Surge of older women re-entering the workforce

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New research by a Sydney-based micro-economist has identified marked growth in the workforce participation rate of women in their 50s and 60s – not because of a love of working, but because they don’t have enough cash to retire.

Women are both staying in their jobs longer and returning to work after realising their retirement was not yet viable, consultant Carolyn Evans said. “We asked a series of women in that age group why they were working and almost without exception … they had to come back to work, or they were going to retire and when they did the numbers they realised didn't have enough to live on,” she said. According to the researcher, many women interviewed were going back to work in 'top up super' mode”.

The good news for HR is that there is a strong source of experienced talent flowing into the market, though Evans warned that because many women in this age category are being financially forced to re-enter the workforce, specialised engagement tactics for this sector are required. “Those we spoke to across the board largely were making a positive and willing choice to work part time or casual instead of full time, not wanting to commit to all the weight of another full-time role,” Evans added.

SageCo, a specialist agency which partners with organisations to address the risks, challenges and opportunities of an ageing workforce, has data which adds weight to the sentiment that the older workforce wants to work flexibly, and is not simply resentful or longing to retire.

Alison Monroe from SageCo said data recently assembled from the opinions of 2,500 workers aged 50+ indicated that older employees want to stay employed, but under flexible working conditions. She said overwhelmingly their studies have shown that if older workers feel valued, they generally want to remain employed either on a full-time non-fixed-hour working week, part-time or under other flexible work scenarios.  

On the 2010/2011 data, 81% stated they would continue to work if they could work differently. “The problem is that the conversation is not taking place,” Monroe said.

It is essential for leaders to be talking to the mature members of the team and gauging their future work intentions rather than their ‘retirement intentions’, which sends the wrong message. Given some 300,000 Australians past the age of 65 are in the workforce, Monroe said, HR can do many things to specifically enhance engagement among older workers, namely:

1. Have ‘the conversation’: It is important to equip leaders with skills and capabilities to have conversations with older workers about their career path intentions. Leaders often fear addressing the topic, but it’s important to stress future working intentions not retirement. These conversations should be taking place regardless of age.

2. Improve flexibility: Flexibility means something different to each individual. Some prefer certain days of each week, while others prefer certain months of each year. Many are interested in mobile work options, so these should be investigated.

3. Look at job re-design: Working differently doesn’t just refer to working hours. Older workers really want to focus in on their areas of expertise. They may want to get back into their original areas of interest, such as why they went into particular lines of work in the first place.

4. Share their skills: SageCo said it has discovered that the older generation wants the opportunity to share their skills, experience and knowledge. Ways to do so can be very simple. For example, a knowledge sharing breakfast or simply putting 10 minutes on the agenda for specific input at meetings. Some simple knowledge-sharing techniques can really help engagement levels.

5. Have processes to assist transitions: Employers know that employees are overwhelmingly underprepared for retirement. Organisations should invest time in helping to plan and act on issues relating to transition. Specific focus areas include career direction and development, health and wellbeing, improving financial literacy and a work/life plan.

 

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  • Louise Bowers on 13/04/2012 4:57:27 PM

    Older workers need to be recognised for their experience and maturity. They have a lot to bring to the workforce that is overlooked in the recruitment process. There are many misconceptions out there about this group that sift them out of many job opportunities. Baseless assumptions that they are unable to fit into the current work team, overqualified, lacking up to date skills, too slow etc. We need to talk about this group and start taking action about it. Job ads should state "Mature age workers encouraged to apply". None of us are getting any younger!!

  • Robert Langstein on 12/04/2012 5:04:55 PM

    Bec you clearly don't get it just like Heidi. Older worker/mature workers is what we are. I bet both of you are under 40 and have never had to look for a job as a 50 year old -homogeneous workforce please.

    I personally like "Older Worker" as it enables me to "belong" as do my older colleagues we don't see shame in being an older worker like all you younger folk think it's embarrassing for us and if we can be recognised apart from anyone else within legal working age I'm all for it.

  • Bec on 12/04/2012 4:30:53 PM

    Why do we need to see older or mature workers as some kind of separate species? Instead of "older workers" or "mature workers", why can't we just refer to them as workers, as with anyone else within legal working age? Removing these alienating and stereotypical labels would go a long way to creating a more homogeneous workforce, with everyone enjoying equal rights to training, promotion, etc. I also think the media has a lot to answer for in fuelling and giving oxygen to so-called intergenerational workplace conflict.

