Analysis of the Office for National Statistics’ October labour market figures (2022) found that there are now almost 14.6 million economically inactive people aged 50 and over – a record level. This is an increase of 1% compared with 2021 and up 5% since 2019. A shocking increase which reverses a decades-long trend of employment growth amongst this demographic and highlights the long-term scarring of the pandemic on this portion of the workforce.
A recent ONS study found that 42% of people aged 50 to 65 not currently in work would return to employment or self-employment in future, but 67% wanted to return to part-time work. Asked about what was important to them when looking for work:
• 69% said location,
• 67% wanted flexible working opportunities,
• 21% said good pay was key,
• 13% wanted a job that fits around caring responsibilities.
Some sectors have a track record of recruiting people 50 years and older but it is an alien mindset to many UK employers — who are alert to the need to forge better career paths for women and staff from minority groups, while often neglecting the needs of older employees and overlooking older candidates when recruiting.
A November 2022 poll by UK professional body the Chartered Management Institute found that just 4 in 10 managers were open to employing those aged between 50 and 64 to a “large or moderate” extent. Some put it more bluntly. “Post-pandemic, one agency was honest enough to say they ‘would not touch someone over 60 with a barge pole’.”
This prejudice is backfiring badly. An exodus of older people from the workforce — just as UK employers lost access to the EU labour market — is a key factor in labour shortages that have been plaguing businesses in sectors ranging from logistics to hospitality, care and IT.
Employers need to revisit their attitudes. Growing numbers are doing just that with age becoming a new focus rather than an overlooked corner of the diversity and inclusion agenda. The onus is therefore placed on employers not just to become more open-minded about whom they hire, but to make jobs more appealing to older workers — by considering the following:
• more flexible about working hours, since many are juggling work with:
o caring for parents,
o looking after grandchildren, or
o managing health conditions of their own which may mean they are only able to take on part-time hours or need flexibility as to when they work;
• more supportive for those with health conditions, including those with mental health issues, and women going through menopause, who can otherwise fall out of work just as their careers are peaking;
• open to discussing training and career progression – all too often older workers are overlooked for training and promotion by line managers who assume they are no longer looking to take on new responsibilities;
• open to simply making workplaces more inclusive for those whose motivation to work is as much about social interaction as salary;
• able to blur the boundaries between full-time work and retirement — for example, by allowing employees to reduce their hours and start drawing on pension pots in a graduated way or by using former employees in consulting roles after they have retired.
Why employers may benefit from employing older workers
• Their expertise and experience can boost productivity, in part by supporting younger colleagues;
• Older employees are no more likely than younger workers to take time off for illness;
• Older workers also tend to stay in jobs for longer, reducing employee turnover and related costs;
• Work is good for physical and mental health, stress at work can be detrimental but the stress of not having work, of not having a purpose, can be worse;
• Financial health is improved by continuing to work even part time while saving into a pension rather than taking pension income early and thus having positive impacts on mental health.
Some employers have made progress in attracting, retaining and supporting older workers, but there is a long way to go. Almost two-thirds (62%) of workers aged 55 and over say they have been overlooked for promotion and suffered from a lack of training and progression opportunities, according to recent research.
The most important step
The broadest, but arguably most important step an employer can take to become more age-friendly is to instil “a culture which rejects ageism.” This starts with age-neutral recruitment as follows:
• Remove a blanket requirement for all recruits to have university degrees, as this is more likely to exclude people aged 50 and older who are less likely to have had the opportunity to attend university.
• Word recruitment campaigns and advertising using age-neutral language.
Summary
All employers will find it increasingly difficult to fill vacancies unless they can attract more older workers and it is the actions of individual employers that will make the most difference. If you are an age-friendly employer, these practices – flexibility, support for health needs, access to training – will benefit everyone.
For any further advice please contact nicola.goodridge@goodhr.co.uk or call +44 7917 878384
