Publications > Press Articles 2002

Turning grey to gold

By Veronica Sheen
Herald-Sun, 3 September 2002, p19

What is the fastest growing and most affluent segment of the consumer market in Australia? Older people of course- their spending over the next 10 years will grow by 60 per cent compared with a national average of about 30 per cent.

And who would they prefer to buy their goods and services from? Other older people who understand their needs, know what they are talking about, and who will take the time to explain how to work the computer, use the ATM, and program their new hi-tech home entertainment package.

At last Australian companies are starting to see the value in employing older workers to serve the rapidly expanding older consumer market. Westpac has recently announced it will be employing people 55 and over in its customer service divisions. The initiative is a welcome move, both improving employment opportunities for older people and improving the service the company provides.

Banks want to reduce over-the-counter transactions to save money, but the alternatives have to be explained properly to customers. The Council on the Ageing (COTA) recently ran banking information sessions for older people on how to use ATM, phone and internet banking services. We used retired bank managers who knew about banking and about service and the sessions were highly successful - proving that older consumers can easily embrace technological change.

In recent times, banks have been amongst the worst offenders in shedding jobs, often getting rid of their senior workers. So the Westpac initiative is a good start in regaining credibility with mature Australians.

It's also part of a dawning recognition that age discrimination is bad for business. For too long older workers have been frustrated by employers who treat them unfairly because of their age. However, discrimination in employment on the basis of age is an increasingly outmoded and antisocial practice and completely out of step with the reality of Australia's ageing workforce and ageing population.

Older people constantly tell us how much they dislike dealing with younger staff who are insensitive to their needs, who don't understand their issues and problems and who fail to give the level of service mature age people want. It's time Australia recognises, as British retailers such as supermarket chain Tesco have, the reliability and excellent customer relation skills of older workers.

The growth areas for consumer spending are going to be household and health services, travel and holidays, and telecommunications. Older Australians will be the key consumers in most if not all of these areas.

Companies that are astute enough to meet the needs and preferences of older Australians will find a lucrative and growing market. The use of older workers is part of this strategy, and must be encouraged to ensure our economic viability. Older workers are not only paying their own way but are also saving for their retirement. This means they will have more income when they retire.

Businesses that recognise and adapt to these realities will be on fast track to prosperity.

Veronica Sheen is Deputy Director, Council on the Ageing