The New Zealand Work Research Institute at AUT University released the NZ Diversity Survey Bi-annual Report this week

The ageing of the workforce has once again been highlighted in this bi-annual report. The survey of 762 New Zealand organizations placed the ageing of the workforce in the top three most important diversity issues facing organisations. The survey is run in conjunction with the EEO Trust and the Auckland Chamber of Commerce.

Close to fifty per cent of small businesses (0-19 employees) saw it as their third most important diversity issue after wellbeing and flexibility. It was little different for large companies (over 200 employees) with fifty two per cent ranking ageing as important. Forty per cent of medium sized enterprises (20 – 199) also ranked it third.

The ranking is not surprising to us. Companies are waking up to the challenges of an ageing workforce. Some are already facing recruitment challenges and wondering where their next workers will come from.  Small and medium sized business owners are worrying about succession. The realisation that long serving employees could retire raises the real risk that mission critical knowledge and skill could walk out the door. On the other hand increasing numbers of older employes are staying on at work through necessity and by choice. The later is in our view clearly linked to the the other two top ranking themes, well-being and flexibility.

The NZ Diversity Survey results show a growing level of awareness of the issue amongst New Zealand business organisations. But are companies doing anything about it? The survey suggests not.

Large companies were slightly more likely to have something in place. Despite the investment many large companies make in human resource departments, forty-five per cent had neither a policy or programme in respect to the ageing of their workforce.  For SME’s eighty per cent of small businesses and seventy per cent of medium sized businesses had nothing in place.

This is concerning. Over 1 million people in New Zealand work in companies with fewer than 100 staff. By 2031 it is projected that twelve per cent of the labour market will be made up of workers aged 65 and over. Up from five percent in 2011. This is a challenge that will not go away.

Partners in Change has worked directly with over 35 companies in New Zealand and Australia over the past three years to assist them to develop mature aged workforce strategies and action plans. We have talked with many more people at workshops, seminars and local and international conferences. This is a familiar story for us.

While the level of awareness is growing, few organisations have anything in place.  We are seeing some ad-hoc responses as companies become aware but few are strategic and well targeted at the real issues faced by companies and their workforces. We recommend a three stage approach for companies ready to address this growing issue. Start by building an awareness of your unique challenges and opportunities. Secondly develop an evidence informed strategy that clearly identifies your business risks and then put in place actions that address your companies risks and opportunities.

We would be happy to discuss this issue further if you would like to contact us.