The Grey Wave is coming ... Tsunami warnings!Advisory Panel on the Economic Potential of Senior AustraliansWHAT OPPORTUNITIES FROM AGEING HAVE YOUR COMPANIES CAPTURED OVER THE PAST YEAR?
We can identify key factors driving the ageing workforce ... amongst them are: - Increased longevity – people are living longer I’ll talk more about this later - Decreased fertility – fewer births - Baby Boomers retiring – a natural generational effectThe percentage of the population considered “in the workforce” is projected to grow by only 25% ... compared to a projected 36% growth in the overall population.In fact, as the workforce increases by a further 25% over the next 4 decades more than 200% growth is expected for workers aged 65 years and overWhat does this mean? Put simply, it means disproportionate growth in the mature age population and increased pressures forthcoming on businesses, Government, individuals and the community / society.These looming pressures necessitate broad and collaborative responses.
So what does an ageing workforce mean from the Government’s perspective? Recently Chris McHugh, Suncorp’s EGM for Statutory business, interviewed the Age Discrimination Commissioner …I thought you might find the interview with Susan Ryan to be valuable and on-topic … it runs for about four minutesSo, what did you take away from the interview? Did it provoke any questions for you?
It is not our intent as an insurer to respond to the challenges by simply increasing prices. This will have a wider impact on the economy and will place pressure on businesses.If the costs can be well anticipated and mitigated as best as possible, and with the involvement of all stakeholders, then the viability and financial strength of workers compensation schemes will continue.If not managed appropriately we may experience schemes, insurers and employers under distress due to spiralling workers compensation costs.
As Australia’s largest and leading personal injury insurer, Suncorp is serious about understanding the nature of these demographic changes, their potential social and economic impacts, and the need for increased momentum from stakeholders in responding to these shifting market dynamics.There are a number of actions we’ve already undertaken in relation to the issues related to the ageing workforce: - Suncorp has sponsored the Older Workers and Work Ability Conference (December 2011) - Chris McHugh, our Executive General Manager –Has participated in the Consultative Forum on Mature Age Participation advising Federal Government - We have established connections with a range of global researchers and subject matter experts - We have agreed to participate in a Work Ability Survey of our own employees in the Statutory business ... Working with Monash , Uni. This survey commenced March ’12and we’re looking forward to better understanding the Work Ability opportunities which may exist for our staff and our business. Recommendations arising out of this survey will be considered for incorporation into our Human Resources strategy and shared with our customers.AMES – Australian Migrant English Services (OHS module into Cert IV)Most recently … Suncorp has become a Corporate Champion in the Department of Education, Employment and Workplace Relations (DEEWR)’s Corporate Champions Program – project aims to attract employers who make a public commitment to move toward better practice in employing mature age people (aged 45 and over). This program is an Australian first. NEED UPDATE FROM CHERIE ON WORKABILITY SURVEY, HR STRATEGY, AND DEEWR CORPORATE CHAMPIONS PROJECT!We are participating in a Work Ability Survey conducted by Monash University with a portion of our staff. Up to 1,000 employees responded to the survey. Our score was xyz, which is considered to be ‘high’ relative to other corporates being surveyed. We’re incorporating recommendations into our HR strategy – specifically, …Finally, we are participating in DEEWR’s Corporate Champions Project, which will provide funding for implementation of recommendations coming out of the WAS.
We have provided a hyperlink to a relevant suite of the latest research on these topics ... Source: Individual authors/researchers from various institutions presenting at The Older Workers & Work Ability Conference.
The impact of the ageing workforce is with us now and is only going to become an increasing risk to manageAll stakeholders need to take accountability and immediate actionIt is important to stay abreast of ongoing shifting market dynamics You now have access to world leading academic research and models to start taking action and/or improving on current initiatives
1. 29 April 2013The Momentum of the Ageing Workforce:Implications of the Grey Wave &Corresponding Mitigation StrategiesOHS Leaders Summit 2013Prepared by Jason Allison
2. The ‘Grey Wave’ is coming!The impact will be social, financial, physical and mentalIncreased momentum in preparation and solution building is requiredAll stakeholders have an accountability - including ‘older workers’2
3. Disproportionate growth in mature age population necessitates broad andcollaborative responsesCause and Effect of the Ageing PopulationSource: GIO Adaptation Based on The Australian Government the Treasury data•Longevity•Fertility•RetirementFactors Driving•Workforce Growth25%•Age 65+ Growth200%DisproportionateGrowth•Labour Market•% Aged•Revenue Base•BarriersResult in Challenges•Academia•Government•Business•SocietyNecessitatingResponses3
