Archive for category Research

Why baby boomers won’t quit working

Posted by Catriona in Commentary, Research on August 2nd, 2010

Part of our ageing workforce

Ageing workforce

The weekend Financial Review’s 31 July 1 August excellent article by Deirdre Macken  provides an up to date snapshot of how our workforce is changing. You need to subscribe to get the full article, but in the meantime, here are seven stats to have up your sleeve:

  1. In the past three years, almost 100 000 extra older workers have entered the workforce annually
  2. Ten years ago only a third of people aged 60 - 64 were working; now more than half of the 60 - 64 population are working
  3. Three years ago, one in seven workers were older than 55; now it’s one in six.
  4. 40 percent of all the new workers in the past three years are 55 or older
  5. Since June 2007 the only age groups that convincingly increased their participation in the workforce were those over 55
  6. The number of workers aged 65 plus jumped 30 %compared with the population increase in that age group of 8.5 %
  7. The biggest increase in workers across the country is among women older than 65

As Barbara Pocock says:

Compared with 20 years ago, there is a lot more identity-making and meaning-making that has been attached to work. Even people’s friendships are more likely to be based at work than in previous generations.”

What’s all this mean? An ageing workforce means that organisations need to re-think the way we work and what a career life cycle is. The mantra we often hear: “Happy to work longer, but not the way I’m working now.” Let’s make our work association enjoyable, social, meaningful and supportive of other facets of our lives. Now that’s something no generation will argue with.

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What would influence your decision to work longer?

Posted by Catriona in Research on June 17th, 2010

Ageing workforce specialists SageCo recently asked more than 300 mature employees, “What would influence your decision to work longer?” More than 60 percent said that the opportunity to work the same role but on a more flexible basis would be a reason to stay. In the same vein, over half said that working in a similar role but with reduced hours and less responsibility would see them working beyond the traditional retirement date.

“The trick to the age management puzzle is slowing the rate of retirement” says SageCo MD, Alison Monroe. “Use your workforce planning data to determine the risk of not only how many you are losing, but also who you are losing.”

Extending the working life of our baby boomer generation is a key strategy for ensuring a future workforce. By 2016 we have more people leaving the workforce than entering it;  something has to shift. But how?

The results of this survey suggest that managers and HR professionals need to build a high level of competency in redesigning roles, applying flexible work arrangements and dealing with the more granular tasks of remuneration and superannuation.

While flexible work opportunities were the clear winner here, respondents showed strong support for an organisation’s alumni program to provide contracting opportunities and the means to contribute knowledge to special projects.

“SageCo sees a strong argument for the reinvention of the alumni model.” says Catriona Byrne, SageCo Director and Product Development Lead. “Up till now, most alumni programs simply provide a means for past employees to keep in touch annually.

We are having early discussions with a few progressive organisations who have tapped into the opportunity of using their alumni program as a way to resource the future. The new alumni model is a living, breathing knowledge database and a talent pool of experienced, contingent employees who can hit the ground running.”

None of these interventions will make a difference unless organisations have a baseline of good people management. However, it is clear that new practices must be put in place to influence retiring employees.

“The results also indicate that organisations need to actively support late career employees in their decisions about work and retirement.” suggests Alison Monroe “The mindset shift required by employees and employers alike won’t happen left to chance.”

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prepared for what?

Posted by Catriona in Commentary, Musings, Research on March 29th, 2010

The recent Mercer Superannuation Sentiment Index indicates a dip in retirement confidence given the impact of the GFC on funds. But it is this statement that really interests me:

Only 11% of working Australians feel they are thoroughly prepared for retirement.

This figure correlates with the research that SageCo has conducted over the last five years. Over 5000 employees have been through organisationally sponsored ‘retirement preparedness’ programs with us. While financial reasons weigh heavy on decisions about retirement, we think there are fundamental questions which need examining before you can adequately address the financial concerns.

  1. What does retirement look like for me?
  2. Do I really want to retire?
  3. What do I really want to do?
  4. How much money do I really need to do what I want to do?
  5. How could I continue working in some way?
  6. What are the (often unspoken) expectations of my family and friends about my retirement?
  7. How could I improve my health?

These are tough enough questions at any age. Even when ‘retirement’ may seem a long way off, having a plan in mind while you have earning capacity is so important. Not having a plan weighs heavily on mature employees.

Organisations who support their ‘late-career’ employees in retirement preparedness will reduce the risk of retirement loss and increase productivity.

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New age, different stage

Posted by Alison in Research on January 14th, 2010

Welcome to 2010! As we round the corner on a brand new year, social commentator and futurist Mark McCrindle has released what he sees as the Top Ten Trends that will define this decade. Many of these have a significant impact on Australia’s demographics and our favourite topic - mature age workers.

By 2020 our population will hit 27M with 1 in 5 aged 60+. An acceleration in baby boomer exits from the workforce will see the beginning of the ‘age wave hitting Australia’ says McCrindle.

The stage on which organisations perform is changing radically. When the closing curtain comes down on this decade, how many will have thrived rather than simply survived? According to McCrindle, this will require a return to skill development, training, longer job training and stability.

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Graying workforce requires a different approach

Posted by Catriona in Research on November 18th, 2009

This from Pew Research. American statistics - but we are seeing the same in Australia.

Our take: your workforce of the future is actually working with you today; they just want to work differently. What are you doing about it?

The American work force is graying — and not just because the American population itself is graying. Older adults are staying in the labor force longer, and younger adults are staying out of it longer. Both trends took shape about two decades ago. Both have intensified during the current recession. Both are expected to continue after the economy recovers. One reason, according to a Pew Research survey, is that older workers value not just the economics benefits of work, but the psychic and social rewards.

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