While flexible work options are seen as the most important human resource management strategy for the retention of older workers, according to the employee literature a number of other strategies to improve working conditions are also influential. These include developing a supportive work environment; the recognition of skills and abilities; training opportunities leading to career progression; and being able to pass on knowledge to younger staff. These strategies together contribute to employee well‐being at work, and are here generically called supportive work practices. This article reports on part of a qualitative study based on interviews with 20 aged care facility managers and 20 personal carers and finds that despite poor pay, physical work and a predominantly immigrant labour force, many of these human resource strategies are effectively utilised to retain older workers in residential aged care. Most of these practices, which reduce recruitment, training and sick leave costs, could also be effective in other industries.

Governments in most developed countries are encouraging older workers to remain at work so as to reduce both social security liabilities and labour shortages. Research shows that older workers view flexible work options, which includes phased retirement and returns to work (recalls) as casuals or on contract, as a major incentive for remaining in the work force. There is little evidence employers are making these work conditions widely available. However, one industry with a high proportion of older workers, Aged Care Facilities (nursing homes), is using flexible work options as a major part of its labour retention strategy. These practices could be adapted to other industries.