Could your small business benefit from hiring a mature aged employee - with a government subsidy of their wage?

A government incentive of up to $10,000 to hire a mature-age worker

If you run a small or medium size business in Australia and are looking at hiring extra staff, then you might consider taking advantage of a government subsidy for hiring a mature-age worker (aged 50 or over).

If you're not aware of the federal government's JobActive Restart program, then read on - because up to a $10,000 "Restart" subsidy for an employee's wage is available as an incentive for you to hire an eligible over-50 job seeker......

Perhaps you're like me - and this caught you unawares. As a business owner, it's easy to become a little isolated from the resources and support that can be available, because we get so immersed in the day-to-day operation of the business.

But with all of the taxes that we pay, if there's a chance to get some financial help from the government in return - then hey, I'm listening with both ears!

Would your business be eligible?

As with any government subsidy, there are naturally some conditions that need to be met. It's not a gift that comes without some strings attached - but they do seem reasonable.

Some of the main requirements include -

• Your business requires an ABN
• The full wage subsidy is payable if employment is for an ongoing job that is at least 30 hours per week. Pro-rate subsidy can be available for employment of between 15 - 29 hours per week (less than 15 hours is not eligible)
• The job cannot be for work that displaces an existing employee
• Sub-contract or self-employment jobs are not eligible
• The job seeker must be aged 50 years or older and have been on income support for at least 6 months

So how would the $10,000 wage subsidy be paid, if your business meets the eligibility conditions?

Payment is somewhat negotiable, but can comprise $6,500 over a 12 month period - or on a pro-rata basis for less that this period. And a bonus of an additional $3,500 is paid if the employment has lasted the full 12 months.

More information about the wage subsidy can be found at JobActive Restart on the website of the Department of Employment

Why hire a mature-age worker?

My own business comprises some recruitment consultancy in both the private and public sector. Over many years, I have encountered a not uncommon  perception in corporate Australia, that the over-50 employee tends to be resistant to change - with limited ability and willingness to adapt to technological advancements.

I have found this to be a very unfair generalisation - and have worked with many mature aged workers who actually embrace the benefits of technological innovation. Resistance and anxiety about change is not necessarily restricted to a particular age demographic - flexibility (or the lack of it) is more likely associated with a person's attitudes and personality.

Many employers do report that a benefit of hiring a mature aged worker is they are gaining someone who brings a great depth of life experience to their workplace and willing to mentor others. Here is a short video clip in which a small business owner describes some of the benefits he believes came from employing an over-50 employee, which included among other things, a good work ethic ....

In closing, I would encourage any small business owner to look at the Restart program if they are experiencing growth or expansion, and to consider whether they could gain benefits to their business by hiring an over-50 worker. 

About the author

Brian Carroll is a qualified psychologist and the founder of a Melbourne based consulting business  Performance Development, providing corporate training & HR services. 

This post was initially inspired by a contact from Hypetap - who are working with the Department of Employment to raise awareness of the Restart program. However there is no financial gain for me in writing this article. I genuinely believe the program offers benefits to small business owners across Australia....... Perhaps however, an additional motivation for me is that I fall into the over-50 demographic myself - and know that I still have a wealth of experience and capability which I continue to offer.

Would you hire a mature aged worker?

Age discrimination is not a myth!

Too often, age is a barrier for older job seekers

In a significant number of companies and businesses around Australia, there seems to be a reluctance to employ those men and women who are aged over 50.

Perhaps because of a perception that the more mature aged worker is less open to learning and more resistant to change. Or maybe there’s a view that this age-group is unable to adapt to the use of new technology and are too “set in their ways”. 

Whatever the reason, the fact is there are many people seeking productive employment that are aged over 50 and have reported feeling they have been unfairly denied opportunities to re-enter the workforce because of their age (2016 report prepared for Human Rights Commission). Most employers would readily agree in principle, that age itself should not be a barrier to winning a job and that employment should be based on a person’s capability to perform the duties of the job.

However there is evidence that indicates that age-discrimination does indeed exist in the Australian workplace, with one recent study reporting that almost one half of hiring managers had observed age discrimination in their own organisation’s recruitment practices. ….. And this is probably why there is a financial incentive offered to employers to give this particular age group of workers a “fair-go”

In case you’re not aware of it, the Australian Government offers a $10,000 wage subsidy as an incentive for businesses to hire eligible mature aged job seekers. Given the aging population and the implications for the labour market, it is understandable that the government seeks to encourage employers to overcome their reticence in hiring “over-50’s”. 

