A growing blind spot: Are HR professionals sidelining experienced employees?

Despite a widespread skills shortage, a concerning number of employers in Australia are increasingly viewing employees in their early 50s as “older,” according to a new report from the Australian HR Institute (AHRI) and the Australian Human Rights Commission.

The fifth national survey, titled Older and Younger Workers: What Do Employers Think?, found a shift in perception. Almost a quarter (24%) of HR professionals now classify employees aged 51 to 55 as “older,” a significant jump from just 10% in 2023. This change in attitude comes at a time when more than half of employers (55%) are struggling to fill job vacancies.

The report revealed a clear disconnect. Even with open roles, many employers are hesitant to hire experienced professionals. Only 56% are open to hiring employees aged 50 to 64 “to a large extent,” and this drops to just 28% for those aged 65 and over. A startling 18% of respondents said they would not hire this age group at all.

The report also highlighted a similar hesitation to hire younger talent, with only 41% of respondents open to recruiting jobseekers aged 15 to 24 “to a large extent.”

Sarah McCann-Bartlett, CEO of AHRI, said, “Our research found some workplaces are hesitant to employ employees over the age of 50, before they are even close to retirement age, or under 24 – including Gen Z’s digital natives.” This sentiment is supported by the data, with one in five HR professionals admitting that their recruitment practices negatively impact older employees, and 23% saying the same about younger employees.

“In a tight labour market, there is a clear economic imperative to tap into the full potential of the available labour pool, and that means building inclusive practices that support employees at every stage of their careers,” McCann-Bartlett added.

The survey also exposed persistent age-based assumptions. While older employees were rated highly for loyalty (74%) and reliability (64%), they were rated poorly for their technology skills and career ambition. Only 1% of respondents believed older employees had superior tech skills.

READ MORE: Reimagining ageing: How HR leaders can foster intergenerational connection at work

Conversely, younger employees were rated as more tech-savvy and energetic, but scored low on reliability (1%), loyalty (2%), and the ability to handle stress (2%). This bias comes at a cost as nearly 60% of employers reported losing key skills when older employees departed, yet only 13% consistently capture that knowledge before they leave.

“What we’re seeing is bias at both ends of the age range. Sadly this undermines diversity of thought and productivity,” said Robert Fitzgerald, Age Discrimination Commissioner at the Australian Human Rights Commission.

Yet, there are signs of progress. Employers are increasingly offering flexible work arrangements (FWAs) to support an age-diverse workforce, with 72% now doing so—up from 49% in 2021. Flexible work topped the list of what employees say will keep them in the workforce longer, with 80% citing it as a key factor.

Retention strategies are also evolving in response to economic pressures. The importance of higher wages as a motivator jumped from 0% in 2023 to 48% in this year’s report, the highest since the survey began in 2014. Coaching and mentoring opportunities (38%) and access to training and development (36%) are also gaining traction as retention levers.

“If we want to fill our skills gaps and improve productivity, we need to shift from age-based assumptions to evidence-based strategies. That means designing jobs that keep people engaged across the lifecycle, using emerging techniques to attract and retain different generations and building workplace cultures where no one is written off because of the year they were born,” concluded McCann-Bartlett.