Older Worker Employment Transition
Report by
Judy McGregor and Lance Gray
Massey University
May 2003
Executive Summary of Older Worker
Employment Transition
Eleven key findings emerged from the analysis of retirement intentions of older New Zealand workers:
- Older workers, and older workers doing physical work in particular, lack policy visibility. The Positive Ageing Strategy discusses employment but much more work needs to be done in policy frameworks. This study of the meat industry is part of a small amount of research examining the status of older workers in a labour policy environment that has been largely dominated by youth.
- Employers and unions involved in the study were surprised to realize how many older workers there were in their workplaces and union memberships. Greater industry awareness is required to consider the implications of age in some industries for labour force planning and to foster positive employment relations.
- None of the 94 workers interviewed in the four workplaces used in the study reported that managers and supervisors imposed any pressure on them because of their age alone. The positive finding reinforces earlier research that employers value and rely on their older workers.
- Older workers interviewed who were engaged in physical labour were proud of the job they did and the contribution they made. The importance of work in daily life, a strong work ethic, the positive socialization of work and the structure it brought to daily living, as well as work satisfying basic financial needs, were all acknowledged in different ways by those interviewed.
- Older workers undertaking heavy, physical labour say they are actively conserving their physical well-being so they can continue to work. Many of the workers said they were having to "live to work" because of the fear, presence or likelihood of physical injury, illness or general body fatigue.
- Raising the age of eligibility of government-funded superannuation beyond 65 years be would extremely onerous for the majority of workers in manual jobs. Policy debate about the continued upward indexing of government-funded superannuation must heed the reality of physical degradation for manual workers.
- Older workers strongly supported free choice about retirement. The study showed that workers want autonomy in decision-making and valued dignity when exiting from the work force. The findings affirm the abolition of compulsory retirement on the grounds of age.
- Almost 30 per cent of older workers in the study would come to work on Monday if they won Lotto the previous weekend. While money is an obvious predictor of retirement it is not the only one. Older workers are not one homogenous group and their retirement intentions are individual, complex and varied.
- A quarter of older workers in the study say they will not retire when they are 65 years old. These workers say they will continue to work as long as they are physically able. They also say they will recognize when they are "dragging the chain".
- The retirement intentions of older workers in the study suggest a rethink of fundamental human resource principles. For example, some employers acknowledged that performance management was too blunt an instrument to manage "non-performers" at the end of an otherwise valuable working career.
- Employers and unions need to consider transition arrangements to retain older workers, particularly in industries where there are labour shortages. Alternative working arrangements that offer flexibility in job functions and reduced hours are attractive to some older workers and may prolong employment participation. The future of work in New Zealand like other developed countries is likely to include more older workers staying longer in the workforce. Rigid work structures and hierarchies will have to change to maximize older worker productivity and potential.
The full eport can be viewed/downloaded from the Human Rights Commission Website.
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