Workforce AgeingCEDA Demographic Destiny

Alison Monroe, Director, SageCo Pty Ltd

Mobile 0433 233 591

www.sageco.com.au

what will we achieve?

� Risks and challenges of workforce ageing

� What are we seeing and what can work?

� Q&A

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our journey began here…

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and yet we continued to see this…

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the demographic cliff

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Access Economics

decline in labour market growth (thousands)

1980’s and 1990’s

2020’s and beyond

03 07 11 15 19 23 27 31 35 39 43 47

we are here

-2000

200400600800100120140160180200220

80 82 84 86 88 90 92 94

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what are the risks?© SageCo 2006

the risks include…� Critical skill shortages

� Longer fill time on vacancies

� Inability to grow your business

� Wage increases

� Decline in service levels

� Discrimination claims

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global challengesinclude how to…

� Avoid critical knowledge loss� Engage and retain mature staff� Create flexibility and redirection � Build productive multi-generational teams� Foster culture change to embrace diversity� Attract mature talent to fill the skill gap

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are they your challenges?

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…anything else?

� Avoid critical knowledge loss� Engage and retain mature staff� Create flexibility and redirection� Build productive multi-generational teams� Foster culture change to embrace diversity� Attract new mature talent to fill the skill gap

attracting maturity

� branding and profile � job advertisements � interview process � induction and training� reskilling/upskilling

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…age neutrality?

what’s the perception?

27 v 52 year old

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stereotyping

unwilling to change

slow

poor memory

expensive

higher injury rates

more sick leave

ignorant of IT

hard to manage

stuck in the past

poor culture / team fit

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myth busting

emotionally mature

committed

decisions based on experience

sound work ethic

lower OH&S costs

mentors and guides

loyal

eager to contribute

fastest growing IT take-up

AARP – Top 400 companies "American Business and Older Employees” report

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www.adage.com.au© SageCo 2006

www.adage.com.au

retaining maturity

� increased education and awareness� knowledge continuity� retirement assistance� job redesign � flexible work arrangements

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knowledge continuity 5 steps to get started…

1. Identify who holds the key to company wisdom2. Determine what knowledge is critical and at greatest risk3. Engage and motivate mature employees to knowledge share4. Provide a framework to retain this knowledge5. Establish communication and transfer methods e.g.

Explicit knowledge – databases, catalogues and other repositoriesTacit knowledge – workshops, seminars, mentoring programs

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retaining maturity

� increased education and awareness� knowledge continuity � retirement assistance� job redesign� flexible work arrangements

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Create redirection

‘Create’redirection

Life goals

Finances

Image

Relationships

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Health & wellbeing

Career

retaining maturity

� increased education and awareness� knowledge continuity � retirement assistance� job redesign� flexible work arrangements

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checklist for action� Risk assessment?� Ownership of ‘age management’?� Demographic profile?� Age audit?� Retirement intentions?� Mature worker attraction strategy?� Commercial opportunities?

…and if we don’t respond, how will this impact our business?

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“Demography is destiny, this is set in stone.

The only question is how we respond to the ageing of the population”Peter Costello

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