Older Australians in demand amid severe worker shortages

Companies are rolling out a number of new perks, including special paid time off dubbed “grandternity leave”, in a bid to keep a group of Australians in the workforce. See how you can use it.

“Grandternity leave” could be offered to Aussie workers in a bid to keep them in paid employment longer.

Severe worker shortages have increased employers’ reliance on older staff, with international research showing 150 million jobs will shift to those over 55 years within the next decade.

In Australia, the move will see older people make up 20 per cent of the workforce by 2030, the research from global consultancy Bain and Co reveals.

Experts say there’s been a reverse in the long-term trend towards early retirement, with cost-of-living pressures and flexible work arrangements sending retirees back to the paid workforce.

Calling the shots

The number of older workers in Australia is significantly growing, with more than half of employers having hired a retiree in the past year and most others considering hiring one in the future, research from recruiter Robert Half shows.

Once overlooked by businesses, older workers are now considered crucial to stemming labour shortages, says Robert Half director Andrew Brushfield. As such, they wield unprecedented power when it comes to negotiating their employment conditions, with most companies forced to concede to their demands to only work part-time.

The ability to earn a higher income and keep up with the rising costs of living is motivating many retirees to return to work, along with a desire for social interaction and to stay mentally active, he says.

“It’s not always about cost of living,” Brushfield says.

“But it is becoming more of a factor, especially with super funds having decreased so much because of (falls in) the share market.”

Older people will make up 20 per cent of the Australian workforce by 2030.

Job options

In most cases, Brushfield says retirees are opting to take on work similar to their last paid role – often returning to former employers or a company within their existing employment network – rather than reskilling to make a career change.

He says older workers are more than capable of keeping up with technological change, dismissing frequent criticism they do not have the digital skills that employers require.

“Baby Boomers have gone through the most tech changes in their career,” he says.

“They went from what was effectively a desk-bound, data-based role to automated and flexible roles.

“We say (older workers) are the most adverse to change but, the fact is, they have seen the most change so they’re probably fairly good at dealing with it.”

They also bring a multitude of other benefits to the workplace, Brushfield says.

“They can share the knowledge and skills they’ve acquired throughout their career with current staff, they have a network of people across many areas and they are often highly skilled and knowledgeable, which means they are able to offer a broad range of help to any business,” he says.

Grandparent leave

Bain and Co APAC lead Michael Withers expects employers struggling with crippling labour shortages to increasingly offer a range of incentives, including better access to training and promotional opportunities, to attract and retain older workers.

“The rising share of older workers, when combined with the labour supply constraints that many industries face, could mean that companies will have to compete more aggressively for older talent,” he says.

“This means that we may see a rise in HR polices that appeal to older workers. Examples might be ‘grandternity leave’, which some large global companies, like Cisco and Mercer, are starting to offer, or transition-to-retirement programs where you can reduce your workload over time.”

He says most older workers have a high degree of loyalty to their company and are more satisfied in work and life than their younger counterparts – making them an attractive option for employers.

“We find that as workers age, more workers are motivated by interesting work and giving back, such as through mentorship,” he says.

“Jobs that allow for autonomy, interesting work and mentorship will likely especially appeal to older workers – and may provide more fulfilment in their late careers.”

Steve Ironside wouldn’t be opposed to “working forever”.

`Keep working forever’

After 40 years in the logistics sector, Steve Ironside, 71, admits he did “not handle retirement as well as expected” and has already made a brief return to employment for a one-off project.

Ironside says he would consider permanent part-time employment if the right role came along.

“I still have a relatively active mind and a lot of wisdom and knowledge that could be helpful,” he says.

“It’s not really about the money – although, as a self-funded retiree, I do worry about spending too much now and not having enough money in the end. But it’s more having something regular to do.

“And as long as I was healthy enough to do it and it was a job that was mentally stimulating and I enjoyed it, then I would probably keep working forever.”

Experience matters

• 58 per cent of Aussie employers have hired a retiree in the past year

• 37 per cent of employers who have not yet hired a retiree would consider it in the future

• Just five per cent of companies have not hired – and do not plan to hire – a retiree

• Employers say the biggest benefits of hiring a retiree are their specialised expertise and the ability to contribute quickly.

Source: Robert Half