Age Friendly Workplaces From sticks to carrots in workplace policy Simon Biggs biggss@umimelb.edu.au sbiggs@bsl.org.au
What s the problem? Demographic Shifts and Cultural Adaptation
Fiscal and Social Impact No other force is likely to shape the future of national economic health, public finances, and policymaking as the irreversible rate at which the world s population is aging.
Median age of selected countries and world, 1950 to 2050 55 50 45 40 35 30 25 20 15 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Australia China Germany India Japan United Kingdom United States World
The Demographic Ratio Number of people 15-64yrs per person 65+, 2000-50 16.00 14.00 12.00 10.00 8.00 6.00 4.00 Australia Canada China Finland Germany India New Zealand UK US 2.00 0.00 2000 2010 2020 2030 2040 2050
The changing population profile
Rethinking Working Life
What to Do with Longevity? The shrinking demographic middle More older and fewer younger people around to do the work The longevity gap
Live Longer, Work Longer OECD 2006 21 Nation States OECD review of employment policies to address ageing 2003-05 Three broad areas strengthening financial incentives to carry on working tackling employment barriers on the side of employers improving the employability of older workers
Statutory Retirement Ages Germany 65-67 2008 Finland 62-68 2008 China 60 & 50-55 2011 France 62-68 2011 India 60 2012 USA 62-67 2013 Australia 64.5-67 2013 Eire 66 2014
Gradual Increases In the UK the retirement age for women is to be increased gradually and equalled to the retirement age for men in 2018. Later, the retirement age for both sexes is to be increased gradually and reach 68 by 2046 or sooner.
The Virtuous Circle Fewer Pensions More Taxes More Workers
The Stick Increase age of Pension Eligibility Job availability Generational competition Transfers Housing Moral Economy
Accessing an Ageing Australia
Australia
Intergenerational Report 2010 Intergenerational Challenges. Population ageing will mean that there will be fewer workers to support retirees and young dependants. This will place pressure on the economic growth that drives rising living standards. At the same time, the ageing population will result in substantial fiscal pressures from increased demand for government services and rising health costs.
IGR claim direct effects on Policy The 2002 03 Budget included a rise in copayments for medicines supplied under the Pharmaceutical Benefits Scheme (PBS) and introduction of superannuation co-contribution. The 2007 08 Budget emphasised measures aimed at enhancing productivity and participation. The 2010 11 Budget referred to the IGR as a basis for superannuation changes such as the phased increase in the superannuation guarantee from 9% to 12%.
Australian Govt Dept Human Services Your eligibility for Age Pension depends on when you were born. From 1 July 2017, the qualifying age for Age Pension will increase from 65 years to 65 and a half years. The qualifying age will then rise by six months every two years, reaching 67 by 1 July 2023. Date of birth Qualifying age at 1 July 1952 to 31 December 1953 65 years and 6 months 1 January 1954 to 30 June 1955 66 years 1 July 1955 to 31 December 1956 66 years and 6 months From 1 January 1957 67 years
Age Discrimination Act 2004 Age Discrimination Act 2004 (ADA) aimed at prohibiting direct and indirect discrimination against a person because of the person s age or characteristics associated with that age. ADA also contains general exemptions, whereas discrimination on the basis of age is lawful. Exemptions are granted in respect to charities, religious bodies, voluntary bodies, superannuation, and migration.
HREOC 2012 As a society, we have been slow to recognise that millions of older Australians are locked out of the workforce by age discrimination. We are only now starting to understand what a terrible waste of human capital this situation represents; a loss to the national economy and to businesses large and small, and a loss to the individual who is pushed out of the workforce prematurely.
Extending Working Life
Confronting Stereotypes
Access for Older Workers Report
Releasing Generational Capital Social Capital Continuous learning Social innovation Adaptation
Rethinking Workplaces
World Economic Forum: Ageing Societies Global companies of the future will likely look very different from those of today for two reasons. First, as a consequence of 20th-century gains in longevity, advances in healthy ageing and increasingly flexible working environments, many more people will be willing and able to work into their 60s, 70s and 80s. Second, declining birth rates will lead to a dramatic shift in the proportion of old to young in societies around the world. The retention, recruitment and full participation of older workers may well become a necessity for companies accustomed to attracting most new hires in their 20s and 30s.
Age Friendly Work Design jobs that create a quality person-job fit that accounts for changes across the lifecourse. Complex and mentally challenging work is important for mature workers satisfaction and wellbeing.
A Longevity Dividend The extension of healthy life creates wealth for individuals and the nations in which they live If we succeed in slowing aging by seven years, the age-specific risk of death, frailty, and disability will be reduced by approximately half at every age Social, economic, and health bonuses for both individuals and entire populations- a dividend that would begin with generations currently alive and continue Simon Biggs University of Melbourne.
Economic Advantages of Longevity The extension of healthy life creates wealth for individuals and the nations in which they live Healthy older persons remain productively engaged in society through continuing work or voluntary activity. Most discretionary funds for consumption, accumulated by populations 50 to 65. Healthy individuals have accumulated more savings and investments by their old age than ones beset by illness. Healthy older persons require fewer health services.
