Posts Tagged “over 50 employment”

What to do when you face ageism in the workplace

By my 40s, I hope to be very comfortably established in my career, ensconced in a warm blanket of experience that makes me more valuable than ever to my employer.

But here’s a terrifying truth: age discrimination can start affecting you from 45, according to Diversity Council Australia.

Stereotypes about being too rigid, slow or technologically unsavvy abound and, depending on the type of work you do, that can mean work starts to dry up, or you find yourself unable to bounce back after redundancy.

As for those over 50, nearly 30 per cent of respondents to a 2018 survey by the Australian Human Rights Commission said their organisation was reluctant or unwilling to hire anyone over that age.

So if you’re finding yourself edged out at work, you’re not alone.

Executive to unemployed

Tim Hessell was 48 when a company restructure made his role as an HR executive redundant. It took him two years to find another full-time position, despite having 25 years of experience under his belt.

That’s when things really started to unravel.

Finding a permanent position proved impossible, so he took on a series of contract positions.

“While that started out positively, over the years that whittled away until at some stage, in one year, I went for 60 different roles and was unsuccessful in all of them,” Tim says.

“[I had gone] from what once would be regarded as a successful career as an executive, to then being unemployable for whatever reason.”

No-one ever told Tim he was too old to hire. Recruiters were more likely to say, “‘You’re over qualified’ or ‘You’re not the right fit’ or ‘We think it’s better we give this role to someone who can grow through it, rather than yourself’.”

It was a demoralising experience, leaving him anguished and confused. He wondered whether there was something wrong with him.

“Then I looked at other colleagues in similar industries who were [having a] similar sort of experience.” He realised wider factors were at play.

He decided to tackle the problem from another angle: going back to university to do a PhD on the causes of ageism in the workplace.

But not everyone has to take such drastic measures. Here are some first steps to consider, as well as advice on activating Plan B.

Laws around age discrimination

The first thing to know is that age discrimination in Australia is “absolutely illegal”, says Robert Tickner, co-chair of the EveryAge Counts campaign and former Labor Party cabinet minister.

“Every state and territory, plus the national parliament, has outlawed age discrimination,” he says.

“So if people do think they’ve got some clear evidence of discrimination, they may wish to talk to the Human Rights Commission.”

The Commission’s Australia-wide information line is 1300 656 419.

However, complaints can be hard to test, says Age Discrimination Commissioner Kay Patterson.

She shares examples of two cases that were successful:

A 56-year-old who stopped getting casual shifts as a kitchen hand. He was told a younger person was replacing him to cope with the busy Christmas period. He received approximately $1,800 in lieu of four weeks’ notice.
A 75-year-old who was falsely accused of breaching work safety rules and had his hours cut, after the HR manager found out his age. He was awarded around $4,500.

With all of us bound to age (if we’re lucky), Dr Patterson has this warning for employers: “The climate you set will be the climate you inherit.”

CV and skills check

While the onus is very much on employers to change their attitudes towards older workers, there are a few things you can do to bias-proof your CV.

“You don’t have to put in your date of birth, and you don’t have to put your entire employment history [on your CV],” Mr Tickner says.

“You can skilfully craft a resume that highlights your skills rather than all the jobs you’ve had.”

For the jobs you do list, perhaps stick to more recent roles.

If you’ve had the same role for several decades and now find yourself out of work, consider refreshing your skills.

That could mean doing a TAFE course, or online courses — anything “so you project that your skills remain relevant today,” Tim says.

Also think about how you can demonstrate the depth of your knowledge and experience.

“Older workers sometimes take a lot of what they’ve done for granted,” Tim says. “They never realise quite what they know and the insights they can bring to bear.”

So consider how to convey that — “Not in a way that positions you as, ‘Back in the old days, this is how we did it’, but in a way that people say, ‘Oh, I never thought about it that way.'”

Look after yourself

Being unemployed is stressful at any age, but there’s evidence that older workers experience longer periods of unemployment between jobs. Think of Tim’s two-year stint looking for work after he was made redundant the first time.

“The stress of being unemployed, of worrying, can lead to mental health issues and depression and the like,” but keeping fit and active can help you cope, he says.

“You don’t have to be an Arnold Schwarzenegger, or go to the gym seven days a week. Just looking after yourself will be important.”

Mr Tickner also went through a two-year period of searching for work, during which he became “desperately unhappy and lost a lot of self-esteem”.

In addition to regular exercise, he credits the support of close family and friends for keeping him going.

“It’s important people talk to their friends if they’re having tough times. If there’s a need to seek professional help, then do that.” Feeling down is perfectly normal, he adds.

Consider a Plan B

If you’re still struggling, it might be time to think about a backup option — though that may be challenging at first.

“My thoughts being a baby boomer were that life was going to be fairly linear and sequential. You went to school, got a job, worked, then retired. Life teaches you that’s not always the case,” Tim says.

“I’d say, don’t define yourself by the work that you’ve always done. What are the other things that interest you? What are the things that are going to give you some sense of meaning as a person?”

Tim says broadening your sense of identity will help you avoid losing confidence and becoming angry.

“That’s what led me to a PhD.”

Construction worker hammers a nail — Sometimes a plan B is necessary as you age.(Pexels)

There are options for people in manual work too.

“A number of ex-trades people have ended up in retail,” Mr Tickner says.

“For example, there are a lot of older people who work at Bunnings. They have transferable skills gained over a life time in a particular trade or industry, and now they’re using those to help people gain expertise in the shop.”

