Almost a quarter (24 per cent) of HR professionals now classify workers aged 51-55 as 'older', according to new research from the Australian HR Institute (AHRI) and the Australian Human Rights Commission (the Commission). This increase from 10 per cent in 2023 suggests many employers are sidelining experienced professionals in an economy suffering skills shortages.
The report, Older and Younger Workers: What Do Employers Think?, is AHRI and the Commission's fifth national survey of employers and HR professionals. It provides a snapshot of how older and younger workers are perceived, supported and included in Australian workplaces.
Despite more than half of respondents (55 per cent) reporting hard-to-fill vacancies, just 56 per cent stated they are open to hiring workers aged 50-64 'to a large extent'. This drops to 28 per cent for those 65 and over, and more than one in six (18 per cent) say they won't hire this age group. At the other end of the spectrum, the findings were also bleak, with just 41 per cent open to recruiting jobseekers aged 15 to 24 'to a large extent'.
The findings come amid renewed national focus on productivity, with the Productivity Commission, Treasurer Jim Chalmers and Prime Minister Anthony Albanese identifying it as one of Australia's most pressing economic challenges.
'Our research found some workplaces are hesitant to employ workers over the age of 50, before they are even close to retirement age, or under 24 - including Gen Z's digital natives,' said Sarah McCann-Bartlett, CEO of the Australian HR Institute. 'One in 5 HR professionals say their recruitment practices negatively impact older workers, and 23 per cent say the same about younger workers.'
'In a tight labour market, there is a clear economic imperative to tap into the full potential of the available labour pool, and that means building inclusive practices that support employees at every stage of their careers.'
Robert Fitzgerald AM, Age Discrimination Commissioner at the Australian Human Rights Commission, said the findings highlight the need for sustained action against ageism.
'Older and younger workers can be a real advantage for businesses. Age-diverse teams bring different life experiences to the table and are better at solving problems. Employers need to support inclusive workplaces, where competency isn't assessed against age or career stage. Providing equal opportunity for people of all ages to remain engaged in meaningful work can enhance productivity, while also helping close skills gaps,' he said.
Age-based assumptions blocking employers from harnessing the right skills
While older workers rated higher for their loyalty (74 per cent), reliability (64 per cent), and ability to cope with stress (62 per cent), compared to younger workers they were rated lower for their ability to use technology and their career ambition. Only 1 per cent of respondents said older workers had better technology skills, and just 7 per cent thought they had higher energy levels.
Younger workers, meanwhile, were rated comparatively lower for reliability (1 per cent), loyalty (2 per cent), and ability to cope with stress (2 per cent), despite being rated higher for energy and technological fluency.
Nearly 60 per cent of respondents said the departure of older workers has led to a loss of key skills, with only 13 per cent saying their organisation consistently captures that knowledge.
'What we're seeing is bias at both ends of the age range. Sadly this undermines diversity of thought and productivity,' Commissioner Fitzgerald said.
The stay factors: flexible futures, fair pay and phased goodbyes
The report also highlights how employers can retain older workers and support longer, more productive careers.
It's encouraging businesses are stepping up with almost three in four (72 per cent) now offering flexible working arrangements (up from 49 per cent in 2021) as a recruitment strategy to support age-diverse hiring. At the same time, employees continue to rate flexible work options top of the list (80 per cent) of factors likely to keep people in the workforce for longer.
Higher wages skyrocketed in importance as a retention lever, from 0 per cent in 2023 to 48 per cent, likely due to persistent elevated cost-of-living pressures. The highest figure recorded for this measure across the previous five reporting periods was just 6 per cent in 2014. Additionally, slightly more emphasis was placed on coaching and mentoring opportunities (38 per cent compared to 34 per cent in 2023) as well as training and development (36 per cent compared to 31 per cent in the prior survey).
'If we want to fill our skills gaps and improve productivity, we need to shift from age-based assumptions to evidence-based strategies. That means designing jobs that keep people engaged across the life cycle, using emerging techniques to attract and retain different generations and building workplace cultures where no one is written off because of the year they were born,' concluded McCann-Bartlett.
