According to new research from actuarial firm Rice Warner, plummeting financial markets will force about 40,000 older workers to postpone their retirement and move into part-time work, while thousands of workers who retired in 2007 and 2009 will be forced
James Thomson
It’s looking like a grim year for older members of Australia’s workforce.
According to new research from actuarial firm Rice Warner, plummeting financial markets will force about 40,000 older workers to postpone their retirement and move into part-time work, while thousands of workers who retired in 2007 and 2009 will be forced to return to work.
But recruitment experts say the dire situation does have a silver lining – it will create a unique opportunity for employers to pick up highly-experienced, motivated and loyal staff at very reasonable rates.
Ron Brown, sales director at recruitment firm Plus 40, which specialises in the placement of older workers, says the pool of older workers looking for jobs has increased sharply in recent months.
“A lot of those people have less than half of the retirement savings they had three or four months ago.”
While most economists and market commentators expect financial markets will rebound over the next two to three years, Brown is expecting the pool of older workers to grow substantially as they seek to survive the downturn.
While many companies are looking for opportunities to cut staff rather than hire in the current economic climate, smart companies which are still looking to expand could capitalise on this influx of highly-skilled and experienced workers.
“We get quite excited when we go to a car dealer and buy a car with added extras at no extra cost,” Brown argues. “It’s the same with older workers. You’re getting all these added extras – experience, a high level of skills, commitment, stability – for the same rate as an ordinary worker.”
In fact, the growing pool of older workers should mean canny employers can find a few “bargain” staff.
While Brown is quick to emphasise that older workers still want “a fair day’s work for a fair day’s pay”, he says many older workers will be prepared to accept lower salaries in return for flexible working conditions and jobs that don’t require them to commute long distances.
Brown expects small and medium companies will continue to be at the forefront of this trend.
“SMEs have been far quicker to recognise the benefit of older workers, and particularly they stability they offer. Mature aged workers are more committed and more stable. Statistically they stay two-and-a-half times longer than an employee under 40.”
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