The Momentum of the Ageing Workforce:Implications of the Grey Wave &Corresponding Mitigation StrategiesOHS Leaders Summit ...
The ‘Grey Wave’ is coming!    The impact will be social, financial, physical and mental    Increased momentum in preparati...
Disproportionate growth in mature age population necessitates broad and     collaborative responses                       ...
Necessitating Responses (Government) - The Momentum of the AgeingWorkforce: Implications of the Grey Wave & Corresponding ...
Necessitating Responses (Business) - Insurance Industry    Input into Government at both State and Federal level to ensure...
Necessitating Responses (Business) - Activities being undertaken bySuncorp / GIO    We’re being proactive in the face of s...
Necessitating Responses (Academia) - Latest research from academia(representative samples)    Age management      The APS ...
Work ability theory and    measurement      Professor Philip Taylor        19 February 2013
Section 1: Work abilitytheory                          9
Work ability: Definition Work ability is the intersection of personal and       organisation resources at work            ...
The holistic model of work ability                                     11
Model of work ability                        12
Importance of different elements of the model Individual:     – Intrinsic benefits people derive from their work, such as...
Importance of different elements of the model Organisation:    – Respectful treatment in the work place.    – Respondents...
Factors associated with low work ability Factors that predict the lowest levels of work ability include, in order of  imp...
Work ability negates the influence of somedemands on psychosocial work factors  Outcome Factor               Work Demand T...
Section 2: Utility of theconstruct                            17
Utility of the work ability construct Driven by economic imperatives to contain costs arising from population  ageing, go...
Review & Questions19
References     McInerney, Andrew, An Ageing Workforce and Workers’ Compensation-     What are the implications in particul...
Contact Details     For further information please contact:                      Jason Allison                      Chief ...
Appendix – Practice Examples22
Health                                       functional Capacities                       Adjustment of                    ...
What affects workability?• Individual : health, functional capacity, competences,  attitudes.• Workplace : physical, techn...
Workability promotionBased on: adjustments to physical and psycho-social workenvironment; promoting health, lifestyle; and...
Redesigning Work for an Ageing Society – intervention  study 1 Staff of a company providing road-side assistance to drive...
Redesigning Work for an Ageing Society – intervention  study 1 Participants undertook over 6 months:           daily mon...
Redesigning Work for an Ageing Society – intervention   study 2 Staff of small national University in Australia 47 per c...
Redesigning Work for an Ageing Society – intervention  study 2 Staff aged over 45 participated in ‘Walking to wellness’ p...
Promotion of work ability: integration of actions Work Ability Index (WAI)         50                                     ...
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The momentum of the ageing workforce: implications of the grey wave & corresponding mitigation strategies

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This Sponsor led speaker session was hosted and presented by Jason Allison, Chief Workers Compenation Portfolio & Underwriting Management, GIO and Prof. Philip Taylor, Professor, Monash University.
It was a thought provoking workshop to review the challenges being created by the demographic changes and how to turn them into opportunities for your organisation.
It will help you understand the trends associated with the ageing workforce, learn about the financial implications and mitigation strategies.

Their main focus is the current issue that demographic changes are taking place in Australia. Workers Compensation system is likely to take on a significant percentage of the ageing population's health care costs due to the prolongation of working careers. In fact, as the workforce increases by a further 25% over the next 4 decades only about 5% will come from workers aged less than 54 years old, whilst more than 200% growth is expected for workers aged 65 years and over.

GIO will continue to partner with government and other seriously minded organisations to develop appropriate solutions to emerging issues created by these types of social and financial changes.

This thought provoking workshop reviewed the challenges being created by these demographic changes and how to turn them into opportunities for your organisation.
It enables OHS leaders to:
- Refresh your understanding of the trends associated with the ageing workforce
- Gain insight into the latest research from global subject matter and GIO experts
- Learn about hard hitting social and financial implications and mitigation strategies
- Recap systemic threats triggered by the ageing workforce
- Inspire decision makers to evaluate their organisation's eco-system in connection with the domestic and international economy
- Be prepared for future challenges and seize opportunities in rapidly changing environments
- Decision makers receive quality information to navigate through uncertainty

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  • 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
  • The momentum of the ageing workforce: implications of the grey wave & corresponding mitigation strategies

