Advantages of Retaining Older Workers
Encouraging older workers to remain in the workforce has many advantages along with some disadvantages for both the employee and the workforce in general. The term older worker refers to workers aged sixty-five and over. Older workers are an invaluable asset to the Australian workforce. Through age and life experience older workers hold great knowledge and wisdom in which they are able to pass onto the younger generation. Traditionally there was an age where people retired, however people these days people are now living longer. Therefore the time spent in retirement has also increased. This means people today will have to work longer than ever before to cover the costs of their retirement. This essay will outline why Australia needs to retain older workers in the workforce, why older people are staying in the workforce for longer and discuss some of the advantages and disadvantages associated with encouraging older workers to stay in the workforce for longer.
Australia’s decreasing birthrate and an ever-increasing life expectancy has caused the Australian Government as well as employers to become increasingly concerned about how the distribution of the population within the workforce will affect the Australian economy. Presently the net growth of the Australian workforce is 170,000 people each year. Access Economics has estimated that over the decade 2020 to 2030, the Australian workforce is expected to only grow by only 125,000 people. That averages a mere 12,500 people per year. The ramifications for Australia are clear, new entrants will simply not provide enough manpower to the workforce to meet expected demand. (Andrews, K 2003) This demographic shift means the workforce will need to rely more on older workers in the near future, as Australia can no longer afford to waste the valuable resources that older workers contribute to businesses, the economy and society in general. Older workers will be crucial to the success of many companies in the future, and
Australia’s decreasing birthrate and an ever-increasing life expectancy has caused the Australian Government as well as employers to become increasingly concerned about how the distribution of the population within the workforce will affect the Australian economy. Presently the net growth of the Australian workforce is 170,000 people each year. Access Economics has estimated that over the decade 2020 to 2030, the Australian workforce is expected to only grow by only 125,000 people. That averages a mere 12,500 people per year. The ramifications for Australia are clear, new entrants will simply not provide enough manpower to the workforce to meet expected demand. (Andrews, K 2003) This demographic shift means the workforce will need to rely more on older workers in the near future, as Australia can no longer afford to waste the valuable resources that older workers contribute to businesses, the economy and society in general. Older workers will be crucial to the success of many companies in the future, and
Bibliography: Mercer Human Resource Consulting, The Productivity Commission’s Draft Report, Economic Implications of Ageing Australia, February 23, 2005, Viewed 29th August 2007, . Changing working conditions to suit, 2007, August 28, The Canberra Chronicle, p. 5.