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45 Plus: Choices in the labour market - Stage 3 Qualitative Study

Executive summary

Introduction

This report presents the results of the third and final stage of research commissioned by the Department of Labour (DoL) to identify:

  • the reasons for non-participation in paid employment of those aged 45 years and over
  • the potential role of career information, advice and guidance (CIAG) in assisting that group
  • what options for targeted CIAG would be most beneficial to this group and have the greatest uptake.

Stage 3 was a qualitative study to provide in-depth understanding of issues identified in an earlier survey of over 850 people aged 45 years or more who were not in paid employment at the time of the survey (Stage 2).[1]

The issues included personal or life situation matters, such as non-injury related disabilities or carer responsibilities, and job skill and workplace issues.

The research focused on subgroups of mature non-participants identified in the survey. Subgroups included people who were actively looking for paid employment and those who were not, and groups based on age, gender, ethnicity and carer responsibilities and/or disabilities.

The interviewing for Stage 3 was completed between 06 and 21 June 2006 with a sample of 24 mature non-participants, carefully selected to represent the subgroups identified above.

In reporting on the qualitative results of this stage of the research, the findings were linked to and compared with those of the Stage 2 survey. New Zealand residents aged 45 years or more and who are not participating in paid employment are referred to as mature non-participants in this report.

Key findings

Key drivers underpinning interest in entering/re-entering the workforce

The qualitative research began with the assumption that some of the subgroups identified in the survey would be more actively looking for paid employment than others. The research found that, while demographic and situational characteristics helped to describe the subgroups, they did not necessarily account for their behaviour in relation to employment.

Two more fundamental drivers underpinned mature non-participants' interest in entering/re-entering the workforce:

  • The level of importance paid employment played in satisfying their emotional wellbeing.
  • The level of importance paid employment played in satisfying their financial wellbeing.

Each driver can be conceptualised as a continuum. At one extreme, the driver is highly motivating, stimulating interest in participating in paid employment, while at the other, the driver is demotivating, acting as an inhibitor.

For example, at the motivating end of the emotional wellbeing continuum, the benefits associated with paid employment include enhanced self-esteem, having a purpose and a sense of achievement, a social identity, a social network and life, an opportunity to contribute to society and the economy, and mental and physical stimulation.

At the motivating extreme of the financial wellbeing driver, the income derived from paid work is valued because it covers living expenses and can pay for luxuries or extras, such as travel or renovations.

At the demotivating end of the emotional wellbeing continuum, mature non-participants gain satisfaction from their interests and hobbies, community and voluntary work, and socialising with or caring for family and friends rather than from work.

Similarly, those at the demotivating end of the financial continuum do not need income from work to satisfy their financial needs or wants.

Understanding where a mature non-participant is positioned relative to these drivers helps explain their attitude to entering/re-entering paid employment, their attitude to the management of barriers and inhibitors, and their likely interest in using CIAG.

Segmentation of mature non-participants

Cross-referencing the two drivers provides a framework within which to group mature non-participants based on their level of interest in entering/re-entering the workforce. The framework has four discrete segments; two which comprise of people who are motivated and two which comprise of people who are less motivated (Figure 1).

Figure 1: A segmentation of mature non-participants' motivation to participate in the workforce

Figure 1: A segmentation of mature non-participants' motivation to participate in the workforce

Because of the small sample, it is not possible to accurately quantify the relative size of these four segments. However, based on the results of the Stage 2 survey, it is reasonable to presume that the two motivated segments, the paid employment and lifestyle employment seekers, account for a smaller proportion of mature non-participants than the two less motivated segments, the ambivalent employment and future employment seekers. The survey suggests that there could be four to five times as many non-motivated mature non-participants as motivated people.

