Age diversity

The 2003 MAC report, Organisational Renewal, and the 2005 MAC report, Managing and Sustaining the APS Workforce, address the challenges APS agencies face in maintaining and improving their capability in a changing environment.³⁶ The ageing profile of the APS workforce and the contraction of the labour market are already affecting particular skill areas. Against this background, engaging and retaining employees at both ends of the age profile will be critical to ongoing effectiveness at an agency and service-wide level.

The statistical snapshot of the APS in Chapter 2 ‘Statistical snapshot’ of this report highlighted the ageing of the APS over the last decade, which continued during 2004–05. The decline in the employment of young people noted in previous State of the Service reports has also continued this year. The implications of demographic changes for workplace planning, succession management and capability building are discussed in Chapter 8 ‘Managing, sustaining and engaging the APS workforce’. These chapters highlight the stresses at both ends of the age spectrum: the need to adapt workplace practices to retain the skills of mature-aged workers in the APS; and the need to accelerate the development of those who will replace them in line management positions.

As foreseen, there has been a significant increase in the proportion of APS employees aged over 45 years (both 45–54 and 55 and over) over the last decade, from 30.5% in 1996 to 40.4% in 2005. If the current trend continues, next year there will be more employees in the 45–54 age group than in the 35–44 age group. Over the same period, employees aged under 25 years has fallen as a percentage of the APS workforce, from 6.3% to 4.0%. The changing age profile of the APS is shown in Figure 9.11.

Figure 9.11: Ongoing staff—Age profile, 1996 and 2005

Source: APSED

Mature-aged employees

The APS is increasingly reliant on mature-aged employees (45 years and over) who now represent 40.4% of its ongoing workforce.

Figure 9.12 below displays the separation trends for APS employees in the 50–64 age group in 1995–96 and 2004–05. It shows that in the earlier period there was a steady rise in the separation rate for older workers, while current data points to a smaller proportion of employees aged 56 and over leaving each year. The ‘54/11’ effect is nevertheless evident in this year’s data, as it has been since 1997–98. This year, in fact, 54/11 resignations rose after having fallen in the two previous years (perhaps reflecting some peaking in baby boomer retirements), as did retirements among 55 year-old employees. Yet, despite this peak in departures between the ages of 53 and 55, the proportion of ongoing APS employees over 55 increased from 5.6% in 1996 to 10.1% in 2005.

Figure 9.12: Separation rates for ongoing employees aged 50 to 64, 1995–96 and 2004–05³⁷

Source: APSED

There are a number of factors affecting separation rates for mature-aged employees. These include access to flexible working arrangements and the earning rates of the superannuation funds, which affect the benefits available to those who resign before age 55, referred to above. Other factors are related to job satisfaction.

Job satisfaction and other employee indicators—mature-age workers

Table 9.18 shows the differences in the most important job satisfaction factors for mature-aged employees and employees aged under 45 years. ‘Opportunities to utilise my skills’, ‘seeing tangible results from my work’ and ‘good manager’ were all more likely to be included in the top five most important job satisfaction factors for mature-aged employees. The areas of difference between mature-aged and younger employees are likely to be, to some extent, related to life stage; for example, mature-aged employees chose ‘opportunities to utilise my skills’ among their five most important job satisfaction factors, while younger employees chose ‘opportunities to develop my skills’.

Based on the job satisfaction index, mature-aged employees reported slightly higher levels of overall job satisfaction than those employees aged under 45; 73% were, on average, satisfied with the factors they nominated as important, compared to 70% of employees aged under 45 years.

Table 9.18: Most important job satisfaction factors, by 45 years and over and under 45 years, 2004–05

Note: The ‘per cent satisfied’ includes only those respondents who selected the factor and then rated their satisfaction.

Source: Employee survey

Mature-aged employees were more likely than younger employees to regard themselves as ‘satisfied with their current job’, and there was no difference between mature-aged and younger workers in their levels of pride in working in their agency or in the APS.

Not surprisingly, mature-aged employees (22%) were more likely than younger employees (11%) to indicate that they intend to leave the APS in the next three years. Relevant mature-aged employees were more likely to report that they intended to leave to retire (67% compared to 0% of relevant younger employees). Otherwise, their reasons for departure were the same as those of other employees, except that they were less likely to intend to leave due to an under-use of knowledge, skills and/ or qualifications. However, based on the supervisor capability index, mature-aged employees were more likely than younger employees to rate their immediate supervisor’s leadership capability as low. Mature-aged employees were also less likely to rate their immediate supervisor as highly effective at managing people (46% compared to 54% of younger employees).

