2.7 A multigenerational workforce

Australia’s ageing population was cited as the country’s greatest demographic challenge in the 2021 Intergenerational Report.[26] By 2060–61, the number of Australians aged 65 years and older will double to 8.9 million, comprising 23% of the population.

As Australians are living longer, they are also working later into their lives. For the first time in history, the workforce now comprises five generations. A multigenerational workforce enables synergies, with each generation delivering complementary benefits to each other. Recent research suggests employees are more productive when they work with others of a different age.[27]

It will not, however, be straightforward to realise these opportunities. To maximise the benefit of a multigenerational workforce, agencies need to actively target the aspects of work and work design that are important to each generation. At a fundamental level, both older and younger staff are alike in what they value from a workplace. Older workers, however, tend to place increased importance on jobs they find interesting and value flexible working arrangements to support a work-life balance.[28]

The APS workforce is ageing. The mix of workers of all generations has increased, with 47% of the APS aged 45 years or older (Figure 2.21).

Figure 2.21: Age distribution of APS employees over time (1982 to 2022)

Source: APSED

Figure 2.22: Average APS employee age (2003 to 2022)

Source: APSED

APS employees within the youngest and oldest age groups are more likely to seek alternatives to full-time work.[29] This is confirmed by recent data indicating that the proportion of the APS workforce undertaking casual employment is highest among those aged 24 years and younger, and 65 years and older. In addition, 8.4% of employees who retired over the past 10 years returned to a role in the APS and 90% of these were reemployed in a non-ongoing or casual role.

When older employees retire, they take with them their years of knowledge and skills, which cannot be immediately replaced by recruiting new employees. A work culture that supports older workers can improve retention of skills, experience and corporate knowledge. As mentoring programs come online across leadership programs or specialist areas, there is an opportunity to leverage off older workers by having them share their experiences and pass on corporate knowledge.

The APS will continue efforts to attract both younger and older employees. It will need to identify productive ways to apply the diverse wealth of skills and experiences held within its multigenerational workforce.