So you are recognised as an “Employer of Choice”, or maybe you aspire to be.
Whether the designation is formally conveyed by a peak body or accreditation agency or one you claim wanting to create a perceived competitive advantage, be aware that what gave you an advantage as an employer five years ago may no longer be the edge you require.
When I first started working in the field of age and work six years ago I suggested that the ageing of the workforce could well prove to be one of the biggest workforce challenges we face over the next two decades and secondly that the employer of choice in the future could well be the age friendly employer.
Six years on I have not changed my mind. Global consultancy PwC have this year identified demographic and social change as one of five top megatrends facing business with the ageing of the workforce one of the key drivers behind this trend. The boomers are now aged 50-69. They are living longer and healthier lives. And there has been a declining birth rate since the 1970’s, apart from the odd blip. What Ken Dytchwald calls the age wave.
What has not eventuated is the projection that mature aged workers would be “retiring” in droves. In fact “retirement” rate projections by Government agencies have constantly under shot. In 2011 the NZ Ministry of Social Development, in its ground breaking Business of Ageing report, acknowledged this projecting that by 2031 26% of people 65 and over would still be in employment. This was from a base of 13% in 2010. In the 2013 Update the projection was raised to 31% with the 2011 actual being 19%. In the most recent 2015 update it was noted that by 2050 12% of men and 10% of women over 80 could still be in work. NZ has the second highest participation rate in the OECD of people over 55 in the labour market, Australia is well back at 13th. Irrespective the direction is clear.
People are staying on at work by choice and for some through necessity. This brings it own challenges and opportunities for employers. Alongside of this we do have significant numbers of mature aged people who, for whatever reason, find themselves out of work and wanting and needing to work and not being able to find their way back.
Recognising this trend the Employer of Choice program in Tasmania invited me to run workshops and speak at the launch of their 2016 awards program in August. A hectic schedule of seven speaking engagements and workshops over 4 days provided the opportunity to talk with well over 300 people across the State.
As I write this blog in early December I am flying back from Tasmania having spent two days working with eighteen companies now participating in the Ageing Workforce Cluster program. All aspiring to be age friendly employers and to face up to the challenges of an ageing workforce. Two clusters are underway in Hobart with further clusters starting in the New Year in Hobart and the north of the State. The first cluster comprises employers from the building and construction sector, the other a mix of tourism, trucking, civil construction, retail, local and state government and residential construction.
Building on the successful cluster program I ran in Queensland with 22 SME’s we have built in a number of enhancements. The program comprises three 4-hour workshops at monthly intervals, 4 practical workplace exercises and implementation coaching. Each cluster is made up of up to 8 organisations with each encouraged to send two participants. One of the enhancements is the addition of a module looking at what it means to be an age friendly business given that the population is also ageing. Participants interview 6 older people to get their perspectives on what products and services an ageing population needs and wants and how age friendly their business is. Already companies are exploring innovative ideas.
I am constantly surprised by the insights people gain and the innovation that comes from working in clusters.
With over 97% of businesses in New Zealand and Australia employing fewer than 50 staff and not having access to the human resource capability that large employers have the cluster approach is proving to be a very cost effective way to engage employers to work on the very practical challenges they face.
Becoming an age friendly employer of choice is the next frontier.
To learn more contact Geoff