What employers should consider when managing an ageing workforce

By Kelly Evans

On April 12, 2023

Kelly Evans outlines the legal considerations for employers in overseeing and retaining an ageing workforce

According to the ONS, many over-50s have become economically inactive since the start of the pandemic. In addition, people are living longer and there is a significant skills shortage. 

As a means of tackling this by tapping into the experience and skills older workers bring, Jeremy Hunt’s spring 2023 budget announced funding for new ‘Returnerships’. These will be targeted at the over-50s to get them back to work by bringing together and expanding existing skills programmes (skills bootcamps, apprenticeships and sector-based work academy programmes) and supported by £63m of additional funding. The government has also now published Employer guidance on helping individuals return to work alongside a Returner toolkit. 

Age discrimination

A key concern to be aware of is the potential for age discrimination. Age is a protected characteristic under the Equality Act 2010, which protects against direct and indirect discrimination, victimisation and harassment of employees of any age. Unlike the other protected characteristics, it is possible to justify direct as well as indirect age discrimination. 

To attract and retain older workers, employers should ensure the workplace culture is age-inclusive by specifically referring to age in policies and procedures and by taking action to improve the recruitment, retention and development of workers over 50. It is essential that employers don’t make stereotypical assumptions about older workers in relation to their job performance, their career ambitions, offering training and development opportunities or retirement plans. 

Ill health and performance issues

Ageing doesn’t necessarily mean poor health, but those in later life are more likely to experience health conditions that may require workplace adjustments. Research by the Centre for Ageing Better shows that many older workers are reluctant to disclose emerging health conditions or disabilities for fear of ageism which prevents them from getting support to stay in work. To combat this, employers should provide training to managers so they understand what reasonable adjustments can be made and what other support to offer staff. 

If an older employee’s performance is not satisfactory the employer should raise this in the same way as for other employees, giving them the same chance to improve and providing the same options for training and development. If not, they will be at risk of claims of age discrimination.

Flexible working

Employers may also want to consider other options for keeping older workers in the workplace. Many over-50s have caring responsibilities for ageing relatives and/or grandchildren. Those employees may welcome flexible working opportunities so they can adjust their way of working to suit their commitments. Alternatively, employers could consider offering sabbaticals to provide for a break without the need to retire which enables the employer to retain their skills and experience. 

Retirement discussions

The statutory retirement age was removed in 2011 and employers who still have a compulsory retirement age risk claims of unlawful age discrimination unless they can show this is objectively justified. Therefore generally, employers should avoid asking questions about when an employee might retire or putting pressure on them to retire. 

However, it is important to keep lines of communication open about future plans. Employers may be concerned that raising the issue at all may be perceived as discriminatory. Acas guidance on age discrimination highlights that whatever the age of the employee, discussing their future aims can help an employer to identify their training or development needs. The Centre for Ageing Well suggests having a mid-life MOT during which career plans, skills, health and wellbeing and financial planning are discussed. 

Career progression

A potential difficulty with an ageing workforce, particularly if it is top-heavy, is the lack of career progression prospects for younger workers. If there is no retirement age, promotion opportunities may be blocked by older workers who have no immediate plans to retire, leaving the employer at risk of losing younger workers who look elsewhere. There is no simple answer, but open communication with older workers about future aims or flexible retirement plans may help with workforce and succession planning.

Menopause

One of the effects of ageing for women is going through the menopause. Employers should ensure they are aware of the legal and practical issues and consider what adjustments can be made, review absence and performance policies and provide training for managers on how to support menopausal women and deal with the issues arising sensitively, confidentiality and fairly.  

Conclusion

According to the ONS, over a third of workers in the workplace are aged 50 or over. An ageing workforce brings the benefits of experience, skills and knowledge for an employer. The key is to ensure that older workers feel welcome in the workplace and are treated fairly and consistently. 

This piece was republished from People Management.