While everyone’s chasing Gen Z talent, smart companies are discovering their most valuable asset: experienced workers over 55. Here’s why they matter.
What’s happening: Australian businesses are missing a crucial opportunity as the over-55 workforce grows rapidly, with participation rates more than doubling from 6.1% to 15% between 2011 and 2021, yet fewer than 4% of companies have programs to integrate these experienced workers.
Why this matters: While organisations scramble to attract Gen Z talent, they’re overlooking a demographic that offers superior retention, advanced soft skills that artificial intelligence cannot replace, and decades of expertise, at a time when 70% of recent workforce growth comes from workers aged 55 and older.
The demographic shift
The numbers tell a compelling story about Australia’s changing workforce landscape. Between 2019 and 2021, the local labour force expanded by 185,000 people, with almost 70% of these new workers aged 55 and older. This isn’t a temporary blip but reflects broader demographic trends that forward-thinking businesses are beginning to recognise.
“There is a common misconception that these workers are on their way out and represent a shrinking labour population. However, older employees are entering the workforce in larger numbers than before, with many choosing to retire later; and they shouldn’t be overlooked,” says Hazel Stewart, Managing Director of Melbourne-based Innovate Learn.
The shift reflects Australia’s increasing longevity. Life expectancy estimates for people born between 2021 and 2023 indicate they’ll live beyond 80 years, representing a 30-year increase compared to Australians born between 1891 and 1900. Correspondingly, the average retirement age has reached its highest point since the 1970s, with growing numbers choosing extended working lives.
Skills that matter most
The value proposition of silver workers extends far beyond their growing numbers. These employees typically demonstrate greater technical expertise than younger colleagues, coupled with robust work ethics that translate into tangible business benefits.
“They tend to take less leave and are less likely to job hop, meaning that they’re a more cost-effective labour resource,” Stewart explains. “They are found to be more adept in critical soft skills that will not be easily replaced by AI – communication, conflict resolution, problem solving and collaboration. These are skills that are not only essential to innovation, as well as team productivity and engagement, but also to excellent customer relations.”
This skill set becomes increasingly valuable as artificial intelligence reshapes workplace capabilities. While automation handles routine tasks, the complex interpersonal abilities that older workers have developed over decades remain irreplaceable assets for business success.
Support gaps remain
Despite these advantages, significant barriers persist for older workers seeking employment and advancement. Australian Bureau of Statistics data reveals a stark disparity in job search outcomes: mature workers require approximately 20 months to secure new positions, while those aged 15-54 find employment within nine months.
The AARP’s Global Employer Survey findings underscore the missed opportunity, showing that fewer than 4% of companies have implemented programs specifically designed to integrate older workers into their teams.
“Research shows that often times silver workers are offered less training and skills development opportunities than their younger colleagues. In addition, they don’t receive sufficient support for their health, wellbeing and changing physical abilities through the provision of ergonomic equipment or long-term health coaching, for example,” Stewart notes.
The situation proves particularly challenging for older women navigating menopause-related workplace difficulties. Research indicates that 83% of women report negative work impacts from menopause symptoms, while 60% describe employer support as inadequate. The financial implications are substantial: these women typically plan to retire at 59 but actually leave the workforce at 52. Stewart warns that “if just 10% of these women leave the workforce, it would cost Australian organisations $5 billion.”
Making inclusion work
Stewart outlines practical strategies for organisations seeking to better engage and retain experienced workers:
Improve recruitment practices: Skills-based recruitment should prioritise specific proficiencies and experience over age-related assumptions. Research from Bain & Company reveals that 60-year-old workers prioritise ‘interesting work’ as their primary job attribute, followed by autonomy and flexibility, with financial compensation ranking lower in importance.
Adopt flexible practices: Workplace adaptations might include modified job designs that reduce physical demands, ergonomic workspace improvements, and more comfortable workwear options tailored to older employees’ needs.
Improve support systems: Targeted health, financial literacy, and social support programs designed specifically for senior workers can address unique challenges. This extends to ensuring team-building activities remain accessible to older employees and training managers to confidently address senior worker health concerns.
Upskill and mentor: While older workers may require technology training or support in engaging with Gen Z colleagues who demonstrate different workplace behaviours, they simultaneously offer valuable opportunities to share knowledge and skills with younger team members.
Facilitate transitions: Programs supporting gradual shifts from full-time employment to part-time or freelance arrangements, and eventually retirement, can help organisations retain valuable expertise while accommodating changing worker preferences.
“Organisations that can demonstrate they value older workers, and successfully adapt their policies and practices to become more inclusive, will no doubt reap benefits,” Stewart concludes.
The evidence suggests that businesses ignoring the silver worker demographic do so at their own peril. As market conditions become increasingly turbulent, the stability, expertise, and irreplaceable soft skills that experienced workers provide may prove crucial competitive advantages for organisations willing to embrace inclusive workforce strategies.
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