Human resource strategies, mature workers and competitive advantage: a resource-based view

The recent growth of the Australian economy has created labour and skills shortages. A key point is, however, that labour shortages in many areas, particularly service industries, could be filled by mature workers. Many of these workers will delay retirement or return to the workforce after retirement. One argument is that mature workers’ experience should be highly valued. Moreover, this cohort possesses superior knowledge to younger workers. Among other things, this relates to corporate knowledge, mature judgment, lower absenteeism, greater work ethic and reliability. Generally, mature workers are noted for their loyalty. Against a background of the resource-based view (RBV) at firm level, this paper seeks to demonstrate the increased benefits of utilising mature workers. We argue that when combined with superior HRM practices, it is possible for an organisation to improve its competitive advantage and increase productivity. We suggest, however, that organisations need to increase their focus on age-neutral attraction, retention and development policies.