New Zealand: Mercer 2012 Report Suggests Economic Downturn Won't Reduce Need for Older Workers

Mercer has issued as report concluding that the current global economic crisis will give New Zealand employers only limited relief from the squeeze of an ageing workforce, skills shortage, and continuing brain drain. According to the report--Workplace 2012 New Zealand, by 2012, one in five workers will be aged 55 or older and employers will have to shift their focus from young to old to maintain a viable workforce between now and then.

The report found that, among other things, the percentage of workers aged 55 and over will increase from 18% to 21% and that while thehe participation rate of workers aged 20-44 will decrease, the participation rate of workers aged 55-59 will increase from 79.6% to 82.4% and the participation rate of workers aged 60-64 will increase from 67.1% to 75%.

“The fact that the workforce is ageing is not new, the twin issues of the skills shortage and the pending wave of retiring Baby Boomers seems to have been debated perennially,” said [Mercer’s Business Leader in New Zealand, Mr Bernie O’Brien].

“But this research clarifies and cements the fact that one of the biggest business risks in New Zealand in the immediate future is not just economic factors – it is the significant demographic shifts occurring that will threaten the sustainability of many New Zealand businesses.

“New Zealanders aged 55 and older are, and will continue to be, the answer to the current skills shortage - not Gen Y.

“This is not about changing a few HR policies. There needs to be a shift in the mindset of how, and for how long, New Zealanders work,” he said.

Source: Mercer Press Release (November 27, 2008)

New Zealand: Extending Vocational Rehabilitation to Workers Over 65

New Zealand's Minister of Accident Compensation Corporation (ACC) announced that injured New Zealanders who are over 65 and want to return to the workforce will have better access to vocational rehabilitation under a law change that became effective October 1, 2008. According to Street, "People over 65 who are working are entitled to weekly compensation for up to two years if they are injured. Over 65s are eligible for both compensation and superannuation for the first year, but have to elect one or the other for the second year."

Before the change, only over 65's already receiving weekly compensation were entitled to vocational rehabilitation or return to work assistance, and only for up to two years. Under the new law, "they will also be entitled to vocational rehabilitation if they are on superannuation and that period of entitlement will extend to three years and beyond if ACC determines it will help them back into the workforce."

Source: Accident Compensation Corporation Press Release (October 1, 2008)

New Zealand: Guidelines Issued for Retaining and Recruiting Mature Employees

New best practice guidelines to help employers look at innovative ways of retaining and recruiting mature employees have been released in New Zealand. The guide provides information both on older worker’s rights and responsibilities and tips for employers and was produced by a group comprising the Human Rights Commission, the Retirement Commission, the EEO Trust, Business New Zealand, the CTU and the Canterbury Employers’ Chamber of Commerce. The guide--"Valuing Experience: a practical guide to recruiting and retaining older workers"--is available online and as a downloadable PDF.

According to Ruth Dyson, Minister for Social Development and Employment:

"The guidelines are part of The Tapping into the Talent of Older Workers project which builds on recent important steps, in particular the legislation to overcome age discrimination which has been important in shifting employer attitudes.

"Recent research by Victoria University's Institute of Policy Studies has highlighted changing employers' attitudes towards older workers. Many employers recognise that older workers are loyal, reliable, committed and have more experience. However, some employers also believed inaccurate stereotypes such as thinking that older employees are unable to adapt to new technologies. We need to do more to challenge these misconceptions and combat age discrimination."

Sources: Minister for Social Development and Employment News Release (September 3, 2008); New Zealand Council of Trade Unions Press Release (September 3, 2008)

New Zealand: Oldest Workers Exhibiting Highest Rate of Job Growth

According to job data released by Statistics New Zealand, employees aged 65 years and older showed the greatest growth in filled jobs and average mean quarterly earnings in the five-year period to December 2006. Even though, as a group, they held only 2.5% of total filled jobs, they represented the greatest percentage growth--88.9%, substantially higher than the national average of 17%.

The next younger group of workers--those aged 60 to 64 years--had the second largest percentage increase of 50.5%, followed by the 55- to 59-year-olds, with 45%.

Source: Statistics New Zealand Media Release (February 22, 2008)

New Zealand: Workers Over 65 Have Largest Injury Rate

A report from Statistics New Zealand derived from Accident Compensation Corporation (ACC) claims shows that workers aged 65 years and over sustained work-related injuries at a rate considerably higher than any other age group. Thus, while those workers aged 65 years and over comprised 2.4% of the workforce, approximately 9,100 (20%) suffered some form of injury at work in 2006. In addition, workers in this age group accounted for 24 of the 81 claims lodged for work-related fatalities.

The report--Injury Statistics--Work-related Claims: 2006--also shows that older workers were over-represented among the more serious injury claims, which were those requiring weekly compensation or rehabilitation payments, at a rate almost three times higher than any other age group, with 45 per 1,000 full-time equivalent workers (FTEs).