Segment descriptions

Again, because of the small sample, it is not possible to categorically describe each segment. However, based on the results of the Stage 2 survey, mature non-participants in the motivated segments will tend to be:

  • male
  • aged 45 to 54 years old
  • people with higher educational qualifications
  • maori, Pacific or Asian peoples
  • people who have been fired or made redundant

In comparison, mature non-participants in the less motivated segments will tend to be:

  • female
  • caring for children
  • people with lower educational qualifications
  • maori, Pacific or Asian peoples
  • people who have left paid employment for personal of life situation reasons.

Maori, Pacific and Asian peoples are found in both the motivated and less motivated segments. This illustrates the fact that ethnicity and other demographic factors are more likely to be descriptors, rather than the real factors driving a mature non-participant's intentions to enter/re-enter paid employment or not.

Entering/re-entering paid employment

The Stage 2 survey identified a number of personal or life situation, job skill and CIAG issues that inhibited mature non-participants from entering/re-entering the workforce. The Stage 3 interviews found that mature non-participants' responses to these issues depended on their motivation to participate in paid employment.

The paid employment seekers and lifestyle employment seekers were motivated to overcome the potential inhibitors to entering/re-entering the workforce. They considered them as obstacles, rather than barriers, to their involvement in the workforce.

For example, they were more likely to overcome job skill inhibitors by seeking training, or by retraining, if necessary, and/or by being prepared to travel or move to a new location. They might overcome transport issues by using public transport, if available, or car-pooling.

In contrast, the ambivalent employment seekers and future employment seekers were more likely to regard potential inhibitors as barriers that prevented them participating in paid employment. They were less interested in overcoming job skill related barriers and more likely to identify issues associated with access to jobs and training. These included:

  • where and how to access further training and education
  • costs associated with training
  • lack of relevant jobs in the local area
  • access to and costs of transport to travel to work or training
Perceptions/experiences of ageism

Ageism was also identified in the Stage 2 survey as an issue that might inhibit some mature non-participants from entering/re-entering the workforce. It was examined in greater detail in the qualitative research. Respondents perceived or had experienced the following:

  • The physical and mental changes associated with ageing, such as lower energy levels, physical strength/stamina and mental agility, affected their ability to perform to their best or carry out a full-time job. These issues were more relevant to some occupations and positions than others, for example, jobs requiring speed and strength.
  • Job-seeking agencies are primarily interested in younger job seekers. Experiences included being told by recruitment agents that they would have limited chance of success in applying for jobs because of their age. The youthfulness of the staff and other job applicants in these agencies left some mature non-participants feeling out of place and uncomfortable.
  • Employers prefer younger employees. Experiences that supported this included:
    • employers raising age related concerns at interviews, including concerns about the imminence of retirement, questioning applicants' willingness to adapt to a new work environment, and questioning their willingness to answer to younger management
    • believing and/or being told that they would not fit the culture or 'look' of the organisation, because of their age
    • being repeatedly unsuccessful with job applications.

People's responses to ageism depended on the segment they were in. Individuals in the motivated segments, the paid employment and lifestyle employment seekers, were more likely to reject ageist attitudes as myths or misconceptions rather than seeing them as real barriers. Most believed that their maturity was an asset in the work environment.

These groups were also likely to respond positively to the physical and mental changes associated with ageing by seeking work and a work environment that suited them, for example, working reduced hours, or in less challenging positions than they previously occupied.

However, those who were less motivated to enter/re-enter the workforce, the future employment and ambivalent employment seekers, were more likely to see ageism as a real barrier to entering/re-entering the workforce. This was especially true for those who had been out of employment for some time.

CIAG

The Stage 2 survey also showed that a lack of job-seeking knowledge was a key inhibitor to entering/re-entering the workforce.

In examining this further, the qualitative research found that knowing how to gain job-seeking assistance depends on how motivated mature non-participants are to re-enter the workforce, and how recently they have looked for work. In the Stage 2 survey, 38 percent of mature non-participants had been out of the workforce for more than 10 years.

