Employment Agency Belittles $1,000 Job Bonus Offer to Firms that Will Hire Older Workers

A day after the Gillard government announced the launch of a $1,000 job bonus for Australian firms that would hire workers aged 50 and above for at least 3 months, an employment agency belittled the incentive.

The scheme, announced by Treasurer Wayne Swan, intends to lower the unemployment rate among Aussies in their 50s through the cash incentive which 10,000 participating companies could avail of in the next four years.

However, New Staff Solutions Director Peta Simpson said the $1,000 cash would not make any difference to employers who are trying to make ends meet. She said the government is merely throwing money at things but is clueless on what is happening to Aussie enterprises.

The scheme was based on a recommendation from the Economic Potential of Senior Australians released in 2011. It said there is a high need for older Australians to re-enter the workforce.

Ms Simpson warned that some companies may just take the money and fire the 50-plus employee after three months. She insisted that $1,000 would not make a difference because in a struggling workplace it is the employees with a "can do, will do, will fit" attitude who will be hired.

It is the second attempt by the Gillard government to reduce the high unemployment rate among older workers. In 2010, it rolled out the Corporate Champions programme for companies prepared to invest more in hiring older workers. Those who signed up for the programme will get high priority in the Job Bonus scheme.

"These kinds of incentives can have a real impact when it comes to changing employer behaviour and giving Australians who are out of work a foot in the door towards sustainable long-term employment," The Australian quoted Employment Participation Minister Kate Ellis.

Monash University professor Philip Taylor agreed with Ms Simpson that the bonus scheme may be counterproductive because cash incentives hardly impact industry. He suggested that the government should instead invest in training and make workplaces more accommodating.

Paying companies $1,000 to accept older workers suggests that there is something wrong with employees over 50, he pointed out.

A study by Bupa Aged Care showed that among its aged-care providers including those engaged in kitchen and cleaning duties, those over 60 years old were the most reliable workers. Such type of workers, when compared to other age groups, took the least amount of sick leave and only account for 3 per cent of workers' compensation expenses, disclosed Bupa HR Operations Manager Adam Bullock.