Scott Mitchell –
PwC released its Golden Age Index last week, rating the success of countries in harnessing the economic power of older workers.
It compares employment of older workers across 34 member countries of the Organisation for Economic Cooperation and Development (OECD) with States able to add billions of dollars to a country’s coffers if they follow best practice in harnessing the potential of their older workers.
The Golden Age Index is a weighted average of indicators, including employment, earnings and training that reflect the labour market impact of workers aged over 55 in 34 OECD countries.
From our Golden Age Index, we can say New Zealand is leading the way, along with Iceland, Israel and countries in Scandinavia, in harnessing the economic power of older workers.
This is increasingly important for the New Zealand economy to boost growth and support organisations in sourcing talent.
New Zealand’s high ranking suggests that current conditions are a win for Government, employers and older workers, however Government and employers should not become complacent.
Changing dynamics
Dynamics will change within the next five years as older workers consider their financial choices and businesses should be thinking about how they can utilise the experience and skills of this generation. Increased flexibility, job redesign, career breaks and role shifts could help engage older workers to keep them in the workforce for longer.
More should be done to focus on how we can drive innovation and productivity by harnessing the diversity that results from having a broader range of generations working together.
There are several opportunities and challenges posed by the Golden Age Index for businesses.
These include (1) Businesses making better use of the skills and experience of older workers can gain a competitive advantage at a time when the average age of customers is rising (2) Employers may need to rethink their attitudes to training for older workers, so this does not ‘stop at 50.’ (c) An ageing workforce may demand different approaches to reward in terms of the balance between salary, pensions and healthcare benefits and (d) Companies would benefit from doing a comprehensive audit of their age profile that covers recruitment, retention, training, reward and performance.
Scott Mitchell is Partner and Business Adviser at PricewaterhouseCoopers New Zealand.
