Aging Workforce in Australia: A Wicked Problem

Running head: WICKED PROBLEM WITH AGED WORKFORCE
WICKED PROBLEM WITH AGED WORKFORCE
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1WICKED PROBLEM WITH AGED WORKFORCE
The issue of aged workforce in Australia is important because it is putting a
downward pressure on the labour force participation and the economic growth. The reasons
like improved health, increased jobs in the service sector and supportive tax treatment of the
superannuation contribution along with a flexible work options have pushed the workforce
participation rate of the aged Australian to 67% (Connell, Nankervis and Burgess 2015).
However, this problem is quite complex as the aging labour force is bringing changes in the
income of the country, productivity thus affecting the all-inclusive growth of business in one
hand and putting pressure on the employability of the young generation of Australia. The
organisations have been failing to caret scope of jobs for the freshers as they are already
having experienced employees in the organisation. On the contrary, the aged employees who
are occupying the senior positions of the organisations, have proved themselves to be the
hardest working generation for bringing profit for their organizations. This is the reason why
the readiness of the aged people in the work is a sustainability issue. It is directly affecting
the economy of the country, creating the organizations less innovative and not allowing the
technological changes in support of the business.
The aim of this essay is to discuss different perspectives of the aging workforce of
Australia. This is the reason why it will be discussing this issue to be a wicked problem with
all its characteristics, the reasons why the current approaches are failing and the application
of system thinking to solve this global issue of aging workforce.
This issue of aging workforce in Australia is a wicked problem as this is a social issue
which is very difficult to explain and quite impossible to solve. As the 2016 census of
Australia, the aging people consists 16% of total population in the country which means
every six persons there is an old individual of age more than 65 (Majeed et al. 2015). The
aging population and workforce is a wicked problem which is affecting the demography
of the country and affecting the workforce directly. For this reason, the retirement age is

2WICKED PROBLEM WITH AGED WORKFORCE
getting changed. Despite the fact that the traditional and informal retirement age has been 65
but most of the aged employees are occupying the administrative position and play essential
role in the business. This is the reason why the challenge regarding aging workforce in
Australia is much more complex as well as wicked (Pierce et al. 2017). The characteristics of
this wicked problem are firstly, they lack one definitive formula. Secondly, they are
interconnected with one another or serve as the symptoms of other issues. Thirdly, the
solutions are either good or bad but neither true nor false. Fourthly, the solutions are not
instantaneous hence cannot be tested. Finally, the individuals who aim to solve this particular
wicked problem are to take sole responsibility for their own actions hence get no support.
The wicked problem of increased aged workforce in the Australian companies, is
growing its vitality because of various reasons. Firstly, the betterment of lifestyle and medical
support have increased life expectancy among the Australian people. The better lifestyle has
led to enjoy longer lifespan and translated to attain more productive careers (Hajkowicz et al.
2016). Secondly, the Australian older people are taking the opportunity of changing types of
work performed. The smaller shares of the workers in construction, agriculture and
manufacturing sectors have created scopes for the older employees. Thirdly, this wicked
problem is gaining more support as the flexible working arrangement of the organisation to
retain their eligible and experienced workforce, is applicable for these employees (Majeed et
al. 2015). Fourthly, the organiostioanl are forcing some of the older employees to work
longer than they have planned. Finally, the tax incentives of the superannuation system can
encourage older people to keep on working. The salary sacrifices as well as voluntary
contributions are allowing the households for reducing tax liabilities and take full benefits of
payments (Jeon et al. 2017). These are the reasons why the aged population of Australia are
not willing to leave their work and creating issues to gain sustainability in the business
process of the country.