There’s a workforce drought brewing for Australian aged care

If we look at figures from the Australian census dating back to 2012, we can see that the push for more workers is well underway.

With the country’s ageing population set to double by 2050, the demand for aged care services is gathering pace. If this demand is not adequately met, the lack of people power could ultimately undermine the quality and accessibility of care for older Australians.

For HR leaders in aged care, this looming challenge requires immediate attention, strategic planning, and smart solutions.

From staff shortages and burnout to recruitment challenges and rising turnover, the workforce issues in aged care are becoming more pressing. 

So, what are the main staffing problems facing Australian aged care, and what can HR professionals do to address them?

What’s the government doing?

The Australian federal government is well acquainted with the impending challenge of aged care. This focus extends beyond workforce needs, but it’s well understood that there’s a pervasive need to incentivise and nurture skilled workers and ensure new workers are encouraged, trained, and supported.

The Australian government has implemented several measures to address issues in aged care, focusing on reforms, funding, and quality improvements.

Aged care royal commission 

The royal commission of 2018-2021 led to major reforms aimed at improving care quality, safety, and workforce conditions.

Aged care reform

The government has introduced ‘Aged Care Quality Standards’ to ensure safety and quality in services. On top of this we also saw the recent development of a new ‘Aged Care Act’ focused on consumer rights and improving care delivery.

Increased funding

The recent federal budget included the allocation of $17.7 billion over four years (2021-2025) to improve aged care services, with funding directed to increasing staffing levels, pay, and training.

Workforce development

The government has also introduced the ‘Aged Care Workforce Strategy’ to attract and retain workers with a focus on training and pay increases.

Supporting digital innovation

There have been several ongoing commitments and strategy proposals, including a digitisation in the last budget, to support the implementation of digital records and health monitoring systems to improve coordination and care outcomes.

These steps are part of ongoing efforts to address significant challenges in the sector, including workforce shortages, care quality, and sustainability.

Addressing the shortage of skilled workers

The most significant workforce challenge in aged care is the shortage of skilled workers, which is exacerbated by hunger for an increased workforce.

According to a 2023 report by the Australian Institute of Health and Welfare, the aged care sector will need an additional 100,000 workers by 2050 to meet the growing demand. This is a daunting figure, particularly when current trends show a workforce that is already stretched thin.

What are the main staffing issues?

Nursing shortages

The Australian Nursing and Midwifery Federation has warned that the nursing workforce in aged care is severely under-resourced. There’s a pressing need for registered nurses, particularly in residential aged care, where the demand for skilled care is highest.

Skill gaps

Beyond nurses, there’s a shortage of trained allied health professionals, such as physiotherapists, occupational therapists, and speech pathologists, who play a vital role in enhancing the quality of life for older Australians.

Recruitment competition

The fact remains that aged care providers often find themselves competing with hospitals, private practices, and other healthcare settings for the same talent pool. In a market where talent is already scarce, attracting and retaining skilled staff becomes even more important.

Tackling high turnover rates and burnout

The aged care sector is notorious for high turnover rates, with staff leaving the industry due to burnout, poor working conditions, and low pay.

A 2022 survey by the Aged Care Workforce Industry Council found that turnover in the aged care sector was running at an alarming 33%, significantly higher than the national average for other sectors. 

It’s obvious that something needs to change and HR teams will be on the front lines helping support the industry’s evolving staffing needs. So, what are the most pressing issues?

Emotional and physical demands

Aged care workers are exposed to high levels of emotional and physical strain, with many in the workplace feeling underappreciated. Long hours, understaffing, and dealing with complex health issues, such as dementia and end-of-life care, can lead to understandable burnout. 

Wages aren’t keeping pace

While workers in aged care are doing some of the most important and rewarding jobs, they’re often paid less than their peers in other healthcare sectors such as hospitals, despite the demands of their work.  

This means that making sure that making wages attractive will be a key element to recruitment and retention.

Australia’s aged care workforce itself is ageing

In a case of being hit from both ends, not only is Australia’s population ageing and moving into aged care in larger numbers, so too are staff.

According to the Aged Care Workforce Census, the average age of aged care workers is now 46 years, and nearly a quarter of the workforce is over 55. 

This demographic shift poses a significant question to be answered, as many of these workers will be retiring in the coming years, further exacerbating the shortage.

Let’s take a look at some key areas that require attention.

Succession planning

HR leaders in aged care may be wise to focus on succession planning and creating pathways for younger workers to enter the industry. Without this, the sector risks facing an acute shortage of skilled workers in the future. This can’t be achieved by HR leaders alone, and will require easier and more attractive entry avenues, such as through government policy.

Training and upskilling

Attracting younger workers and offering career development opportunities is crucial, but so is ensuring that existing workers are equipped with the skills needed for modern aged care. This includes training in areas like dementia care, digital health, and palliative care, as well as addressing the growing need for workers to be proficient in new technologies.

The lack of diversity and inclusion

Another challenge for aged care HR leaders is the lack of diversity in the sector. Australia’s aged care population is increasingly diverse, with more culturally and linguistically diverse individuals requiring specialised care. However, the workforce does not always reflect that diversity, which can impact the quality of care.

Cultural competency

The lack of culturally competent care can lead to misunderstandings, miscommunication, and a lower quality of service for certain clients and patients. HR professionals need to focus on recruiting and retaining a diverse workforce that’s well equipped to meet the needs of a multicultural population.

Indigenous representation

The underrepresentation of Indigenous Australians in the aged care workforce is another area for improvement. According to the Australian Bureau of Statistics, Indigenous Australians experience poorer health outcomes and are underrepresented in the aged care workforce. Increasing Indigenous employment in the sector is crucial for delivering culturally safe and appropriate care to Indigenous Australians.

The issue with attracting younger workers

Aged care is often perceived as a sector dominated by older workers, which can make attracting younger staff somewhat difficult.

The fact is that many younger workers do not see aged care as an attractive career option. To get past this, HR leaders must focus on changing the image of their workplace and create pathways for younger generations to get involved. This will include paying attention to creating:

• An attractive culture and brand
• Flexible work options
• Better engagement and employee development opportunities
• Competitive wages and benefits
• Comprehensive and accessible support

HR needs to act now

There’s no silver bullet for this multipronged workforce issue, and HR leaders can’t handle the burden alone. However, it’s quite clear at this stage that conquering these pressing issues will require increased attention and effort.

From the critical shortage of skilled workers and high turnover rates to the ageing workforce and a lack of diversity, HR leaders must act decisively to address these issues.

The solutions will not be easy, but with strategic planning, a focus on employee well-being, and investment in training and development, the aged care sector can create a workforce that is equipped to meet the needs of an ageing population.