The failure of senior executives to recognise the widespread implications of an ageing workforce mean that UK organisations are “woefully underprepared” to deal with the impact on their business.
Despite the impending abolition of the Default Retirement Age (DRA) and the fact that a third of UK workers will be aged over 50 by 2020, just over a third of board directors have no understanding of the ramifications, even though a huge 93% attest to seeing the value of retaining the knowledge and experience of older staff.
These are the findings of a report entitled ‘Managing an Ageing Workforce’ published by the Chartered Management Institute (CMI) and HR body, the Chartered Institute of Personnel and Development.
Dianah Worman, the CIPD’s diversity advisor said: “In difficult economic times, businesses are not galvanising the talent and skills available to help them perform more competitively. Employers will need to keep on their toes to respond appropriately to the phasing out of the DRA next year, which will have widespread implications.”
While businesses may already recognise the value of older workers, such knowledge needed to be matched with appropriate action, she added.
But the study argued that a lack of board-level recognition of the problem meant that policies to support managers in dealing with the issue were for the most part not in place. Some 43% of such managers were unsure about their organisation’s retirement policies, while 59% believed that it was tricky for younger bosses to manage older workers.
Two out of five respondents also said that their workplaces were not age-diverse, while a similar number revealed that they had suffered age discrimination themselves.
The CMI’s director of policy and research Petra Wilton, said: “The age profile of the UK workforce is changing, yet UK businesses are woefully underprepared for the impact this will have on their business. If action isn’t taken, employees who are in the 50+ age bracket will feel undervalued and have no incentive to carry on working beyond normal retirement age.”
The loss of their talents and experience by businesses not prepared to adapt would be “reckless in the extreme”, she added.