For anyone reinventing themselves, Mr Tickner has these words of encouragement:

“Take heart and give it a go, because you might be surprised by the richness of life experiences that might unfold for you.”

Coming full circle

Tim sees the irony of being a former HR executive who was edged out of work because of ageist recruiting practises.

Working on his PhD made him realise that he was unwittingly part of the problem he’s now inherited.

“I thought I had been quite innovative [during my time in HR]. What I realised I did was recruited lots of young people, lots of women, lots of people of different ethnic background — but I didn’t recruit many older people.”

Was he ageist himself?

“I was. I didn’t realise it, but I was.”

Part of the problem, he says, is that “sometimes when you’re young, you never realise you’ll get old”.

He’s hopeful his PhD will now put him in a better position to consult organisations on their recruitment strategies.

Source:ABC

Government considers doubling Work Bonus threshold

Older Australians could be the beneficiaries of a plan to address a shortage of workers.

Federal opposition leader Peter Dutton has called on the government to double the amount that age pensioners can earn before their pension payments are affected.

Speaking with reporters, Mr Dutton said that lifting the Work Bonus amount at which pensioners begin to lose benefits from $300 to $600 could help alleviate the labour shortage facing businesses.

Currently, those receiving the Age Pension can earn up to $180 per fortnight for singles, and up to $320 per fortnight for couples, on top of the Work Bonus amount, before their pension payments are reduced.

“This is about those who want to work and do an extra day or two … and for it not to affect their pension,” Mr Dutton said.

“I really think it’s a policy that the Albanese government should pick up because the economy demands it now.”

Read: Retail body pressures government on Age Pension work rules

Mr Dutton said Treasury had costed the plan at around $112 million annually, and it would be reviewed each year if implemented.

In a rare show of potential bipartisanship, new Treasurer Jim Chalmers told the ABC’s Insiders program that his government was open to the idea of easing the rules, but he had concerns about the cost of the program.

“When it comes to this issue, I’ve had good, productive conversations with National Seniors and others about whether or not we can do something here,” he said.

“The truth is, in a budget which has got that trillion dollars in debt, we’ve got to weigh up all of these ideas and work out where we can get the best bang for buck.

“Because even an idea like this, which appears to be relatively modest, it still comes with a relatively hefty price tag.”

Mr Chalmers said the idea would be on the agenda at Labor’s ‘jobs summit’, set to be held sometime before the October Budget.

Business groups applaud the plan. Innes Willox, chief executive of national employer association the Ai Group, says encouraging older Australians back to work will bring decades of experience back to the economy.

“Tens of thousands of Australians now receiving a pension can potentially make a huge contribution to the workforce with their skills, experience and mentoring,” he says.

“Our policy settings need to move with the times and allowing older Australians to work more is one way of easing the labour pressures on business.”

Employers may say they support older workers returning to work, but are businesses willing to hire them?

EveryAGE Counts campaign director Dr Marlene Krasovitsky welcomes initiatives to break down structural barriers to older people working, but says we also need to break down attitudinal barriers given the prevalence of ageism among employers.

“Recent research by the Australian HR Institute revealed 47 per cent of Australian businesses say they are reluctant to recruit workers ‘over a certain age’,” says Dr Krasovitsky.

“For more than two-thirds of the group admitting to ageism, that ‘certain age’ was over 50. So the chances of an over-65 getting a fair go in a job interview is extremely slight.

“If we want to harness the unquestionable value of over-65s in the workforce, we need to look ageism squarely in the face, admit that it’s a problem, and work hard to break it down.

Source: yourlifechoices.com.au

Middle-aged Australians struggle to claw back their careers after COVID-19

Experienced older Australians finding job opportunities are drying up.

ABC NewsAustralian Broadcasting Corporation

Who is going to hire a woman in her 50s?

It’s a question Tracey Ward has been asking herself a lot lately.

The 56-year-old is a self-employed life coach for women, but has seen her income dry up due to the pandemic.

She’s surviving off JobKeeper payments, but when the subsidy is scrapped in March, Ms Ward is afraid she will “really struggle”.

She knows she could get some sort of work – “there are organisations like Bunnings who hire people of all ages”, she said – but she wants something different for herself and fears the lack of attention from the federal government on her age group could signal the end of her career.

While the government has focused on the high levels of youth unemployment borne out of the pandemic, middle-aged, mid-career workers say they have been forgotten.

The unemployment rate for Australians aged over 40 was 3.8 per cent in January 2020 and grew to 5.2 per cent in July before recovering slightly to 4.7 per cent by October.

Some of those stuck unemployed say they are dumbing down their resumes to appear less threatening to potential new employers; others, like Ms Ward, wish funding could be funnelled into upskilling rather than hiring incentives based on age.

‘If you’re 40-plus and a woman you just don’t get a new job’

A woman in a red cap and sunglasses leans on a wooden railing over the sea. — Sheena Gulati has been told she’s too qualified for the jobs she applies for.(Supplied)

Sheena Gulati was told many times in 2020 that she was “overqualified” for a role.

The 43-year-old lives in Sydney with her husband and two children.

Before the pandemic hit, she was working as a part-time contractor in accounting and finance.

Of all the reasons to be rejected from a job, being “too experienced” wasn’t something she expected to hear.

“They want someone who is young because I think they think overqualified people will ask more questions and tell them how to do things better,” Ms Gulati said.

She suspects her qualifications have little to do with it.

“It’s your age they’re talking about,” she said.

