Older and wiser: Are you missing out on broking's best talent?

As the broking population ages, many brokerages are fighting to recruit fresh young talent – but are they overlooking the value of the older broker?

A recent study by Lucy Burgmann of the Australian Institute of Management has found that Australian businesses are repeatedly overlooking the merits of retaining and engaging older workers as they rush to recruit young employees.

Since the GFC, a higher number of workers are considering delaying retirement as they reassess their retirement income possibilities, says Burgmann, but employers are not doing enough to encourage older workers to stay.

“The increasing numbers of older workers seeking to keep working or rejoin the workforce represent an opportunity for organisations which are ready to rise to the challenge: to appreciate the importance of older workers, to manage the changes, and to ensure that their workplaces are positioned to make the most of older workers‘ contributions,” she says.

Burgmann's research has identified four key opportunities brokers can take to advantage of to keep mature employees happy and engaged at work.

Opportunity one: Increasing productivity

The first step to retaining older workers, says Burgmann, is to appreciate their value in the workplace. As brokerages rush to recruit new talent, they may forget the importance of maintaining diversity and a balance of age-groups.

This balance not only allows for a greater range of perspectives in the workplace, allowing for better decision making, it also helps brokerages to be able to relate better to a range of different clients: Regardless of the talent and energy a younger broker may have, some clients of the baby-boomer generation, for example, may feel less comfortable taking advice from a broker who is a similar age to their children, or even grandchildren.

Burgmann’s study also revealed that there was no difference in the level of contribution to the workforce between older or younger workers, but that they contribute in different ways.

“Older workers may bring specific management skills, using greater crystallized intelligence (intelligence based on knowledge acquisition and experience) whereas younger managers may have higher levels of ―fluid intelligence (basic or abstract reasoning ability.”

Burgmann suggests that employers:

• Develop age management strategies and retention strategies to ensure critical parts of the business are not affected by retirement.
• Develop mixed-age teams to ensure that the experience of older workers is spread across the organisation rather than consolidated in particular roles.
• Develop a plan for capturing corporate knowledge.
• Take steps to build older workers’ perspectives into decision-making roles, to take advantage of their perspectives.

Opportunity two: Moving beyond stereotypes

Older workers frequently have to contend with the stereotypes that they have less energy, higher levels of illness, are less productive, are resistant to change and have difficulty learning new skills and using new technology, among others.

These stereotypes are often unfounded and not backed up by any concrete evidence. Burgmann states the example that, contrary to stereotypes that older workers are less committed to their jobs than younger staff, studies found that worker under 45 were 2.6 times more likely to have left their job in the past year than those over 45.

Unfortunetely research suggests that over half of all workers over 50 felt that they experienced moderate to high levels of stereotype threat in their workplace.

These persisting stereotypes can be highly damaging to staff moral and a business overall, sayws Burgmann.

“It reduces productivity, triggers early retirement, forces many into unemployment and causes organisations to miss out on their skills and experience.”

Here’s what managers can do to help slash stereotypes:

• Review recruitment language to ensure that it emphasises factors such as experience, knowledge, expertise and insight in all job advertisements.
• Use workplace discussion and in-house communications material to promote positive images and traits of older workers.
• Establish a workplace culture which values diverse contributions, including the skills and experience of older workers.
• Establish a workplace culture which supports older workers to discuss their work with their manager in a spirit of trust.
• Establish and support mixed-age teams to demonstrate the effectiveness of older and younger workers and to facilitate communication between generations.

Opportunity three: Investing in flexibility

Rather than winding down in preparation for retirement, many older workers are deciding to undertake what Burgmann calls an “encore career” as they reach middle-age.

This “third age” of their career may involve a career move or simply a reinvigoration of their current career. Some may have undergone a separation, have had their children leave home, or are reassessing their priorities and interests – all of which can lead to a renewed vigour for their work.

This means that an employees work requirements are likely to change as time goes on, and employers shouls be receptive to these needs, says Burgmann.

"Employers and managers need to appreciate the vital importance of flexible work to many older workers. They need to invest in flexible work options to facilitate the engagement and retention of older workers, including reduced hours, teleworking and adapting job roles."

Burgmann's suggestions include:

• Consider establishing policies offering flexible leave options to older workers, such as lifestyle leave and career breaks.
• Discuss phased retirement opportunities with older workers, as an alternative to standard retirement practices.
• Consider establishing programs to facilitate re-hiring former employees who have retired, such as setting up talent pools for part time or project work.
• Develop strategies to prevent career stagnation amongst older workers, including subsidised study, secondments and new projects.
• Review job roles and adjust tasks if necessary to ensure that the organisation offers meaningful work which matches older workers‘ capacities

Opportunity four: Training for the future

When training programmes are implemented, older workers are often overlooked, says Burgmann.

Employers can be under the impression that older workers are likely to be with the company for less time, that training budgets would be better spent on younger employees, and that older workers will be less able to pick up new processes.

Burgmann's research states that these are more unfouned assumtions.

"The concept of neural plasticity and the brain‘s remarkable capacity to adapt and change has rendered redundant the old adage that ̳you can‘t teach an old dog new tricks‘. Studies show that mature aged workers are as trainable in new skills as their younger counterparts."

Training older workers can be a driving factor in keeping your brokers with you for longer. Research indicates that 80 per cent of older workers rated ongoing training and development opportunities as a very important factor in their decision as to whether to remain in the workforce.

Offering training to older workers has the dual benefit of ensuring their skills and qualifications remain up to date, and counteracting stereotype threat by making them feel valued in the workplace," says Burgmann.

Added to this, the wealth of knowledge that many older workers hold can make them ideally placed to be a training resource themselves, says Burgmann. Putting older brokers in a position where they can mentor those newer to the profession is beneficial to both parties.

Burgmann suggests a few key pointers for employers:

• Review training policies to ensure that training is offered to all employees, not just new or younger employees.
• Develop in-house training programs specifically to ensure that the skills of older workers are shared with the rest of the workforce and that corporate knowledge is passed on.
• Establish and support formal mentoring and coaching roles to assist older workers to develop the skills and experience of younger workers.
• Develop training programs which incorporate recognition of prior learning, and consider waiving requirements for specific qualifications where employees can demonstrate equivalent experience
• Investigate subsidies offered by the Commonwealth Government to assist with the cost of providing training or formal qualifications to older workers, and programs to provide free professional career advice to people aged 45 and over.