Making mature age employment work

The fact that we have an ageing population is well known. According to the Committee on Ageing Issues Report on the Ageing Population, between now and 2030, Singapore will witness an unprecedented and profound age shift. It is estimated that the number of residents aged 65 years or older will multiply threefold from 300,000 in 2005 to 900,000 in 2030. By then, one in five residents will be a senior, compared with one in 12 residents in 2005.

Over the next decade, employment of mature age workers is set for solid growth – and it has already begun. The employment rate of residents aged 55 to 64 has been increasing steadily over the past five years from 45% in 2003 to 57% in 2008, yet this is still lower than countries such as USA (62%), Japan (66%) and Sweden (70%). This offers significant opportunities for experienced workers across the country in the coming years.

What is potentially lost on many of us is the rich irony that while we have experienced one of the worst economic downturns in history, we still have a skills shortage in many sectors, and many of our mature-age workers are finding it difficult to get a job. And they really do want to work.

A study on Baby Boomers, commissioned by Singapore’s Ministry of Community Development, Youth and Sports (MCYS) in 2007, found that more than seven in 10 baby boomers were in the workforce or looking for work. Of those, almost half wished to or expected to have to work as long as they could. Even among those who specified an age at which to retire from work, about three in 10 expected to do so at age 65 or older, beyond the current statutory retirement age of 62. This is not purely out of necessity – some want to work because of job satisfaction, and others want to keep busy, challenged and contributing.

The Singapore Government has responded to this by announcing it will introduce re-employment legislation by January 2012. This will enable more people to continue working beyond the current statutory retirement age of 62. The legislation will require firms to offer re-employment to their staff to continue working in their current jobs or in new roles. This is good news.

Together with the Government’s ADVANTAGE! Scheme introduced in 2006, which supports companies in their efforts to employ older workers, Singapore seems set to make the most of this rich talent pool.

In Randstad’s 2009 World of Work Report, only 30% of employers in Singapore said they actively targeted mature age workers when recruiting. So despite the expected growth of mature age employment, businesses in Singapore last year, continued to fall behind the curve in terms of accessing a rich source of talent.

However, in the 2010 Report, 69% of employers have indicated they are actively recruiting people of a mature-age. Though this development portends well to support Singapore’s economic growth, we still need to find better ways to put our still-ready-and-willing, mature-age people to work.

The main challenge employers must overcome to achieve this is simple – not only must they be open to employing mature-age workers, they need to get serious about retaining them once employed and realise the benefits this will bring to the organisation. This means getting creative with work structures.

Mature-age workers place a premium on work-life balance, so employers need to look at providing flexible working arrangements – and making the offering unique to each individual. Employers should see the immense value in this, particularly while the market remains challenging. Rather than handing out redundancies, or asking employees to reduce their hours to cut costs, marrying up your needs with those of mature age workers will mean that all parties will win.

When you have these options in place, make them known throughout the organisation – this is important for retention. Often an employee will leave a full-time job for a more flexible one, because they didn’t know about an alternative. External partners, including recruitment and HR consultants can help employers to overcome some of the barriers in this area.

Research has shown that mature-age workers are more loyal, with average tenures of five to six years compared to between 18 months and four years for Generations X and Y. Not one employer in Randstad’s 2009 World of Work Report said mature age workers in Singapore were the most difficult generation to retain - in comparison to 44% of Generation Y and 22% of Generation X workers. And according to the World Health Organisation, they also take fewer sick days.

One of the most obvious qualities older employees possess in greater measure than their younger counterparts is experience. And the adage is right: there’s no substitute for it. Mature age workers, like any other employees, enjoy challenging and rewarding employment, and can be more productive by drawing on their years of experience.

They will often achieve the same outcomes as younger workers by working smarter rather than harder. Often the path to find work for a mature age candidate is long and difficult, so it’s also important to recognise perseverance, persistence and resilience as characteristics worth embracing by employees in your organisation.

Employers also need to maintain relationships with people who will not only be leaving their organisation, but who have left in the past. Mature-age people might have left their job for another opportunity or a change of environment, but may later be willing to consider a return to the security and rewards of a familiar role. Having that knowledge return can be of great benefit.

Former employees can be hired back on a part-time, short-term or project-specific basis, and again, one of the most important things an organisation can do is to make these options known. Alumni programmes and social networking is a good way of putting this into practice. Reaching someone who knows the business well, when you really need them, can be of immense value.

But it’s not a one-way street. On the worker-side, mature age people may need to consider retraining. While some may have moved into managerial positions in the course of their career, and may prefer to return to a more hands-on role, they may need to brush up on essential skills. A short technical training course may be all

that’s required for professionals. Of course, for proactive employers, offering these courses may be a very effective way to attract mature-age workers to their organisation, by removing cost as a barrier to re-entering employment.

Of course, the way we do things won’t change overnight, but individual organisations that make themselves attractive to mature age workers stand to gain a competitive advantage. Mature age workers have challenges of their own, but as employers wake up and start competing for their talents, the only barrier to making the most of our ageing workforce will be the limitations we impose on ourselves.

RANDSTAD’S ADVICE FOR MAKING MATURE AGE EMPLOYMENT WORK:

Be open to employing mature age workers. Work with HR and your recruitment partner to find the most effective work structure for mature age workers in the organisation. Work-life balance is essential, so the key is to be flexible.

Realise the benefits. Understand the value that mature age workers will bring to your business, with their depth of skills and wealth of experience. It may be more cost-effective to hire a mature age worker on a part-time basis who can ‘hit the ground running’, than employ a junior person full-time that requires a lot of training, supervision and ‘hand-holding’.

Weigh up what you need, and in consultation with HR and your recruitment partner, make the decision accordingly, particularly if you want to achieve a return on investment as quickly as possible. Mature age workers often achieve the same outcomes as younger workers by working smarter rather than harder.

Be creative. Many mature age workers would consider taking on a new job opportunity or a new role, by applying their skills and experience in a new way. This can be of great benefit to your business and very rewarding for the employee.

For example, if you work for a small business, consider employing a mature age accountant with a background working for large corporations, (even if it is only for a short-term basis). This person would have a vast amount of experience and could provide you with valuable business advice. The key is to be open-minded.

Focus on retention. Once employed, you need to get serious about retaining mature age employees. Find out what is important to each individual and work hard to meet those needs as the benefits will pay off for your business.

Provide further training. Mature age workers often need to brush up on essential skills, particularly with regard to technology, systems and processes. Offering training and development relevant to their needs and encouraging their participation will result in a happier, more engaged and productive workforce.

Communication. Critical to an organisation’s success to attract and retain mature age workers is to ensure there is ongoing, tailored communication throughout the employment cycle. You may need to communicate flexible working options so that it is well known throughout the organisation.

Communicate the various job opportunities, training and development programmes available to mature age workers. Communicate news and highly relevant information as part of your retention strategy. By communicating regularly and at various levels, with messages targeted to mature age workers when appropriate, you can achieve loyalty and longer tenure.

Maintain contact. Maintain relationships with mature age people when they leave the business. They may be willing to return in the future and having that knowledge return to your business can be of great benefit. This can be achieved through an alumni programme or social networking.