Embracing experience: The rising demand for mature age workers

There is an abundance of research and statistical data highlighting a significant demographic transformation unfolding in the labour force. Over the decades since the 1960s, a declining birth rate has led to a reduction of workers entering the job market, required to meet our productivity and business demands. Explore how the mature worker is an essential part of the solution.

As people's lifespans extend, their health remains robust, and a strong desire to remain active and productive in the workforce, mature age workers represent a valuable and often underestimated demographic. Mature workers, typically defined as individuals over the age of 50, bring a wealth of experience, skills, and unique qualities to the workforce. 

Mature age workers are putting off retirements and are working longer.

A noticeable change is occurring in the workforce with an increasing number of Australians aged over 65 choosing to stay employed, and this trend is on the rise.  According to the ABS, many people are choosing to remain working well past the retirement age of 62-65  which is often driven by financial necessity. There has also been a shift in perspective towards work and retirement with many enjoying prolonged careers and value having a sense of purpose. As of September 2023, the labor force participation rate for Australians aged 55-64 stood at 63.3%, marking an almost 10% increase since 2003

The increasing participation of older Australians in the workforce is a positive trend for the Australian economy; helping to ensure Australia has a skilled and productive workforce to meet the challenges of the 21st century.  

What are the benefits of mature-aged workers?

Some key benefits of hiring and retaining mature aged workers include:

1. Experience and Expertise: Mature workers often possess a deep reservoir of experience and expertise in their respective fields. They can provide mentorship and guidance to younger colleagues, helping to transfer knowledge and skills within the organisation.
2. Reliability & stability: Older workers are often noted for their strong work ethic, punctuality, and dedication to their jobs. They tend to have a lower turnover rate, which can save employers recruitment and training costs.
3. Strong Work Ethic: They are known for their commitment to tasks and are often seen as reliable and responsible employees who take their roles seriously and are focused on outcomes.
4. Problem-Solving Abilities: With their extensive experience, mature workers can often bring effective problem-solving skills and a calm, rational approach to challenges.
5. Less Risk re WH&S: Mature age workers are some of the healthiest cohort and less likely to take sick leave or experience work-related injuries.
6. Diverse Perspectives: A diverse workforce, including age diversity, can lead to a broader range of perspectives and ideas, fostering creativity and innovation.

Where to from here for those looking at hiring or retaining a mature workforce?

Given the projected stability of Australia's unemployment rates at approximately 3.5% in the foreseeable future, businesses that actively recruit and retain their older workers will significantly benefit in today’s skill-scarce market.

With many companies building out Employee Value Propositions, those smart organisations have taken a broader look at their demographic’s breakdown offering something for everyone. Some benefits to potentially consider for the mature-aged worker could include part-time employment, flexible hours, or longer vacation times. 
Further, to mitigate bias in the recruitment process, employers need to look at their recruitment process when hiring older workers. Some examples include recruit from diverse sourcing channels eg print media or community papers as opposed to only online etc, applying inclusive language to the job ad and job description, doing blind applications by removing age-related information on resumes and provide training for hiring managers on the value of age diversity are a few suggestions. Explore Drake’s 7 tips to mitigate bias in your recruitment process for further insights.

With a record low unemployment rate and a skill shortage, coupled with a shift in attitudes towards work and retirement from the mature worker, companies who actively search for mature talent are more likely to meet their business demands with the necessary skills, and experience required in Australia workforce.

For more information on best practices when it comes to recruitment and selection, get in touch with our team today.