Executive summary

The proportion of people aged over 65 years is expected to grow from 12% of the population in 1999 to around a quarter of the population by 2051, while the proportion in the labour force (aged 15 to 64) is expected to fall from 67% in 1999 to 59% by 2051 (ABS 2003).

In Australia, several studies of the implications of an ageing population on the labour market (Sheen 2000, 2001; Business Council Australia 2003) indicate that older workers continue to experience barriers to employment. These include employer and community attitudes and the attitudes of younger workers towards the contributions of older workers. These issues underpin discrimination and limit opportunities in the workforce for older workers, as well as access to training that would enable them to keep up to date with skills relevant to their fields.

Many of Australia’s policy analysts in government, industry associations and ‘think tanks’, along with politicians and media commentators, have argued that, to counteract declining labour force participation rates due to the ageing of the population, older workers will need to continue working longer than at present. However, the views of older workers have been missing from the public discussion of these issues.

The purpose of this study was to identify and analyse older workers’ perspectives on training and retention of this group and to determine what training and other complementary policy measures are likely to work best to foster retention of these workers as efficient and effective workforce participants.

This research into the perspectives of older workers (aged 45 and above) on the training and retention of this group encompasses survey-based studies in three industry categories represented by four union organisations. The research included: a national survey of older workers in the finance sector who are members of the Finance Sector Union; a Victorian state survey of aged care workers who are members of the Health Services Union of Australia; a South Australian survey of older workers who are members of the Liquor, Hospitality and Miscellaneous Union in South Australia; and a census of South Australian construction industry workers who are members of the Construction, Forestry, Mining and Energy Union.

The formulation of the survey questionnaire and validation of the interpretation of survey findings were guided by qualitative focus group research. Taken together, these three industry categories provided an excellent basis for identifying and analysing older workers’ perspectives on training and retention of this group. These perspectives represent economically and socially important VET-based occupations, a balanced gender mix, and varied skill profiles that are being substantially affected by technological change.

One of the notable findings of the study is that, of those surveyed, 62% of the aged care workers, 72% of the construction workers and 66% of the finance workers report that, to support a better lifestyle, they will either need or may choose to work beyond retirement age (at least part-time). Between half and two-thirds of those surveyed would like to continue in their present jobs or similar work beyond their ‘normal’ retirement age, and about one in five would prefer different work. This suggests that policy does not need to focus on persuading or inducing older workers to continue working.

For many older workers surveyed, travel is a high-priority retirement activity. This suggests that workers will be seeking flexible working arrangements to make travel possible. It also suggests that travel (or at least financing travel) provides a motivation for older workers to continue working beyond their retirement age. Family and domestic activities also feature in retirement plans, as the literature on retirement indicates. About one in five has no retirement plans, which the literature indicates is usually a precursor to problems in adapting to retirement.

About two in five of the older workers surveyed were uncertain about the attitudes of their colleagues and employers to older workers continuing in work beyond retirement age, although only about one in five of the aged care and finance workers, and one in three of the construction workers, saw their colleagues’ or employer’s attitudes as negative or very negative. About seven in ten of the older workers saw a need for training of supervisors and younger workers to counteract age-biased stereotypes; about one in ten did not. However, this is a less-than-persuasive finding, since few of the participants had experienced negative attitudes of this type themselves.

Approximately four in five of the older workers saw value in ‘train the trainer’ courses that would enable older workers to train or mentor younger workers and pass the benefits of their experience on to them.

The qualitative responses relating to training indicated that the majority of those surveyed consider computer skills training or updating computing skills to be the most useful training in enabling them to continue working effectively past retirement age. For aged care workers, updating current skills is another important aspect, while for workers in the finance and construction sectors, it was updating knowledge in technology development. Hands-on training was stated as an effective form of training by workers in the finance, aged care (only those who were members of Health Services Union) and construction industries. Occupational health and safety training was also considered important for the aged care and construction industry workers but not for those in the finance sector.

In the qualitative responses relating to policy changes, the finance sector workers indicated the need for change that would lead to the elimination of negative attitudes to older workers by senior managers, employers and younger workers. Finance sector and aged care workers suggested that measures to reduce age discrimination were needed. Construction industry workers made no comment on this issue.

The finance sector and the aged sector workers also favoured more job flexibility, particularly the option for part-time work, flexibility of working hours or job-sharing. Again, workers from the construction industry made no comment in this area.

In various ways, workers from the three industry sectors suggested the need for policy changes or review in the areas of superannuation, workcover or eligibility for seniors’ cards for workers, as well as insurance for those aged 65 and over.

In conclusion, the research indicated that the policy priority is to address the perceived obstacles, constraints and disincentives that deter or prevent older workers from working beyond their ‘normal’ retirement age. A substantial majority of older workers believes that older workers face discrimination in the workforce, but few of them report discriminatory attitudes from their colleagues and employers. Older workers strongly supported measures against age discrimination and age-biased stereotypes that limit opportunities for older workers. Rules and regulations relating to superannuation and workcover policies are perceived to discriminate against older workers and act as disincentives for older people to continue working. Some older workers see themselves as needing fairer access to training programs to enable them to update their skills and keep current with developments in technology. Training in computing skills, updating of existing skills, and professional development training programs designed to enhance specific skills in particular fields are considered important. The workers surveyed strongly favour such programs, including ‘train the trainer’ courses to enable older workers to train or mentor younger workers. Since many older workers expect to continue working past formal retirement, they need to have the option to continue working or to retire, depending on each individual’s health and circumstances.

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