Let’s Hang on to What We’ve Got: Flexible Work Options and the Retention of Older Workers in Australia

Abstract

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.

Retirement Decision-Making among Registered Nurses’ and Allied Health Professionals: A Descriptive Analysis of Canadian Longitudinal Study on Aging Data

“…The impact of caregiving on retirement decisions of older RNs and AHPs could be mitigated through adoption of caregiver-friendly policies at the institutional, provincial and/or federal level. Policy options may include legislation enforcing employee rights to flexible work arrangements ( Mountford 2013 ), institution-level introduction of flexible work arrangements, subsidization of paid caregiving to support unpaid family caregivers and expansion of leave policies acknowledging employees' needs to care for aging family members ( Glenn 2010 ; Lilly 2011 ).…”

The Prevalence and Distribution of Aging-Friendly Human Resource Practices

“…Nevertheless, scholars have identified a number of workplace factors that also appear to influence older workers’ retirement related decisions, such as working conditions, job demands (physical demands and time based demands) and job autonomy, complexity, and work related stress (Helman et al., 2008; Schalk & Desmette, 2015; Wang, 2007). Other work related variables include satisfaction with the supervisor-subordinate relationships (Shacklock & Brunetto, 2011) and the ability to mentor younger workers (Mountford, 2013b). Additionally, organizational HR policies and practices might play an important role shaping older workers’ retirement plans.…”

“…Flexible work practices were repeatedly found to promote the attraction and retention of older workers (Mountford, 2013a; Rau & Adams, 2005; Shacklock & Brunetto, 2011). Supportive work environment, training opportunities and the recognition of older workers’ skills were also found to help retain older workers (Mountford, 2013b). Similarly, the results of the 2008 Recent Retirees Survey (Helman et al., 2008) indicate that employers’ action in three main employment domains may be conducive in encouraging retirement deferral.…”

“…Research indicates that two thirds of baby-boomers who expect to work in some capacity in retirement would prefer to change their line of work (Merrill Lynch, 2006), suggesting that firms facilitating transitions within the workplace could motivate the retention of such workers. Research on career-related factors and planned retirement age (Adams, 1999) suggests that employees perceiving greater opportunities to further their occupational or career objectives are likely to defer retirement (e.g., Mountford, 2013b). Finally, deployment flexibility may allow older workers the opportunity to move into physically less demanding work, or jobs which place less emphasis on cognitive skills that decline with age (e.g., that require rapid processing).…”

“…Such findings are important as they provide the basis upon which employers and policy makers may develop and support employment practices and policies that could more effectively motivate the retention of those eligible and able to retire (i.e., qualify for a pension payment, draw social security, or can start to withdraw from retirement savings). Indeed, research suggests that policies and practices such as flexible employment (Merrill Lynch, 2006;Pitt-Catsouphes & Matz-Costa, 2008;Purcell, 2009), the provision of senior-oriented training programs (Armstrong-Stassen & Ursel, 2009;Mountford, 2013b), and financial planning services (Helman, Copeland, Van Derhei, & Salisbury, 2008) may be associated with higher levels of retention.…”