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

Understanding what drives 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.

Instead, the interviews showed that, while some demographic or situational factors help to explain the position of some subgroups, two fundamental factors or drivers underpin mature non-participants' interest in entering/re-entering the workforce. These drivers apply to all the identified subgroups.

Because of their significance, these drivers have been used to group mature non-participants into four discrete segments. This approach provides a way to understand what motivates or inhibits mature non-participants in seeking paid employment.

This chapter explains the two fundamental drivers and describes the characteristics of each of the four segments. Where possible, it relates these to the original subgroups of interest, and links them to the results of the Stage 2 survey.

The fundamental drivers

A key finding of the qualitative research is that mature non-participants' interest in participating in paid employment depends on the relative importance it plays in satisfying two personal drivers:

  • Their emotional wellbeing.
  • Their financial wellbeing.

These drivers apply to all the subgroups identified in the Stage 2 survey as being of interest, and are more likely to account for a person's participation in paid employment than demographic characteristics such as gender, age or ethnic background.

For example, two mature male non-participants may be the same age, but one might be interested in paid employment and the other may not. The research found that the main explanation for these different attitudes was the different level of importance they place on paid employment, in terms of it satisfying their emotional and/or financial wellbeing.

Using the drivers to segment mature non-participants

Each of the drivers can be conceptualised as a continuum. At one extreme of the continuum, the driver is highly motivating, stimulating interest in participating in paid employment; at the other extreme, it is demotivating and acts as an inhibitor. By applying the two drivers in this way, it is possible to group mature non-participants into four discrete segments. Each segment is based on a unique combination of the drivers. The segmentation helps to explain mature non-participants' different responses to the potential inhibitors to entering/re-entering the workforce identified in the Stage 2 survey and their interest in CIAG.

Emotional wellbeing

The role paid employment plays in satisfying the emotional wellbeing of mature non-participants is the most significant driver of interest in re-entering the workforce (Figure 2).

Figure 2: The role of emotional wellbeing in motivating participation in paid work

Figure 2: The role of emotional wellbeing in motivating participation in paid work

At one end of this continuum, the emotional benefits associated with participation in paid work play a significant role in motivating interest in re-entering the workforce. This research found that these benefits include:

  • enhanced self-esteem - having a purpose and a sense of achievement
  • a social identity - some people define themselves by the work they do
  • a social network and social life
  • an opportunity to contribute to society and the economy
  • mental and physical stimulation.

Meeting people and social life is what I miss most, being home 24/7. When I go shopping now, I have a choice of three shops, and I choose the one where I know someone, so I can have a chat. And keeping the brain stimulated, because you can so easily fall into the trap of being dull and bored, when you've been used to a job where your brain has to be quick, and the most exciting thing that happens around here is when the phone rings and it's the wrong number. You miss the interaction.

Keeping me active and busy... working is the key to a long life, you keep on track, so your mind doesn't get stale. You get self-esteem working. You think, if someone wants to employ you, you're not useless, old and on the rubbish heap.

At the other end of the continuum, emotional wellbeing is not associated with participation in paid employment, but is achieved by participation in one or a number of the following: further education, recreational interests and hobbies, community and voluntary work, and caring for and socialising with family and friends.

I'm really busy with looking after my grandchildren. It's so important to spend the time with them. I wouldn't want to give that up, especially while they're young.

Financial wellbeing

The role paid employment plays in satisfying financial wellbeing is the other driver determining the level of interest in participating in paid employment (Figure 3).

Figure 3: The role of financial wellbeing in motivating participation in paid work

Figure 3: The role of financial wellbeing in motivating participation in paid work

At one end of this continuum, the financial benefits associated with paid employment strongly motivate interest in entering/re-entering the workforce. The income derived from paid work may be valued because it covers living expenses such as the mortgage or rent, food and bills, and/or as a way to pay for luxuries or extras, such as travel or renovations.

I'd be ecstatic if I got a job! Being out there and capable and independent. I'd be able to afford the luxurious things that I can't when I don't have a job. I wouldn't be struggling to get by.

I'd get new clothes ... and boots ... and a new hairdo! We can't afford these things on one wage.

