Recent research has identified a trend of retirees reentering the workforce, a phenomenon economists have dubbed the ‘Great Unretirement’. Here’s how one Aussie organisation has nailed down its strategy for recruiting and supporting older workers.

A global workforce trend known as the ‘Great Unretirement’ has hit Australia’s shores, with research showing that retired Australians are returning to the workplace in droves.

According to a recent analysis by KPMG, almost one in four (38 per cent) of the 491,000 workers who joined the workforce between October 2019 and October 2022 were over 55. 

KPMG’s researchers point to these figures as evidence that Australia is undergoing a Great Unretirement, a phenomenon that has been identified in a number of countries since late last year.

According to Angela Knox, Associate Professor of Work and Organisation at the University of Sydney Business School, employers should embrace this trend as a potential solution to a number of their talent woes.

“This is going to be a great way for workplaces to take advantage of human capital that would otherwise not be available to them,” she says.

“Being able to embrace the experience that these workers have in order to address the skill shortages is an opportunity that shouldn’t be passed up.”

Why are retirees coming back to work?

While the last few years in particular have seen more retirees returning to work, workforce participation among mature-aged workers has been steadily increasing since 2002, according to KPMG’s analysis. In October 2002, just one in nine workers (11.4 per cent) were over 55. As of October 2022, the number of workers in this age group has risen to almost one in five (19.6 per cent).

Amid growing cost-of-living concerns and talk of a potential recession, it’s perhaps unsurprising that more retirees are now returning to work to make ends meet. However, according to Knox, it’s likely that social factors are also driving this trend.

“[The pandemic] may have exacerbated the social isolation that some retirees were feeling having left the workforce, and it encouraged them to reconsider whether going back into the workforce in some capacity might alleviate that potential social isolation.”

The shift towards more flexible working arrangements during COVID may also have contributed, she says. Mature-aged workers are more likely to require flexibility in their hours, location and workload, and lockdowns prompted employers to make these provisions easier to access. 

“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.” – Damian Zahra, Chief People Officer at Bunnings.

What’s more, recent changes to employment law mean that employees over 55 now have more legal avenues to fight back against employers who deny requests for flexible working arrangements.

Moves like this indicate that perceptions of older workers are starting to shift in light of Australia’s ageing population.

“I would like to hope that within the workplace, there is greater recognition of the contributions that older workers can make to organisations,” says Knox.

“There are huge benefits to having an [age-diverse] workforce. That heterogeneous mix of skills, knowledge and experiences allows organisations to generate better decision-making and problem-solving.”

Rethinking recruitment for older workers

In order to reap the benefits of an age-diverse workforce, HR plays an important role in adapting recruitment and talent management strategies to appeal to older workers.

One organisation that has long been a champion of multigenerational workforces is Bunnings. The retail giant has embraced the benefits of bringing mature-aged workers on board, and support for older workers is a core component of its business model.

“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, Chief People Officer at Bunnings.

To ensure that older workers feel encouraged to apply, Bunnings’s recruitment strategy is designed to be as broad and accessible as possible.

“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.”

Bunnings’s age-neutral talent strategy has allowed it to harness the power of intergenerational support among its employees.

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

Supporting older employees in the workplace 

As retirees reenter the workforce, it’s important to remember that they will have unique requirements in terms of their working arrangements, says Knox. A one-size-fits-all approach is unlikely to help an older worker thrive.

‘If organisations don’t already have a phased retirement [process] in place, that would be useful, for example,” she says. 

“Older workers may not want to be full-time. They may want some kind of part-time work which allows them the best of both worlds. They can contribute to the workplace, it gives them added meaning in their life, they get extra income, they get extra benefits – but perhaps they still want to be at home one or two days a week. So it is useful for organisations to have that flexibility, and some of them will treat it like a phased retirement period.”

As well as offering flexibility to employees via a range of part-time and casual roles, Bunnings has recognised the importance of supporting their mature-aged employees as they leave the workforce.

“We offer older team members our ‘Retiring Well’ program, which provides support and information on transitioning into retirement, whether that be one year or 15 years away,” says Zahra. 

“This allows them to plan ahead with as much time as they need, and provides advice on how they can enjoy financial, emotional and physical wellbeing in retirement. We also work closely with our team members to implement a tailored pathway to their retirement, which can allow them to reduce their hours over time to support a gradual transition.”

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