Ms Gulati felt the competition within the jobs market ramp up, and said she is surrounded by friends and family in their 40s who are struggling to secure work.

It’s become so tough she’s considering a career change.

“I have been thinking about it, but it would be a fresh start. It’s scary. I have been in this line of work for a really long time, my qualifications are in this so it will be hard starting afresh,” she said.

“If you’re 40-plus and a woman you just don’t get a new job.”

Her mortgage, other household bills and the expense of raising two children is beginning to bite and Ms Gulati says she’s frustrated the government appeared to forget about middle-aged Australians.

“Why does the government want to give more benefits to elderly people over 65 but not us? What do you do between 35 and 50? Where do you go? What do you want us to do?

“I think it’s unjust – your partiality is based on age. Why? I have no idea.”

Need a job? Learn to ask

A woman sits at a table smiling into the camera. — Career practitioner Lois Keay-Smith says mature-aged workers can’t rely on what worked for them the first time around.(Supplied)

Career practitioner Lois Keay-Smith has been coaching people looking for a new job for years, and primarily helps people aged 30 to 60.

She said, surprisingly, the pandemic appeared to be the last straw for people looking for a career change.

“It’s highlighted aspects of their work they don’t like. It’s given people some freedom to say, ‘I wasn’t happy anyway and with all these changes I want to go and do what I want to do’,” she said.

Ms Keay-Smith said older workers “definitely” faced challenges, like adapting to a new work environment where competition for jobs was high.

“I find some mature work-seekers fall back on what worked for them last time, but it doesn’t work because there are so many more eyeballs on job ads,” she said.

“But an advantage they have is they have good networks; they’ve been in the workforce and often the work I do is help them activate that network.”

Ms Keay-Smith says one of the best pieces of advice she has is: learn to ask.

“I call it the rise of the returnee – going back to a company you used to work for by tapping into those colleagues you used to work with before,” she said.

“There used to be a stigma around that – you never go back – but that’s changed and both of these things around people are more accepting that things change in organisations quite rapidly.”

Ms Keay-Smith also says she’s heard the ‘overqualified’ response quite a lot when it comes to mature workers.

“[The company’s] main concern is that you are using the job as an entry point,” she said.

“They feel you are not going to stay because it’s not fulfilling and you might get bored.”

Her advice for people who do want to scale down their role is to be honest.

“If you know you are going to get the overqualified response, you do have to address the elephant in the room and say why you are attracted to this role.

“It’s about positioning yourself as a stayer or someone who can contribute a lot in a short space of time.”

Ms Keay-Smith’s top career advice is:

Use your networks.
Get comfortable being on camera. Practise interviews on Zoom with a friend.
Don’t be afraid to go back to a company you used to work for.
Get up to speed with the latest interview techniques.

Older workers want to upskill

Hands are seen on the keyboard of a laptop. — Tracey Ward doesn’t want a handout, she wants to learn new skills to improve her business.(Unsplash: Thomas Lefebvre)

While Ms Ward believes an incentive to hire young people is great, she says helping people who are mid-career would have a greater benefit overall.

“Younger people have time to try things and fail and learn from it, but it becomes more scary when you’re older and have a mortgage to pay and have no back-up plan,” she said.

“You’re very conscious of your superannuation for retirement.

“I am very proud to be a woman in my 50s, but I know women who don’t let their hair go grey because if their company finds out how old they are they go in the redundancy pile.”

Just like Ms Gulati, Ms Ward has heard employers say they don’t want to hire qualified, older workers because they are afraid they will “make waves”.

She has friends who have pared back their resumes after being told they are “too experienced” for a role.

“It’s desperate and very real for many especially women; grey-haired men are classed as distinguished and experienced whereas grey-haired women aren’t. We are not revered for our wisdom.”

Ms Ward doesn’t just want to be hired, she wants to upskill to remain relevant in the ever-digitising workplace.

“Everything is going online and into a digital space so fast and some older people are being left behind because there’s no time or money to reskill,” she said.

“I have just spent the past hour trying to work out how I record myself whilst I’m recording a presentation on the Mac, so there’s endless [challenges].”

Sometimes she laughs it off. Other times it’s overwhelming.

Ms Ward said an upskilling program where companies provide pro-bono work for older people to learn digital skills would go a long way, and be much more helpful than just being hired by a company because there’s a monetary incentive.

“I’m not talking about someone from Centrelink showing me how to do it for half an hour on video. I’m talking about someone who is at the head of their game getting a tax incentive to help me step up my business,” she said.

“And then I could employ people so it could be a win if other companies were encouraged to help people like me because I don’t have the funds to do it myself.

“I don’t want a free handbag. I want my business to be really successful. I’d happily be the pilot for it.”

Have you been rejected for a job because you are ‘too qualified’? Does the system discriminate against older Australians?

Number of older Australians on Newstart growing by 10,000 per year.

Gold Coast resident Liz Clifford stands outside her garage. — **PHOTO**

Liz Clifford is selling her house because she cannot keep up with the repayments.

In the space of five years, Liz Clifford has lost her husband to cancer, her office job and now her home.

At the age of 60 she finds herself struggling to get by on Newstart unemployment benefits.

“Very disappointed with life,” she told 7.30.

“It wasn’t his fault that he got sick and died, but after losing my job I don’t have the income now to support living here — rates to pay and bills to pay.

“I don’t like to say it’s destroyed my life, but it’s certainly torn it apart.”

Ms Clifford is part of a worrying trend. The number of people aged 55-64 on Newstart has risen by more than 55,000 in less than five years.