4. 4An interview with Susan Ryan, Age Discrimination CommissionerNecessitating Responses (Government) - The Momentum of the AgeingWorkforce: Implications of the Grey Wave & Corresponding MitigationStrategies
5. Necessitating Responses (Business) - Insurance IndustryInput into Government at both State and Federal level to ensure the insuranceindustry perspectives and impacts are understoodPrevention and Injury Management strategies by insurers in partnership withemployersStronger engagement with stakeholders to influence the ‘mind shift’Reasonably necessary treatment, effective treatment, baseline for pre-injuryfunctionalityUnderwriting and claims practices need to account for impact5
6. Chris McHugh, EGM Statutory Portfolio hasparticipated in the Consultative Forum onMature Age Participation advising theFederal GovernmentThrough involvement with MonashUniversity and the Older Workers and WorkAbility Conference, Suncorp is connected toa global community of researchers andsubject matter experts in the field of workability and ageing workforceSuncorp’s statutory business is participatingin a work ability survey – research fundedby NSW Department of Ageing – in whichour own staff will be surveyed andappropriate recommendations incorporatedinto our HR strategyMajor Sponsor Consultative ForumResearch CommunityWork Ability SurveyNecessitating Responses (Business) - Activities being undertaken bySuncorp / GIOWe’re being proactive in the face of shifting market dynamics6
7. Necessitating Responses (Academia) - Latest research from academia(representative samples)Age managementThe APS and its Ageing WorkforceUnderstanding the Future Separation Intentions and Behaviour of Older Workers in the APSIncorporating Ageing into APS Human Capital PlanningAgeism in the labour marketPerceptions of Age and Aging among Managers and Employees in the New Economy: An International Case-Study of Information Technology EmploymentWorking against type: Stereotype threat effects on mature-age workersProlongation of working livesProlonging working life amongst rural older General Practitioners (GPs)Securing The Future: Retention Of Older Healthcare Workers In Rural VictoriaApplying interventions to support the older residential aged care workforceWork Ability and vocational training in the Health systemSkills maintenance and productivityCareer development and mobility management of older workers in EuropePredictors of the ability for older workers to stay longer at work: findings from the Visat longitudinal studyHow to Manage Aging Problems? ―Japanese Challenges to Make the Society More ProductiveTapping Mature Talent in the U.S.Work ability over the life courseAge, work ability and work-related injury in Australian workersThe relationships between worker age, work-related injury and work ability in Australian workersThe impact of ageing on work-related injury and disease7
8. Work ability theory andmeasurementProfessor Philip Taylor19 February 2013
9. 9Section 1: Work abilitytheory
10. 10Work ability: DefinitionWork ability is the intersection of personal andorganisation resources at work
11. 11The holistic model of work ability
12. 12Model of work ability
13. 13Importance of different elements of the model Individual:– Intrinsic benefits people derive from their work, such as socialcontact, valued status and maintaining and extending abilities.– Social support received from primarily co-workers, but alsoimmediate family and community.– Psychological well-being and physical health.– Employee awareness of occupational health and safety risks– Work-life imbalances.
14. 14Importance of different elements of the model Organisation:– Respectful treatment in the work place.– Respondents’ assessment of their immediate supervisor, in termsof their competence, the extent of career support offered,communication and social support were important for determiningtheir level of work ability.– Experiences of discriminatory behaviours.– Extent of autonomy and control employees have in their work.
15. 15Factors associated with low work ability Factors that predict the lowest levels of work ability include, in order ofimportance:– Negative evaluations of co-worker competence– Being a machinery operator or driver– Being in clerical or administrative roles– Reporting a mental disease– Having a wound, laceration, amputation or internal organ damage– Having an infectious or parasitic disease– Shiftwork– Low household income– Lack of access to flexi-time work arrangements.
16. Work ability negates the influence of somedemands on psychosocial work factorsOutcome Factor Work Demand TypesPersonallymeaningful workJob designWork paceCognitivedemandsEmotionaldemandsTask demandsExcess workloadJob satisfactionJob insecurityWORKABILITY
17. 17Section 2: Utility of theconstruct
18. 18Utility of the work ability construct Driven by economic imperatives to contain costs arising from populationageing, governments internationally are aiming to increase participationby older workers. Consensus that tackling the issue requires multi-faceted and integratedstrategies. Work ability construct and a framework for its workplace promotionoffers such an approach. Sustaining high levels of workforce participation by older workers willdepend in part on efforts to ensure that work ability is maintained over aworking life.
