More and more employees are choosing to ‘unretire’. What it means for your business
'Untirement' trend and what it means for your business SmartCompany
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Transforming the workforce landscape
In today’s evolving employment landscape, ‘unretirement’ is transforming the Australian workforce. Understanding what’s driving this phenomenon is vital for businesses aiming to harness its potential.
Unretirement describes the growing trend of older adults, including retirees or those nearing retirement, re-entering or choosing to remain active in the workforce. Cost of living pressures, amplified by the pandemic, are driving many older adults to unretire for reasons of economic necessity, in order to manage longevity risk. Other motivations include seeking structure, finding renewed purpose, and responding to changes in pension and superannuation policies. With the evolving job landscape offering more flexibility and a high demand for experienced talent, older workers are showcasing their immense value and adaptability.
The benefits of employing older workers
Businesses that recognise and act on the unretirement trend can enjoy substantial benefits including:
- Experience and expertise: Older workers have amassed years of industry knowledge and skills, offering a depth of experience that can help address Australia’s talent shortage.
- Professional reliability: Older workers often display higher rates of punctuality, lower absenteeism, and a commitment to staying with their employer longer, reducing recruitment and training costs.
- Reverse mentorship opportunities: A multigenerational workforce fosters a culture of knowledge sharing and skills-building through reverse mentorship, enriching the business environment and driving innovation.
- Diverse perspective: Having lived through various economic, social, and technological changes, older workers bring a broad perspective, enhancing problem-solving and decision-making.
- Stability and loyalty: With fewer career shifts anticipated, older workers tend to provide stability, fostering consistent performance and commitment to their employer’s mission.
Creating age-inclusive workplaces
Addressing ageism and fostering age-inclusive workplaces is paramount for businesses in today’s diverse employment landscape. This approach not only respects the rights of all individuals, but also harnesses the potential that older workers bring to the table. By eliminating age-based biases, businesses can tap into a reservoir of experience, reliability, and varied perspectives, contributing to innovation, increased productivity, and the overall health of the corporate culture.
The role of employers in facilitating ‘unretirement’
In a society where extending one’s working life is both an aspiration and a necessity, employers have a crucial role to play in making unretirement viable. Here are five key actions for employers to consider:
- Address age discrimination in recruitment: Revise hiring protocols to eliminate age-based biases, allowing businesses to access a diverse talent pool of older workers. By promoting an age-inclusive recruitment strategy, companies can leverage the invaluable experience and reliability these workers offer, resulting in enhanced workplace diversity and productivity.
- Introduce retention strategies: Devise measures that motivate older workers to extend their tenure with the company. Recognising their dedication, offering them mentorship roles, or providing avenues for continued career progression are essential components of these strategies.
- Promote lifelong learning and reskilling: Facilitate training programs to ensure older workers are updated with industry trends and technological advances. This not only boosts their confidence but also enriches the company with their enhanced skill set.
- Encourage open dialogues on retirement plans: Create an environment where older workers feel comfortable discussing their retirement intentions, enabling businesses to plan collaboratively and ensure a win-win situation for both the company and the employee.
- Establish alumni connections: Alumni programs not only help retirees maintain social connections but also create a talent pool of experienced individuals who can potentially return to work part-time or as required for short contracts or projects. This contributes to a strong company culture, fosters mentorship, and bolsters recruitment efforts.
SDGs, Targets, and Indicators
SDGs Addressed or Connected to the Issues
- SDG 1: No Poverty
- SDG 5: Gender Equality
- SDG 8: Decent Work and Economic Growth
- SDG 10: Reduced Inequalities
- SDG 12: Responsible Consumption and Production
Specific Targets Based on the Article’s Content
- SDG 1.5: By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social, and environmental shocks and disasters.
- SDG 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure, and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate.
- SDG 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
- SDG 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.
- SDG 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature.
Indicators Mentioned or Implied in the Article
- Financial challenges faced by retirees (ASFA retirement standard)
- Percentage of older Australians concerned about outliving their savings
- Gender pay gap and career interruptions for caregiving
- Job vacancy rates and worker demand across sectors
- Percentage of older workers in the workforce
- Retention rates, absenteeism rates, and commitment levels of older workers
- Availability and adoption of flexible working arrangements
- Age-inclusive recruitment strategies
- Lifelong learning and reskilling programs for older workers
- Open dialogues on retirement plans
- Establishment of alumni connections
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.5: By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social, and environmental shocks and disasters. | – Financial challenges faced by retirees (ASFA retirement standard) – Percentage of older Australians concerned about outliving their savings |
| SDG 5: Gender Equality | 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure, and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate. | – Gender pay gap and career interruptions for caregiving |
| SDG 8: Decent Work and Economic Growth | 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. | – Job vacancy rates and worker demand across sectors – Retention rates, absenteeism rates, and commitment levels of older workers |
| SDG 10: Reduced Inequalities | 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status. | – Percentage of older workers in the workforce |
| SDG 12: Responsible Consumption and Production | 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature. | – Availability and adoption of flexible working arrangements – Age-inclusive recruitment strategies – Lifelong learning and reskilling programs for older workers – Open dialogues on retirement plans – Establishment of alumni connections |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: smartcompany.com.au
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