No Lump of Labor The notion that younger and older workers are engaged in a zero-sum game for a fixed number of jobs.. CPS (USA) data 1977-2011 by Gender? Wages? Education?
No evidence for Lump of Labor hypothesis An exhaustive search found no evidence to support the theory in the United States. In fact the evidence suggests that greater employment of older persons leads to better outcomes for the young- reduced unemployment, increased employment and a higher wage Munnell & Yanyuan 2012
The Carrots
The Carrots Create greater choice and flexibility about transitions in and out of work (Taylor et al, 2002; 2012) Enhance the capacity of older workers through training lifelong learning, anti-discrimination policies (Ford, 2005b; Hirsch, 2005) Attractive Workplaces (Manninen, 2011) New pathways and meanings associated with work and retirement (Sargent et al 2013)
WEF Age-Neutral Workplaces Recognizing the potential contribution of employees at all ages, we will promote an employment environment built on an ageneutral foundation. We will encourage an inclusive environment and discourage agerelated discrimination or hostility.
WEF 7 Business Principles 1. Age-Neutral Workplace 2. Supportive Working Environment 3. Inclusive Culture 4. Life-Long Learning and Participation 5. Financial Planning for Longer Working Lives 6. Healthy Ageing 7. Supportive Care-Giving
Age Friendly Workplaces Retention & Engagement Strategies Job design Description Design jobs that create a quality person-job fit that accounts for changes across the life course. For example, older workers value autonomy and skill variety. Complex and mentally challenging work is important for mature workers satisfaction and well-being. Flexibility Training and development Creating policies and practices flexible scheduling to address eldercare, grandchild care, part-time or project working, flexi-place working. Promotion of the development and training of mature workers that encourages generativity. Implement training that encourages an inclusive work environment that embraces agediversity. Use language that creates positive images of older workers and fosters interpersonal and intergenerational relationships. Health and well-being promotion Targeted health promotion for mature workers, focussing on relevant issues in terms of gender and occupational demands such as balance, flexibility, sensory requirements. Accommodation Relational management Age-diverse organisational culture Design procedures for accommodation requests in order to proactively manage an agediverse workforce. These may include lighting, ergonomic, grip rails, and other sensory and lift policy changes. Create systems and practices that maintain social connections with workers such as alumni activities, web sites and social media tools. Each of the forementioned strategies facilitates an organisational culture that encourages inclusiveness and engagement of older workers.
BMW
BMW BMW made 70 small changes in the workplace to cut the chance of errors and reduce physical strain such as: making special shoes, improved tools, new computer screens introduced, put in wooden floors, rest and gym facilities. The project cost $50,000 and improved productivity by 7 percent, below average absenteeism, and the defect rate dropped to zero. It's no longer a project to aid the elderly; it's simply a fresh new plan to improve productivity.
AARP USA
AARP Criteria Areas of consideration include: Recruiting practices Opportunities for training, education and career development Workplace accommodations Alternative work options, such as flexible scheduling, jobsharing and phased retirement Employee health and pension benefits Benefits for retirees
New York Academy of Medicine
Fraunhofer IAO Companies seeking to foster a working environment suited to the changing needs of people as they age have to consider issues such as staff development, further training, how to organize their workforce, knowledge management and preventive healthcare.
Creates a Win-Win-Win? Global Population Ageing: Peril or Promise? Statement of the 2011 APEC Ministerial Meeting We welcomed APEC s cooperation with the World Health Organization to develop an APEC Strategy on Aging. We will encourage efforts to develop Age Friendly Economies using innovative policy, practices, and technologies to support healthy lives.
Rethinking the Lifecourse
We Know What to Do to Save Money prevention rather than reactive intervention reduce cumulative disadvantage community rather than residential care working longer ( an extra couple of years isn t that much- if there are jobs), Universal/age friendly adaptations to the built environment, business innovation to those who can afford age friendly products, create avenues for civic engagement Simon Biggs University of Melbourne Brotherhood of St
Aligning to Demographic Change
To Work-Life Balance across the Lifecourse
Cultural Adaptation Multiple forms of contribution Distinctive phases across a long life Age Diversity in the workplace International competition for older workers Recruitment Retention Prevention (health and cumulative deprivation) Re-thinking Work life balance
From sticks, to access to attractive workplaces The first policy response was to fill a long life with priorities from conventional working practice The second was to increase access and reduce discrimination Next will be to adapt workplaces to become older worker friendly and work out what of age-specific contributions might be And what we can learn about the balance for the whole lifecourse
Cartoon: Warren Brown
India
USA
China
EU
House of Representatives Committee (CoA) It is likely that the 4th intergenerational report (IGR) a modelling analysis that examines the fiscal impact on the Australian Government Budget position over the next 40 years assuming no policy change will be conducted during the 44th Parliament.
Gen Y: the young and the restless Generation Y bashing is a popular pastime, but do they really deserve their lazy reputation.