Grey Matters engaging and retaining mature age workforce

Document Sample
Grey Matters engaging and retaining mature age workforce Powered By Docstoc
					         Grey Matters: engaging and retaining mature age workforce
Success depends on attracting and maintaining mature age talent at ANZ

      Attracting and retaining our ageing workforce means we have access to a larger talent pool, and
       are better placed to understand and respond to the needs of customers and communities

      In the words of one ANZ employee:

   “age diversity allows all employees to gain an insight into different values/views on many issues and
   should be strongly encouraged. This will be increasingly important for ANZ as the population (and
   client base) ages if we are to satisfy employees/clients and shareholders over the long term”

Ageing workforce will create a labour shortage

   •   In approximately 15 years the number of people retiring will exceed those entering the labour

   •   The oldest baby boomer (aged 59) is now at the age of retirement. Australians currently retire
       on average at the age of 58 (Australian Bureau of Statistics)

   •   The most rapid change is predicted to occur between 2011 and 2031 as the baby boom
       generation (those born between 1946 – 1965) move out of the labour force and into retirement
       (COTA National Seniors Media Release, April 2005)

Why attracting and retaining mature age workers matters to an organisation

   •   Retention: workers aged 55-69 stay in their jobs longer than their younger colleagues. Only 5
       percent of those in the 55-69 bracket will change job in any given year compared to 25 percent
       of workers aged 20-25 (Diversity@Work)

   •   Reduced Absenteeism: people over the age of 45 take fewer sick days. Diversity@Work (1998)
       study revealed that only 14 percent of all employees absent on sick leave belonged to the over
       55 age group

   •   Based on the benefits older workers accrue in relation to training and recruitment investments,
       which exceed costs of turnover and absenteeism. Research undertaken by Business, Work and
       Ageing (BWA), estimate a net human resource management cost benefit of $1,956 per annum
       for each worker aged 45 plus compared to the rest of the workforce.

We need to find ways to bolster workforce participation rates for the over 50s

   •   In Australia 49 per cent of 55-64-year-olds are in the workforce, compared with 59 per cent in
       the United States, 60 per cent in New Zealand and up to 65 per cent in Scandinavia (Sydney
       Morning Herald, 2 October 2002, p.4)

   •   Australian Bureau of Statistics in 2003-04 showed that most men (87%) aged 45-54 years were
       participating in the labour force, as were 73% of women in this age group. Participation rates
       were lower for older age groups. For those aged 60-64 years the participation rates for men and
       women were 51% and 28% respectively (Australian Bureau of Statistics)

   •   In 2003-04 people aged 45-64 years made up almost a third (32%) of the labour force
       (Diversity at Work)

   •   In 2006 30% of ANZ workforce consists of employees aged 45 and over. Reflecting the
       Australian demographic
ANZ‟s age diversity strategy

Aim: to create a culture where “age is no barrier” in order to:
      • retain skills and experience at ANZ
      • increase ANZ‟s talent pool, by more effectively reaching the mature workers market
      • achieve greater customer intimacy through better reflecting the age profile of our
          customers and our community
      • enhance our corporate reputation through our people commitment, and our work in the
          financial fitness

Cultural shifts to attract and retain mature age talent:

•   Challenge   employee expectations of early retirement
•   Challenge   the relationship between hours at work/tenure and performance
•   Challenge   the culture that equates age with lesser contribution
•   Challenge   the culture that treats the lifestyle needs of its employees as personal (not company)

CEO ownership:
• John McFarlane champions and advocates age diversity as good business practice
• John‟s overarching message is that ANZ does not expect people to retire in their 50s.

ANZ‟s initiatives to attract and retain mature age workforce

ANZ has a Guaranteed Part-time Policy for over 55s

•   Policy is about ensuring that we can continue to benefit from the experience and skills of our
    mature-aged people, many of whom have worked for ANZ for many years.
•   Research shows one-third of early retirees would stay in the workforce if they were offered
    more flexible employment (Positive ageing Foundation of Australia)
•   40% of ANZ‟s mature age workers are employed part-time compared to 26% of Australia‟s
    mature age workforce

Career Extension Program:

•   a suite of initiatives aimed at helping employees to challenge and manage their lifestyle
    decisions and assist ANZ retain the employees‟ knowledge and experience

       –   Rejuvenation: e.g. providing flexible leave arrangements.
       –   Rebalance: e.g. implementing innovative work arrangements (e.g. telecommuting)
       –   Reshaping: tools to reflect and change pace.

ANZ Alumni

•   open communication channels between ANZ and former employees and advertising ongoing
    employment opportunities

Age Management Planning
• aimed at up-skilling mature age employees

Remove career advancement barriers
• Realignment of tertiary qualification policy

Changes to advertising:

•   language targeted towards attracting and retaining mature age staff eg „Age is no barrier‟
Communications supporting ANZ‟s age diversity strategy

•   Management buy-in: the age diversity strategy has been successfully communicated to
    Management Board, group-wide senior management and leaders who have a critical role in
    driving and supporting ANZ‟s mature age agenda

•   Employee access to information:
       All employees in Australia received the “making your life choices work” booklet as part of
          ANZ‟s Career Extension strategy launched in 2004
       Detailed information on career extension options can be found via ANZ‟s intranet site
       Staff are invited to attend free career extension seminars.

•   Employee feedback: staff are invited and encouraged to provide feedback. As a result we have
    received great suggestions on how experience can be better leveraged at ANZ.

•   Launch of the „experience counts‟ competition: each ANZ branch was invited to celebrate the
    experience they contribute to ANZ. The aim was to increase dialogue around experience and
    age diversity.

Results so far…

•   At ANZ we have seen an increased use of flexible leave in the over 45 group

                                     2003                   2006
             Flexible Leave
             provided at ANZ
                                     8.7%                   12.1%
             Long Service Leave
                                     1.0%                   3.0%
             Lifestyle Leave
                                     0.2%                   0.2%
             Career Break
             Leave Without Pay       5.5%                   5.7%

•   Increase in the average age of retirement (from 54.8years in 2001 to 57.8 years in 2005)

•   Turnover of employees in the 55 and over age group has decreased (from 18% in 2003 to 14%
    in 2005) through the greater stability of age balanced teams.

•   ANZ continues to have the highest level of engagement of any organisation (60%). This
    engagement score is higher for our 45-54 age group (64%) and 55+ age group (66%)