, emergency leave, child and day care referral, etc. Such an analysis will provide valuable benchmark data with respect to the use of various employee-friendly policies and practices in Canada at the start of the millennium. Findings from this phase of the research should prove useful to groups that wish to establish trends for the use of these different arrangements, companies that wish to evaluate how they are doing with respect to this issue, and other countries that wish to compare their data with Canadian data.

This study also examines to what extent these various benefits and policies actually help employees balance competing work and family demands. Such information is critical to policy makers and companies seeking advice as to what types of work-life policies and practices to implement and how to maximize the benefits they receive given their spending in the area (i.e. maximize their return on investment). These data will also allow organizations and governments to target their interventions to a particular type of work-life conflict or to a specific group of employees (i.e. female managers and professionals, women with children).