Retaining older workers is crucial to address the talent gap, stated the Chartered Institute of Personnel and Development (CIPD) in response to recent research carried out by the UK Commission for Employment and Skills. The research found that British companies will need to retain their ageing talent as the number of people retiring over the next 10 years may outnumber the number of people finishing education. In fact, the study has found that in the next 10 years UK employers will need to fill an estimated 13.5 million job vacancies. However, only seven million young people will leave education during this period, leaving employers facing a potentially large employment gap.

In Malta, the situation is very similar, with a study by the EU commission stating clearly that it risks being one of the EU countries worst hit by an ageing population in 50 years’ time. What is more, an NSO Demographic Review has shown that although Malta’s population is expected to decrease by the year 2060, it will have nine pensioners for every 10 working citizens. Such a scenario makes retaining productive older workers an increasingly important issue that all organisations need to address.

In order to help employers make the most of the opportunities and avoid potential pitfalls the Chartered Institute of Personnel and Development (CIPD) has released a new guidance called “Managing a healthy ageing workforce: A national business imperative”. The guide, which has been produced in collaboration with the Scottish Centre for Healthy Working Lives, stresses the importance of managing the ageing workforce and aims to trigger action from employers and the older workers themselves by focusing on three steps: building a business case, addressing issues of perception and developing talent management. In response to the launch of this new guide, Dianah Worman, Diversity Adviser, CIPD, advised HR professionals to take the lead on this issue and work in partnership with line managers and senior colleagues so as to secure the best results. She commented that those organisations that respond appropriately to the challenges of an ageing workforce would gain a significant competitive edge, not only in terms of recruiting and retaining talent, but also through supporting the well being and engagement of employees of all ages. Worman explained that: “The business case for older workers is strong and research shows their impact and experience within the organisation enables better customer service, enhanced knowledge retention and can help to address talent and skills shortages.”

“All of this will help guard against potential age discrimination claims, thereby mitigating damage to the brand and any associated costs,” Worman maintains.

Unfortunately, a wide-held view still predominates among many people who believe it is unfair to expect older workers to stay longer in work. But mounting evidence shows that many of the older workers want to and, increasingly, need to do so. In fact, the CIPD research demonstrates clearly that older workers are looking to extend their working lives, with more than 50 per cent of them aged over 55 planning to work beyond the previous state retirement age. Although financial reasons play a key factor, many older workers also wish to continue using their skills and experience and enjoy the social interaction they experience in the workplace. 

What is more, a number of myths lumped together under the heading of ageism still persist in some organisations about how the older workers approach their jobs. The Future Work Institute, a consulting team, which has worked for over 15 years in the area of diversity, future work and work/life assignments for major global organizations, define these myths and explain what the realities are. The most popular myths that exist are that older adults are not interested in working; they are slow, unproductive workers; older workers don’t want to work because of their retirement benefits; older workers are difficult to work with; they are inflexible and resistant to change; they are often absent from work because of illness and are more accident-prone; and finally, that older workers have poorer health than younger workers, decreased physical and mental capacity and less stamina.

The reality is a completely different picture as evidence shows that many of these older workers indeed want to advance and find challenges in their work. Older workers remain longer in employment than their younger counterparts; they tend to have less incidence of absenteeism and tardiness than their younger counterparts; many older workers are interested in working; because of their life experience, many have enhanced interpersonal skills and abilities; and finally, older workers have fewer on-the-job accidents than their younger counterparts.

Although we all age and our physical and mental capabilities decline, the effects vary greatly between individuals. Well managed, most people’s capacity to work does not decline significantly before 65, and many remain very productive long after that. In fact, research has shown that age is a poor predictor of physical and mental abilities but productivity generally tends to improve with age.

Finally, the CIPD guide stresses the crucial role that HR professionals have in drawing attention to the issue of ageing and of stressing its importance. This is because HR professionals are the ones that can help trigger change by talking to other people to raise awareness on the need for action. They have a key role to play in supporting better management of older people and in informing other stakeholders, including board members and line managers, about the issues. As such, the guide explains that HR professionals need to be able to understand the age profile of their workforce, both in their organisation and in their industry, and the implications of this for their future workforce. These implications need to be then communicated to all relevant stakeholders in the organisation, including the board, senior managers, line managers, trade unions and employees. They also need to be confident enough that their recruitment practices do not discriminate against people on grounds of age, as well as ensure that their performance management and appraisal systems identify the future aspirations of their older workers. Finally, the guide recommends all HR professionals to train their line managers so that these in turn can consider developmental and career and working options for the older workers.

2012 is the “European Year of Active Ageing and Solidarity between Generations”. It is a chance for all of us to reflect on how Europeans are living longer and staying healthier than ever before and to realise the opportunities that it represents. Active ageing can give the baby-boom generation and tomorrow’s older adults the opportunity to stay in the workforce and share their experience, keep playing an active role in society and to live as healthy and fulfilling lives as possible.

Ms Camilleri is a researcher at the Foundation for Human Resources Development (FHRD)