AGEING WORKFORCE IMPACT
Baby Boomers Take Centre Stage
Over the past 12 months labour markets have experienced a significant shift due to economic challenges and the introduction of new industrial relations legislation. As
Factors requiring consideration include:
• In the next ten years, 18% of the labour force (414,000 workers) will reach the age of 65 years.
• While the population is predicted to increase by 16%, the number of people in the workforce will only increase by 11%.
• The proportion of people outside the workforce will exceed 50% of those in the workforce.
• It will be the first time that those over 65 years of age will outnumber those less than 15 years of age.
Questions for Consideration
Across
• How will the population change impact the economy?
• What do we know about the age group (those over 50 years of age)?
• Who is working past 65 years of age?
• What about business owners over 50 years of age?
• How will the shift impact the community?
• How will the shift impact on workers?
Preparing for the Changes Ahead
The population shift will place unprecedented pressure on organisations. The 414,000 employees reaching the retirement age of 65, in addition to ageing business owners and employers, is a trend that can not be ignored.
How will Population Change Impact Business?
In a recent survey of business representatives, 80% rated population change as one of the top two risks to their business sector in the next ten years. The most significant impacts were identified as:
• Being unable to find staff with the right skills
• Higher cost of staff
• Creating pressure on staff to do more
• Higher staff turnover and high costs of replacement
• Being unable to deliver services
What do we Know About the Age Group?
• Workers aged 50 to 59 years will reach the age of 65 years by 2021
• 340,960 workers in the private sector are aged 50 plus – about a quarter of these are over 59 years of age
• Males over 50 years of age are 26% of full time employed and 30% of part time employed
• Females over 50 years of age are 23% of full time employed and 24% of part time employed
• Participation in the labour force dropped for both males and females from the age of 50 years
• Most private sector males over 50 years of age are in manufacturing, construction and the transport, postal and warehousing industries
• Most private sector females over 50 years of age are in health care and social assistance, retail trade, education and training
• 21% of workers aged 50 to 59 are professionals, 20% are managers and 17% are clerical and administrative workers. Managers in this age group are 23% of all managers
• 52% of 50 to 59 year olds have post – school qualifications. 31% have certificate or diplomas and 21% have degrees or higher
Who is Working Past 65 Years of Age?
• Over 66,000 people over 65 years are working
• 15% of males and 7% of females aged 65 to 79 years are employed
• 5000 workers are over 80 years of age – 40% of these males and 30% of these females worked full time.
What about Business Owners Over 50 Years?
• 40% of 390,000 owner managers are over 50 years
• The proportion of the workforce who is owner managers increased to 46% of the 70 years of age or above age group
• More owner managers of incorporated businesses have post – school qualifications than employees not owning a business and owner managers of unincorporated businesses.
How will this Impact on the Community?
Financial reasons are driven by a range of factors including:
• Lack of accumulated wealth. Many women have only had access to superannuation for a short period and with an emphasis on part time work, do not have sufficient funds for the likely 20 to 40 years post age 65
• Distribution of wealth and lack of secure assets through divorce
• Delayed childbearing meaning that parents in their late fifties may still have dependents and may also have financial commitments to their aging parents
• Delayed independence of young people, requiring parental financial support through university
• Participation rates currently drop from the age of 45 years and more so from the age of 60 years. These age groups provide an opportunity to businesses to both retain their staff and attract new workers
How will this Impact on Workers?
• Increased productivity will be an essential requirement in businesses facing a reduced number of workers and higher demand
• Pressure on staff to do more with fewer resources and limited opportunities to take on management roles are potential barriers to the engagement and retention of younger workers
• Developing the capacity of workers to innovate, improve efficiency, adapt to new technologies and adopt workplace changes will be the distinctive attribute of firms that succeed
For further information on Aging Workforce, see http://www.stats.govt.nz/
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ARE THEY LEAVING YOU?
Executive Dashboard Unique Widget Addition - Flight Risk. Calculates the probability of an employee leaving an organisation.
The widget can assist managers to identify the possibility of an employee leaving. The information (sample size) is taken from a history of Terminated Employees within an organisation. The greater the sample size the greater the accuracy of the calculated probability. This widget is not selected automatically, it is configurable by user preference.
By hovering your mouse over the employee’s name, a “Screen Tip” window will appear with the employee’s total score. The greater the score the greater the probability.
The system uses 6 criteria to determine the probability and generates a score of an employee leaving.
1. Gender
2. Age
3. Service Length
4. Last Pay Increase
5. Annual Leave Taken
6. Sick Leave Taken
The below pie charts will assist in determining the probability of an employee leaving.
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Brother International, an existing client of Datacom Payroll for over 10 years has migrated to Datacom’s latest payroll innovation - DataPay and DataESS. DataPay is Datacom’s premier payroll investment in cutting-edge payroll software.
This state-of-the-art product is based on payroll efficiency, flexibility, customisation, time efficiency and is date effective. It is specifically designed to cater easily to the continual changes of tax rules, payments and other legislative obligations required in the industry.
Microsoft tools were used as the foundation of the core development platform and with the amalgamation of .NET framework and an enterprise grade SQL Server database as the core of the product, it enables product features to be engineered and contrived with rapid deployment.
The result is a series of applications that exemplify
Brother International is an award winning Global Corporation engaging in
Brother International uses Datacom’s Employee Self Service (DataESS) to eliminate internal manual processes, streamlining the whole payroll and communication system. Employees have the ability to update their personal details, view their live payroll information, check leave balances and apply for leave online with full online access 24/7.