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Implications of the Ageing Workforce for TAFE Workforce Planning

Implications of the Ageing Workforce for TAFE Workforce Planning. VTA HR Conference 18 October 2007 BWA Centre for Research. Content. Issues of age and work Age management The workability construct Findings from the ARC project Redesigning Work for an Ageing Society. Changing demography.

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Implications of the Ageing Workforce for TAFE Workforce Planning

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  1. Implications of the AgeingWorkforce for TAFE WorkforcePlanning VTA HR Conference 18 October 2007 BWA Centre for Research

  2. Content • Issues of age and work • Age management • The workability construct • Findings from the ARC project Redesigning Work for an Ageing Society

  3. Changing demography

  4. A new emphasis on older workers • Last 20 years witnessed a massive decline in employment of older workers as industry restructured. • Population ageing has led to concerns about the sustainability of pension systems and threats to labour supply, with increasing emphasis on prolonging working life. • If this is to be achieved a number of hurdles need to be overcome.

  5. Working late for a happier old age Costello urges workers to retire later Treasurer Peter Costello has warned federal cabinet there is a crucial need to reverse the trend to early retirement and to encourage people to work longer. The Government is looking at offering incentives to encourage workers to delay retirement from age 55 to 65 to lessen the budget pressures caused by an ageing population. In a 45-minute presentation to cabinet yesterday, Mr Costello urged ministers to consider new policies such as rewarding participation in the workforce, incentives for people to get off welfare and stepping up labour market reforms. Phillip Hudson, Political CorrespondentCanberra, The Age, February 26, 2003

  6. The Times, 12 May 2006, p.28

  7. What are the implications of population ageing for industry?

  8. MATURE AGE WORKERS(a) IN SELECTED INDUSTRIES - NOVEMBER 2003 • Employed persons aged 45-64 years. • Source: ABS Labour Force Survey, November 2003.

  9. MATURE AGE WORKERS(a) IN SELECTED OCCUPATION GROUPS - 2001 • Employed persons aged 45-64 years. • Occupations are based on the Australian Standard Classification of Occupations (ASCO) Second Edition(ABS cat. no. 1220.0), which classifies occupations by skill level ranked from 1 (the highest) to 5 (the lowest). • Source: ABS 2001 Census of Population and Housing.

  10. Risks/Opportunities for employers • Attracting adequate levels of labour. • Attracting and retaining relevant skill and capability. • Increased attrition amongst younger workers driving up costs and management pressure. • Wage pressures. • Loss of people as the baby boomer generations retires. • Loss of difficult to replace organisational, technical and management knowledge and skills. • Increasing occupational heath and safety risk in some areas.

  11. Optimising labour supply or offsetting demand? • Options available to organisations to optimise labour supply : • Optimising competitive position in attracting traditional labour pool. • Improving rates of retention, including delaying date of retirement. • Attracting workers from non traditional labour pools e.g. older ones. • Increasing the attraction of migrant workers.

  12. Age Management

  13. Levels of Age Management

  14. Attracting Older Workers • Elements of attraction that must be considered are: • Market position/brand • Labour market segmentation • Promotion of vacancies • Screening & Assessment • Intermediaries – role and capability • Induction • Placement • Awareness and capacity of line managers.

  15. The BWA retention model: An integrated view

  16. PATHWAYS TO RETIREMENT Pre- and Post-Retirement Options for Staff

  17. Possible Pathways to your Retirement (Assuming that your Superannuation access is available from age 55) Simply retiring at a date chosen by you or 50 to 60Pre-Retirement Contract (0.75 Workload) From 55+ Post-Retirement Contract (up to 0.6 Workload) 60+Fixed-Term Retirement Transition Contract (0.65 Workload)

  18. Benefits for older workers of workplace age policies

  19. Benefits for employers of workplace age policies

  20. Redesigning work for ageing societies • Inter-related factors determine the relationship between older people and the labour market. • Consensus that tackling the issue requires multi-faceted and integrated strategies. • Finnish WORKABILITY concept and a framework for its workplace promotion offers such an approach. • WORKABILITY is an indication of how well a person’s health, skills and experience match the demands of their job.