19. Review & Questions19
20. ReferencesMcInerney, Andrew, An Ageing Workforce and Workers’ Compensation-What are the implications in particular with an increasing nationalRetirement Age, Institute of Actuaries of Australiahttp://www.abs.gov.au/AGEING WORKFORCE REPORT, May 2007, WorkCover NSWhttp://www.centrelink.gov.au/internet/internet.nsf/individuals/ssp_age_pension.htmMcInerney, Andrew, An Ageing Workforce and Workers’Compensation, Journal Vol.33 No.02,From Research to reality - Volume 12/Number 2, 2009MJA 2008; 189 (8): 447-450Business Work and Ageing: Work Ability Program, Swinburne University ofTechnologywww.theinstitute.com.auhttp://www.centrelink.gov.au/internet/internet.nsf/individuals/ssp_age_pension.htmhttp://www.fordhealth.com.au/Newsletters_hb/feb08_managing_ageing_workforce.phphttp://www.aarpinternational.org/conference_sub/conference_sub_show.htm?doc_id=1415966Urban, Eva, Workers Compensation and An Ageing Workforce ,SPUMarticle for Veracity May 2010, P6Realising the Economic Potential of Senior Australians: Turning Grey intoGold - The Advisory Panel’s third and final report delivered December 2011http://www.treasury.gov.au/EPSA/content/publications/grey_gold/downloads/grey_gold.pdfAgeing and the Barriers to Mature Age Labour Force Participation inAustralia - A report of the Consultative Forum on Mature AgeParticipation, December 201120Realising the Economic Potential of Senior Australians - The AdvisoryPanel’s first report delivered August 2011Realising the Economic Potential of Senior Australians: EnablingOpportunity - The Advisory Panel’s second report delivered November 2011Realising the Economic Potential of Senior Australians: Turning Grey intoGold - The Advisory Panel’s third and final report delivered December 2011The Older Workers and Work Ability Conference: Program andPresentations – Latest research on workforce ageing from leading experts inAustralia and internationally, December 2011, including Juhani Ilmarinen /Finnish Institute of Occupational Health / Professor Philip Taylor / MonashUniversity http://owwac.com.au/index.phpNational Seniors Australia, Productive Ageing Centre, 2009Suncorp Life Insurance (survey) and APIA (survey)Institute of Actuaries of Australia White Paper: Australia’s LongevityTsunami, August 2012Suncorp interview with Susan Ryan, Age DiscriminationCommissioner, 2012http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features40March+Quarter+2012http://www.eurofound.europa.eu/publications/htmlfiles/ef0639.htmhttp://www.eurofound.europa.eu/research/0296.htmhttp://capricorn.bc.edu/agingandwork/database/search/case_study
23. Adjustment ofphysical workenvironmentAdjustment ofpsychosocialwork environmentGOOD WORK ABILITY, HEALTHAND COMPETENCEGOOD PRODUCTIVITYAND QUALITY OF WORKGOOD QUALITY OF LIFEAND WELL-BEINGGOOD RETIREMENT,MEANINGFUL, SUCCESSFUL,AND PRODUCTIVE THIRD AGE ProfessionalcompetenceHealthfunctional CapacitiesFinnish Institute ofOccupational Health
24. 24What affects workability?• Individual : health, functional capacity, competences,attitudes.• Workplace : physical, technological, mental and socialdemands of work, work community and management,organisational culture, and work environment.• Societal, such as employment and education policies,social and health services, and addressing agediscrimination.
25. Workability promotionBased on: adjustments to physical and psycho-social workenvironment; promoting health, lifestyle; and updating skillse.g. reducing repetitive movements changingsupervisors’ attitudes, and increasing vigorous physical exercisePredict better workability in physical, mixed and mentallydemanding work.Promoting workability reducesabsenteeismdisabilitypremature retirementand increases productivity, competence, life quality and well-being,effects which carry over to retirement.
26. 26Redesigning Work for an Ageing Society – interventionstudy 1 Staff of a company providing road-side assistance to drivers Response rate 49 per cent (59 of 119 employees) Key recommendations:– Health promotion (obesity, low up take of existing initiatives, lowfrequency reports of poor health and work related health problems)– Development and utilisation of skills (respondents reported mismatchbetween skills and job demands)– Injury and hazard exposure (Avoidable and unavoidable injury risksidentified by respondents)– Management relations (disjunction in communication and relations inthe organisation)– Flexible work (Respondents highlight flexibility as key to prolongingworking life)
27. 27Redesigning Work for an Ageing Society – interventionstudy 1 Participants undertook over 6 months: daily monitoring of diet, exercise tobacco use, alcohol use and other health factors structured ‘Get healthy challenge activities’ WAS demonstrated statistically significant improvement Physiological measures improved Weight, BMI and waist circumference.
28. 28Redesigning Work for an Ageing Society – interventionstudy 2 Staff of small national University in Australia 47 per cent (618 of 1300 employees) Key recommendations:– Health promotion (‘sedentary’ staff at risk, notable absence of healthand well-being programs engaging the entire workforce)– Career planning/training integration (retention rates improved with theprovision of training for younger workers more than older workers)– Knowledge transfer (formalising mentoring as part of phasedretirement)– Workload pressures (large proportion of staff reporting extreme workload pressure creating risk of physical and psychological ill health)– Everyday discrimination (Low frequency but high impact on WA scores)– Retention related to; flexibility, management support, training, challengingbut not excessive work demands
29. 29Redesigning Work for an Ageing Society – interventionstudy 2 Staff aged over 45 participated in ‘Walking to wellness’ program Pedometers used to track step counts on work days Physical activity increased significantly for training compared tocontrol group Results confounded by concurrent organisational changes Qualitative and anecdotal evidence suggested restructuring createduncertainty among participants No statistically significant improvement in WAS Statistically significant reduction in average waist circumference ofapproximately two centimetres.
30. 30Promotion of work ability: integration of actions2025303540455040 45 50 55 60 65Age (yrs)Health promotion,Ergonomics,Management trainingHealth promotionNo actionWork Ability Index(WAI)