The Evolving Workplace: The Seven Key Drivers ofMature-aged Workers

Peter de Boer27 February 2007MACROC – Macarthur Regional Organisation of Councils

Global Resources, Local Application….

• 110 Offices across 20 Countries

• Able to draw candidates from a vast global network

• Access to the latest people management trends, technology and tools

…with 29 offices and 1,700 staff in Asia-Pacific

Country No. of Offices Staff

Australia 19 1,257

Hong Kong 1 46

Japan 1 39

China (Shanghai & Guangzhou)

2 21

New Zealand 5 284

Singapore 1 67

Christchurch

Wellington/ Lower Hutt

Auckland

Sydney/Nth Sydney

Brisbane

Adelaide

Newcastle

MelbourneMt Waverley

CanberraParramattaPerth

Darwin

Singapore

Hong Kong

TokyoShanghai

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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How Hudson is positioned to meet your needs…..

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EXECUTIVE AND SPECIALIST RECRUITMENT

TALENT MANAGEMENT

SERVICE & SUPPORT

RECRUITMENT

SECTOR AND CLIENT RELATIONSHIP MANAGEMENT

TRADE & INDUSTRIAL

RECRUITMENT

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DOMESTIC & INTERNATIONAL OFFICE NETWORK

PROFESSIONAL & CORPORATE SUPPORTQuality; 24 Hour Response Centre; Bid Management; Pricing & Analysis; Implementation; Client Reporting; Technology; Aspire; Payroll; Invoicing;Interactive; Immigration & Relocation; OH&S; Industrial Relations; HR; Finance; Legal & Risk Management; Marketing; Facilities & Procurement

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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 EconomiesUnemployment Rates for Key Economies

USA 4.7%

OECD Area: 6.1% Standardised Unemployment Rate

UK: 5.4%

Euro area: 7.9%

Japan4.2%

Australia4.9%

Source OECD 2006

Global Labour Shortages

Source: ABS

Participation Rate:

1991, 1996, 2001 to 2005

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

1991 1996 2001 2002 2003 2004 2005

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1991 1996 2001 2002 2003 2004 2005

Unemployment Rate:

1991, 1996, 2001 to 2005

• The labour participation rate has increased slowly from 63.2% in 1991 to 64.4% in 2005. 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

0.8

1.7

2.6

1.6

1.2

0.8

0.40.2 0.3 0.2 0.2

0

0.5

1

1.5

2

2.5

3

1950

's

1960

's

1970

's

1980

's

1990

's

2000

's

2010

's

2020

's

2030

's

2040

's

2050

's

WORKING POPULATION

MARKET DEMAND

BABY BOOMERS RETIRING

2002 2007

EVOLVING JOB MARKET

Evolving Job Market

Macarthur Region

Gross Regional Product Macarthur Region, 2005/06

0.0 200.0 400.0 600.0 800.0 1,000.0 1,200.0 1,400.0

ManufacturingProperty & Business Services

Ownership of dwellingsRetail Trade

EducationMining

Health & Community ServicesConstruction

Wholesale TradeTransport & StorageFinance & Insurance

Government Admin & DefenceAccomm, Cafes & Restaurants

General govtPersonal & Other Services

Agriculture, Forestry & FishingCommunication Services

Electricity, Gas & Water SupplyCultural & Recreational Services

Non Classifiable Industry

$ million

Goods Sector

Services Sector

Other

Macarthur Employment Overview

Unemployment Rate

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06

Macarthur NSW Australia

%

Macarthur Employment Overview

We Need To Act Now

0%

20%

40%

60%

80%

No Yes

Organisations that proactively sought to attract and retain mature aged staff in 2004 compared to 2006

January - March 04 April - June 06

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 SURVEYED1,135 people

Accounting & Finance 348Human Resources 225IT&T 281Sales/Marketing/Comms 108Other 173

Male 741Female 394

Australia798

New Zealand337

40-44 22845-49 22950-54 20055-59 11160 plus 30

40-44 11745-49 10350-54 5555-59 4360 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

6.7%5.4%

65.5%

10.1%

12.3%

Full-time work Part-time Own business

Contract/Consult Retire

Setting Two

• More Attractive Conditions Offered for Full- and Part-time Employment

21.5%

20.6%1.2%

47.1%

9.7%

Full-time work Part-time Own businessContract/Consult Retire

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

RecruitmentTool

Modification

RecruitmentTool

Modification

SkillsTraining

SkillsTraining

Target Sourcing

Target Sourcing

Job Network Partership

Job Network Partership

Hiring ManagerEducation

Hiring ManagerEducation

InductionModification

InductionModification

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 55-64 year olds is achievable – if organisations are proactive.

THANK YOU