Source: Statistics New Zealand Media Release (October 30, 2007)

Age Concern New Zeland calls these statistics "rubbish." "This claim is needlessly alarming older people and employers. The increasing number of seniors participating in the workforce is one of the great success stories of positive ageing, but this could put the fight against ageism in workplaces back by years," says Age Concern National President Jill Williams. He adds: "A greater proportion of older workers work part-time: but they've been rolled together in the stats to make full-time equivalents, and that's then being compared with individual ACC claims."

Source: Age Concern New Zealand Press Release (November 4, 2007)

Global Aging and Retirement: AARP Releases Country Surveys of Opinon Leaders

In conjunction with a conference on "Reinventing Retirement Asia: Enhancing The Opportunities of Aging" held in Tokyo March 15-16, AARP released a survey of opinion leaders in Asia and Oceania, which reveals that most believe their countries are ill prepared to deal with the challenges of an aging population. Although the survey report covers several aspects of aging and society, two core focuses were on older workers and retirement.

AARP's report--"Aging in Asia and Oceania: AARP Multinational Survey of Opinion Leaders 2006"--was prepared by Princeton Survey Research Associates International thrugh a survey of opinion leaders in the United States and in seven countries in Asia and Oceania. The survey was designed to increase AARP’s knowledge of aging issues and attitudes in key Asian markets and to compare attitudes and policies towards aging in the US to attitudes and policies in Asian and Oceanian societies.

According to the overall summary, opinion leaders vary as to the age at which a worker becomes an "older" worker:

Averaging 60 years of age among all opinion leaders interviewed, the average age at which opinion leaders would consider someone an older worker varies somewhat from country to country, ranging from a high of age 66 in Japan to a low of age 55 in Australia. Half of opinion leaders say that the transition to becoming an older worker occurs some time between the ages of 60 and 69.

Other key findings show that opinion leaders perceive older workers as wise, respected, and productive, but that "businesses do not see older people as a
potential source of productive labor and employers are not well prepared for a future workforce comprised of more older workers." Opinion leaders also say that it is a responsibility to society to address older worker issues, older workers should be accommodated, the mid-60's is an appropriate time to retire, and that there should not be mandatory retirement.

In addition to the full report, AARP has issued specific country reports for the United States and for these Asian or Oceanian countries:

• Australia
• China
• India
• Japan
• New Zealand
• Singapore
• South Korea

Source: AARP News Release (March 14, 2007)

New Zealand: Survey Shows Surge in Number of Older People in Paid Work

According to a new analysis published by the New Zealand Department of Labour, more older New Zealand workers are staying on the job, with New Zealand recording one of the highest workforce participation rates in the OECD for the 50-64 year age group. The report--"Older People in Work: Key Trends and Patterns 1991-2005"--shows a surge in the number of older people in paid work, with 77% of 50-64 year olds working in 2005, compared with just 57% in 1991. By comparison, Australia’s participation rate is around 10 percentage points lower, according to Department of Labour Group Manager for Workforce Policy Lesley Haines.

Haines particularly noted that the growth of participation by older women--from about 45% to about 70%. “Factors contributing to this growth include the fact that women are pursing careers across their lifetime, technological changes to the nature of work and ongoing skills shortages. Raising the age eligibility for superannuation has also played an important part."

She also pointed to additional research released by the Department of Labour--"45 plus: Choices in the Labour Market"--which provides an insight into drivers and barriers to paid work for people over the age of 45.

Source: New Zealand Department of Labour News Release (March 6, 2007)

The report is also available in PDF or Word formats.

New Zealand: New Data Shows Growth of Jobs, Earnings for Older Workers

Employees aged 65 years and over showed the greatest increase in both job growth and earnings over the five-year period 2000-2005, according to statistics released by Statistics New Zealand from Linked Employer-Employee Data (LEED) from September 2005. Although those employees had one of the lowest levels of earnings, they had the highest increase in earnings--39.2% (from $4,750 to $6,610)--and the highest rate of job growth--109.4%.

The Figures also show a rise in job growth of 48.3% for those aged 55–59 years and 67.7% for those aged 60–64 years. The 15 to 19-year age group was associated with the second largest growth rate in earnings (26.8%)--which may have been influenced by annual increases in minimum youth wage rates, while the 55 to 59-year age group followed with the third largest growth rate in earnings (23.7%).

Source: Statistics New Zealand Media Release (November 27, 2006)

Survey: Kelly Global Workforce Index Reports on Ageism Around the World

Kelly Services has released results of the Kelly Global Workforce Index, a survey of over 70,000 workers in 28 countries about their experiences in workforce discrimination on account of age (both young and old). For example, in Australia, the Index reports that almost half of all Australians believe they have been discriminated against in applying for a job, with older Australians now facing the greatest prejudice. Specifically, 48% of workers aged 45 or older felt they had been discriminated against on the basis of their age. In India, age also was the major source of prejudice, cited by 16% of the respondents there.

