Home > Workplace diversity > Age diversity

AGE DIVERSITY

The 2003 MAC report Organisational Renewal sets out the challenges APS agencies face in maintaining and improving their capability in a changing environment.¹² In particular, it identified a future contraction of the labour market, the ageing profile of the APS workforce, and the career intentions of new graduates as critical factors agencies will need to address in the context of their current and future workforce planning.

The statistical snapshot of the APS in Chapter 2 of this report highlighted the ageing of the APS over the last decade, and the implications of demographic changes for workplace planning are discussed in Chapter 9. These chapters highlight the growing reliance on mature-aged workers in the APS, and the importance of providing a work environment and work practices that are conducive to their optimal participation, at the same time as putting in place strategies to attract and build the capability of younger employees.

There has been a significant increase in the proportion of APS employees aged over 45 (both 45—54 and 55 and over) over the last decade, from 28.8% in 1995 to 39.3% in 2004, while the proportion of younger workers has declined. The changed age profile of the APS is shown in Figure 8.10.

Figure 8.10: Ongoing staff: Age profile, 1995 and 2004

Source: APSED

MATURE-AGED EMPLOYEES

Consistent with its ageing profile, the APS is increasingly reliant on mature-aged employees (45 and over) who now represent 39.3% of its ongoing workforce, although there is significant variation across agencies (see Chapter 2).

While 23.2% of the APS workforce could, if they wished, retire with superannuation benefits within five years (including 27.6% of EL staff and 43.7% of the SES), there are some indications that employees in this group may remain in the workforce longer than previous cohorts. Results of employee surveys conducted for the MAC report indicated that a high proportion of employees intend to work beyond 55 years. In addition, declining membership of the CSS (closed to new members since 1990) is likely to contribute to this trend as the ‘54/11’ incentive to retire diminishes. As noted in Chapter 2, while separations for employees aged 55 and over increased by 112 during 2003—04, there was also growth in the overall number of ongoing employees in this age group (of 1395, from 9939 in 2002—03 to 11,334 in 2003—04).

Figure 8.11 below shows the separation trends for APS employees in the 50—64 age group in 1994—95 and 2003—04. It shows that in the earlier period there was a steady rise in the separation rate for older workers. A smaller proportion of employees aged 55 and over leaves each year now than in 1994—95. By 2003—04 the ‘54/11’ effect had become apparent. Despite this peak in departures between the ages of 53 and 55, the proportion of ongoing APS employees over 55 increased from 8.3% in 2003 to 9.3% in 2004 (rising from 5.4% in 1995).

Figure 8.11: Separation rates for ongoing employees aged 50 to 64, 1994—95 and 2003—04¹³

Source: APSED

There are a number of factors affecting separation rates for mature-aged employees, including the earning rates of the superannuation funds which affect the benefits available for those who resign before age 55. Nevertheless, older workers appear to be willing to remain in the workforce for longer periods of time, particularly if agencies can provide them with additional flexibility.

On 3 December 2003 the Minister Assisting the Prime Minister for the Public Service, the Hon. Kevin Andrews MP, launched a package of materials, Implementing Organisational Renewal–Mature Aged Workers in the APS, to support APS agencies in retaining their mature-aged employees, and to take the APS to the forefront in responding to the ageing of the Australian workforce.

The package of materials includes:

• APS Commission guidance on leadership and learning issues in relation to mature-aged workers
• material prepared by DEWR addressing the design and implementation of flexible working arrangements for mature-aged workers
• guidance prepared by Comcare on occupational health and safety for a mature-aged workforce
• advice prepared by Finance and the Superannuation Boards to help APS managers and employees understand the superannuation implications of available retirement options.

Job satisfaction–mature-age workers

Background information on the job satisfaction questions in the employee survey is found above at the section ‘Job satisfaction–women’.

Table 8.16 shows the top five job satisfaction factors for workers 45 years and over, and employees aged less than 45 years.

Table 8.16: Most important job satisfaction factors, by 45 years and over and under 45 years

Source: Employee survey

Note: The results in this table relate to factors chosen and rated by respondents. Data for factors chosen by respondents who did not go on to rate their satisfaction with those factors is not included.

There is a strong similarity between the job satisfaction factors ranked as most important by mature-aged employees and by employees aged under 45, with three factors in common (‘good working relationships’, ‘flexible working arrangements’ and ‘regular feedback/recognition for effort’).

