Age still a sticking point for employers

21 October 2009

Employers who are afraid to discuss age miss out on older workers

Only half of employers have a formal pro-age recruitment policy, and many are nervous of discussing age issues with workers as they approach retirement, according to a new report out today (21 October). However, many businesses are open to making adjustments to the workplace to help retain staff if the issue is raised on an informal basis.

These are some of the findings of new research undertaken jointly by the Institute for Employment Studies and the Policy Studies Institute, and funded by the Nuffield Foundation. An Ageing Workforce – The Employer’s Perspective explores the attitudes of employers towards older workers, the range of interventions in place to prevent early exit and facilitate their continued employment.

The study found that many employers are happy to let people carry on working after the normal retirement age of 65, and many would also be happy to see compulsory retirement abolished, but that they need support to get the best out of more mature workers.

Helen Barnes, Principal Research Fellow at the Institute for Employment Studies and one of the report’s authors, comments:

‘The number of older workers is rapidly increasing, so it’s essential that both employers and government tackle this issue. We have found that many organisations struggle to raise the issue of age in the workplace, as they are wary of causing offence or risking discrimination. Rather than adopt hard and fast policies on age, almost all employers seem willing to consider modifications to the workplace to retain older workers on a case by case basis; but too often employees are also reluctant to raise the issue.

‘The role of line managers is crucial here. Employers must make a greater effort to communicate with staff and highlight that alternative working arrangements are a possibility, and that staff have a degree of choice in the run-up to retirement age. Employees on their part also need to be better informed of their rights to help encourage them to engage with their employer.’

Other key findings

  • Formal pro-age recruitment policies and age management policies are more common in larger organisations. They are less likely in industries dominated by men and those organisations that tend to ‘recruit from within’.
  • The absence of formal pro-age recruitment policies does not necessarily mean bad practice, however. Employers recognise the benefits of older workers.
  • Some employers did express reservations around older workers, where they did not match their customer demographic or there was a heavy manual element to their work.
  • Health is still largely regarded as a private, individual matter rather than a concern for employers beyond meeting specific health and safety regulations.
  • Some employers simply do not have any experience of staff retiring, often because they have a small business or a new business with a young workforce. Larger employers were familiar with the retirement process and more often had policies in place to manage the process.
  • Older workers in sectors with skills shortages are recognised as a valuable resource, and employers are keen to retain them.

Further information

An Ageing Workforce – The Employer’s Perspective, Helen Barnes, Deborah Smeaton, Rebecca Taylor. IES Report 468, October 2009.

The report was completed using over 40 in-depth interviews undertaken in summer 2008 to draw out employers’ perspectives on age management and the associated problems and opportunities with directors, human resources managers and line managers. In addition, to provide contextual background information, secondary analysis of the Workplace Employment Relations Survey (2004), (WERS) was undertaken, to build a picture of how age has been managed in a wide range of British establishments.

For further information or comment, contact Helen Barnes or call +44(0)20 7470 6117, or the IES press office, or on 01273 763414.

The Nuffield Foundation is a charitable trust with the aim of advancing social well-being. It funds research and provides expertise, predominantly in social policy and education. It has supported this project, but the views expressed are those of the authors and not necessarily those of the Foundation. More information is available at www.nuffieldfoundation.org


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