Loss of older workers costing businesses thousands

by Lee Hopkins on December 22, 2005 · 6 comments

in miscellaneous

Older workers are more cost effective than MBAs From ABC News:
Something I have been saying for a long time but been politely smiled at whenever I mention it to clients. Perhaps now ears will be more open once the piece below hits the main papers…

A new study has revealed the true cost of early retirement to Australia’s economy.

The study by the Queensland University of Technology involved 1,000 mature-aged workers, many of whom said they quit full-time work because they felt undervalued.

The university’s Associate Professor Michael Drew says the loss of older workers is costing businesses tens of thousands of dollars in lost production and recruitment and training costs.

He says it is more cost-effective to retain those employees who are both loyal and experienced.

“Mature-age workers are also not just looking at career advancement, they’re also looking at imparting their skills to the younger generation which is an incredible saving for organisations,” he said.

“It retains the human capital and the knowledge in the organisation.

“Some studies have shown that say hiring an MBA graduate straight out of university may only last in that job somewhere around 18 months, where as someone who’s say 55 is certainly looking for a decade of work.”

Image: BrightSmile courtesy chriswatk at sxu

  • http://www.nationalseniors.com.au/ Michelle Beaman – Media Manage

    It is pleasing to see you have picked up on the important message of this study which was actually researched and produced in partnership with the National Seniors Productive Ageing Centre. Most of the research used by QUT in the study came from our 270,000 plus National Seniors Members.

  • http://www.nationalseniors.com.au Michelle Beaman – Media Manager for National Seniors

    It is pleasing to see you have picked up on the important message of this study which was actually researched and produced in partnership with the National Seniors Productive Ageing Centre. Most of the research used by QUT in the study came from our 270,000 plus National Seniors Members.

  • Lee

    Thanks, Michelle. I’d be fascinated to see a copy of the report, if one is available.

  • Lee

    Thanks, Michelle. I’d be fascinated to see a copy of the report, if one is available.

  • http://www.nationalseniors.com.au/ Michelle Beaman – Media Manage

    Most of the content and key findings of the report can be found under ‘Publications’ on the following website http://www.productiveageing.com.au
    Thanks.

  • http://www.nationalseniors.com.au Michelle Beaman – Media Manager for National Seniors

    Most of the content and key findings of the report can be found under ‘Publications’ on the following website http://www.productiveageing.com.au
    Thanks.

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