“It’s been very difficult. It makes you feel quite worthless actually, like you’ve got no purpose in life,” she said.

“I feel a little bit insulted and I feel like I’ve been punished for being unemployed.”

She lives on about $50 a day and has been forced to sell her and her late husband’s dream home because she can no longer keep up with repayments.

‘I’ve got a lot to offer’

Newstart has not increased in real terms for more than two decades, and the Federal Government is resisting calls to lift the payment.

“Electricity’s not cheap, water rates and house rates aren’t cheap,” Ms Clifford said.

“I get my Centrelink payment every fortnight and that just goes straight onto my credit card.

“Because I’ve used the redraw facility on [the mortgage], it’s gone up but I’ve tried to be very careful with that.”

Ms Clifford currently works part-time at a Gold Coast boarding kennel but is planning a move to Ipswich to find a cheaper home and full-time office work.

“I think people probably want someone who’s 35, 40 or something like that or maybe even younger.

“I know I’ve got a lot to offer, I’ve got a lot of skills and I’ve worked for a long time and I’m quite computer literate, but I think people just think, ‘She’ll be wanting to retire in a couple of years’ time, so it’s not worth taking her on’.”

More programs needed for mature age workers

Flinders University's Professor John Spoehr is a labour market analyst.

Labour market analyst Professor John Spoehr said the sharp rise in the number of over-55s on Newstart was due to a downturn in traditional industries and a crackdown on eligibility for disability support payments.

“Despite the Australian unemployment rate being relatively low, that masks some other problems in the labour market,” he told 7.30.

“In particular, the difficult circumstances that mature-age workers face, particularly because of the decline in mining and manufacturing.

“People who were skilled in those sectors had to find jobs in very, very different areas of the labour market, predominantly in the services sector where they weren’t well skilled.”

Professor Spoehr said a poor education was hurting some workers in the modern employment landscape.

“Typically, mature-age workers, baby boomers in particular, often require more support than a lot of other workers in the labour market that are struggling,” he said.

“I think there’s a need for an expansion of mature-age employment programs in Australia to support mature age workers through these difficult transitions.”

Living on $40 a day

Phillip Cacciola stands in front of an army jeep.

Phillip Cacciola, 61, has a lifetime of experience on the factory floor.

“My first job [was] cabinet maker, then I got a job at Holden, biscuit factory, steel fabrication,” he told 7.30.

“Then I got a job at Copperpot pate and dip factory. I was there for 10 years.”

He is now unemployed and believes his reading and writing skills and age are stopping him from finding work.

“Everything is on the computer,” he said.

“When you put a job application in you’ve got to put it in the computer. I can’t do that. Simple as that, I just can’t do that.

“If they put me on a forklift and show me what to do I’d probably pick it up after a while. You’ve got to go through the paperwork and safety and stuff.

“I know the safety stuff but you still got to write it down, that’s my biggest problem.”

Mr Cacciola said he had personally sought out courses to improve his reading and writing skills but wanted the Government to help more in this area as well as increase the Newstart payment.

He lives on about $40 a day.

“Sometimes I get cranky when I hear things about the politicians,” he said.

“They’ve got no problems paying the electric bills, they’ve got no problems paying anything.

“If they want to buy something they can get money out of the bank and buy it. I can’t do that.”

The longevity dividend: Work in an era of 100-year lives

People are living longer, and organizations are shifting their attitudes toward older workers as a result. Organizations that can turn advancing worker age into an asset could gain a competitive advantage.

Longer lives, older workforces

Rising life expectancies and an aging global workforce present organizations with unprecedented challenges and untapped opportunities. Companies that plan, design, and experiment with workforce strategies, workplace policies, and management approaches for longer working lives can reap a longevity dividend. Those that lag behind face potential liability concerns and skill gaps. Creating ways for people to have meaningful, productive multi-stage and multidimensional careers is a major opportunity to engage workers across generations.

One of modern science’s greatest achievements is longevity: the unprecedented length of human lives today. Average global life expectancy has rocketed from 53 years in 1960 to 72 years in 2015—and it is still climbing,¹ with life expectancy projected to grow by 1.5 years per decade.² Longevity, combined with falling birth rates, is dramatically increasing the share of older people in populations worldwide.³ Looking ahead, the number of retirees per worker globally is expected to decline from 8:1 today to 4:1 in 2050.⁴

These demographic facts have profound implications for individuals, organizations, and society. In this era of longevity, an individual’s career can last far longer, spanning generations of technologies and businesses. Companies can employ people into their 60s, 70s, and beyond as the pool of traditional “working-age” (20- to 54-year-old) adults shrinks. For their part, many individuals find the need—financially and/or emotionally—to stay in the workforce past “traditional” retirement age.

In our 2018 Global Human Capital Trends survey, 29 percent of the respondents rated longevity as a very important issue, and another 40 percent rated it as important. Respondents in Japan in particular, whose population is rapidly aging, were especially concerned about the issue, with 41 percent saying that it is very important.

