Tag: Retired Workforce

Report finds gig workers underfunded retirement.

A report recently released by Industry Super Australia (ISA), a research and advocacy organization that aims to maximize the retirement savings of fund members and is the peak body for the superannuation sector, reveals that gig workers are missing out on AUD 400 million (USD 269.8 million) in retirement contributions. According to the report, ISA estimates that there are 275,000 gig workers in Australia, including delivery drivers, disability carers, IT professionals, and education workers, who could have up to AUD 29,000 (USD 19,561) more in their retirement if they were paid superannuation.

Bernie Dean, Chief Executive at Industry Super Australia, stated that being a gig worker should not deprive them of the opportunity to save for a decent nest egg at retirement. Paying gig workers superannuation is not only the right thing to do, but it also makes economic sense since they will be more self-sufficient in retirement and less reliant on the age pension, which is paid for by everyone through taxes.

The ISA’s analysis shows that the average transport and food delivery gig worker misses out on AUD 1,900 (USD 1,281) in super contributions annually when working an average of 14.5 hours per week at AUD 24 per hour. If they spend three years in the industry, these super contributions would reach AUD 17,200 (USD 11,602) at retirement and AUD 28,700 (USD 19,359) if they are in gig work for five years. Additionally, many gig workers in Australia are under the age of 35 and would benefit from compound earnings over the decades.

“These workers are critical to caring for our elderly, delivering food and driving us home. They have every right to share in the benefits of what is meant to be a universal saving system,” Dean said.

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What companies can do to boost the confidence of an older workforce

New LinkedIn research has shown that 72% of UK business leaders have actively been attempting to hire experienced workers who retired as a result of the pandemic.

However, despite companies trying to recruit from this demographic, the research also indicated that 38% of those aged 50+ felt they would be disadvantaged because of their age. Furthermore, 26% feel that they don’t have the right skills.

Additional LinkedIn data shows that, in the UK, “Baby Boomers” (those aged 58-76) and “Gen X” (those aged 42-57) have historically had, and continue to have, lower confidence in ‘getting/holding a job,’ compared to younger generations.

There are however steps that companies can take to attract experienced talent, promote inclusivity, and boost the confidence of these experienced individuals.

Derval Blehein, HR Leader for EMEA and LATAM at LinkedIn, commented: “Employers who actively invest in overcoming ageism in the workplace can unlock a wealth of talent –  we know diverse teams win, and diversity of thought gained through age and experience is a critical component of this equation. However there is work to be done to ensure that hiring processes are inclusive across all age groups.

Employers who take a skills-based approach to hiring can help diminish bias towards certain generations. By focusing on a candidates’ transferable skills, employers will broaden their talent pools and increase diversity in their workforce. Over time, this hiring approach will widen age profiles in industries that typically favour a certain age group.

Flexibility is vital to encourage all, and especially older, workers to remain in the workforce. LinkedIn data shows that flexible work is highly valued across all generations – allowing people to work productively, whilst protecting time to pursue other commitments such as family and caring responsibilities. However, these initiatives need to be matched with remote-first tech support for those who may be less confident in their ability to set themselves up for success while working from home.

Employers should consistently review, tailor and update their benefits packages so that each generation’s needs are met. A good example of this is offering flexible benefits which individuals can easily tailor to their own needs. Taking the time to adjust employee benefits and training to each life stage will not only help to boost employee satisfaction but will also positively impact retention across demographics.”

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