Older workers are helping to keep the economy humming along, with more people aged over 55 now going to work.
Government figures show that the labour force participation rate - the number of people in the country actually in work - rose to a record high of 68.8 per cent in the June quarter. And that the growth has been largely driven by people who have been under-represented in the labour market, particularly women, ethnic minorities and older workers (people aged 55 and over).
But employers could do a lot more to help themselves and older people who are keen to contribute and return to the workforce, says the owner of one recruitment firm.
Jane Kennelly of Frog RecruitmentJane Kennelly, of Frog Recruitment, says employers are missing out on highly skilled people with plenty to offer, people with good industry contacts and the experience and wisdom often only found in older people.
"There is an untapped workforce out there that organisations might want to factor into their thinking," she says. "The older worker will become a dominant force in the next few years as the labour market becomes even tighter."
Figures from Statistics New Zealand's report NZ's Ageing Population shows that in five years' time, the median age of the population is likely to be about 43 and that the number of people aged 65 and over in the labour force will treble from an estimated 38,000 six years ago to 118,000 by 2026.
In short, if present birth rates and immigration trends continue, there just won't be enough younger people to meet the needs of employers.
Kennelly says companies that think they can continue to get away with ignoring older job applicants may need to review their candidate selection procedures.
Age discrimination laws prevent companies from making hiring decisions based on age but Kennelly says there are companies out there who say they prefer younger people so they can "mould them and fold them".
"One client even tried it on me, asking that we didn't send them older workers, but we send the people we believe are the best for the job," says Kennelly. "They try and say they need younger people to fit their culture." She also says some job advertisements are written to put off older workers from applying for jobs at all. She says phrases such as "energy and flexibility" or "a high degree of fitness" are real turn-offs for older job hunters.
"There is this whole new set of language that is starting to come through about how to attract people to organisations," she says. "And this language isn't particularly attractive to the older worker."
One 55-year-old job hunter told Kennelly that he had sent his CV to 47 companies and not had an interview. "He had a great CV, impeccable credentials and good reference checks - but no one was interested," says Kennelly. "It is almost criminal isn't it? I think some of the people who got his CV were typically a lot younger. Some HR people have said that interviewing an older person is like interviewing their parents."
Kennelly says her survey of HR managers showed that 26-year-olds are 12 times more likely to make a job shortlist and get an interview than a 50-year-old.
However, some companies are welcoming older workers as government figures show the number of over-55s in work rose slightly in the year to September by 1.4 per cent to 41.4 per cent. However, it also says the participation rate for older workers is below the national average due to retirement.
Kennelly says her survey data shows that while New Zealand companies recognise the growing importance of older workers, many are not geared up to deal with them. Part-time options are a real drawcard but too many companies want full-timers, with job sharing options often not available.
"Which is a shame, as older workers will increasingly become a dominant force," says Kennelly. "They are well-connected, online, technically savvy - they are the largest purchasers of denim and iPods in the world. There are a few myths out there."
But there is no doubt that as people get older, their health becomes an issue.
"We are an ageing society, but we have a mature workforce we can capitalise on. But with that comes the challenges of managing them effectively in the workforce. The majority of workplaces don't believe they have the strategies in place to maximise opportunities in this area. "As a result, organisations are now starting to focus on developing dedicated strategies to deal with the older workforce."
Survey respondents say they believe older workers keep stability and provide a good balance to younger staff members.
"Overseas research shows that older workers are likely to stay in jobs for longer and have lower levels of absenteeism than younger workers," says Kennelly. "Older workers are also generally past the age of having young dependent children, and have less social commitments than their younger counterparts, resulting in fewer sick days. The direct result for employers is lower turnover costs, reduced absenteeism and increased staff loyalty, all of which impacts directly on profitability."
She says to take advantage of the pool of older workers, employers need to tailor their employment conditions to fit their needs. "Some of the benefits and job perks that appeal to a younger worker may not have the desired effect on older people. If a firm were to offer free health insurance, then that would be a big benefit. The firms who recruit older workers now will be the ones who do well and have the staff to deliver the goods in future."
A Retirement Commission report called The Ageing Workforce and the Argument for Phased Retirement, and written by Judith Davey, puts the case that if workforce participation by older workers is to be encouraged then more flexible and innovative working conditions, which suit their needs and circumstances, could be explored.
Davey says: "If older workers are unable to balance their responsibilities to family and work and employers are unwilling to provide flexibility, then many older workers may be forced to forgo participating in paid employment, removing valuable skills from the workplace and significantly impacting on their future financial wellbeing.
"Phased retirement is one way to meet the needs of older workers while prolonging some degree of workforce participation. An abrupt break between working full-time and then not working at all is becoming less common.
"Many older workers reduce their working hours and responsibilities gradually, to make the transition from work to retirement a smoother and more manageable process."
Davey says there are benefits for workers and employers in phased retirement. For workers, reducing participation in paid work allows them time to pursue leisure and family activities and adjust and prepare for the financial changes retirement brings.
"For employers, retaining older workers allows valued knowledge and experience to remain with the company and be used to mentor and train younger, less experienced workers.
"However, phasing of retirement and the retention of older workers past traditional retirement age needs to be considered in the context of tax, superannuation and benefit provisions for retirees and part-time workers."
By Steve Hart
Copyright ©2007, APN Holdings NZ Limited