The looming impacts of global aging

Population aging poses a workforce dilemma for both economies and organizations. Thirteen countries are expected to have “super-aged” populations—where more than one in five people is 65 or older—by 2020, up from just three in 2014.⁵ These include major economies such as the United States, the United Kingdom, Japan, Germany, France, and South Korea. China’s 65-and-older population is projected to more than triple from approximately 100 million in 2005 to over 329 million in 2050.⁶ In fact, analysts have estimated that 60 percent of the world’s population over 65 will live in Asia by 2030.⁷

Compounding the challenge, almost all developed economies now have birth rates below the replacement rate of 2.1.⁸ This means that companies in these countries must either attract workers from abroad or tap into the maturing workforce. For a view of the challenges ahead, one needs look no further than Japan—the world’s oldest country—where a shortage of roughly 1 million employees in 2015 and 2016 is estimated to cost nearly $90 billion.⁹

New research is being conducted to help organizations shape their talent and business strategies for an era of longevity. The MIT AgeLab, for example, works with businesses, government, and other stakeholders to develop solutions and policies aimed at engaging the elderly population. The AgeLab uses consumer-centered thinking to understand the challenges and opportunities of longevity in order to catalyze innovation across business markets.¹⁰

Older talent as a competitive advantage

As talent markets grow more competitive, organizations often find it valuable to keep older workers on the job rather than replace them with younger ones. Our research shows that older workers represent a largely untapped opportunity: Only 18 percent of this year’s respondents said that age is viewed as an advantage in their organization. But leading companies are beginning to focus on this talent pool as a competitive advantage.

The older labor pool represents a proven, committed, and diverse set of workers. More than 80 percent of US employers believe that workers aged 50 and more are “a valuable resource for training and mentoring,” “an important source of institutional knowledge,” and offer “more knowledge, wisdom, and life experience.”¹¹ The UK government incentivizes employers to retain, retrain, and recruit older workers, and it is committed to policies that support lifetime learning and training and decrease loneliness and social isolation.¹²

Proactive organizations are tapping into the older talent pool by extending their career models, creating new development paths, and inventing roles to accommodate workers in their 50s, 60s, and 70s. This year, 16 percent of the respondents we surveyed for this report say their companies are creating special roles for older workers, and 20 percent are partnering with older workers to develop new career models. Organizations could find great value in older workers’ ability to serve as mentors, coaches, or experts. Taking on these kinds of roles allows older workers to “pass the baton” to younger generations, while making room for ambitious younger workers.

Many companies are also experimenting with workplace changes to help older employees remain in the workforce. For instance, BMW increased productivity on an assembly line staffed with older workers by 7 percent in just three months through simple changes such as providing cushioned floors and adjustable work benches.¹³ Home Depot and other organizations are engaging older workers with flexible scheduling options and part-time positions.¹⁴ Further, as many as one-third of retirees are willing to work part-time, offering opportunities to leverage this group on a contingent or gig basis.¹⁵

Reskilling also plays a role in successful strategies to utilize older talent. One global telecommunications provider encourages senior workers to reinvent themselves and invests in programs to help them acquire new technical skills.¹⁶ Software engineers who have built careers on older technologies such as COBOL or C++ can use this experience to learn mobile computing, AI, and other technologies at a very rapid rate.

An interesting and little-known fact, moreover, is that older people are among the most entrepreneurial of workers across age groups. Between 1996 and 2014, the percentage of older workers (aged 55–64) starting new ventures increased—exceeding (by 68 percent) the rate of entrepreneurship among millennial entrepreneurs (aged 20–34), which actually decreased during the same period.¹⁷

The new challenges of an aging workforce

The transition toward older talent can present challenges. Older workers may have specialized workplace needs and can attract resentment from younger workers, and they often enjoy higher salaries because of their tenure. Organizations looking to assimilate an older worker population may face the need to design new wage policies, create more flexible rewards programs, and train young leaders to manage people across generations (including team members who may be their parents’ age).

Pensions are another area where longevity impacts organizations. The World Economic Forum estimates that a $70 trillion global retirement savings gap exists today, highlighting the sharp difference between retirement needs and actual retirement income. Moreover, this gap is projected to grow to $400 trillion by 2050.¹⁸ Helping older adults to work longer and manage their retirement savings will be a vital need for companies in order to avoid the negative productivity effects of financial stress.

Our Global Human Capital Trends research shows that many organizations are unprepared to deal with the aging of global workforces. Nearly half of the respondents we surveyed (49 percent) reported that their organizations have done nothing to help older workers find new careers as they age. Rather than seeing opportunity, 20 percent of respondents view older workers as a competitive disadvantage, and in countries such as Singapore, the Netherlands, and Russia, this percentage is far higher. In fact, 15 percent of respondents believed that older employees are “an impediment to rising talent” by getting in the way of up-and-coming younger workers.

Are older workers an advantage or a disadvantage?

Perceptions of workers over 55 years old spanned both extremes, though these perceptions varied significantly by country.

Based on these findings and our anecdotal observations, we believe there may be a significant hidden problem of age bias in the workforce today. Left unaddressed, perceptions that a company’s culture and employment practices suffer from age bias could damage its brand and social capital.

Age discrimination is already becoming a mainstream diversity issue and liability concern. More than 21,000 age discrimination complaints were filed with the US Equal Employment Opportunity Commission in 2016.¹⁹ The problem is particularly acute in Silicon Valley’s technology industry, where older software engineers are often pushed to take lower-paying jobs or look for work outside Silicon Valley because of the emphasis on the “youth culture.”²⁰

The demographic math is undeniable: As national populations age, challenges related to engaging and managing the older workforce will intensify. Companies that ignore or resist them may not only incur reputational damage and possible liabilities, but also risk falling behind those organizations that succeed in turning longevity into a competitive advantage.