    1. 1. The Momentum of the Ageing Workforce:Implications of the Grey Wave &Corresponding Mitigation StrategiesOHS Leaders Summit 2013Prepared by Jason Allison3 April 2013
    2. 2. The ‘Grey Wave’ is coming! The impact will be social, financial, physical and mental Increased momentum in preparation and solution building is required All stakeholders have an accountability - including ‘older workers’2
    3. 3. Disproportionate growth in mature age population necessitates broad and collaborative responses Cause and Effect of the Ageing Population Disproportionate Necessitating Growth Responses •Longevity •Labour Market •Fertility •% Aged •Retirement •Workforce Growth •Revenue Base •Academia 25% •Government •Barriers •Age 65+ Growth •Business 200% •Society Factors Driving Result in ChallengesSource: GIO Adaptation Based on The Australian Government the Treasury data 3
    4. 4. Necessitating Responses (Government) - The Momentum of the AgeingWorkforce: Implications of the Grey Wave & Corresponding MitigationStrategies An interview with Susan Ryan, Age Discrimination Commissioner4
    5. 5. Necessitating Responses (Business) - Insurance Industry Input into Government at both State and Federal level to ensure the insurance industry perspectives and impacts are understood Prevention and Injury Management strategies by insurers in partnership with employers Stronger engagement with stakeholders to influence the ‘mind shift’ Reasonably necessary treatment, effective treatment, baseline for pre-injury functionality Underwriting and claims practices need to account for impact5
    6. 6. Necessitating Responses (Business) - Activities being undertaken bySuncorp / GIO We’re being proactive in the face of shifting market dynamics Major Sponsor Consultative Forum Chris McHugh, EGM Statutory Portfolio has participated in the Consultative Forum on Mature Age Participation advising the Federal Government Research Community Through involvement with Monash University and the Older Workers and Work Ability Conference, Suncorp is connected to a global community of researchers and subject matter experts in the field of work ability and ageing workforce Work Ability Survey Suncorp’s statutory business is participating in a work ability survey – research funded by NSW Department of Ageing – in which our own staff will be surveyed and appropriate recommendations incorporated into our HR strategy6
    7. 7. Necessitating Responses (Academia) - Latest research from academia(representative samples) Age management The APS and its Ageing Workforce Understanding the Future Separation Intentions and Behaviour of Older Workers in the APS Incorporating Ageing into APS Human Capital Planning Ageism in the labour market Perceptions of Age and Aging among Managers and Employees in the New Economy: An International Case-Study of Information Technology Employment Working against type: Stereotype threat effects on mature-age workers Prolongation of working lives Prolonging working life amongst rural older General Practitioners (GPs) Securing The Future: Retention Of Older Healthcare Workers In Rural Victoria Applying interventions to support the older residential aged care workforce Work Ability and vocational training in the Health system Skills maintenance and productivity Career development and mobility management of older workers in Europe Predictors of the ability for older workers to stay longer at work: findings from the Visat longitudinal study How to Manage Aging Problems? ―Japanese Challenges to Make the Society More Productive Tapping Mature Talent in the U.S. Work ability over the life course Age, work ability and work-related injury in Australian workers The relationships between worker age, work-related injury and work ability in Australian workers The impact of ageing on work-related injury and disease7
    8. 8. Work ability theory and measurement Professor Philip Taylor 19 February 2013
    9. 9. Section 1: Work abilitytheory 9
    10. 10. Work ability: Definition Work ability is the intersection of personal and organisation resources at work 10
    11. 11. The holistic model of work ability 11
    12. 12. Model of work ability 12
    13. 13. Importance of different elements of the model Individual: – Intrinsic benefits people derive from their work, such as social contact, valued status and maintaining and extending abilities. – Social support received from primarily co-workers, but also immediate family and community. – Psychological well-being and physical health. – Employee awareness of occupational health and safety risks – Work-life imbalances. 13
    14. 14. Importance of different elements of the model Organisation: – Respectful treatment in the work place. – Respondents’ assessment of their immediate supervisor, in terms of their competence, the extent of career support offered, communication and social support were important for determining their level of work ability. – Experiences of discriminatory behaviours. – Extent of autonomy and control employees have in their work. 14
    15. 15. Factors associated with low work ability Factors that predict the lowest levels of work ability include, in order of importance: – 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. 15
    16. 16. Work ability negates the influence of somedemands on psychosocial work factors Outcome Factor Work Demand Types Job design Job satisfaction A Work pace B W I O Cognitive Personally L R demands meaningful work I K Emotional T Y demands Task demands Job insecurity Excess workload
    17. 17. Section 2: Utility of theconstruct 17
    18. 18. Utility of the work ability construct Driven by economic imperatives to contain costs arising from population ageing, governments internationally are aiming to increase participation by older workers. Consensus that tackling the issue requires multi-faceted and integrated strategies. Work ability construct and a framework for its workplace promotion offers such an approach. Sustaining high levels of workforce participation by older workers will depend in part on efforts to ensure that work ability is maintained over a working life. 18
