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Businesses ‘woefully unprepared’ for ageing workforce

 

Businesses ‘woefully unprepared’ for ageing workforce

Just 14% of UK managers consider their organisation well-prepared to cope with an ageing workforce, 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. This is the main finding of joint research published by the Chartered Management Institute (CMI) and the Chartered Institute of Personnel and Development (CIPD).

The report, Managing an Ageing Workforce, argues that the failure of UK business leaders to adapt to an ageing workforce, despite impending changes to legislation and the proposed abolition of the DRA, is putting the future success of their businesses at risk.  34% of the respondents claim board-level recognition of ageing workforce issues is non-existent, despite the fact that 93% see value in retaining the knowledge and experience of older workers.

The research found that 43% of managers are not well-informed of their organisation’s retirement policies and there is a perception that it is hard for younger employees to manage older people (59%). Respondents also claim that age discrimination still exists, with 40% having experienced it at some stage in their careers. A similar number, (41%), say that their workplaces are not age diverse. The CMI and CIPD have made a series of recommendations for senior managers. These include reviewing training and development opportunities for line managers, to ensure they are up to date with changes to retirement policies and are given training to help them handle age-related issues in an appropriate manner and get the best from older staff.

The Employment Team are running a free breakfast seminar on 26 October 2010, entitled ‘Coming of Age’ which reviews age discrimination under the Equality Act and other age-related matters. Email events@smab.co.uk to book a place.
     
October 2010

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