At the other end of the financial wellbeing continuum, participation in paid employment is not required to satisfy financial needs/wants, as these are satisfied by other means. Other income sources identified in this stage of the research include one or more of the following:

  • Retirement funds
  • Inheritance
  • Being supported by a partner
  • Government benefits.

Money doesn't worry me anymore. I've been lucky that I've always been a saver. I've got a bit behind me, and then, being redundant, I invested it. So, I'm not particularly worried about the money side of it.

The four segments of mature non-participants

Four discrete segments were identified (Figure 4). Two describe mature non-participants who are motivated to enter/re-enter the workforce, and two describe those who are not motivated to do so. The segments are designated as:

  • paid employment seekers
  • lifestyle employment seekers
  • ambivalent employment seekers
  • future employment seekers.

Figure 4: A segmentation of mature non-participants' motivation to participate in the workforce

Figure 4: A segmentation of mature non-participants' motivation to participate in the workforce.

The motivated segments

Paid employment seekers and lifestyle employment seekers are the most motivated to enter/re-enter the workforce (Figure 5). They are motivated by the financial and/or emotional benefits associated with working, and are most likely to be actively seeking paid work.

Figure 5: The motivated segments' relationship with the fundamental drivers

Figure 5: The motivated segments' relationship with the fundamental drivers.

PAID EMPLOYMENT SEEKERS

Being out of paid employment does not sit comfortably with mature non-participants in this segment. Not only do they miss the financial benefits of paid work, but being out of work affects their emotional wellbeing in that it reduces their self-esteem, results in feelings of boredom and restricts their social life.

The following case studies illustrate the mindset of paid employment seekers:

Cheryl and Stanley are both actively looking for work.

Cheryl is a Pacific woman in her forties living in the greater Wellington area. She has teenage children at home, rents her house and has bills to pay. Cheryl quit her job recently, because she wanted to upskill and there was no potential in her workplace to do so. Having worked all her adult life, and having switched jobs frequently in the hospitality industry, she assumed she would find another job quickly. Cheryl is very actively job seeking. She is driven by her financial responsibilities and commitments, and desperately wants a job that will accommodate her desire to extend herself into a management position. The longer Cheryl is out of work, the more distressed she is becoming. Although she started out very positive, she is becoming quite depressed, worries about money and misses the stimulation of working. Cheryl is finding it hard to find the right job in her area, so she is going to start looking further afield. Although it will mean a longer working day, and finding someone to look out for her teenagers after school, she is prepared to commute to the city, as there are more opportunities there.

Stanley is a NZ European male in his fifties living in an urban area. He left his job for health reasons, and his employer couldn't offer him alternative work in the organisation. Not being the family breadwinner makes him feel worthless. Being at home all day and not working leaves him feeling lonely and isolated. Although Stanley is unable to carry out the job for which he is trained, he has been accessing training through Work and Income so that he can find something to suit his health condition. The courses Stanley is taking provide him with some mental and social stimulation, but he really wants to reap the financial benefits of paid employment and to enjoy the social aspects of being part of a work group.

LIFESTYLE EMPLOYMENT SEEKERS

Lifestyle employment seekers are also highly motivated to work because they need or want the emotional benefits they associate with working.

Unlike paid employment seekers, lifestyle employment seekers do not need paid employment to satisfy their financial needs. They are comfortable living on the income that they receive from other sources, such as investments or support from a partner.

Not needing to work for financial reasons allows lifestyle employment seekers the luxury of looking for work that suits their interests and values. They are more likely to be involved in the voluntary sector doing community work and working for charities, or they may choose low paying, part-time or casual work in areas of personal interest such as in the arts, culture and recreation.

This segment is illustrated by the following case studies:

Fred and Angela have never been without work per se, although this has not always been in paid employment.

Fred is a NZ European male in his late sixties who lives in Nelson. He is a builder by trade and, after 20 years of owner-operation, was well set up. He had a heart attack and decided to sell up. Fred is well able to support himself and his wife off their savings. He has worked all his life and believes he's still got a lot to offer. He still has his contacts around town and picks and chooses where and how he can help out. Fred doesn't do it for the money. He loves his work, and believes that being active and stimulated keeps him alive.

