The elder-fication of the workforce can lead to HR innovation
It is described as the most important mega-trend underpinning the Australian consumer market – and that is the demographic shifts associated with an ageing Australian population. These shifts are set to redefine the way we work, and will create new avenues for restructuring human resources (HR).
By 2055, it is forecast that the number of Australians over the age of 65 will have doubled. Life expectancy, therefore, is also predicted to increase, which means there will be financial imperatives for people to continue working well past the anticipated retirement age.
This new ‘elder-fication’ of the population will demand changes of the workforce to accommodate employees that choose to work later in life. The Federal Government is currently trying to accommodate this with the introduction of its 'Restart Programme', which offers wage subsidies for companies that hire people over 50 years. For HR specialists, attracting and retaining older workers will be a key issue affecting businesses and critical to the future success of an organisation. The stark reality, however, is that older employees are subject to widespread discrimination.
Workplace discrimination a stark reality
A landmark age discrimination study from the Australian Human Rights Commission (AHRC) in 2015 found that three in five people aged 50 years and older, who were looking for work, were discriminated against because of their age. A general assumption from younger members of the workforce is that mature-age workers have outmoded skills and are slow to learn. The rapid shift to a digital economy is also creating a gap for mature age workers who do not have access to the new skills required to compete.
The AHRC National Prevalence Survey found that age discrimination has a significant negative impact on most people who experience it. High on the list of effects are negative self-esteem, mental health issues and stress. A key concern is that one third of people who experienced age discrimination gave up looking for work.
The research clearly found that age discrimination discourages older workers from remaining in, and re-entering the workforce.
HR to the rescue
HR practitioners have a key role to play in changing business culture to mitigate against further discriminatory practices. Being armed with a Master of Human Resource Management can assist in implementing mature-aged workforce strategies that unlock the high value of the older worker.
Effective organisations of the future and leading HR executives should be implementing mentoring practices, knowledge transfer, and showcasing the commitment and experience of the older worker in the business. The HR function of the business will be pivotal in making these shifts occur. The AHRC report added that better age diversity across an organisation can increase productivity, deliver higher performance and innovation, and improve organisational reputation.
Research cited in the AHRC report found personal productivity increases with age, and that older people have a higher appreciation for the importance of productivity compared with younger workers. Increased participation is also of real benefit to the wider economy and has the potential to increase Australia’s gross domestic product (GDP) by billions of dollars – not to mention the benefits of reduced welfare expenditure and increased self-reliance in retirement.
There are a number of small steps employers can take to improve workforce participation in their businesses. As recommended by the AHRC report, employers should gather information to help better understand the makeup of their workforce and should promote age diversity within teams to encourage a variety of perspectives, experiences and skills.
The HR leaders of the next decade will be those that champion the elimination of negative bias against the recruitment of older people, provide them with training opportunities that benefit and augment their existing experience, while ensuring that performance measures reflect actual competence based on realistic expectations of a diversified workforce.
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