The Evolving Workplace:
The seven key drivers of mature-aged workers
The working age population (aged 15–642) in Australia and New Zealand is shrinking. Australian Treasurer, Peter Costello, has described the looming demographic changes as "the biggest thing that's hit our society since industrialisation".
From 2020, Australia's working age population is expected
to grow by only 125,000 for the entire decade, compared
to the annual increase of
170,000 at present. The problem is replicated
in New Zealand, where the working age population overall
is expected to decline by 80,000 workers between 2021
and 2031, as this same trend impacts.
Importantly, this is not a trend with far distant
effects. A report from Australia's Monash University
entitled Workforce Tomorrow, likens the
impact of the ageing population
to a shortfall of some 195,000 people over the next
five years.
One of the solutions to such a shortfall is to encourage people, who might otherwise retire, to stay in the full-time workforce longer. In response to these stark statistics, Australian Prime Minister John Howard made a commitment four years ago to try and increase the participation of mature-aged workers aged 55 to 64 years by 10% – 15%, reiterating this priority on many occasions since.
With the potential to derail economic growth in Australasia, it is an issue that is at the forefront of government policy on both sides of the Tasman. In recent years there have been concerted efforts from both governments to disincentivise early retirement.
Some organisations are already facing up to this challenge, but generally business has been slow to react. On one hand there appears to be little sense of urgency on this issue, but employers' hesitancy also reflects a lack of knowledge and understanding.
In this exploratory study instinct and reason asked a sample of mature-aged workers in Australia and New Zealand what changes they believe would need to occur in the workplace in order to make them stay in the workforce.
Research Approach
Using our own on line tools, 1135 knowledge workers were interviews in Australia and New Zealand. The survey incorporates instinct and reason’s proprietary choice modeling tools, including:
- Study estimation tool
- Choice modeling tool
- Tailor made simulation tool
Results and Benefits
This study identified the following seven key drivers as of vital importance for organisations wishing to attract and retain mature-aged workers:
- Minimise commuting time to work
- Pay staff well
- Ensure a friendly work environment
- Recognise staff for the work they do
- Ensure that work still has new challenges
- Enable staff to work from home
- Provide flexible working hours
Under prevailing working conditions, many mature-aged workers would prefer to contract or even retire. But this study shows that progressive organisations can tailor a package that would encourage mature-aged workers to remain in either full- or part-time work.
The study highlighted two important fundamentals that Australian and New Zealand organisations will need to consider with regard to retaining professional mature-aged workers:
The study highlighted two important fundamentals that Australian and New Zealand organisations will need to consider with regard to retaining professional mature-aged workers:
- Professional mature-aged workers facing retirement, or at least retirement as a potential option, actually prefer to remain in the workforce if working arrangements reflect the seven key drivers. But these must be provided as a bundled solution. When full-time and part-time working arrangements are made attractive by incorporating these drivers, almost half the professional mature-aged people in the sample would choose to work full-time, 21% would work part-time, 10% would start their own business and 21% would contract or consult. Virtually no one (only about 1%) would retire.
- In the latter part of peoples' careers, the prospect of working less, and in a way that is more within their control, is likely to be extremely attractive. To this end, organisations and mature-aged workers should explore the possibility of a transition to retirement through part-time, contracting and consulting working arrangements.
The study results reveal that age, gender, nationality and profession type only show minor differences in how choices would be made by mature-aged professional workers. The results should therefore inform all HR managers irrespective of whether they are dealing with New Zealand or Australian staff, males or females or different professions.
For more information about this study, please contact us.
