Working for Ages

Making experience work for small business

14th November 2003

Employers may have to coax people out of retirement villages in the future if they don't act now to retain older workers, small business owners were informed today.

Speaking before the launch of the Experience at Work employers' kit, Equal Opportunity Commission Chief Executive, Dr Diane Sisely today urged Victorian businesses to employ and retain older workers in a bid to stem future labour shortages.

"Victorian businesses need to act quickly to retain older workers or face the situation the US is experiencing now with some recruitment agencies going into retirement villages to convince residents to re-enter the workforce.

The Minister for Aged Care, Mr Gavin Jennings, will launch the Experience at Work kit today. The kit has been developed to debunk negative stereotypes and encourage business to employ and retain workers 45 years and older.

Dr Sisely said the initiative was a great example of government and non-government agencies working together to provide positive outcomes for Victorians.

The Experience at Work employers' kit is an initiative of the Working for Ages project - a partnership between the Equal Opportunity Commission Victoria (EOCV), the Office of Senior Victorians (Department of Human Services) and VicHealth, with additional funding and support from Employment Programs (Department for Victorian Communities). The kit was developed with support from the Victorian Employers' Chamber of Commerce and Industry (VECCI).

VicHealth Chief Executive Mr Rob Moodie said keeping older workers employed had social and health benefits as well as economic implications.

"Making a positive contribution to society through work is an important element in maintaining good mental health because work helps us keep active physically and mentally, gives us a sense of purpose and self-worth and keeps us in contact with other people," he said.

Dr Diane Sisely said older workers experienced age discrimination when applying for jobs, were less likely to be offered training and more likely to be pressured into taking redundancy packages or retirement.

"The Commission receives about 160 complaints of age discrimination each year but we know the problem is much more widespread and hidden.

"Age discrimination results from prejudice and ignorance about what people can and can't do based solely on their age and limits opportunities for people who have a lot to offer. We can no longer assume that people 45 years and older are preparing to retire and are not interested in training or promotion opportunities.

"Age discrimination and compulsory retirement have been against the law for years but now we know that it's bad for business and costly for the community," she said.

Taking a different emphasis to Dr Sisely, VECCI Chief Executive Officer, Mr Neil Coulson said retaining the skills and experience of older employees was critical to maintaining the viability and growth of Victorian businesses.

"In fact, in our member survey before the State Election last year, 'retaining skilled employees' rated as the fifth most important issue facing business.

"This problem will only grow if employees continue to retire younger and take their skills with them, while the number of new entrants to the workforce will be insufficient to meet future labour demand.

"According to Access Economics, mature age workers on average stay longer at an organisation after training than do their younger counterparts - they also take less sick leave, have fewer accidents, and provide a positive influence on younger workers.

"As such, while not every older person would want to continue working, the need to increase the participation and retention of older workers is paramount," he said.

The Working for Ages – Active Strategies for a Productive Workforce Project is a two year partnership project between VicHealth, Department of Human Services and Equal Opportunity Commission Victoria, running until November 2003.