The areas of difference between mature-aged and younger employees are likely to be, to some extent, related to life stage. For example, mature-aged employees chose ‘opportunities to utilise my skills’ among their five most important job satisfaction factors, while younger employees chose ‘opportunities to develop my skills’ and ‘good manager’.

Most mature-aged and younger employees in both groups were satisfied with each of the job satisfaction factors that they identified as most important. When a summary index of all job satisfaction factor results for matureaged employees is compared with those for younger employees, the overall difference in job satisfaction is also narrow: 76% of mature-aged employees had an index rating of more than five (satisfied to very satisfied overall) compared to 72% for younger employees.

In response to another question on people management, there were no significant differences in the likelihood of employees 45 and over and younger employees rating their supervisors as highly effective at managing people.

YOUNGER WORKERS

Last year’s State of the Service report noted a turnaround in the number of younger employees working in the APS. Unfortunately this trend has reversed somewhat during 2003—04. The number of employees aged less than 25 years decreased from 5977 at June 2003 to 5232 at June 2004; in 1995 the number in this age group was 9694. There were decreases in both the under 20 and 20—24 year age groups. The latter group had shown consistent growth for each of the previous four years.

The reduction during 2003—04 was due, in large part, to a decline in engagements of younger employees, which fell both in number and as a proportion of all engagements. Both trainee and graduate trainee classifications have historically provided opportunities for younger employees to enter the APS. During 2003—04, engagements to these classifications fell more than engagements overall. For graduate trainees, the decrease was 46.3% compared with the previous year, while engagements of other trainees fell by 46.6%. Overall engagements fell by 39.9%.

While it is likely that employment for 20—24 year olds will continue to be variable, reflecting broader APS employment trends, other labour market factors and high school retention rates mean the trend away from APS employees in the 15—19 age group may continue. Agencies should consider strategies such as traineeships and graduate recruitment, as part of their broader attraction and retention strategies, to attract promising young people as the employment market tightens. This might also help to redress some of the problems concerning employment of a wider range of people, including Indigenous Australians and people with a disability. The impact of declining numbers of younger workers in the APS is also discussed in Chapter 9.

Job Satisfaction–younger workers

Background information on the job satisfaction questions in the employee survey is found above at the section ‘Job satisfaction–women’.

Table 8.17 shows the ranking of the top five job satisfaction factors for employees aged less than 25 years, compared to those aged 25 years and over.

Table 8.17: Most important job satisfaction factors, by under 25 years and 25 years and over

Source: Employee survey

Note: The results in this table relate to factors chosen and rated by respondents. Data for factors chosen by respondents who did not go on to rate their satisfaction with those factors is not included.

The difference in job satisfaction factors chosen as most important by employees under 25, and those chosen by employees aged 25 years and over, were more marked than for most groups, with only two factors among the five most important in common: ‘regular feedback/recognition for effort’ and ‘good working relationships’– the latter being common to all the groups examined in this chapter.

Both younger employees and those aged 25 and over were very satisfied with their ‘working relationships’ (88% for under 25s and 85% for those aged 25 and over), but younger employees were more satisfied with ‘regular feedback/recognition for effort’ than their older colleagues (65% and 51% respectively).

Life stage appears to be influential in determining the most important job satisfaction factors for employees aged under 25 years, with ‘opportunities to develop my skills’ and ‘opportunities for career development’ reflecting the interests and concerns of younger employees starting out on their career in the APS. The other factor among the five most important for those under 25 years, but not for older workers, was ‘interesting work provided’.

Along with people with a disability, people under 25 years were the only group not to include ‘flexible working arrangements’ in their top five job satisfaction factors. For employees under 25 years, this factor was only ranked tenth in importance of the 16 job satisfaction factors included in the employee survey, a substantially different result compared to other employees.

The scores on the summary job satisfaction index for those aged less than 25 and those 25 years and over were also similar, with both groups having 74% of employees scoring over five (out of 10) (satisfied to very satisfied overall).

In response to another question on people management, there were no significant differences in the likelihood of employees under 25 years and older employees rating their supervisors as highly effective at managing people.

Agencies wishing to attract and retain younger workers need to consider the workplace factors important to them. The employee survey suggests that these may not always be the same as those for other employees.

12 MAC, Report 3, Organisational Renewal, 2003, <http://www.apsc.gov.au/mac/organisationrenewal.htm>

13 The separation rate for those aged 64 and over in 1994—95 was inflated due to compulsory age retirement at that time. This meant that the number of separations was artificially higher, and the number of employees at the beginning and end of the financial year (used in calculating the separation rate) was lower than is the case now. This has resulted in a separation rate of over 100%.