Older workers – Not as old or as different as you might think

Last month Prime Minister Scott Morrison announced the Terms of Reference for the Royal Commission into Aged Care Quality and Safety. It has been shocking to learn the extent and severity of ill treatment experienced by a vulnerable portion of our community. The United Nations estimates that 28.5% of the Australian population will be over 60 years by 2050 and globally, over 60s will triple by 2100 rising to 3.1 billion. Projections of the Australian labour force show that the speed of aging is projected to increase and labour supply growth decrease in the next 15 years. The aged care crisis aptly showcases two major challenges posed by the ageing population, namely, a rapidly increasing number of individuals in need of care and a workforce shortage.

Keeping ageing workers in the workforce for longer has been identified as a less controversial way to mitigate some of the financial and social challenges posed by an ageing population. Despite the need to keep older workers working, who by the way, are defined by the ABS as anyone 45 years or older, approximately 10% of Australian adults aged 45 years and over retire from the workforce annually due in part to discriminatory organizational climates and a lack of suitable work arrangements . There is also evidence to suggest that Australian employers exhibit a low interest in recruiting candidates over 45 years and, importantly, often demonstrate a reluctance to adjust their policies and practices to improve the inclusion of older workers.

It is well known that organisations benefit from having older workers participate in the workforce. However, when it comes to understanding what keeps older workers at work, there are a few (in my opinion false) assumptions associated with older workers.

The first assumption that is often made is that all older workers are old. Older workers are defined as 45 and older, so if we take the current retirement age in Australia as around 65, the age range of an older workers spans 20 years. In contrast, younger workers are classified as workers between 15 and 24 years, spanning a much smaller 9-year age range. I don’t think it is reasonable to assume that ‘older worker’ policies are going to be equally applicable to a 50 year old as they would to a 60 year old. So perhaps the lack of evidence supporting some schemes designed to specifically support older workers may be, at least in part, due to this definitional issue.

The second assumption that is often made is that an older worker will identify as an older worker. Putting aside the definitional issue mentioned above, not all older workers will necessarily (or want to) identify themselves as belonging to this group. Recent research conducted in the Netherlands shows that because of the negative stereotypes sometimes associated with being an older worker, some older workers don’t, or don’t want to, identify as an older worker because they don’t want to be part of a stigmatised group. The authors of the research go on to suggest that the limited success of organisational policies directed at older-workers may be due to the reluctance of older workers to identify with a devalued group.

A third assumption that I think is often made about older workers is that they want something distinctly different from younger workers. Certainly, there are some physical differences that may impact the enjoyment of working for older workers. For instance, there is emerging research showing an association between menopause symptomology and job satisfaction and engagement. There may also be some additional needs, such as caring for a parent or spouse, that might be more common for this age group than workers under 45. However, there is little evidence of meaningful motivational, job satisfaction or cognitive ability differences between younger or older Australian workers.

Of the recent studies focused on the retirement intentions of older workers, older workers appear to want pretty much the same things as younger workers. The findings of our recent systematic review show that not dissimilar to younger workers, older workers want fewer job demands and more learning and development opportunities. Other researchers have reported that autonomy, career achievement and feedback influence the employee engagement of older workers. Research in the US indicates that organisations should look to provide both diversity-specific and diversity-blind practices to support older workers.

What can managers do to better support older workers?

1. Understand that the group of older workers is a heterogeneous group diverse in age, needs and retirement intentions.

2. Put in place policies and strategies to support all workers. Younger and older workers both benefit from a flexible and fair organization so rather than just focusing on age specific polices, which may have the potential to leave some older workers feeling singled out, directing efforts to engage and support employees is a useful approach.

3. Consult older workers within the organization to see what specific policies and practices would most benefit them. Flexible work arrangements are one form of workplace practice that is seen to be attractive by workers, including some older workers. For organisations thinking about introducing flexible work practices (which can include changes to start and finish times, split shifts, job sharing and working from home) the Nous group has just released a free FlexiWork Savings Calculator which can assist businesses understand the impact of flexible work arrangements on operating costs. This might be something worth investigating for those interested in understanding the costs and benefits associated with flexible work arrangements.

For the record, I am 33 years old, so not a young worker or an old worker but given the age brackets for young and old, probably best to classify me as a middle-aged worker(?). And as a middle aged worker, I don’t see the workforce participation of older workers as an ‘older worker’ issue – I see it as a diversity and inclusion issue as well as a broader management issue. Like many of you, I am personally invested in making sure that older workers are encouraged to work for as long as they like. I benefit directly from working with individuals older than myself. I receive mentoring and encouragement and I am lucky to call several +45’s great colleagues. The way I see it, if I want to continue to enjoy my work, then older workers in my organisation need to be able to do the same.