Chapter 5: Equity and diversity

Abbreviations

A list of the abbreviations used in this report is available in the Glossary

Age diversity

Encouraging diversity in the age structure of an agency is an important part of overall approaches to workplace diversity. This is particularly so given the ageing of the APS workforce over the last 10 years. The changing age profile of the APS is shown in Figure 5.12.

In response to demographic change, APS agencies need to take a systematic approach to workforce planning, implement strategies to recruit and retain employees in high demand and build the capability of their workforce for the future. To do this, the APS needs to provide a work environment which is attractive to employees of all ages.

Figure 5.12: Ongoing employees—age profile, 1997 and 2006

Source: APSED

The APS is increasingly reliant on mature-aged employees (i.e. those aged 45 and over). This group now represents 40.8% of the APS ongoing workforce, although there is significant variation between agencies (see Chapter 2).

There are a number of factors that are likely to affect the ability of the APS to retain mature-aged employees. These include access to flexible working arrangements, the earnings rates of the superannuation funds, which affect the benefits available to those who resign before age 55, and general levels of job satisfaction.

As noted in Chapter 2, the APS has had some success in encouraging the retention of mature-aged workers. Figure 5.13 shows trends in the separation rate²⁴ for APS employees in the 50–64 age range in 1996–97 and 2005–06. It shows that in the earlier period there was a steady rise in the separation rate for older workers; the data for 2005–06 clearly shows a peak in separations at age 54 (the 54/11 effect), but otherwise lower separation rates for those employees aged less than 54 and aged 56 and above, compared with 1996–97.

Figure 5.13: Separation rates for ongoing employees aged 50 to 64, 1996–97 and 2005–06

Source: APSED

As reported in Chapter 3, mature-aged workers (those aged 45 years or over) tended to report higher overall levels of job satisfaction than younger employees (76% and 71% respectively).

Differences in satisfaction for mature-aged workers on factors relating to employee engagement, tended to be small (see Figure 5.14).²⁵ However, they recorded slightly higher levels of satisfaction in relation to the factor dealing with understanding current role and slightly lower levels of satisfaction on the ‘Diversity—recruitment and retention’ factor.

Figure 5.14: Employee satisfaction with factors identified through factor analysis—mature-aged (45 years and over) and younger (under 45 years) employees, 2005–06

Source: Employee survey

In addition to meeting the needs of mature-age workers, effective age diversity strategies need to look at how agencies can attract and retain young people. This year, across the APS, there was a slight reversal of last year’s decline in the number of ongoing employees aged less than 25 years. The growth in younger workers reflects strong growth this year in employment of graduate and other trainees.

There are some distinctive features of the employment of young people in the APS. Younger workers are much more likely to be employed on a non-ongoing basis than are other employees: at June 2006, 4.4% of ongoing employees were aged less than 25, compared with 20.7% of non-ongoing employees. Younger employees also have a higher separation rate, accounting for 6.0% of all separations during 2005–06, compared with their representation in the APS of 4.4% at June 2006. The resignation rate for younger workers has increased steadily over the past ten years, rising from 6.0% in 1996–97 to 9.8% in 2005–06. Although this may indicate greater job mobility among generation Y employees it is important that agencies pay attention to the reasons that younger employees are leaving, and encourage those that do leave to consider returning to the APS at some time in the future.

APS agencies need to look at how to make their work environment more attractive to young people. This is likely to cover a range of strategies including providing opportunities to combine work and study; to develop skills; to do interesting work and to put their skills into practice.

As reported in Chapter 3, employees aged under 25 years have reported job satisfaction levels equal to or above the APS for the last three years. However, their satisfaction against the employee engagement factors set out in Figure 5.15 showed more variation than for mature-aged workers. In general, they had higher levels of satisfaction on most factors. Differences were greatest for factors relating to work-life balance and learning and development, diversity and senior leaders/culture. However, they were less likely than other employees to be satisfied with their work group.

Figure 5.15: Employee satisfaction with factors identified through factor analysis—employees aged under 25 years and employees aged 25 years and over, 2005–06

Source: Employee survey

The separation rate is calculated as the proportion of employees separating at a particular age during the year, divided by the average number of employees at that age at the beginning and end of the financial year. The separation rate for those aged 64 and over in 1996–97 was inflated due to compulsory age retirement at that time. This meant that the number of separations was artificially high, 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. The number of volunteer redundancies, particularly for older employees, was also much higher that year.
For further information on factor analysis see Appendix 4.

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