    19. 19. Review & Questions19
    20. 20. References McInerney, Andrew, An Ageing Workforce and Workers’ Compensation- What are the implications in particular with an increasing national Realising the Economic Potential of Senior Australians - The Advisory Retirement Age, Institute of Actuaries of Australia Panel’s first report delivered August 2011 http://www.abs.gov.au/ Realising the Economic Potential of Senior Australians: Enabling Opportunity - The Advisory Panel’s second report delivered November 2011 AGEING WORKFORCE REPORT, May 2007, WorkCover NSW Realising the Economic Potential of Senior Australians: Turning Grey into http://www.centrelink.gov.au/internet/internet.nsf/individuals/ssp_age_pensi Gold - The Advisory Panel’s third and final report delivered December 2011 on.htm The Older Workers and Work Ability Conference: Program and McInerney, Andrew, An Ageing Workforce and Workers’ Compensation, Presentations – Latest research on workforce ageing from leading experts in Journal Vol.33 No.02, Australia and internationally, December 2011, including Juhani Ilmarinen / From Research to reality - Volume 12/Number 2, 2009 Finnish Institute of Occupational Health / Professor Philip Taylor / Monash University http://owwac.com.au/index.php MJA 2008; 189 (8): 447-450 National Seniors Australia, Productive Ageing Centre, 2009 Business Work and Ageing: Work Ability Program, Swinburne University of Suncorp Life Insurance (survey) and APIA (survey) Technology www.theinstitute.com.au Institute of Actuaries of Australia White Paper: Australia’s Longevity Tsunami, August 2012 http://www.centrelink.gov.au/internet/internet.nsf/individuals/ssp_age_pensi on.htm Suncorp interview with Susan Ryan, Age Discrimination Commissioner, 2012 http://www.fordhealth.com.au/Newsletters_hb/feb08_managing_ageing_wor http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features kforce.php 40March+Quarter+2012 http://www.aarpinternational.org/conference_sub/conference_sub_show.htm http://www.eurofound.europa.eu/publications/htmlfiles/ef0639.htm ?doc_id=1415966 http://www.eurofound.europa.eu/research/0296.htm Urban, Eva, Workers Compensation and An Ageing Workforce ,SPUM article for Veracity May 2010, P6 http://capricorn.bc.edu/agingandwork/database/search/case_study Realising the Economic Potential of Senior Australians: Turning Grey into Gold - The Advisory Panel’s third and final report delivered December 2011 http://www.treasury.gov.au/EPSA/content/publications/grey_gold/downloads /grey_gold.pdf Ageing and the Barriers to Mature Age Labour Force Participation in Australia - A report of the Consultative Forum on Mature Age Participation, December 201120
    21. 21. Contact Details For further information please contact: Jason Allison Chief Workers Compensation Underwriting & Portfolio Statutory Portfolio & Underwriting Management, Commercial Insurance 18 Jamison Street, Suncorp Place, Sydney NSW 2000 Telephone: +61 (0) 2 8121 061421
    22. 22. Appendix – Practice Examples22
    23. 23. Health functional Capacities Adjustment of Adjustment of physical work psychosocial environment work environment Professional competence GOOD WORK ABILITY, HEALTH AND COMPETENCE GOOD PRODUCTIVITY GOOD QUALITY OF LIFE AND QUALITY OF WORK AND WELL-BEING GOOD RETIREMENT, MEANINGFUL, SUCCESSFUL, AND PRODUCTIVE THIRD AGE Finnish Institute ofOccupational Health
    24. 24. What affects workability?• Individual : health, functional capacity, competences, attitudes.• Workplace : physical, technological, mental and social demands of work, work community and management, organisational culture, and work environment.• Societal, such as employment and education policies, social and health services, and addressing age discrimination. 24
    25. 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 reduces absenteeism disability premature retirement and increases productivity, competence, life quality and well-being, effects which carry over to retirement.
    26. 26. Redesigning Work for an Ageing Society – intervention study 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, low frequency reports of poor health and work related health problems) – Development and utilisation of skills (respondents reported mismatch between skills and job demands) – Injury and hazard exposure (Avoidable and unavoidable injury risks identified by respondents) – Management relations (disjunction in communication and relations in the organisation) – Flexible work (Respondents highlight flexibility as key to prolonging working life) 26
    27. 27. Redesigning Work for an Ageing Society – intervention study 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. 27
    28. 28. Redesigning Work for an Ageing Society – intervention study 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 health and well-being programs engaging the entire workforce) – Career planning/training integration (retention rates improved with the provision of training for younger workers more than older workers) – Knowledge transfer (formalising mentoring as part of phased retirement) – Workload pressures (large proportion of staff reporting extreme work load 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, challenging but not excessive work demands 28
    29. 29. Redesigning Work for an Ageing Society – intervention study 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 to control group Results confounded by concurrent organisational changes  Qualitative and anecdotal evidence suggested restructuring created uncertainty among participants  No statistically significant improvement in WAS  Statistically significant reduction in average waist circumference of approximately two centimetres. 29
    30. 30. Promotion of work ability: integration of actions Work Ability Index (WAI) 50 Health promotion, Ergonomics, 45 Management training 40 Health promotion 35 30 No action 25 20 40 45 50 55 60 65 Age (yrs) 30

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