  21. Healthy workplaces • The concept of Work Ability • Scale of measurement • Physical ability & mental functional capacity • 1980s: occupational health concerns

  22. • Current work ability compared with the lifetime best • Work ability in relation to the demands of the job • Number of current diseases diagnosed by physician • Estimated workimpairment due to diseases • Sick leave during the past year (12 months) • Own prognosis of work ability two years from now • Mental resourses Work Ability Index 7 Items Finnish Institute of Occupational Health

  23. Scoring of the Questionnaire (range 7- 49 points) Points Work ability Objective of measures 7 - 27 POOR RESTORE WORK ABILITY 28 - 36 MODERATE IMPROVE WORK ABILITY 37 - 43 GOOD SUPPORT WORK ABILITY 44 - 49 EXCELLENT MAINTAIN WORK ABILITY Work Ability Index Lea Katajarinne Finnish Institute of Occupational Health

  24. WAI(7-49)

  25. Promotion of work ability

  26. Finnish Institute of Occupational Health

  27. The labour market and older workers... • Older people believe that employers discriminate against them. • Many employers don’t employ anyone aged over 50. • Majority of people say they would work after formal retirement if it could be part-time or flexible. • Ill-health main reason for job exit among men aged 50+ and with caring, the main reason for women. • Older workers less likely to undertake training.

  28. Workability promotion • Based on: adjustments to physical and psycho-social work environment; promoting health, lifestyle; and updating skills e.g. • reducing repetitive movements • increased satisfaction with supervisors, and • increased vigorous physical exercise • Predict better workability in physical, mixed and mentally demanding work. • Promoting workability reduces • absenteeism • disability • premature retirement • and increases productivity, competence, life quality and well-being, • effects which carry over to retirement.

  29. COMPANY X Sickness absence Work disability Costs/year/person WAI Costs/year/person POOR €7086 €3571 MODERATE €3000 €1257 GOOD €1557 €643 EXCELLENT €857 €200 Finnish Institute of Occupational Health

  30. Redesigning Work for an Ageing Society project • Focuses on adapting and assessing the applicability of Work Ability model in the Australian context. • Funded by the Australian Research Council, and carried out by the Business, Work and Ageing Centre for Research in collaboration with partner institutions.

  31. Project aims • Investigating factors transforming the nature of work and posing risks to the workability of an ageing workforce • Examining workplace policies and practices concerning employee ageing • Trial use of the WAI to identify levels of work ability and contributing factors • Design, implement and evaluate workplace interventions.

  32. Methods Organisational case studies • Small national university • Two international freight terminals of a large international airline • A national manufacturing company • Roadside assistance division of a motoring organisation • Qualitative interviews • Qualitative interviews: key informants from among management, training and OHS staff, union, employees • Quantitative survey • Comprehensive staff surveys: range of questions about health and well-being, psychosocial work attitudes, training and learning, caring responsibilities, work-life balance.

  33. RW4AS Preliminary survey findings • Preliminary aggregated data set (Sept 2007) * from 4 case study organisations: Manufacturer n = 309 Road side patrol n = 59 University n = 277 Airline freight n = 57 Total n = 702 * Plus approx 380 paper/online surveys to be added to the data base = full of 1080+ workers

  34. WAI by age in years

  35. MEN  WAI by Age  WOMEN

  36. MEN  WAI by BMI  WOMEN

  37. Manual  WAI by BMI  White collar

  38. Predictors of Work Ability scores Theoretical model to predict WAI: Work Ability  demand, support & control in the workplace  nature of work, management & work environment  personal health & attitudes  personal socio-demographic situation

  39. Summary • Demographic trends will affect overall labour supply. • Level of competition for people and skills will increase. • Industrial sectors and organisations face having an increasing proportion of older workers. • Sectors that plan for these trends and build capability to compete for labour and skills now will gain an advantage. • Increasing employment of older people will help offset labour and skill shortages. • There is opportunity to extend the working life of the current group of workers aged 45 years and over. • However, significant change in the way work is structured and offered to people in later working life will be necessary.

  40. Thank you www.swin.edu.au/business/businessworkageing ptaylor@swin.edu.au

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