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Achieving an Age Diverse Workforce. Caroline Waters Director People & Policy, BT Group. Agenda. Overview of age discrimination legislation Facts, figures and the business case BT’s response to age legislation BT’s policy and process review How we can avoid discrimination
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Achieving an Age Diverse Workforce Caroline Waters Director People & Policy, BT Group
Agenda • Overview of age discrimination legislation • Facts, figures and the business case • BT’s response to age legislation • BT’s policy and process review • How we can avoid discrimination • Where to go for help
Overview of age discrimination legislation • Employment Equality (Age) Regulations 2006 comes into force on 1 October in the UK • Introduced to comply with the EU anti-discrimination legislation. All member states have until December 2006 to introduce equivalent national law. • Covers employees working abroad but do business in the UK, or who have worked for BT in the UK at some point of career. • Covers workers, employees, job seekers and trainees. • Covers all aspects of employment and vocational training e.g. • selection, interviews, recruitment, performance management, retention, training decisions, annual leave, redundancy, ill health and disability discrimination, retirement • Covers ALL ages
Overview of age discrimination legislation • Covers direct & indirect discrimination, harassment & victimisation • Direct discrimination, i.e. it will be illegal to use age bars • using ‘no older than’ or ‘no younger than’ e.g. “applicants must be aged under 30” • basing decisions on perceived or apparent age • Indirect discrimination, i.e. using a neutral criteria which disadvantages a particular age group • such as using time-linked experience, or years of service • e.g. BT’s annual leave policy or common use in job adverts • Age harassment and victimisation will always be unlawful • ageist banter
Overview of age discrimination legislation • The Regulations allow organisations to justify some policies and practices • general justification test • length of service related benefits e.g. long service awards • To be justifiable a policy or practice must satisfy a ‘legitimate aim’ and must be ‘proportionate’ and ‘necessary’ • General exemptions: • up to 5 years service • meeting other statutory requirements e.g Health & Safety • some pension-related criteria • No qualifying period • No cap on awards
Facts, figures and the business case • Growing numbers of people over 50 - 41% of the UK population will be over 50 in 2031 • Fewer younger workers - 16 to 24 year-olds will fall from 6.9 million in 2005 to 6.6 million in 2020, a 4.9% decrease • From 2010 onwards, young people reaching working agewill fall by 60,000 every year, fundamentally changing the shape of the workforce. • Average retirement is less than the State Pension Age (65) - the UK’s average retirement age is 63.8 years • More people over State Pension Age will need/wish to work in the future - people over 65 still economically active will increase by 33% by 2020.
The business case for BT • The global workforce is growing steadily older • causing the labour pool to contract • We can: • access a wider talent pool • increase return on investment • benefit from a skilled and motivated workforce • avoid Employment Tribunal costs • identify new markets and get closer to customers • become an employer of choice in an increasingly competitive labour market • build on our reputation as an ethical and intelligent employer • retain corporate knowledge “The business benefits of a mixed-age workforce are now widely recognised. There is clear evidence that both staff turnover and absenteeism are reduced and that motivation and commitment are improved in organisations employing people of all ages.”
BT’s response to age legislation • Age Action Group established to identify all policies/practices which will be impacted • Worked closely with UK experts: DTI, Employers Forum on Age • All policies and practices reviewed, amended or justification created • Communications messages on-going - retirement transitional arrangements and planned processes • Working party across all lines of business established to share resource and common issues • Delivery of the communications plan
Retirement • Flexible Retirement Approach • No fixed Normal Retirement Age (NRA) • People reaching 60 can stay on, if they wish • People reaching 60 can still retire, if they wish • Default Retirement Procedure from age 65 and above • Use procedure once • People will choose when to retire • Career/Life planning/flexible retirement options
Avoiding age discrimination • Do not make assumptions about a person’s capability or potential based on their age or experience • Treat people equally and fairly, regardless of age, e.g. if someone aged 60 can no longer climb a pole, treat them the same way as a 40 year old in the same situation • Do not use age as a criteria, e.g for potential or talent selection • Be careful of language used. Don’t refer to someone’s age or experience e.g. in DPRs, job adverts • Remember - • If in doubt, substitute age for gender or race!
Positive Younger people Older People Negative
Positive quick More mature Easier to manage Good attenders loyal bright Younger people Older People Less engaged More time off - hangovers Less loyal Not so PC literate Less adaptable to change immature slower Negative
Where to go for help Many materials available: • BT “Age of Change” web site …… http://peopleandpolicy.intra.bt.com/docs/age_of_change/index.html • The Employers Forum on Age (EFA) www.efa.org.uk • Age Positive www.agepositive.gov.uk • ACAS www.acas.org.uk • The Age and Employment Network (TAEN) www.agebusters.org.uk
Achieving an Age Diverse Workforce Caroline Waters Director People & Policy, BT Group