Don't Underestimate The Value Of Your Older Employees

Retaining mature-age workers can assist businesses to maintain skills and experience in the face of a slowing labour supply, while also providing scope to better align their workforce with an ageing customer base.

The Australian Bureau of Statistics' Labour Force Projections 1999-2016, reports that the ageing of the existing workforce and the reduction in new entrants means that more reliance is going to be placed on older workers in the foreseeable future. It is estimated that 85% of all workforce growth will be supplied by people aged 45 and over by 2012, up from 32% in 1992.

Yet businesses are fast losing access to employees with experience, leadership and maturity. This is due to a number of factors including:

• People are retiring earlier; at 50, 55 or 60 rather than the traditional retiring age of 65,
  
  

• Cost cutting over the past 10 years has frequently seen the over 50s the first to go,
  
  

• Business generally have done little to attract or retain workers over 50 and, in fact, frequently this source of experience and knowledge has been actively discouraged or ignored.
  
  

Stereo-typed misconceptions of mature aged workers

Added to the factors above are the stereotyped misconceptions around employing older workers. These include the perceptions that they:

• are costly
  
  
• are less productive
  
  
• have poorer health
  
  
• don't fit in with the culture of fast-paced and dynamic business ventures
  
  
• lack motivation and enthusiasm
  
  
• are close-minded
  
  
• are more susceptible to injury and illness
  
  
• have skills that are outdated
  
  
• are less capable
  
  
• are unwilling to take on new training or challenges
  
  
• have less potential for development
  
  

Debunking these myths - The benefits of employing mature-age employees

Most of these perceptions lack validity. A report produced by the Swinburne University in Melbourne has found that:

• There is no significant difference between the performance of a mature-age worker and a younger worker,
  
  
• Mature-age workers use experience and skills to offset a decline in performance due to aging,
  
  
• Mature-age workers are just as flexible, if not more, than younger workers with regard to working conditions,
  
  
• Older workers are interested in undertaking training and furthering their careers,
  
  
• If learning programs are tailored to the age, knowledge and experience of mature-age workers then learning is just as effective, and no more expensive than for young workers.
  
  

Another report released by Business, Work and Ageing in 2003, called 'Managing the Age of Change', has revealed that older workers deliver higher quality performance which subsequently encourages younger employees to improve as experienced staff pass on their years of knowledge and quality standards.

Mature age workers are also flexible with working hours and conditions, and despite what perceptions have suggested in the workforce - are not adverse to change management. Experience also allows older workers to have a reduced risk of accident related injuries in the workplace compared to younger workers.

Tips for smart businesses to benefit from the skills of older employees

• Don't underestimate the benefits that older, more experienced employees can bring to your business. They may well be the life raft your business needs to face the next decade.
  
  
• Value the experience, empathy, understanding, diversity and depth mature aged workers can bring to the workplace and to your organisation's skills base.
  
  
• Recognise that a workplace with a diversity of ages is a more dynamic and productive environment and its employees more motivated, satisfied and involved in their work.
  
  
• Appreciate that they are a readily available resource whose experience and skills more than offset any apparent decline in performance due to ageing.
  
  
• Recognise that experienced mature-aged workers reduce the risk of accident-related injuries in the workplace.
  
  
• Appreciate that older workers are better attuned to an ageing consumer base; and that customers prefer to be served by people who understand their preferences.
  
  
• Nurture and show appreciation for the contributions made by older employees.
  
  
• Encourage older more experienced employees to mentor, coach and train less-experienced workers enabling the transfer of skills, knowledge, experience and organisational wisdom.
  
  

Strategies for recruitment, training and retention in an ageing workforce

The 'Business, Work and Ageing Human Resource Management Handbook' suggests the following strategies for identifying and implementing solutions to address the long term problem of population ageing and shrinking pool of labour.

Goal: Increase productivity, retention and return on recruitment and training investment

1. Ensure your advertisements do not imply age limitations and think strategically about the media that is used to attract a diverse cross-section of the labour market.
   
   
2. Address skills shortages, by recruiting and re-training older people.
   
   
3. Retain and reward workers that have the best skills.
   
   
4. Promote and support active career planning and intervention to encourage redefinition of a career course.
   
   
5. Assess and promote the tangible and intangible value of experience and corporate memory in your organisation.
   
   
6. Promote and implement life-long learning strategies.
   
   

Goal: Reduce labour turnover, OHS Risk, and absenteeism

1. Undertake assessments of physical, environmental and organisational risk factors in the workplace for older workers.
   
   
2. Offer flexible work arrangements (permanent part-time reduced hours, fixed term contracts, home working, temporary etc.).
   
   

Goal: Improve organisation culture and access to skills and corporate experience, employee motivation and attachment

1. Reinforce a culture of diversity within the organisation through policy statements, education and communication.
   
   
2. Encourage job mobility amongst older workers to increase their exposure to new challenges and work variety.
   
   
3. Adapt career management and remuneration packages for workers of different ages. Workers of different ages have varying requirements in terms of remuneration, superannuation and other benefits.

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