Baby boomers or BUST!
We need to hire more baby boomers.
In Australia, we often consider gender, racial and cultural bias in our recruitment practices and at work. But what about ‘age bias’?
In solving the impending skills shortage, are we overlooking one of the richest sources of talent because of our biases towards aged and mature workers?
In addressing skills shortages, should we reevaluate our attitude to the over-50’s workforce – are our baby boomers the key to solving the talent crunch?
Organisations across Australia are battling for talent at every level, but with Gen Z and Millennials supposedly leading the charge in the pandemic created phenomenon of the “Great Resignation,” should we be making a more concerted effort to engage with our Baby Boomers and Gen X, for reskilling and upkilling for future need?
Unfortunately, ageism is rife in Australian workplaces.
How do we overcome age bias?
At over-50 you are considered an older worker.
A recent survey of 5,000 over-50’s the Australian Seniors Series: Ageing in the Workforce 2021 | Australian Seniors shows many older people want to participate in the workforce, but they are not being given opportunities:
eighty-nine per cent said ageism is prevalent in the workforce.
close to one in four believe they were turned down for a job based solely on their age.
more than two in five did not even bother applying for a job because they felt their chances were low because they are older.
This in-depth study explores the current experiences of seniors in the Australian workforce, the impact of COVID, how they feel about retirement and how they are taking control of their careers. It makes for sobering reading.
Despite the prevalence of ageism, more than three-quarters of Australians aged over 50 want to keep working indefinitely and almost 90 per cent of retirees plan to re-enter the workforce.
Furthermore, based upon the countless messages I have received from mature workers, there is a strong sense of frustration with how they are being treated in the employment market – especially when applying for roles where the talent crunch is especially acute.
It doesn’t need to be like this?
Why is it that, if you are older, are likely to be considered less capable, less able to adapt, or less willing to roll up your sleeves and do something new than your younger peers?
Australian’s are growing older
Australians are ageing at the same time as our labour pool is shrinking. With the Australian population continuing to grow, we will see more mature age people in our community and workplaces.
Leaders need to consider how they tap into our older workforce. Based upon recent survey results, here are some reasons why hiring mature-aged workers make sense:
higher retention rates - workers aged over 50 are five times less likely to change jobs than workers aged 20-24.
greater flexibility - older workers can often be flexible in relation to part-time work or other flexible work arrangements when needed.
workplace mentoring - older workers can be excellent workplace mentors or coaches.
experience - older workers typically have a broad base of transferable knowledge and skills. Their contribution to a workplace can be well beyond the bounds of their role.
low risk - the risk of a poor appointment is reduced with baby boomers because work history and performance background can be checked.
We should be retooling our baby boomers
There is plenty of research demonstrating the benefits of developing and training mature workers versus letting them go and replacing them with new (younger) employees.
We know that the ROI on retraining existing staff is much more cost-effective for productivity, diversity, retention, and the overall bottom line, so why are we not proactively engaging with our mature-aged workers?
Modern and forward-thinking employers understand the importance and benefits of recruiting and retaining older workers to a diminishing labour pool. Some Australian organisations have instituted specific initiatives to train older workers.
Our DIY and supermarket giants recognise the value they provide, bringing mature workers back into the workforce.
Coles is adding more than 7000 positions across its food and liquor divisions and Coles Express, not just for Christmas but to cope with growing demand. Likewise, Woolworths is advertising for thousands of positions and BIG W is hoping to hire 3500 staff to help field the incoming wave of shoppers. They are actively recruiting mature-aged workers.
Even the banking sector is getting in on the act. ANZ is looking at recruiting older workers and pensioners to help combat labour shortages and midlife career lulls. Older workers have become sought after, with the bank finding mature-aged employees were more empathetic and suited to helping customers particularly those who have gone through hardship such as losing their job, going through a divorce or financial difficulties.
We’ve got adaptable people with great mindsets and great ways of dealing with people who may have retired or been out of work. How do we get those people back into work? Shayne Elliott, CEO, ANZ.
Aged workers can also be a solution for the skills drain we experience in other industries such as caregiving and healthcare sectors.
With so much now being written about the “Great Resignation” and with employers struggling to fill critical roles, one of the solutions to this problem is seemingly staring us in the face.
The risk of early retirement
Other surveys show that older workers are heading to retirement ahead of their time due to a lack of opportunity. A 2021 survey in the U.S found that a 'Silver Tsunami' of older workers is adding to their skills shortage challenges.
With people over the age of 60 projected to outnumber children under the age of five within the next year, and by 2025 some 25 per cent of workers in the U.S and the UK will be over the age of 55. This same cohort of workers is the fastest growing in almost every country, including Australia.
With all of us living longer – the average longevity of human life goes up three months each year – and millennials having fewer children, with declining fertility rates across all advanced economies, we need to challenge our prejudices towards mature workers.
Again, what is the solution? It’s simple. We need to bring baby boomers back to work and give them meaningful and essential jobs.
The myth propagated by the retirement industry is that people over the age of 65 should retire. Why? I can’t imagine retiring at 65, not least I don’t think my poor wife will allow me to.
Engaging with mature workers also allows us to provide value to others. Gen-Z can benefit from the workplace wisdom older workers offer, and it might also take some of the strain off of the aged care system with people heading to retirement too early.
What actions can leaders take to retain mature workers?
Here are 10 questions for executives and human resources leaders to ask:
Do you have a policy or program that actively recruit mature aged workers?
How about providing older people with titles and roles that let them contribute their value?
Do you have policies to offer increased flexibility to your baby boomers as they progress towards their retirement?
Have you looked at pay equity by job and level, not tenure?
Is ‘age diversity’ part of your diversity, equity and inclusion (DEI) program?
Have you considered engaging baby boomers in ‘reverse mentoring’ programs? Reverse mentoring, when early-career employees teach new skills to senior employees, is one way that businesses can maximise the value to both sets of workers.
Have you reviewed your recruitment practices to ensure that they do not discriminate by age? This should include reviewing the language of your advertisements, screening process and interviews for any unperceived bias.
Are you recruiting for ‘unicorns’? How do you feel about challenging your recruitment partners, internal or agency partners to look outside of the box when it comes to hiring talent?
Do you promote carers leave options to your employees? With baby boomers taking increased responsibility for their elderly parents, flexible and reduced hours will allow them to balance work and their family responsibilities.
What are you going to do when you reach 50, 60 or even 70 years of age?
If we can ‘crack the code’ on expanding the opportunities for more generations in the workplace, we will create more inclusive and empowering workplaces.
The benefits of multigenerational diversity are significant, and addressing age bias towards our baby boomers might be the best solution to the skills shortage. It’s good for the economy, business, society, and a win-win for all Australian’s.