The Evolving Workplace: The Seven Key Drivers of Mature-aged Workers Peter de Boer 27 February 2007 MACROC – Macarthur Regional Organisation of Councils

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…with 29 offices and 1,700 staff in Asia-Pacific CountryNo. of OfficesStaff Australia191,257 Hong Kong146 Japan139 China (Shanghai & Guangzhou) 221 New Zealand5284 Singapore167 Christchurch Wellington/ Lower Hutt Auckland Sydney/ Nth Sydney Brisbane Adelaide Newcastle Melbourne Mt Waverley Canberra Parramatta Perth Darwin Singapore Hong Kong Tokyo Shanghai S. Auckland

Hudson – Greater Western Sydney 36 staff Based in Parramatta Representing all Hudson business lines Autonomous regional focus Major projects in 2006 – Southern Highlands location

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Attract Employment Branding Hudson Website Client Careers Site Development Third party job boards Print Advertising International Sourcing Market mapping and search Networking Targeted direct mail Direct applications Employee Referral Programs Graduate Campaigns Diversity specialists Alumni networks Open Evenings Careers Fairs Engage Employee Engagement & Exit Surveys Role and/or Function redesign Individual Career Management Internal mobility Solutions Select Role Profiling Executive & Specialist Recruitment Service & Support Recruitment Trade & Industrial Recruitment Temporary Placements Executive Contracting & Consulting Assessment Centres Psychometric Assessment Develop 360 degree assessments Development Centres Interview Skills Training Coaching Solutions Education & Training Outplacement Hudson’s Capabilities

Hudson 20:20 Series “The Ageing Population: Implications For the Australian Workforce” “Breaking the Cultural Mould: the Key to Women’s Career Success” “The Case for Work/Life Balance: Closing the Gap Between Policy and Practice” “The Generational Mirage: a Pilot Study Into the Perceptions of Leadership by Generations X and Y” “The Evolving Workplace: the Seven Key Drivers of Mature-Aged Workers”

A Bold Challenge From 2020 Australia’s working age population expected to grow by only 125,000 for entire decade. (Present annual increase = 170,000). Peter Costello: “The biggest thing that's hit our society since industrialisation”. John Howard: Adapting to Australia’s ageing population is one of the top five "bold solutions Australia must embrace to meet the challenges of the 21st century".

Unemployment Rates for Key Economies USA 4.7% OECD Area: 6.1% Standardised Unemployment Rate UK: 5.4% Euro area: 7.9% Japan 4.2% Australia 4.9% Source OECD 2006 Global Labour Shortages

Source: ABS Participation Rate: 1991, 1996, 2001 to 2005 Unemployment Rate: 1991, 1996, 2001 to 2005 The labour participation rate has increased slowly from 63.2% in 1991 to 64.4% in Over same period the unemployment rate has decreased from 9.3% to 5.1%. Participation and Unemployment

Labour Force Growth will Slow to a Crawl Data: Watson Wyatt Worldwide 2004 * Projection Compound Annual Labour-Force Growth Per Decade

WORKING POPULATION MARKET DEMAND BABY BOOMERS RETIRING EVOLVING JOB MARKET Evolving Job Market

Macarthur Region

Macarthur Employment Overview

We Need To Act Now Source: The Hudson Report, April 06

How Do Industries Compare?

The 20:20 Research How can organisations retain mature-aged workers? Hudson commissioned market research company Instinct and Reason Small-scale focus groups and literature review conducted 14 work “attributes” found to underpin desire to work Knowledge workers surveyed to measure importance of the attributes

TOTAL SURVEYED 1,135 people Accounting & Finance348 Human Resources225 IT&T281 Sales/Marketing/Comms108 Other173 Male741 Female394 Australia 798 New Zealand plus plus 19 Breakdown of Respondents

14 Key Work “Attributes” Able to work from home Flexible working hours Able to extend holidays throughout the year Plan to gradually reduce the number of days worked Access to lifestyle oriented retirement planning Access to financial advice Greater opportunity to mentor others Work still has new challenges Able to work in different areas Pay Recognition Reduce undesirable work Friendly work environment Commuting time to work per day

Setting One Basic Working Conditions Offered for Full- and Part-time Employment

Setting Two More Attractive Conditions Offered for Full- and Part- time Employment

What Motivates Mature-aged Workers to Stay in the Workforce?

The Seven Key Drivers of Mature-aged Workers Commuting time to work per day Pay Friendly work environment Work still has new challenges Recognition Flexible working hours Able to work from home

Snapshot by Age Key differences relate to work choice not drivers. Overwhelming selection of full-time and part-time work when offered favourable work conditions. The desire to consult/contract rises with the age progression of the sample. The desire to retire also rises with the age progression of the sample…but this is still significantly less than when basic work conditions are offered.

What Can Employers Do Now? Develop an EVP that engages mature-aged workers Audit the ageing workforce Undertake workforce planning Review recruitment practices Re-focus training and development Introduce mentoring and coaching Focus on flexibility, remuneration, meaning and culture

Large Financial Services Organisation AGE BALANCE STRATEGIES AGE BALANCE STRATEGIES Recruitment Tool Modification Recruitment Tool Modification Skills Training Skills Training Target Sourcing Target Sourcing Job Network Partership Job Network Partership Hiring Manager Education Hiring Manager Education Induction Modification Induction Modification

In Conclusion Employers can significantly reduce the number of mature- aged workers opting for retirement or other work options if they introduce more attractive working conditions. There are seven key drivers that directly influence a mature-aged worker’s decision to retire or remain in a full- time or part-time role. The Federal Government’s target of a 10-15% increase in workforce participation by year olds is achievable – if organisations are proactive.

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