Angela is a NZ European woman in her early sixties living in an urban centre. She is semi-retired and lives off her late husband's estate. Angela has been very involved in voluntary work because she enjoys helping others and doing something that makes a difference. She would do paid work, too, if she found something that suited her interest in the art world. Angela often looks after her grandchildren. This wouldn't stop her from working, though. If she were to get a job she wanted, she'd simply say she couldn't help out when she was working.

MOTIVATED SEGMENTS AND THE SUBGROUPS

Given the small sample and the qualitative nature of the research, it is not possible to comment with confidence on the relationship between these motivated segments and the subgroups of interest identified in the Stage 2 survey. However, given that the Stage 2 survey found that 19 percent of the representative sample of mature non-participants had looked for paid employment in the last six months, it is likely that these two segments account for a relatively small proportion of mature non-participants.

Based on the results of the survey, it is also likely that people in the motivated segments will have the following characteristics:

  • Male: The survey found that men (25 percent) were more likely than women (15 percent) to be looking for paid employment.
  • Aged 45 to 54 years old: Mature non-participants in this age group were significantly more likely than the sample as a whole to have looked for work in the last six months (50 percent). Those aged 65 years and older were significantly less likely to have done so (7 percent).
  • Fired, laid off, or made redundant: The survey found that mature non-participants who had looked for work were significantly more likely than the sample as a whole to report they had been fired, laid off, or made redundant (21 percent).
  • Higher educational qualifications: The survey found that mature non-participants who had not retired and who had looked for work in the six months prior to the survey were likely to have higher education qualifications.
    • Fifty-six percent had qualifications beyond secondary school, compared to 34 percent of non-retired respondents who had not looked for work.
  • Maori, Pacific and Asian peoples: The survey found that Maori (27 percent), Pacific peoples (27 percent) and Asian peoples (30 percent) had looked for work in the six months prior to the survey. This compared with 14 percent of NZ European/Others.
Less motivated segments

Mature non-participants who are less motivated to participate in paid employment include those whose interest is driven only by the financial benefits associated with paid employment (ambivalent employment seekers), and those whose interest is not currently driven by either the emotional or financial benefits associated with paid employment (future employment seekers). The emotional wellbeing of both these segments is not satisfied by participation in paid work, but by participation in other activities (Figure 6).

Figure 6: The less motivated segments' relationship with the fundamental drivers

Figure 6: The less motivated segments' relationship with the fundamental drivers.

AMBIVALENT EMPLOYMENT SEEKERS

This segment's interest in participating in paid employment is purely and simply driven by the financial benefits of doing so. Unlike the more motivated segments, the paid employment seekers and lifestyle employment seekers, ambivalent employment seekers are not driven by the emotional benefits associated with participation in the workforce. In fact, given that these needs are satisfied through involvement in other activities, working may be regarded as getting in the way of those activities.

Interest in entering/re-entering the workforce is determined by whether or not ambivalent employment seekers have income from other sources, such as government benefits or retirement funds, and how well this income meets their financial needs. Given their ambivalence about working, mature non-participants in this segment may simply 'make do' with their income from other sources and/or supplement this periodically with paid work to pay for extras or to make big purchases.

This segment is illustrated by the following case studies:

Although dissatisfied with their financial situation, Joanne and John are not actively job seeking.

Joanne is a NZ European in her fifties living in an urban area. She ideally wants more money coming in, but has no real desire to work, as she enjoys having free time to indulge in her non-work activities. Joanne also believes that her carer responsibilities looking after her extended family's needs are important, as they keep her active and stimulated and make her feel important. Although she is happy not working, if a job paid well and fitted around her other activities, Joanne might be tempted, as it would mean she could have more money to do what she wants.

John is a Maori male in his late forties living in a rural area. He stopped work at the local freezing works because he started to lose his sight. He has been on a benefit ever since. John keeps busy around the garden, looking after the children and fishing with his mates. Although he wouldn't mind a bit more cash, travelling to work would be a hassle as there aren't many jobs in the area, and he wouldn't have as much time or energy to socialise or look after his grandchildren.

