Employers among most flexible for older workers

1 August 2007

New Zealand employers among most flexible for older workers

New Zealand’s skills shortage is creating opportunities for older workers who want to keep working part-time rather than retiring altogether, according to an international survey by global recruitment company Robert Half.

The survey found New Zealand employers were second only to Australians in being prepared to let older, experienced workers work part-time or on short-term contracts to fill job vacancies.

In its 2007 Workplace Survey, Robert Half asked 5098 finance and HR managers across 17 countries what strategies they would consider if the looming retirement of baby boomers led to a continuation of the skills shortage.

Forty-one per cent of New Zealand employers said they were willing to let older, experienced workers continue working part time or on short-term contracts, compared with 48% of Australian employers and a global average of just 30%.

In New Zealand, just over half as many (22%) would consider the next best alternative - hiring and training young people with the right attitude but without the necessary skills.

“With changing demographics, and the concept of full-time retirement becoming less popular, this creates enormous opportunities for older, skilled employees who want to keep working, but also want to take more time for family and lifestyle,” says Kim Smith, division director of Robert Half Finance & Accounting in Auckland.

“It’s also a rational approach by employers to a changing employment market - there simply aren’t enough young people entering the workforce to fill vacancies, so employers really have to start paying attention to how they can retain older workers.

“If those workers are prepared to keep working part-time, or on short-term contracts, it makes sense to keep their skills in the company, even if it means jobs have to be reconfigured.”

The survey showed that managers in small and medium-sized companies (up to 200 employees) were more willing to consider allowing older employees to stay on part-time or on contract than were managers in large companies (more than 200 employees).

In the finance field, it found that the vacancies that were hardest to fill were in jobs that required specialist knowledge - and companies of all sizes had difficulty recruiting these people. The next most difficult vacancies to fill were in jobs that required a lot of experience. Again, companies of all sizes had difficulties recruiting these people.

“The skills shortage is placing a lot of bargaining power in employees’ hands,” says Ms Smith. “It is not going to get better.

“By being willing to consider flexible working arrangements for older people, New Zealand employers are facing up to reality and taking intelligent steps to ensure their businesses aren’t disadvantaged.”

ENDS

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