The bottom line

Staying competitive in a world of unprecedented longevity demands that organizations adopt new strategies to engage with older talent. Traditional assumptions—that learning ends in one’s 20s, career progression ends in the 40s, and work ends in the 60s—are no longer accurate or sustainable. Rethinking workforce strategies across multiple generations to account for longer lives will require open minds and fresh approaches.

How these 3 countries embrace older workers

U.S. employers and policymakers can learn from Japan, Germany and Singapore

Older Workers

Credit: Adobe Stock

Have you ever heard the term “super-aged country?” I hadn’t until I read the just-released Gerontological Society of America (GSA) report, Longevity Economics: Leveraging the Advantages of an Aging Society. The term means that more than one in five people in a country is 65 or older. Japan and Germany are super-aged; by 2030, United Kingdom, France and Singapore will be. So will the United States, raising the question: Why aren’t U.S. employers and the U.S. government adapting policies so more Americans 65 and older can keep working if they’re healthy and interested?

Our businesses and policymakers, it turns out, might do well to follow the lead of super-aged Japan and Germany and soon-to-be super-aged Singapore, based on my reading of the report from GSA and Bank of America Merrill Lynch. The study about what the GSA calls “this longevity era” was produced by a workgroup chaired by Peter Cappelli, director of the Center for Human Resources at the Wharton School at the University of Pennsylvania.

American employers “haven’t done much of anything to reach out to older workers, let alone accommodate their interests and priorities,” Cappelli told me. “People have to work longer because we’re living longer. So how do we accommodate that?”

Below are a few ways the GSA report says Japan, Germany and Singapore have changed their workforce and governmental policies to keep and attract older workers. “The idea in all these places is to get employers to think about the way to deal with human capital needs,” Cappelli says. A word of warning — one way older people are able to keep working in these countries is by accepting pay cuts.

Japan

The number of employed people age 65 and older in Japan recently hit a record 8.07 million. They now comprise roughly 12 percent of Japan’s workforce, which is a record there, too. And three-quarters of Japanese people aged 60 to 64 are still working (by contrast, only 60 percent of Americans that age are).

One reason many Japanese workers now remain employed past the country’s traditional retirement age of 60 is that the eligibility age to receive a Social Security-like retirement pension from the government is rising. It’s now 62 and will hit 65 in 2025.

Another reason why more people are working longer in Japan: the Japanese government is now requiring companies to employ their workers through age 65 if they want to keep working. The catch is that the older workers must still “retire” at 60; then they return to work under a “continuous employment” policy at a much lower salary. Japanese salaries at age 61 are about one-fourth less than before the worker turned 60, the GSA report notes.

A public-private partnership called the Silver Center Workshops helps retirees find part-time jobs, too. There’s also a catch here, though: the jobs are low-paying — roughly $400 to $500 a month (in U.S. dollars) and in low-skilled areas like housekeeping, park maintenance and bike repair.

“It’s outplacement for older individuals,” says Cappelli. “In Japan, it’s now less about keeping people working at the same companies longer and more about trying to get them into alternate jobs and to do other kinds of things.”

Germany

Germany has also been incentivizing older residents to work longer by pushing back the federal retirement age — it was 65 in 2012 and will be 67 in 2029.

But the country has an intriguing program designed to let people continue working, as well. It’s called “Initiative 50 Plus” and provides training and lifelong learning to older people. Older workers who accept positions with lower salaries get a temporary subsidy for doing so.

“They’re trying to encourage individuals not to retire and to make it attractive to keep working,” says Cappelli.

Singapore

Singapore has been especially proactive towards older workers, but that’s because the country hasn’t had much choice. While only 7 percent of residents were over 65 in 1999, 20 percent will be that old by 2026. So Singapore’s leaders have developed a 70-item initiative to make the country what they call “a nation for all ages.”

Last year, legislation kicked in that “encourages older workers who want to stay employed to do so,” the GSA report says. In Singapore, employers must generally offer re-employment contracts to eligible employees at age 62 and the contracts must be renewable every year until 67. If a company can’t offer a position to an eligible employee, the report notes, it must transfer the obligation to another employer or offer a one-time assistance payment.

But if your company does want to keep you, “everything from the prior job is off the table,” says Cappelli. “Your prior job is finished, whether you were the CEO or an hourly worker. Your old pay doesn’t matter now. Your new rate of pay reflects your real productivity.”

Singapore is effectively telling its older workers, says Cappelli, “You want to keep working? OK, but you can’t just be the boss because you’re older.” And managers, Cappelli says, are being told to “manage these older workers in a different way and be respectful of their experience, but to hold them accountable.”

How well is it working? “The problem with Singapore is you never know,” says Cappelli. “They could tell you it’s working great and you never know for sure.”

Last month, what’s known as a tripartite standard from Singapore’s Tripartite Alliance for Fair and Progressive Employment Practices began encouraging age-inclusive workplace practices, benefiting employees 60 and older. So far, 160 employers have signed on.

Said Singapore’s Second Minister for Manpower, Josephine Teo: “The new standard will support older Singaporeans to work as long as they are willing and able to, in jobs that are safer and smarter in a work environment where they feel valued and where their needs are addressed.”

Marriott Tang Plaza Hotel Human Resources Director New Kheng Tiong, a fan of older workers, just hired Chua Ai Gek, 67, as a bar assistant there. “Mature workers tend to be a bit more loyal and punctual,” he told Channel News Asia.

The United States

The GSA report stopped short of making policy recommendations for the U.S. government or for employers. It did say, however, that Congress should look at the tax law to incentivize older workers to remain employed and that employers should implement “aging-friendly policies.”

