Working after 50: managing a healthy ageing workforce

1. Working after 50: managing a healthy ageing workforce Matt Flynn Stephen McNair

2. Written in partnership between HWL, CROW, CIPD • Based on discussions with HR practitioners in Edinburgh, Gloucester, London • Discusses good age management practice and provides the business case • Focuses on Health & Well-being; Skills and Training; Recruitment; Flexibility; Performance Management

3. Next step • Managing an ageing workforce in small and medium sized enterprises • Most older workers work for SME’s • SME’s manage big HR issues differently from large ones • Big questions • Do small businesses see older workers as a resource? • How do they resolve age issues at the individual and workforce level? • Where do SME’s go for advice and support?

4. Context • Aging population – rising life expectancy and falling fertility – big gap in 40s • Government is incentivising working longer • Many people would like to work longer and are capable • Older people’s participation has continued to rise despite recession • Many older workers have caring responsibilities for older relatives, children, grandchildren • A significant group of highly qualified older people choose to “downshift” to less stressful roles • Employers need to plan to manage and motivate • Abolition of DRA means people can only leave voluntarily or by dismissal

5. Why employers need older workers • Retain skills and knowledge • Tackle skills and labour shortages • Mentoring younger workers • Two challenges: • Make effective use of existing older workers • Make better use of the pool of unemployed/ inactive older people

6. Three kinds of older workers • A lot of older people want to work longer • With age the older workforce profile changes, as the less motivated drop out • There are three groups motivated to continue: • A large group who have found a niche which offers high job satisfaction and security • A second group are much more anxious, stressed • A large group are unemployed/ inactive and would like to work (many with good qualifications and experience)

7. Older workers in general are more likely to report • Workload about right • Work-life balance is good • Satisfied with their jobs • Planning to retire after 65 (or not at all) • Trust their managers • Are treated with respect • Are consulted about change • Would recommend their firm to a friend • But are pessimistic about the chance of changing job

8. Older workers in general are less likely to report • Excessive pressure • Looking for a new job • Confidence in finding another job if redundant • Worry about the future • Being in firms affected by the recession • Rising stress and workload • Formal performance review • Feedback/ recognition of good performance

9. Why older workers choose to work longer • Intrinsic – interest of the work, or a “mission” • Using skills and knowledge • Social and structure to life • Money

10. Who are the people motivated o stay? • 30% of all workers report (higher for older workers): • No excessive pressure (up to twice a month is OK) • Good work-life balance • Overall satisfied with job • They are more likely to report: • Management with clear vision and commitment to organisation • Confidence in managers • They are treated fairly and their work is valued • They feel trusted, respected and consulted by managers • Support with problems • Managers initiate training • They are less likely to be considering changing jobs • They are likely to want to work much longer

11. Managing a healthy ageing workforce: Five Topics

12. Health and Wellbeing • Wide variety of health and ability amongst older workers (no uniform pattern) • One third of older inactive (not registered unemployed) would like to work/one third of inactive work with a disability • Stress highest in mid-career; job insecurity highest at periphery • Job insecurity can be as bad for health as job loss • Job control, autonomy, manageable workloads associated with good health

13. Skills and Training • Skills shortages are widespread, and skills demands are rising, raising demand for some older workers • Older workers less likely to have (current/ any) formal qualifications which are valued by employers • Older workers are unlikely to consider themselves to have a training need • Learning can build on rather than replace experience • Older workers have an important role in mentoring and sharing knowledge

14. Recruitment • Age discrimination is unlawful, but very common in recruitment • Managers perceive older workers as having unrealistic expectations – in earnings and/or status • The chances of returning to work after redundancy over 50 are very low, regardless of qualifications and experience • Employers can do more to develop the “talent pipeline”, especially for older people considering changing career direction • Recruitment agencies can be part of the solution

15. Flexible working • The most frequently requested form of change (after 65 the majority are working part-time) • Informal flexible work arrangements more common than formal arrangements (flexitime, part-year, job sharing) • Organisational benefits (reputation, flexible firm) • Restricts career progression • More acceptable to general workforce if universal – not just for “special” groups

16. Performance management • “Difficult conversations” are difficult (but necessary) • Formal and informal performance management both matter • Pathway to better working lives • Older workers are less likely to receive feedback • Relationships, and trust are critical • Some younger managers find it difficult with older employees

17. Conclusion • Business case for age diverse practices • Employers see the benefit on an individual basis • Older workers want extended quality work • Employee-manager relationship critical • Some workers being left behind • Low Skilled or No Skilled • Unchallenged or Unmotivated • Displaced and Unemployed

18. Thank you! • Our guide: www.healthscotland.com/uploads/documents/18202-ManagingAgeingWorkforce.pdf • CIPD/TUC Age Diversity Guide:www.tuc.org.uk/extras/managingageguide.pdf • CROW: www.agediversity.org • Facebook: www.facebook.com/agediversity • Twitter: www.twitter.com/agediversity