  • Sylvia Massara on 12/04/2012 12:41:34 PM

    I am an "older worker" (about to turn 50). I had to go back to full time work because my husband left me due to the fact that I fell ill and couldn't work for close to a year. Since I've started to feel better and started to look for work, no employer would look at me because I was simply too over qualified. I applied for many roles but had no luck whatsoever. Being in HR myself, I know when I’m being given the flick because of my age (some employers even tell you in a roundabout way)! Luckily, I was contacted by 2 ex-employers who wanted a HR Consultant, and I now work for both these companies and invoice them for the hours I do. The flexibility factor is a give and take situation, but it seems to be working out quite well. So this is another option for senior workers if they have skills that are in demand.

    Two huge gripes, though: I have some money to retire on as I inherited a modest amount upon my mother's death, but the government taxes me on the income I make from this money, which means there’s not enough to live on. I have to pay high taxes on what could be a passive income (and which would keep me away from the dole queue in the event that I couldn’t find work). I was very lucky that I was able to find work, and I’m forever grateful that at least my two ex-employers didn’t have an issue with my age.

    The other thing is this, I cannot stand a hypocritical government which tells us that we can retire with a pension by age 65, yet they do nothing to enforce the age-discrimination laws. They simply pay lip service to it as far as I'm concerned.

    But back to the money situation, I could have lived off my savings if the government didn't tax me so much for having a passive income. And this is something that should be considered for 50+ people, seeing as not many employers are prepared to give us the opportunity to work due to our age.

    Going back to work after 50 is really a two-edged sword if one is doing it to top up their super or to save extra money. We are taxed no matter what we do, and we seem to be perceived as “lepers” if we apply for a job after the age of 50.

    Shame on the government and shame on those employers who discriminate simply because we are older.

  • Alan Benbow on 11/04/2012 6:02:43 PM

    I am a 53 year old male and I also work full time and probably will for at least another 15 years, so I am an older worker too. I think it needs to be called what it is, and we are older workers. My employer is great and treats me and the other older worker with respect and offers great hours and talks to us all the time about passing on our skills to the younger workers. I'm happy to be called an older worker, its what I am and its what me and my friends call ourselves and we're proud of it. Why would it be a negative stereotype.

  • Pam Gulbis on 11/04/2012 5:08:10 PM

    I am an "older worker" and I continue to work full time and find it hard to contemplate leaving the workforce because I'm a certain age. I agree with the comments made by both Shane and Heidi and would go on to say that much more needs to be done to remind employers and senior managers of the value of this talent pool and perhaps not treat us as invisible and not able to keep up with current practices and thinking. Many of my more mature colleagues including myself really do enjoy change and the opportunity to become involved.

  • Heidi Holmes on 11/04/2012 4:09:15 PM

    This story is doing the rounds in many different formats and while they are interesting statistics, are they really that surprising? We need to be selling the benefits of mature age women (work/life experience, diminishing caring responsibilities, loyalty and maturity) rather than constantly telling employers what these workers 'want'. Many just want an opportunity to be considered for a job. It is important to have strategies in place for retention purposes but there is a greater conversation to be had around the business case for employing maturity.
    I have now taken over Adage.com.au, a leading job board for experienced workers over 45 from the original founders at SageCo and we are working hard to change negative perceptions about this talent pool. The average age of our jobseeker is 51 so language like "older workers" does not resonate with this market and only feeds into negative stereotypes.
    For business to change behaviour it always needs to be about the value for the business and in this instance, this talent pool represents a whole lot of value!

  • Shane Higgins on 11/04/2012 3:30:05 PM

    We recently did a survey of our 15,000 registered jobseekers on our job board www.olderworkers.com.au and 50% of the respondents were women looking for work. Over 30% of our respondents said they would never retire. We notice the numbers of women registering on our job board continues to increase. The information above is great for many of those who are already in work, but a large number of these women may not have worked for quite a few years and now find themselves in the position of having to develop a CV that will get them in the door of employers. A difficult thing to do at any age, but even more so as an older worker. However, we have a database of over 1200 age-friendly employers that is growing by the day, so the word is getting out there.

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