Workforce ageing: Materials for Human Resource practitioners in the APS

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Appendix 3

Managing ageing in the workplace-Advice for APS managers

What you need to know

The Australian workforce is ageing

Declining birth and mortality rates have caught up with us. On average the Australian workforce is getting older, and the APS workforce is older than the workforce in general.

The ageing of the workforce is likely to create increased competition for workers. The APS, like other employers, will need to implement strategies that maximise the attraction and retention of valued employees of all ages. However, research shows that the only segment of the workforce where significant increases in workforce participation can be achieved is those aged over 55.

'Why not'

In order to maintain organisational capability APS managers need to examine their attitudes and behaviour-to challenge old assumptions about how work is done and organised. In Organisational Renewal the Management Advisory Committee identified flexible working arrangements as being critical to the retention of mature aged employees. Many valued mature aged employees also want to have the option of a 'phased' retirement-that is, to reduce their hours and/or their level of responsibility. As the population ages, more and more employees will have caring responsibilities for adult relatives.

APS agencies have gone some way to incorporating flexible work practices into their workplaces, but more can be done. Rather than asking 'why', managers need to ask themselves 'why not'. Where practical this may mean re-organising how some work is done.

Mature aged employees will need to know the impact of any decision about their working arrangements on their superannuation entitlements

Organisational Renewal identified the risk of negative financial impacts as an issue affecting mature aged employees retirement intentions. In particular employees were concerned about the effect of working part-time or working beyond age 55 on their superannuation entitlements. For some individuals there may be issues that need to be addressed, but for most, accurate information is likely to neutralise their fears.

What you can do

Understand the issues

It is important that APS managers understand how the ageing of the workforce is likely to impact on their workplace and how they can respond to the challenges that arise.

Understand your own workforce planning issues

APS managers need to understand the workforce planning issues for their work area. What skills does your work area have? Are there any skill-gaps? How are skill-gaps going to be addressed? Are there strategies in place to deal with knowledge transfer and succession management when key people leave?

Understand the policy that senior managers in your agency have decided to adopt

The impact of workforce ageing is not consistent across APS agencies and therefore it is likely that the approach adopted by agencies will vary. For example, ‘career breaks’ might be put to effective use in large agencies, but be difficult to absorb in a small agency. Managers should understand the approach their agency has adopted so that they can implement and apply it confidently and consistently.

Strategies

What options are available to you as a manager

Understand employee leaving and retirement intentions
Use learning and development to motivate and equip mature aged employees
Use rewards and recognition to ensure that employees know they are valued
Consider the flexible working and phased retirement options that are already available in your agency.
They may be set out in a HR manual or in your certified agreement, or you can seek advice from your HR area.
Make sure you're aware of the programs your agency has to support staff (e.g. employee assistance program, childcare kit or eldercare kit)

Also consider how rewards and recognition, learning and development and other corporate programs (e.g. mentoring) can contribute to employees' attitudes to work and their retirement intentions. Can you influence valued employees to work in your agency longer than they otherwise might?

You may want to refer to the Planning for Mature Aged Employees section of Workforce ageing: materials for human resource practitioners in the APS that was distributed to HR areas recently by the Australian Public Service Commission.

Other materials

The following materials may assist you in responding to intentions the ageing of the workforce in your workplace:

The Australian Public Service Commission has distributed a package of materials, collectively titled Implementing Organisational Renewal: Mature-aged Workers in the APS, which includes:

Australian Public Service Commission, Workforce Ageing, 2003
Department of Employment and Workplace Relations, Flexible working arrangements for older workers, 2003
Department of Finance and Administration, Superannuation and mature-aged APS workers: information on retention options and phased retirement, 2003
Comcare, Productive and safe workplaces for an ageing workforce, 2003
Managing succession in the Australian Public Service, (2003)
Comsuper has developed fact sheets for members of the CSS and PSS that address the effect of phased retirement on superannuation. They are available at:
http://www.pss.gov.au/pss/factsheets/psf10.htm
http:// www.css.gov.au/css/factsheets/csf10.htm
http://www.pss.gov.au/pss/infosheets/mac_report.htm

ANAO Better Practice Guide, Planning for the workforce of the future, 2001 http://www.anao.gov.au/ and navigate via publications > Better Practice Guides

Want to know more?

If you want to know more about the ageing of the workforce and how it is likely to impact on the economy, how we work and how we view retirement, you may be interested in the following:

Management Advisory Committee report on Organisational Renewal, Commonwealth of Australia, Canberra, 2003.

All in it together, Access Economics report for the Department of Health and Ageing, 2001.