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Thursday, June 30, 2022

Transforming aged care must start with improving wages and conditions: new research

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New HESTA aged care workforce research reveals the nation risks missing a once-in-a-generation opportunity to build the skilled workforce needed to meet future demand if there is not an adequate national effort to improve wages and conditions in the sector.

Released today, the State of the Sector Aged Care Workforce Insights: COVID and Beyond report found poor pay and a lack of career opportunities were causing people to want to leave the industry.

“Our research shows we must act now to improve wages and working conditions if we’re to attract the skilled and talented people needed to provide high-quality care for older Australians,” HESTA CEO Debby Blakey said.

“We have more than 200,000 members who work or have worked in aged care. 

“Transforming the aged care system must start with the people central to delivering these critical services and improving outcomes for older Australians.

“Improving the quality and sustainability of aged care jobs will improve the financial future of our members working in the sector. 

“A stronger aged care system is also vital for our members and all working Australians who will directly rely on these services as they age.”

The research found significant improvement in aged care workforce sentiment across a range of measures in a challenging year, pointing to a potential opportunity for the sector and government.

“Our research shows aged care professionals are feeling prouder to work in the sector and more connected to their employers and leaders. 

“Workforce strategies implemented now could be particularly effective at attracting and retaining aged care professionals,” Blakey said.

“We can’t afford to waste this opportunity.”

The HESTA head welcomed the Government’s announcement in the Federal Budget of a $17.7 billion funding package, but said there remains widespread industry concern that this may be inadequate to urgently address issues identified by the royal commission.

“The royal commission warned of an understaffed, underpaid and poorly trained workforce,” she said. 

“The research is clear – our members are telling us these are key concerns and would cause them to leave the industry or not recommend others work in the sector.

“Without strong advocates from employees in aged care, we’ll struggle to attract the people needed to lift standards and meet the expected increase in demand from our ageing population.”

Blakey welcomed the announcement of aged care funding in the Budget, including $216.7 million over three years to grow and upskill the workforce. 

The sector would also benefit from Government-supported education and skills training, with an additional 33,800 Vocational Education and Training courses for the sector and a $91.8 million commitment to train an additional 13,000 home care workers over the next two years.

She said, while there was a raft of measures designed to improve quality and safety – including mandating additional hours of care – it would be difficult to attract the necessary professionals needed to deliver better client outcomes without addressing low rates of pay.

“Despite the critical care our members provide in aged care too many are in poorly paid and insecure employment that leaves them in a precarious financial position that was all too apparent during COVID,” Blakey said.

Approximately 25 per cent of HESTA aged care members (45,000+) made a claim to access their super early under the Government’s scheme.

The research found aged care professionals’ top three reasons for leaving their employers were a lack of skill development opportunities, wanting to try something different and low pay.

More than 4600 of HESTA’s members working in health and community services (HACS), including more than 1500 aged care professionals, were asked about their work experiences, job intentions and if they’d recommend a career in the sector. 

As part of the research, HESTA also spoke to employers, peak bodies and unions in the sector, who agreed unanimously that improving wages, working conditions and providing more skills and career development opportunities was essential to creating high-quality jobs in aged care.

The research provides a unique insight into the workforce with surveys taking a pre-COVID snapshot in May 2019 and during the pandemic in July 2020.

When asked if they felt appreciated and valued by their employer and the community, the answers revealed a highly polarised workforce. 

Between 32 per cent to 38 per cent of aged care employees said they were unlikely to recommend their employers, leaders, or career in the sector.

“This significant number of detractors of the sector could create real difficulties in attracting the next generation of the aged care workforce, which the Royal Commission said needed to grow by 70 per cent by 2050 to maintain current staffing levels in the face of rising demand,” Blakey said.

The research into the aged care workforce expanded on HESTA’s 2018 Transforming Aged Care report. HESTA is the largest superannuation fund dedicated to Australia’s health and community services sector and now has more than 880,000 members (over 80 per cent of whom are women) and manages more than $60 billion in assets invested around the world.

The report is available at hesta.com.au/agedcarereport21

Report key findings

1. Aged care professionals felt prouder to work in the industry and were the second proudest workforce in HACS behind community services professionals

2. Job satisfaction increased – average rating increased from 6.6 to 7.2 out of 10

3. The aged care workforce was polarised. In 2020, 32% to 38% of aged care employees said they were highly unlikely to recommend their employers, leaders, or a career in the sector.

4. Around a third of respondents did not feel valued/appreciated by their community and employer

5. Top 3 reasons for leaving employers: 1) skills development 2) wanting to try something different 3) pay

6. Professionals aged under 30 and nurses most likely to intend to leave aged care within two years

7. 84% of aged care respondents said they felt somewhat or strongly supported by their employers during COVID

8. Significant improvements in aged care Net Promoter Score (NPS) 1[1] between 2019 and 2020:

Likelihood to recommend

NPS 2019   NPS 2020   Change

Industry

-13        +1         +14

Employer

-46        -8         +38

Employer’s services

-36        +3         +39

Leader

-44        -4         +40

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