The dawn of a new, older, working age?
By Jayne Warren - 30/04/2008
Whether through necessity or desire, the number of people working over the state pension age increased by 35,000 to a staggering 1.258 million between September-November 2007 - and it is almost certainly has very little to do with the new Age Discrimination laws. Instead, a combination of low state pensions, increased life expectancy and the dawning realisation that young employees are not necessarily reliable or in for the long haul are more likely explanations.
There are conflicting reports as to how effective age discrimination laws have really been, but although the number of older workers is on the rise, there is plenty of evidence to suggest that myths and stereotypes concerning the capabilities of people approaching retirement age still abound - creating a barrier to a more dynamic workforce.
By far the retail sector has had the most success stories regarding employing older workers - but it does beg the question as to why other sectors have had more limited success in attracting and retaining older workers, especially with tougher age legislation in force for well over a year.
The statistics show that 34% of those aged 50 and over remain unemployed for more than 12 months - against 25% of those aged 25-49 - and by 2030, the number of people in that age in the UK is expected to reach 27 million, an increase of 37%.
Paul Archer, partner of employment law at Lemon Co. made the observation that: "For employers, there remains a feeling that they want to take on somebody with long-term career prospects, someone who wants to achieve. And there is still prejudice that someone close to retirement will not match that." His comment wouldn't stand up in court, of course, but equally importantly it is simply untrue. The average new recruit today will only stick with a firm for a few years before they move on.
Colin Tenwick, CEO of recruitment firm StepStone said: "University graduates are much more likely to leave the company or change their career structure after three or four years. Companies are only now adjusting to that and becoming much more flexible about building in gaps where people can leave the business and return. There are parallels with people at the end of their working career."
The issue runs even deeper into the business culture, with the main focus on today's needs rather than what is likely to happen in the future. Tenwick continued: "We still have the view that we retire at the top or peak of a career. What we don't have is the career structures to enable people to start moving towards part-time or flexible working, or to bring younger people into the workplace to fulfil management or leadership roles and giving other people positions to support and develop them into those roles."
Just because a person is reaching or has surpassed the statutory retirement age, it doesn't mean that they no longer want to have a meaningful role and connect with the business. It may take a simple rethink about the type of role they will play - including how to tap into their experience - and adjust working hours away from the 9-5, five days a week routine.
Dianah Worman, the Chartered Institute of Personnel and Development's (CIPD) adversity advisor, asks: "Does age really matter? A business needs to have the best skills, keep the talent and provide the stability it needs, as well as fresh thoughts and ideas to sustain its own performance. Knowledge is power. It makes no sense to ignore pockets of expertise and skills."
However, she also concedes some older workers are counting themselves out of the market because they give up after a few knock backs. She encourages people not to give up and believes as older workers become more confident in applying for jobs, this will help bolster more activity in the recruitment market.