According to Kelly Services Sales & Operations Director (New Zealand), Steve Kennedy,

“Ageism has overtaken ethnicity and sexism in many areas as the greatest source of discrimination in employment. At a time when we face an ageing population and skills shortages, many organisations are putting obstacles in the way of hiring older people. This can be devastating for individuals but it is also means many organisations are shutting off an important source of talent and diversity. Organisations that don’t address these issues directly can do themselves considerable damage and can suffer costs both direct and indirect. They may suffer high staff turnover, absenteeism, poor morale, low productivity, poor reputation, and also the possibility of civil claims and penalties arising from breach of anti discrimination laws.”

The Kelly Global Workforce Survey Results are available (with free registration).

Source: News Releases Australia (October 2006); Canada;
India (October 19, 2006): New Zealand (October 17, 2006); Spain (October 24, 2006); United Kingdom (October 24, 2006)

New Zealand: Report Reveals Bias Against Older Workers

Research commissioned for the Human Rights Commission shows that 25-year-olds are six to twelve times more likely to be short listed than 55-year olds for human resource positions and six to ten times more likely to be short listed for sales positions.

The study--"Barriers to entry for the older worker"--carried out by Professor Marie Wilson of the University of Auckland Business School and graduate student Jordan Kan looked at barriers for entry into employment for older job applicants in three sectors--sales, HR administration, and nursing.

In discussions with potential employers during the research the key factor that differentiated older and younger employees was the assumed flexibility and adaptability of younger workers. The youngest applicants were described as "trainable", easy to "get up to speed" and "go-getters". Applicants aged 40 were described as "settled" and older applicants were described as "set in their ways".

One employer responded to three similar applicants differentiated by age only in the following way - he invited the youngest applicant in for a chat about whether he wanted to train for the post, the middle aged candidate was told his "experience was not relevant" and the 55 year old candidate was told his "qualifications didn't meet the requirements of the company" despite no qualifications being specified.

Source: New Zealand Human Rights Commission News Release (October 29, 2006)

Multigenerational Workforce: An American Visits New Zealand

"What'’s happening today in New Zealand may very well be coming soon to a theater near you, if it hasn'’t already arrived," writes Tony DiRomualdo after speaking at and attending the Human Resources Institute of New Zealand Conference ("Living the Future Today") in September.

In his view, New Zealand is exacerbated by a shortage of workers throughout the country and "has no choice but to find creative ways to make its current workforce more productive, keep people in the workforce longer, and lure back people that have left." Thus, his interest, in particular, in one panel discussion with representatives of the four generations in the workplace--"a fascinating look at their different workplace perspectives and career aspirations."

Source: Wisconsin Technology Network "An upside down view of the future" (October 11, 2006)

New Zealand: Summit on Older Workers Held

New Zealand government, business, and union leaders held the Employment of the Older Worker Summit in Wellington on September 4. The Summit was called by the Retirement Commissioner, Diana Crossan, and the EEO Commissioner, Dr Judy McGregor, and aimed to develop practical strategies and actions to increase the number of older workers at a time of growing skills shortages.

“New Zealand will need around 100,000 more people at work in the next twenty years just to stand still and yet older people are often the last to be considered or suffer covert discrimination,” Dr McGregor said.

“We believe that businesses need to be thinking about their age profile and about retaining their mature staff. Baby boomers approaching retirement should be also considering whether they want to continue in paid work and what might make them stay,” Dr McGregor said.

Source: Human Rights Commission Press Release (September 3, 2006)

Other Materials: Click here for materials from the summit.

New Zealand: Flexible Working Options Attract Older Workers

According to the Work and Age Report 2006, a recent survey conducted by the New Zealand EEO Trust, employers would be better placed to retain the skills of older workers if they offered quality part-time work and flexible working hours. With more than 6,400 people responding (most over 45 years old, but 24% younger than 45) to questions about what workplace conditions would encourage them to continue working past their expected retirement date, quality part-time work and flexible working hours were the most popular options.

Reliability is the number one quality older people bring to the workplaces according to survey respondents. In addition, most agreed that older people provide good customer service and communication skills, are committed to their careers, have skills in training people, show initiative and are able to create a good atmosphere in the workplace. However, about one in three respondents said they had experienced difficulties at work due to people being different ages, and a third said they had experienced discrimination at work due to their age.

Source: Equal Employment Opportunities Trust Media Release (May 26, 2006)

New Zealand: EEO Trust Launches Survey of Older Workers

New Zealand's Equal Employment Opportunities Trust has launched an on-line survey on how age affects people's experiences at work. Among other things, the survey includes questions about inter-generational conflict, age discrimination, and older people's experiences and preferences at work. According to EEO Trust Chief Executive Dr Philippa Reed, "Older workers are a growing proportion of the labour force so employers looking for the very best people need to know how to create workplaces which suit them."

Source: Equal Employment Opportunities Trust Media Release (March 30, 2006)

Additional Resources: The EEO Trust subsequently issued its finding on this survey.