The Reality of Encore Careers
Why the word "Retired" should be retired!
The world's largest and most active Association representing the ageing population is AARP International - with 39 million members.
Like many organisations before it, (think IBM, BHP, CSR, AMP) AARP is now very definitely known only by that acronym, with no explanation to remind us that "RP" used to stand for "Retired Persons".
There is compelling logic for this change in nomenclature and brand position; AARP's research confirms over 50% of their members are still in full or part time paid employment and the median age of their members continues to increase.
In Australia, 75% of Baby Boomers, born between 1946 and 1964 ( the oldest are closing in on 65), see themselves in full or part time paid employment, including self-employment, beyond age 65. And this statistic was compiled before the impact of the current economic circumstances on superannuation balances and share market investments.
Therefore, today's figure will include that high percentage planning to stay in the workforce, largely because they want to, and others evaluating a return to the paid workforce for financial reasons. The fastest growing segment for business start-ups is the 50+ age group.
The status of "Retired" is no longer regarded as the ultimate reward or destination; later life, even after age 65, is now an unfolding journey, with part time work and job sharing becoming the norm.
Two major issues emerge from the huge swing against what had been a decades long trend to "early retirement" - one a marketing question, and the other relating to the looming labour shortage awaiting all employers.
Firstly the marketing question.
If the vast majority of Australian mature age consumers will not consider themselves as full time, or even potential, "retirees", what marketing problems does that cause for all those concepts, products and services featuring derivations of the "R" word at the core of their marketing?
Where to now for Retirement Villages, Retirement Living, Retirement Planning?
Secondly, there is an alarming disconnect between Australian employers facing the twin problems of labour shortages and a simultaneous "wisdom withdrawal", and Australian employees aged 50+ looking to reinvigorate or recommence their careers.
With the labour market "entry-exit crossover" in 2010 (more exiting than entering), Australian employers, for all the wrong reasons, are reluctantly accepting they will have to retain their mature age employees, and in fact will need to move away from their youth obsessed recruitment practices and hire new employees aged over 50, over 60, even over 65.
At the nub of the disconnect is a prevailing attitude among Australian employers to hang on to those mature age employees, doing the same jobs, but probably part time or short term, until "things improve".
But "you can't teach an old dog new tricks" or "the oldies aren't interested in learning new skills or new technology", so exclude them from training plans, don't discuss with them their role in the organisation's future.
In stark contrast are the aspirations of most over 50 employees looking to reinvigorate their careers or start new ones, looking to add some variety to their current work challenges by engaging untapped talents, hoping to use their proven life skills in a positive way, perhaps mentoring younger fellow employees, wanting to feel part of the organisation, including social activities.
Despite their size and buying power as consumers, "Boomers and beyond" are the most misunderstood of all consumer demographics; same story when those Boomer consumers are Boomer employees.
And not surprisingly, the way to better understand the wants and needs of the Boomer demographic, whether your organisation is seeking to be their supplier of choice or their employer of choice, is simply to improve your communication with them-ask!
Email Graeme Smith today to set up an exploratory chat - at no cost or obligation.