FUTURE EMPLOYMENT SEEKERS

The financial and emotional needs and wants of future employment seekers are currently satisfied through other sources. They may be financially supported by a sickness benefit and actively involved in further education, or they may be a carer supported by their partner. As such, they have no interest in entering/re-entering the work force at present, although they acknowledge that their interest may change in the future, for example, when their health improves, or they are no longer required as a carer. (Mature non-participants who identified themselves as having absolutely no interest in participating in paid employment were excluded from this stage of the research.)

This segment is illustrated by the following case studies:

Although they know they will need to re-enter the workforce in the foreseeable future, neither George nor Mike are motivated to do anything about it now.

George is a Maori male in his forties living in an urban area. He looks after his daughter and plans to find work once she goes to school next year. At the moment, he's enjoying being a full-time parent, but once she's at school, he'll need to find something to do with himself, and will welcome the extra dollars.

Mike is a NZ European in his forties living in a provincial area. He is currently on a sickness benefit. He isn't interested in working at the moment, because his benefit is enough to live on and he is enjoying spending time with close family. Mike will be driven to seek work once he recovers from his illness.

Again, given the small sample and the qualitative nature of the research, it is not possible to comment with confidence on the relationship between the less motivated segments and the subgroups of interest identified in the Stage 2 survey. However, based on the survey which found that 81% of the representative sample of mature non-participants had not looked for paid employment in the last six months, these segments are likely to be substantial in size. The survey results suggest that people in these segments are likely to have the following characteristics:

  • Left paid employment because of personal or life situation issues: Mature non-participants who had not looked for paid employment were significantly more likely to have left the workforce because of their personal or life situation. They cited personal health reasons or a disability (28 percent), or the need to look after a partner, child or other person (14 percent).
    • Maori and Pacific peoples were significantly more likely to report that a personal health reason or a disability made it difficult for them to re-enter the paid workforce.
  • Caring for children: The survey found that people who had not looked for paid employment in the six months prior to the survey were more likely to say they were caring for children (or some other person, in the case of Pacific peoples).
    • Carers, as a group, were more likely than non-carers to be younger (45 - 54 years), women, and Maori, Pacific or Asian peoples.
  • Maori, Pacific and Asian peoples: Maori, Pacific and Asian peoples reported a greater number of job skill or workplace barriers to entering/re-entering paid employment than NZ European/Others.
    • Pacific peoples identified a significantly greater number of issues overall (both job skill related and personal or life situation related) than those in other ethnic groups.
  • Lower educational qualifications: Educational qualifications could also play a significant role in whether people were looking for paid employment:
    • Maori and Pacific peoples were significantly more likely to say that they had no school qualifications (39 percent and 47 percent respectively) than NZ European/Others (25 percent) and Asian peoples (8 percent).
    • Pacific peoples were also significantly less likely to have a qualification beyond secondary school (24 percent), compared to NZ Europeans/Others (46 percent) and Maori (43 percent).
  • Female: In general, the survey found that women experience a greater number of barriers to re-entering the workforce than men do and were, therefore, less likely than men to have looked for paid employment in the six months prior to the survey:
    • On average, women identified 3.4 job skill or workplace issues and 2.4 personal or life situation issues, whereas men reported 3.1 and 2.0 respectively.
    • Women were also significantly more likely to identify the following job skill or work place issues and personal or life situation issues than men:
      • Having the right types of skills that employers are looking for (identified by 55 percent of women, compared with 43 percent of men).
      • Employers believe older workers will not pick up job skills quickly enough (48 percent, compared with 41 percent).
      • Being under qualified for the jobs available (46 percent, compared with 32 percent).
      • Lack of work experience (35 percent, compared with 21 percent).
      • Difficulties getting transport to work (22 percent, compared with 15 percent).
      • Having less time with family, friends and whänau (49 percent, compared with 31 percent).

Summary

The Stage 2 survey found that a small, but not insignificant, proportion of mature non-participants were interested in entering/re-entering the workforce. The qualitative research identified two fundamental drivers that accounted for their motivation to return to paid employment. These were the importance of paid employment in satisfying their emotional and financial wellbeing.

This suggests that, while demographic characteristics may, in part, be used to target motivated people, these characteristics in themselves will not account for their behaviour.