Those in the more motivated segments, the paid employment and lifestyle employment seekers, were more up to date with the job-seeking process. Given that they were more likely to be actively looking for work, they were also more likely to be familiar with, and more confident about, the process of job hunting, including where to look for jobs (e.g. newspapers, the Internet), how to 'sell' themselves to a potential employer, how to create a CV, and where to go for CIAG services.

Some respondents in these segments had sought help from agencies offering CIAG services. These included Career Services, recruitment agencies generally, employment agencies targeting mature job seekers, and Work and Income. All had found these services unsatisfactory because:

  • they saw them as being geared towards the needs of younger job seekers
  • the level of service provided was limited because staff appeared to lack CIAG expertise
  • the services offered limited job opportunities
  • they were ineligible for their services, for example, those not receiving a government benefit were not eligible for Work and Income services.

In contrast, those who were less motivated to seek employment, the ambivalent employment and future employment seekers, were more likely to have been out of work for longer, and to have limited job-seeking knowledge and experience. They were also less likely to know what CIAG assistance is available and where to find it.

The ideal CIAG service

Against this background, respondents were invited to describe their ideal CIAG service. Most imagined a service that was specifically developed to meet the needs of mature non-participants (i.e. people aged 45 or more), and would have the following features:

  • It would be provided in different forms at different points in the CIAG process. The initial interface would involve at least one face-to-face consultation. The perceived benefits of meeting with someone face-to-face included:
    • reducing any anxiety associated with job seeking
    • providing a service tailored to their specific needs.
  • It would have CIAG consultants with appropriate personal attributes and qualities. These included:
    • Age: The service would be staffed exclusively by consultants aged 45 or more. Mature non-participants believed that they would be able to relate more easily to someone of a similar age, and that mature staff would understand their situation and circumstances.
    • CIAG expertise: The consultants would be CIAG experts, knowledgeable about the issues mature non-participants might face in re-entering the workforce and how to overcome them.
  • The service would provide interpreters/consultants fluent in relevant languages (e.g. Asian and Pacific languages). This is the only issue that respondents identified as specifically relevant to ethnicity.
  • The level and focus of the service provided would be tailored to the specific needs of the individual. Those having trouble overcoming personal or life situation issues would probably receive more face-to-face assistance. For those with simpler needs, on-going communication with the CIAG service would be by telephone or email.
  • Information would be provided about the service on the Internet. A dedicated website would provide:
    • a job search database
    • CV templates
    • information about training options and support
    • helpful tips, for example, on interviewing skills and dealing with ageism.
  • The web-based information service would be supported by:
    • access to computers with hands-on support at the CIAG service's premises - those who were less confident in using computers were uncomfortable with the notion of accessing computers in other public venues, such as libraries and Internet cafés
    • a 'how to' pamphlet with simple, user-friendly directions to help access and navigate the website
    • an 0800 help line to provide support if they were having problems accessing or navigating the site, for example, from home.
  • The CIAG service would be located in the local community, as this would facilitate easy (face-to-face) access and ensure that the service introduced people to jobs in the local market.

Most respondents thought that the DoL was the most appropriate organisation to offer CIAG services to assist mature non-participants who wish to work.

This was because:

  • the DoL has a history as a job-searching agency, which is particularly relevant to the age group in question
  • they saw it as the DoL's role to improve employment services
  • providing CIAG services through a government agency would mean that the service was free and, therefore, more accessible.

While an ideal CIAG service would be of interest to those who wanted to work, respondents believed that, on its own, it would have little impact on mature non-participants in the less motivated segments. In order to increase workforce participation among those who were currently uninterested in entering/re-entering the workforce, respondents envisaged a well-executed and targeted information programme promoting the benefits that paid employment can offer. This would have the added benefit of reinforcing the interest of those in the more motivated segments.


[1] The first stage of the research involved the completion of a national and international search and review of the literature on career information, advice and guidance (CIAG).