The biggest workforce challenge of the 21st century – the age wave. The convergence of the boomers reaching 65, increased longevity and a declining number of people entering the labour market.
“Along with climate change this is the most significant challenge we face, it’s an inter-generational challenge, an economic challenge, it’s a social challenge and goes to the core of the type of country we want to be in 2040/2050.” Wayne Swan 2010
As an employer you will want
- engaged and productive staff
- to retain your best people
- to be an employer of choice
However you will need to adapt, why?
- people over 65 are staying on at work in greater numbers
- the number entering work is declining
- you will need older people to combat skill shortages
- you will need their experience, skills and knowledge to remain competitive
Age friendly employers are changing the way they
- think about their people
- organise work and jobs
- engage and motivate their people
The Facts
- Approximately 31% of Australia’s population is aged 50 years or older (6.8 million) and this is expected to rise to 40% by 2045 (12.9 million) (ABS, 2008a).
- Australia’s mature age participation rate was 58% in 2008, the thirteenth highest in the OECD. This is higher than the OECD average (56%), but lower than the United States, the United Kingdom, New Zealand and Canada
- Retention rates of workers aged 50-54 are also lower in Australia than those of many comparable countries
- If mature age participation rates were to increase to around 67% by 2049‑50 real GDP per capita would be 2.4 % higher in 2049‑50
- Currently, the number of working-age people (15-64 years) increases by 170,000 per year. This is projected to drop to an increase of only 125,000 for the whole decade of 2020-30
- Workforce increases that do occur will centre on mature-age workers 45 years and over. The 45-64 year old age group is expected to contribute more than 65% of labour market growth
The Benefits of keeping mature age workers on
- Cost effective retention: continuing skills shortages and changing labour markets mean that it makes sense to encourage existing mature age workers to stay with your business. There is evidence that mature workers can deliver an average net benefit of $19 per year to their employer compared to other workers due to high retention rates, lower rates of absenteeism, decreased recruitment costs and greater return on investment
- Skilled, experienced and more productive: experienced workers have built up knowledge and skills during their time in the workforce. They can also be highly productive. A study by Australian Health Management which examined the daily work habits of 4000 employees found that workers aged 55 years and over performed at their best for approximately seven hours out of an eight-hour day an achievement that other workers in the study were unable to match.
- Peak performance: we are now living longer, healthier lives. Life expectancy has increased to 78 years for men and 83 years for women and over 75% of Australians aged 55-64 report their health as “good”, “very good” or “excellent’. A study by the Organisation for Economic Cooperation and Development (OECD) concluded that, among OECD nations, verbal skills, communication and intelligence remain unchanged as a person ages. The Australian Bureau of Statistics has also reported that mature age workers are less likely to take days off due to illness or to care for others, and are less likely to experience work-related injuries than other workers.
- Loyalty: employee loyalty saves money on absenteeism, training and recruitment. There is evidence that workers aged over 55 are five times less likely to change jobs compared with workers aged 20 – 24
- Technological competence: according to ABS data, mature age people are the fastest growing users of information technology. Research supports the ability of mature age workers to learn new information technology skills and adjust to the introduction of new technologies in the workplace.
Source: Investing in Experience
“Over the next 40 years we are simply not going to have enough new workers to replace the baby boomers as they eventually exit the workforce. This means we need to focus on developing a highly skilled, high performing age-inclusive workforce.”
