Why older workers are now in demand or should be...
When was the last time you considered someone in the 50+ age group for a position in your company? There have been countless reports, research studies and statistics that indicate a huge demographic shift is taking place in the workforce. Since the 1960s, there has been a decline of births that will create a shortage of younger candidates entering the labour market.
People are living longer, they are healthier, and they want to continue working and being productive — mature workers are a cohort not to overlook. This blog article will explore three Australian trends in the mature workforce.
Reason 1: Mature workers are delaying retirement
Many people are choosing to remain working well past the retirement age of 62-65, according to ABS this is due to financial necessity and boredom.
A report done in 2021 by Fidelity International found that people continued with employment past the age of 67 was because they enjoy working, and it helps maintain a sense of purpose.
Reason 2: Mature workers account for workforce growth
According to ABS, 21.5% of the population are aged 55 - 74. There is a shift in the number of Australians over the age of 65 remaining in the workforce.
Mature age workers are some of the healthiest cohort and less likely to take sick leave or experience work related injuries.
Reason 3: Recruiting and retaining older workers — a skills shortage solution
Employers may find themselves competing for the most skilled and knowledgeable individuals in the 50+ age group as baby boomers develop dual identities—becoming the retiree and the coveted employee.
Companies who embrace the importance of recruiting and retaining their older workers will not only benefit in a skills short market, but also gain the experience and mentoring that the mature cohort can offer younger employees.
Workers over the age of 55 are 5 times less likely to change jobs (human rights.gov). They can save employers around $1956 a year due to lower attrition rates, lower absenteeism and decreased need for training due to their higher levels of experience. It is increasingly important for companies to look at how to motivate all age groups to retain their workforce. Retention strategies which are valuable to the mature worker can also be desirable to the younger generation as well. Some benefits to offer the mature workforce can include part-time employment, flexible hours, and longer vacation times. This would encourage older workers to delay retirement and continue working for organisation’s who value their expertise and experience.
With a record low unemployment rate, and with the baby boom generation preparing to exit the workforce, many organisations are recognising that recruiting and retaining older workers will benefit their business. With companies across every industry sector searching for talent, hiring and retaining older workers can be a recipe for success.
Here are our 8 top tips on how to have an inclusive recruitment practice!
If you would like help finding talent to support your business needs, contact Drake Australia today