The cloud hanging over all this here, of course, is age discrimination by employers. “We’re fighting some headwinds,” says Cappelli. “I don’t know that we’re making a ton of progress.”

He’s right. But that could change if employers and the U.S. government wise up, especially as America becomes super-aged. By 2035, for the first time, there will be more Americans who are 65 and older than ones who are under 18. As the GSA report says: “Demography is not destiny. The way people and countries respond to an aging society will determine the future.”

Here are what the Gerontological Society of America says are the “realities” of an aging society:

Source:nextavenue.org

Federal Budget 2018: Skills boost to keep older people working

Workers and job seekers aged over 45 will be eligible for training programs to ensure they have the skills necessary to stay in the labour market for as long as they want instead of winding up on the unemployment scrapheap.

As part of the government’s baby boomers package, it will allocate $189.7 million over five years to assist mature-age workers adapt to the changing needs of the economy.

The bulk of the funding, $136.4 million over four years beginning in financial year 2019, will be available as targeted training for registered jobseekers to develop digital skills, enhance their employability and to identify job opportunities in local labour markets.

A Skills and Training Incentive, costing $19.3 million over three years, will provide as much as $2000 for workers aged 45 – 70 at risk of being made redundant through technological or economic change to undertake reskilling or upskilling. The worker or employer will have to match the funding.

A separate $15.2 million program – the Job Change Initiative – will be set up to outline career options for mature-age workers who are considering early retirement or facing redundancy.

The government will expand its Entrepreneurship Facilitators program, which promotes self-employment, to 20 additional locations at a cost of $17.7 million.

Recruiting and retraining

Incentives to hire a worker aged over 50 will be increased modestly by $1.1 million to provide additional wage subsidies for employers worth up to $10,000.

As part of the effort to keep Australians employed longer, workers will be able to undertake an online skills checkpoint when aged between 45 and 65 to provide advice to building their careers or transitioning to new industries.

As well as looking at workers’ employment history and qualifications, the checkpoint will look at their involvement in the community, such as volunteering, to see whether those skills would translate to a new career path.

By targeting workers aged in their late 40s, the hope is they will receive assistance to prolong their careers before running the risk of retrenchment, seniors advocates argue.

The government has flagged a need to drive cultural change and stop discrimination against older workers, promising to develop strategies in conjunction with business and seniors lobby groups.

“The government understands the importance of working with employers to ensure they understand the benefits of recruiting and retaining mature age people,” Jobs Minister Michaelia Cash said.

“We also need to support Australians most affected by our transitioning economy by providing opportunities for them to acquire the skills that will equip them for future opportunities and jobs.”

Source: www.afr.com.au

Older workers ‘left behind’ when it comes to digital training

Older workers must not be left behind when it comes to digital skills training, according to a survey and report from Business in the Community.

The poll of 2,000 employees, 1,000 of whom were over 50, found that older workerss are not receiving the training and skills development they need to succeed in the digital era. Only 25% of employees aged 50-59, and 22% of those aged 60-69, felt their employer encouraged them to take up learning and development opportunities. This is compared with 44% of 18-39 year-olds and 32% of 40-49 year-olds.

Older workers were also more likely to feel that their employer did not inform them about how technology and automation would impact their job compared to younger employees.

Separate research from McKinsey Global Institute has forecast that up to a third of US and German workers, and nearly half of those in Japan, may need to switch occupations by 2030 due to a sudden surge in automation. The researchers describe this as an upheaval on a par with the shift from agriculture to manufacturing.

Cary Cooper, Professor of Organisational Psychology and Health at Alliance Manchester Business School, told the Financial Times that that older workers, who remember a time when jobs were for life, may struggle with re-skilling.

“Thirty years ago the psychological contract was if you [work hard] for us we’ll give you career development,” he said. “Now the contract is that we expect you to be committed . . . but we cannot guarantee future employment.”

Therefore, what can businesses do to support older workers in their upskilling journey? Nupur Malik is the HR Director at Tata Consultancy Services, which helped support the Business in the Community research. She called on organisations to take action.

“We believe that training and development is an ongoing process and support all our employees to gain the skills needed to succeed at work, whatever their age,” she said. “Taking action will mean more businesses can thrive in an increasingly competitive global business environment and support employees to stay in good work for longer.”

“By supporting older workers to be ‘digital adopters’ employers can show they value experience, ambition and ensure that their businesses are prepared for future skills shortages,” added Lincoln.

Source:HR Grapevine

Particularly nasty new scam is targeting older Aussies’ savings

If you have an elderly parent, there is a worrying new fraud that you must warn them of, after a number of older Aussies were robbed of their life savings by a particularly complex phone-and-bank scam.

The unusually detailed fraud runs like this: a person telephones, claiming to be from an expensive jewellery store, and warns the victim that their credit card is being used to purchase a particularly pricey item.

The ‘jewellery salesperson’ informs tells the victim that they’re concerned their card is being used fraudulently and warns them to call their bank and the police, and even helpfully offers to transfer them to the police so they can report the crime.

However, the phone transfer is to a fake police officer, who then advises the victim that staff within their own Australian bank are involved in the fraud and that they must not alert them that the gig’s up. Instead, the ‘police officer’ advises the victim to transfer the money they have in their Australian bank account to a UK account via the international bank transfer system, in order to ‘protect’ it from the scammers.

The victim is warned to carry out the transfer without mentioning its purpose to bank staff, whether they do so by telephone or in a branch.

