How to hold on to older workers

Australia is on a trajectory to an employment crisis.  Urgent action is required NOW to minimise the implosion created from high growth, record low unemployment, lower new entrants and an ageing workforce.

The labour shortage is not only biting in the areas of skilled trades and professionals.  Employers of unskilled and semi skilled labour are also experiencing difficulties.

The Federal Government’s Office of Employment and Workplace Relations predicts a potential shortfall of 195,000 workers in five years time as a result of population ageing.

The Australian Bureau of Statistics predicts nearly one quarter of our population will be over 65 by 2050.  If we look at working age, there will be just two people of working age for each person over 65 compared with the four we have currently.

Employers must get proactive.  They must pull on the levers at their disposal to design structures and policies that will encourage older workers to remain in the workforce.  It is critical to turn around the entrenched Australian culture of early retirement. 

Greater flexibility of work hours is the first thing employers should look at.  A mix of part time or job sharing arrangements is attractive to older workers.  Flexible hours allow for greater personal time while maintaining meaningful and fulfilling employment.

Don’t underestimate the experience and wisdom under your roof.   We need to recognise the valuable skills of older workers and go to greater lengths to foster knowledge sharing. 

Many older migrant workers or workers with a disability also have broad skills that are often over looked.  Technical up skilling or minor access modifications might be necessary.  But employers will need to be more accommodating of this employment pool in the future.

Similarly, workers who have experienced a workplace injury must be effectively rehabilitated back to work.  Keep in touch with them.  Workers with the full support of their employer are more likely to return to work fit and productive for a longer term.

Superannuation is the big carrot in the retention of older workers.  People aged 65 have on average another 18 to 20 years of living to fund.  Many do not have sufficient super to go the distance.

The federal government is encouraging people to work longer and contribute greater amounts to their superannuation.  The double edge to this strategy, eases the employment crisis and enhances the ability of older workers to eventually fully self-fund their retirement.

Older workers need to remain technically and professionally stimulated. 

Business must change its mindset about older workers.  Keep them engaged and satisfied with meaningful and satisfying employment.  Introduce more flexible work hours and arrangements to encourage greater post 65 participation.  Invest in training and development to keep workers up to date with technological change. It is no longer viable to view 55 as the age to place workers on the promotion scrap heap.

More than half the workforce in many industries is already over 45 and the current student population is not sufficient to replace them.  Employers must act immediately to minimise the impact of the looming employment crisis.