Employing and Retaining Older Workers

The Australian HR Institute (AHRI) is proud to partner for a fourth time with the Australian Human Rights Commission (AHRC) on this important report which provides insights into the employment climate for older workers and the shift in
perceptions around Australia’s ageing workforce.

The survey data in this report provides an update on the employment of older workers against time series data from 2014, 2018 and 2021.

This year, the survey highlights trends around elevated employee shortages, a sharp fall in the increase in employment levels of older workers over the past year and
evidence of ageist employment practices in some Australian workplaces.

Official data shows that from the mid-1990s through to the pandemic, the participation rate for people aged 55 years and over had been increasing in Australia, with the workforce participation rate for people aged between 55 and 64 years
increasing from 44.8% in February 1995 to 69.4% in February 20231.

However, in a significant shift, the growth in the number of older workers in employment has slowed significantly over the past year. While employees aged 55
and above currently comprise almost a fifth (20%) of the Australian workforce, this age cohort accounts for just 4% of the growth in employment levels in the twelve
months to February 2023 according to official data2, despite the historically high levels of job vacancies.

According to the latest official data, there were 439,000 vacancies in the Australian economy in February 20233; nearly double the number just prior to the pandemic.

Unsurprisingly, almost two thirds (65%) of HR professionals surveyed say they are currently experiencing recruitment difficulties.

It is clear from this report that the employment of older workers can contribute more to easing employment shortages. For example, only a quarter of HR professionals (25%) report that they are open to hiring people aged 65 and above “to a large extent” while around one in six organisations say they actively exclude older workers from the recruitment process.

At the same time, the proportion of organisations that offer flexible working hours and provide access to training and development opportunities – initiatives which are perceived to be pivotal to supporting older workers to remain in or transition into employment – has fallen slightly compared with previous reports.

On the upside, it is clear from the survey data that employers are much more enthusiastic about other forms of flexible working.

This research provides a wake-up call to organisations to consider older workers more carefully when developing diversity, equity and inclusion strategies.

The survey data also underlines the need for government policy to better support older workers in employment, most notably through more investment in skills.

According to this report, around half of organisations offer continued access to training and development opportunities for older workers, which represents the lowest mark since the survey began.

As this report indicates, organisations stand to benefit from a multi-generational workforce in many ways through harnessing the strengths of different age groups. If employers and governments can maximise the potential of older workers as part of an age-diverse workforce, this could help drive more diverse workplaces, reduce employee shortages and strengthen Australia’s economic performance.

Sarah McCann-Bartlett
Chief Executive Officer