As Australia’s life expectancy rates increase, employers will need to design work experiences that consider the needs of older workers. Here’s how Australian retail store Bunnings is doing just that.

Changes to the demographic make-up of your organisation can have profound impacts on organisational culture – both in a positive and negative way, depending on whether you create the conditions that allow for cohesion.

A high-performing, multi-generational workforce requires a selection of specific behaviours and cultural elements, namely inclusive learning cultures that “celebrate differences and embrace mistakes” and encourage different communication styles, according to a research team from the Centre for Work, Organisation and Wellbeing at Griffith University.

Boards and senior HR management teams need to ensure they understand how changes in demographic trends might require a refresh of certain organisational practices, says demographer and social commentator Bernard Salt AM.

For example, we’ve seen a rise in Australian life expectancies, which jumped from 69 in 1950 to a current 83 for men and 85 for women, he says.

“Before, people worked up to the age of 65, got a gold watch and retired,” says Salt, who recently spoke at AHRI’s National Convention and Exhibition in August. 

But the nature of work has changed. 

“In the 1950s or 1960s, many of the jobs were in manufacturing, or labouring in areas like building and construction,” says Salt.

“If you were a blue-collar worker and made it to 65, you usually couldn’t work anymore because of the physical consequences of having worked with your body from the age of 15. You needed to take the pension and retire.

“Today, a greater proportion of the workforce is involved in knowledge work. Medical advancements are also improving our quality of life and life expectancies, providing people with more opportunities to continue work beyond the age of 65.”

On top of this, the current cost-of-living crisis means many people are less prepared for their retirement years and have had to go back to work, he adds. This is a concept known as ‘The Great Unretirement’.

“By default, we’ll end up with a greater proportion of our workforce over the age of 50 and, proportionately, around the age of 70,” says Salt.

The Bunnings approach

A company that is already preparing for this demographic shift is Bunnings, which claims age is never a barrier at any of its stores. 

Around 30 per cent of its store team members are aged 50+ while around 14 per cent are aged 60+. Its oldest employee is 93 years old.

“We learnt a long time ago that older and more experienced team members are an integral part of creating a great place to work and providing our customers with the best experience. They have significant life and industry experience, making them a wealth of knowledge for our customers and wider team,” says Damian Zahra, Bunnings’ Chief People Officer. 

“Every organisation is different and there isn’t a one-size-fits-all approach to engaging older people in the workplace.”

Having said that, he adds that Bunnings believes creating a supportive environment for older workers starts with flexibility. 

“We do this by first and foremost offering casual, part-time and full-time working options because we know it’s an important way to keep your team engaged and supported in their wellbeing and performance. 

“Fewer people aged 15 through to 25 are funnelling into the workplace. A shallower pool of youth coming through means there will be a skills shortage for decades.” – Bernard Salt AM, demographer and social commentator

“Then there’s the extras like our popular ‘Travelling Team Member’ program where people can pick up casual shifts at different Bunnings stores while they travel across Australia and New Zealand.

“A team member can map out their desired travel journey and proactively contact stores in the areas they’re visiting to see if any casual shifts are available. They have the flexibility to work as much as they like based on their travel schedules and preferences.”

Zahra says Bunnings’ ‘Retiring Well’ program helps older employees implement a tailored pathway to their retirement. It includes the option of reducing their hours over time to support a gradual transition into retirement, and a dedicated program that provides advice on how they can enjoy financial, emotional and physical wellbeing in their retirement.

Safety is also a priority. 

“We have extensive training and guidelines in place to make sure all our team return home safely each day and feel equipped to perform their roles. 

“This includes ongoing professional development so our team members always feel confident and engaged at work, regardless of their age. 

“We often find our older team value training just as much as our younger cohort.”

Not only is Bunnings creating environments to support its current older workforce to thrive, it’s also actively looking to bring more age diversity into its business.

“We maintain a really flexible recruitment process and use as many channels as possible to reach the communities we serve,” says Zahra. “For example, we place posters around our stores that highlight the great careers of some of our older team members to demonstrate the value mature-aged people can bring to our business.

“We always try to use neutral language in all our recruitment materials, and avoid specific words or phrases that target younger generations. We also accept walk-in resumes to ensure we consider applicants who may not be tech-savvy.”

Read HRM’s article on how to create an age-inclusive culture for the multi-stage career. 

Counting the benefits 

Demographic diversity is a key component of a thriving workplace culture, but when there are no intentional processes around leveraging a multigenerational workforce, it can cause friction points to surface. 

For example, communication barriers can form or differing work styles could lead to conflict within a team. To remedy this, specific programs that cultivate empathy and understanding can help. 

For instance, you could consider:

• Storytelling sessions to give employees the chance to share their career stories with each other, including what they’ve learned, their challenges and their greatest successes.
• Keeping age diversity in mind when building project teams.
• Setting up shadowing programs allowing employees to shadow colleagues from different generations to gain a better understanding of their roles and expertise.

Companies that employ older workers benefit from their corporate knowledge, networks and ability to train and mentor younger workers, says Salt. 

This is an approach that Bunnings has embraced.

“By sharing their knowledge, skills and life experiences, our older team members often become mentors to their younger teammates, which goes a really long way in helping form strong connections and creating a positive working environment,” says Zahra.

“Mentoring can work both ways, and our younger team members can support older workers too.”

There are also opportunities to promote shared learning via reverse mentoring programs whereby junior employees train seasoned employees in relevant areas, such as how to reach a younger audience on social media. 

You could also consider facilitating a skills-sharing workshop where employees of all ages come together to share their knowledge in specific areas.

Griffith University’s research found that valuing co-creation, a strong focus on job satisfaction and tailored HR programs were key characteristics of a thriving multigenerational workforce.

For example, a specific HR program focused on retaining older workers in critical skill areas could help solve Australia’s skills shortages, which Salt believes will be a long-term challenge for employers. 

“Fewer people aged 15 through to 25 are funnelling into the workplace. A shallower pool of youth coming through means there will be a skills shortage for decades.”

If your workforce isn’t yet set up to support employees in the latter portion of their careers, now is a great time to learn from those who already have robust strategies in place. 

This article first appeared in the June-July 2024 edition of HRM Magazine.

Learn more about industry best practices for leading diverse, equitable and inclusive workplaces with AHRI’s new DEI for HR Leaders short course.