But the UK bank accounts are actually controlled by the scammers, who then make off with the money. Once money leaves Australia, it is difficult to retrieve, even if it is paid into a legitimate UK bank account.

The fraudsters are known to be targeting Australians over the age of 75. And although their ploy may sound implausible, Starts at 60 has been told that a number of older people have sent a significant sum overseas in just the past few days.

Source: Startsatsixty.com.au

Public service fat cats and MPs get the cream

UPDATE: Liberal frontbenchers Simon Birmingham and Christopher Pyne have backed the process that delivered politicians a minimum $4000 pay rise from next week, with Senator Birmingham insisting their salaries were kept “well and truly in check”.

Australian politicians have been handed a two per cent pay rise from next Saturday on top of their current $199,040 base salary.

On top of that, they will get a tax cut as the 2 per cent budget repair levy is also due to be removed on July 1.

In justifying the decision the tribunal said it had received submissions calling for salaries more in line with the private sector.

“Over the past year there has been a notable increase in submissions to the Tribunal seeking higher remuneration for offices and individual office holders based at least in part on private sector remuneration,” the statement said.

Mr Pyne said politicians have nothing to do with determining salaries and they’re not in it for the money.

“We do it because it is a wonderful way of helping the society in which we live,” he told the Nine Network

Senator Birmingham said the pay rise came after the minimum wage was bumped up.

“It is an independent process and it was a two per cent pay rise this year, after a pay-freeze that the independent process determined last year. And of course just recently, the minimum pay rise for minimum wage was handed down at 3.3 per cent,” he told Channel Seven.

While he acknowledged parliamentarians were well remunerated Senator Birmingham said they were not there for the money.

“I think you can see the processes working to keep politicians’ salaries well and truly in check, there was a freeze, there’s a lower than the minimum wage as people would think it should be,” Senator Birmingham said.

PM gets payrise

Federal politicians, judges and top public servants will enjoy pay rises of up to $12,000 a year from next week, pushing backbench MPs’ base pay above $200,000 for the first time.

At a time of record low wage growth and rising government debt, the Remuneration Tribunal awarded a 2 per cent pay rise to all senior public office holders yesterday, following another 2 per cent pay rise in January last year.

The latest rise was necessary “to attract and retain” people of “calibre”, the tribunal said, pointing out that minimum wage workers would receive a 3.3 per cent pay rise ($22.20 a week) from next month and public sector wages had increased 2.4 per cent over the year to March.

The boost means backbenchers’ pay, excluding allowances, will rise by just under $4000 to $203,020.

The Prime Minister will get a $10,350 pay rise to $527,854; the High Court chief justice’s base pay will rise $11,461 to $584,511.

“There has been a notable increase in submissions to the tribunal seeking higher remuneration for offices and individual office holders based at least in part on private sector remuneration,” the tribunal said.

It suggested the era of “economic restraint” that saw pay rise deferrals in 2014 and 2015 was over.

Falling private sector wage growth, which earlier this week prompted Reserve Bank governor Philip Lowe to invite workers to ask for a rise, rose 1.9 per cent over the year to March.

The Human Rights Commission president’s pay will rise to $423,650.

Some MPs questioned the pay rise last night. Liberal Democrats senator David Leyonhjelm said: “I think we are already very well paid and don’t need a pay increase at the moment. Given the state of the budget in particular, it’s ill-timed.”

Greens leader Richard Di Natale said “people have had a gutful”. “At a time when income inequality is out of control and wages are going nowhere, politicians get a pay rise,” he said.

Cabinet ministers, currently paid a base salary of $343,344, will get nearly $7000 extra and will now be paid $350,210 a year.

Heads of the 18 government departments in Canberra, who earn up to $861,700 a year, will enjoy pay rises of between $9500 and $12,063, the latter going to the secretary of the Department of Prime Minister and Cabinet.

The tribunal said public office holders were making financial sacrifices. “Office holders serve for the public good (and) many of these office holders do not expect or require that monetary compensation be set at private sector levels,” the tribunal said.

The pay increase will occur as the government’s 2 per cent budget repair levy on top-rate taxpayers end.

“This represents an increase of 1.6 per cent per annum over the 18 months since the last general increase” effective from January 2016, the statement said, noting increases were not granted in 2014 and 2015.

MPs also receive a non-taxable $276 allowance for every night of the 18 weeks a year they are in Canberra.

“This decision is a slap in the face for the thousands of commonwealth public sector workers whose wages have been frozen for well over three years as they’ve been stuck fighting for their basic workplace rights and conditions,” said Community and Public Sector Union national secretary Nadine Flood.

The 170,000 federal public servants have not had a general pay rise since the Coalition was elected in 2013 and have been locked in a battle over renewal of enterprise agreements.

Staff at the Defence Department on Wednesday became the second major department to agree to an enterprise deal which will bring a 6 per cent increase over the next 18 months.

Staff at the Australian Taxation Office and at the Department of Prime Minister and Cabinet are voting on the pay deal today.

“This decision will certainly give frontline public sector workers the impression that there’s one set of rules for them and quite another for those at the top,’’ Ms Flood said.

Public Service Commissioner John Lloyd said Ms Flood’s comments were “misleading”.

“The main reason for the delay in employees receiving a pay increase is the CPSU’s persistent campaign opposing salary increases that have been on offer for 3 years for most of the employees. The increases offered have been for an average 2% a year over a 3 year term,” he told The Australian.

“The generous pay and conditions of public servants are not under threat.”

Source: The Australian

1 2 Next »

Top ↑