Despite relatively higher levels of scepticism about their managers’ capabilities, older workers appear to be willing to remain in the workforce for longer periods of time—though previous survey work undertaken by MAC in Managing and Sustaining the APS Workforce indicated that this is likely to be contingent on increased flexibility and other initiatives being adopted by agencies as part of their broader workforce planning strategies. While agency workforces are ageing at different rates (see Figure 2.13 in Chapter 2, ‘Statistical Snapshot’), many APS agencies—including FaCS, DITR, Centrelink and DEWR—are developing mature-aged employment strategies that feature such initiatives as:

• introducing more flexible employment arrangements for mature-aged workers focusing on job design and hours of work
• developing career end and succession planning to facilitate phased retirement
• promoting establishment of alumni associations to maintain contact with retired employees
• conducting surveys of older employees to ascertain their career and retirement plans
• developing information kits for mature-aged workers
• introducing registers of former employees interested in further employment
• helping mature-aged workers to maintain and improve their health and fitness.

Managing and Sustaining the APS Workforce should have the effect of extending this activity. It calls upon all APS agencies to develop mature-aged workforce strategies and report back to MAC on their progress. Such strategies should be developed with an eye to the reasons given by this group of employees for leaving the APS, and job satisfaction factors, canvassed in Table 9.18 above.

Younger workers

Last year’s State of the Service report noted a decline in the number of employees aged less than 25 years. In 2004–05, numbers fell further to 4967, or 4.0% of the APS workforce overall. This year, as in 2003–04, there were decreases in both the under 20 and 20–24 age groups. For the latter group, representation is lower than it has been since regular data collection began in 1995–96.

The reduction in 2004–05 has occurred despite growth in the number of graduates from 522 in 2004 to 769 in 2005, and in trainees from 271 in 2004 to 379 in 2005, and irrespective of the average age of graduates and trainees, which is 24 years and 23 years, respectively.

Four per cent of ongoing employees were aged under 25 years, compared to 19.7% of non-ongoing employees. Of ongoing employees aged under 25 years, 12.1% separated in 2004–05. This is the highest separation rate for this group since regular data collection began, and may indicate greater job mobility among generation Y employees.

Younger employees were more likely to be working inside the ACT (46.2% compared to 31.9% of older employees) and could be indicative of graduates joining the APS— predominantly in Canberra.

The impact of declining numbers of younger workers in the APS is discussed in Chapter 8. The MAC Report, Managing and Sustaining the APS Workforce identifies a number of actions aimed at increasing levels of both recruitment and retention of younger employees—while at the same time noting that lateral recruitment of graduates over 25 years is making a significant contribution to the APS workforce.

Job satisfaction and other employee indicators—younger workers

Based on the job satisfaction index, employees aged under 25 years reported similar levels of overall job satisfaction to employees aged 25 years and over; 69%, on average, were satisfied with the factors they nominated as important, compared to 71% of employees aged 25 years and over. Table 9.19 shows the differences in the most important job satisfaction factors for employees aged under 25 years and for those aged 25 years and over. ‘Opportunities for career development’ and ‘opportunities to develop my skills’ were more likely to be included in the top five most important job satisfaction factors for employees aged less than 25 years.

Table 9.19: Most important job satisfaction factors, by under 25 years and 25 years and over, 2004–05

Note: The ‘per cent satisfied’ includes only those respondents who selected the factor and then rated their level of satisfaction.

Source: Employee survey

When employees’ perceptions of their immediate supervisor’s leadership and management capabilities were examined, the views of employees aged under 25 years were much more positive than the views of employees aged 25 years and over. The large majority (86%) of younger employees rated their immediate supervisor’s overall leadership capability above average, compared to 67% of older employees. Younger employees were also more likely to rate their immediate supervisor as highly effective at managing people (65% compared to 50% of older employees).

There was no difference between employees aged under 25 years and employees aged 25 years and over with respect to their intentions to leave the APS. About 16% of both groups indicated that they intended to leave the APS in the next three years. It is noteworthy that younger employees were more likely than older employees to regard themselves as ‘an APS employee in the short-term future’ (27% and 7%, respectively) and ‘someone who has or is likely to work in several APS agencies during their career’ (30% and 16%, respectively).

Unfortunately, there was insufficient data to accurately assess the reasons why younger employees were intending to leave the APS; however, the data suggests that the factors shaping their intentions differ between younger and older employees; for example, the most common reason for leaving reported by relevant younger employees was ‘to leave to pursue job opportunities outside the APS’. At the same time, younger employees were more likely than older employees to agree that they were proud to work in their current agency (75% and 65%, respectively) and in the APS (80% and 71%, respectively).

36 Management Advisory Committee 2003, Organisational Renewal, Commonwealth of Australia, Canberra; Managing and Sustaining the APS Workforce, Commonwealth of Australia, Canberra.

37 The separation rate is calculated as the proportion of employees separating at a particular age during the year, divided by the average number of employees at that age at the beginning and end of the financial year. The separation rate for those aged 64 and over in 1995–96 was inflated due to compulsory age retirement at that time. This meant that the number of separations was artificially high, and the number of employees at the beginning and end of the financial year (used in calculating the separation rate) was lower than is the case now.

go to top of the page