Editorial: Outdated views on age will bite as the workforce gets older
For The Dominion Post, 23/02/2017
By John Milford, Chief Executive, Wellington Chamber of Commerce
Imagine missing out on a job for a reason other than your ability. Nothing to do with anything that wasn't job-related.
This happened to an acquaintance of mine a while back.
After 30 years working for the same employer he decided it was time for a lifestyle change, and took redundancy.
After a break, he went looking for something to keep him "out of trouble", as he put it. After six failed applications, all for positions easily within his ability, he called the supervisor who had interviewed him to ask what he was doing wrong. "I shouldn't be telling you this," she said, "but we thought someone of your age and experience wouldn't stay long."
There it was. Sure, she mentioned experience, but he knew age was the main reason. After all, why wouldn't you want someone with experience. Wasn't that the whole idea?
He removed his birth year and first two jobs from his CV in the hope it would disguise his age – and got the next job.
I'd like to think that supervisor's attitude is not common (it's against the law), but who knows. What I do know is that company missed out on invaluable experience thanks to an outdated belief around age.
It's an attitude that's asking for trouble at a time when more Baby Boomers are reaching retirement age.
Some commentators talk about a "tipping point", where skill shortages, because of older workers leaving the workforce, will start to affect business performance and output.
Judging by latest statistics on the labour force participation rate, I believe we are very close to that tipping point.
They show that in 2015 there were around 179,000 people in the 60-64 age group still working – but approaching retirement age. That number has been steadily increasing in recent years, and is 19,000 more than it was just five years ago. The risk of more people leaving the workforce is increasing.
And although the number working past 65 is increasing, it won't prevent a skills shortfall. In 2015, some 70,000 dropped out of the workforce on or shortly after retirement, and that's where the problem lies.
New Zealand isn't alone in this. The World Economic Forum predicts that over the next 40 years the ageing of populations will be one of the biggest issues affecting the world, having a significant impact on economic prosperity (as well as social welfare and public health) because it will be harder to drive economies. The proportion of people over 65 is now 10 per cent, and that is expected to jump to 22 per cent by 2050.
What to do to?
With more people seeming to want to work past retirement age, the first step would be to make it easier for them to stay. In my experience, backed by research in New Zealand and Australia, many companies could be doing a lot more to make their workplaces attractive to older employees. Some European countries have programmes that maintain and promote the health and working capacity of workers as they age, develop their skills and employability, and provide suitable working conditions and opportunities for their ageing workforce, and I believe that's where we should be going.
Not enough of our companies recognise we have an ageing workforce and have in place policies that offer options such as allowing older workers to work fewer hours or move them into less taxing jobs that will all ensure they stay for longer.
Companies should be actively working on solutions to engage, motivate, challenge and retain these people. You can't buy homegrown experience, and the last thing we should be doing is turning away those who offer that.
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