Loss of older workers costing businesses thousands

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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