Australian and New Zealand employers need to proactively change their workplace arrangements for mature-aged workers if they wish to attract and retain the most experienced section of their workforce, according to a white paper released recently on the changing landscape of the working age population.

The 20:20 Series research paper, “The Evolving Workplace: The Seven Key Drivers of Mature-aged Workers,” commissioned by global provider of recruitment, managed services and talent management solutions Hudson, has uncovered the key drivers to influence mature-aged workers’ decision to delay retirement.

The findings were derived from research of more than 1,000 workers over the age of 40 in Australia and New Zealand. It highlighted the fact that without significant change, organisations will experience a continued decline in the pool of mature-aged workers they can attract and retain.

Anne Hatton, CEO of Hudson Australia/New Zealand, said it is clear there is a strong and pressing need to increase the participation rate of mature-aged workers.

“With the current skills shortage placing increasing pressure on the Australian and New Zealand economies, a failure to accommodate the needs of the ageing workforce stands to have a crippling effect on the public and private sectors,” said Hatton.

This issue is at the forefront of government policy on both sides of the Tasman. Over the past four years, the Australian government has highlighted this trend, and made a commitment to increase the participation of mature-aged workers aged 55 to 64 years of age by 10% to 15%.

The 20:20 Series research found when full-time work combines a bundle of more progressive work arrangements, business can expect only 1.2% of its mature-aged workers to retire, as opposed to 10.1% who would retire when only basic working conditions are offered. In addition, progressive working arrangements will see a whopping 68.6% of mature aged workers opting for full- or part-time work as opposed to only 12.1% when basic working conditions are offered.

The study also found organisations need to understand the need to help mature-aged workers transition effectively and positively through this stage of their working careers. Contract and consulting and part-time work was found to be very appealing to mature-aged workers.

“Current, inflexible working conditions are a significant reason for declining participation rates of mature-aged workers in the workforce. In order to combat this trend, organisations need to create more accommodating and attractive work environments,” added Hatton.

Implementing the seven drivers

The 20:20 Series research also found organisations seeking to retain and attract mature-aged workers would be advised to put in place an Employee Value Proposition (EVP) that targets the engagement of mature-aged workers as one of its core goals.

“We recommend employers implement this program now, so they can capitalise on the huge wealth of knowledge and expertise mature-aged workers have to offer. Ignoring this issue has the potential to derail economic growth in Australia,” Hatton said.

Employers are encouraged to ensure their EVP answers the seven key drivers as a bundle, providing appropriate reward and recognition, while offering flexible work options.

An organisation’s EVP should incorporate transparent mechanisms to provide recognition of all employees’ talents, and provide new and appropriate challenges to workers on the basis of merit, not age.

Organisations need to utilise best-practice assessment and development techniques to identify and leverage the full depth of internal talent pools. These can include psychometric testing, competency audits, leadership coaching and skills development training.

The Trans-Tasman divide

The study also highlighted some key differences between Australian mature-aged workers and their counterparts in New Zealand when making employment option decisions.

When deciding on alternatives to full-time employment, workers in Australia are more likely to choose part-time employment (6% vs 1.7% respectively), while New Zealanders would choose to run their own business (19.9% vs 11.1% respectively).

When full-time work is made more attractive, workers in Australia are more likely to choose part-time work when compared to New Zealand (22.6% vs 13.7% respectively), while more workers in New Zealand choose contracting or consulting work compared to Australians (31.7% vs 18.9% respectively).

Australian mature-aged workers place greater value on attributes such as recognition, flexible work hours and the opportunity to mentor others in the workplace. While New Zealand workers were more concerned about the workplace providing new challenges, the ability to extend their annual holidays, the ability to work from home and to work in different areas than they currently had.

Copies of the 20:20 Series paper can be found on the Hudson Website:
The Evolving Workplace: The Seven Key Drivers of Mature-aged Workers

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