A production manager explains why his  business hired an older worker

This article explores the experience of an Australian mid-size furniture manufacturing company, based in the eastern suburbs of Melbourne that have taken advantage of the Australian Government’s Restart wage subsidy. 

Coringle Furniture based in Melbourne, Australia

Coringle Furniture use Australian hardwood as the core material for products such as bed-frames and bedside tables which they supply to retailers such as Harvey Norman, Snooze and Forty Winks for example.

If their experience is any guide, then it would appear the mature aged job-seeker could be an untapped resource just waiting to be given a fair chance to show what they can bring to a workplace.

I met with the Production Manager at Coringle Furniture, David Roberts, who is a staunch supporter of Restart. It was David’s initiative to access the wage subsidy through a local jobactive provider (Sarina Russo).  The provider’s service can include pre-screening, shortlisting and even continuing to mentor the mature aged worker after their initial engagement – usually at no cost whatsoever to the employer / business.

The employee is named Van, and is of Burmese background. David says of him -

“Van is really keen to work and eager to learn”

The production floor at Coringle

Coringle Furniture demonstrates quite a commitment to diversity in their workplace, having hired several other Burmese workers. Like any workplace in which there is diversity - whether in terms of culture, gender, age or even personality – the key to making things work smoothly is staff having respect for each other and an acceptance of the differences that exist.

Anyone who has ever worked in a production or factory environment would be aware that it is typically one that is time, quality and target sensitive – with daily production deadlines and quotas that need to be met.

In this type of workplace however, working in a safe manner and adhering to all safety standards is a central part of being a productive employee. And so too is the need to get along with co-workers. David explained that Van fitted nicely into the workplace culture at their factory.

I asked David why his company decided to fill their vacancy through jobactive Restartand hire a mature aged worker.

David says Van has been a great addition to the team

He replied simply “Why wouldn’t we? ….. The older worker brings a wealth of experience. Often they are more settled in their personal life – and can provide a good stable and steady example to the younger one’s starting out in their careers. Van has proven himself to be a loyal and reliable worker and we have been really pleased with what he has been able to bring to our production team. All the other members of the team find him easy to get along with.”

David went on to say “We have no fear in hiring any job seeker who brings the right attitude, the right work ethic and some basic skills which we can then build on – regardless of their age, culture or background. The main thing for us is not the prospect of any wage subsidy – but more importantly is that they can do the job and work well with others. Getting along with others in the workplace is important, because we spend so much of our time at work, don’t we.”

Further testimony of Coringle Furniture’s commitment to this principle was their recent employment of a 62 year old to their production team – quite separate to jobactive Restart.

Watch out for “unconscious bias” clouding your  assessment of a job-seeker

Most hiring managers do not knowingly discriminate 

If your business or organisation has a vacancy, then consider hiring a mature aged worker through jobactive , which has the added benefit of being eligible for a Restart wage subsidy. And if you’re feeling reluctant, then maybe reflect on whether you may be guilty of making some negative assumptions and generalisations about a job seeker based upon their age. 

No-one is saying to give them an advantage over other job seekers – but simply to ensure they are getting as much of a fair go as any other applicant that you consider. It should be said that few hiring managers or small business owners would knowingly discriminate – instead it is more often in the nature of what is sometimes coined an “unconscious bias”.

By remaining vigilant to such a possible negative bias, and assessing every job applicant genuinely on their individual merit, then you will be more capable of making the right decision and appointing the best person to join your business ……. And maybe you will find another Van out there – just waiting to contribute their skills and experience to support the future growth of your business.

For more information about whether your business may be eligible for the wage subsidy, check out the jobactive Restart website

About the author

Brian Carroll is the founder of Performance Development, a corporate training consulting business. He regularly delivers Recruitment & Selection training to hiring managers in both public and private sector organisations, alerting them to the risks of unconscious bias

P.S  The ABC News website reports (April 28, 2017) on a recent study in which almost one third of Australians surveyed said they had perceived some form of mature age-related discrimination either in the workplace or whilst job searching in the past 12 months.