Why age needn’t be an issue in the workplace

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Overview

2011 has brought some major employment legislation changes such as the removal of the default retirement age (DRA) which from 1 October will cease altogether. Employees will now be able to choose if and when they want to retire. Employment Minster Ed Davey hailed this reform as ‘great news for older people, businesses and the economy’, but not everyone agrees. Concerns have been voiced that businesses may be saddled with an ageing and incompetent workforce, incapable of performing their jobs and unwilling to leave the workforce. According to the CBI, companies will face ‘huge uncertainty and greater risk of tribunal claims if the government does not tackle the unintended consequences of the decision’. Others argue that these expensive older workers will also be taking jobs from younger workers struggling to gain employment and effectively harming their prospects.

These concerns overlook the fact that older workers can and are delivering significant benefits to many companies not least in terms of the knowledge, experience and the ideas they can deliver. Today, there are around 850,000 workers in the UK who are over 65 years old and there has been no evidence that their performance has had any negative effect on company performance. In fact, it has been demonstrated by companies such as B&Q who employs many older workers that they can have a very positive impact on a company’s performance and culture, particularly where older workers mentor and train new recruits. In industries such as engineering and manufacturing, where there is a shortage of talent, one of the big concerns is the impact of baby boomer generation retiring. Companies in these sectors are looking for ways to retain the knowledge of these ‘older’ workers and ensure it is passed on to successors to avoid what is commonly termed, a ‘brain drain’.

Many businesses however, are still overlooking the need to train and develop their older workers and this will need to change, particularly in light of the new legislation. The CIPD has recently published a report which shows that older workers are at the bottom of the priority list for companies when it comes to training and performance management. Employee Outlook: Focus on Managing an Ageing Workforce which surveyed 2,000 employees found less than half of workers (46%) aged 65 and above claim to have had a formal performance appraisal either once a year or more frequently, compared to 65% of all employees. It also found that 44% of employees aged 65 and above have not had a formal performance appraisal in the last two years or never, compared to a survey average of 27%. Older workers are also much less likely than younger workers to have received training, with 51% of those aged over 65 saying they had received no training in the last three years or never, compared to 32% across all age groups.UK companies are neglecting the development of their older workers in the mistaken belief that they don’t need to invest in their employees who are near the end of their careers. However, with the law changing in October, this situation needs to be addressed and there needs to be a mindset change in certain companies.

It goes without saying that businesses need to invest in the skills and development of employees of all ages and at all stages in their career life with a company. But this isn’t enough. Managers need to ensure that they truly understand the training needs of each individual at all levels so they can deliver targeted training that will have a genuine impact on performance. The only way that companies can gain this insight is through the delivery of regular employee assessments that test the skills, knowledge and performance of employees. If the assessments are based on situational or on-the-job assessment then the information gleaned from them will give managers a complete and accurate picture of the skills, knowledge and competencies of their workforce.

Using assessments, employees can also be benchmarked against performance criteria, enabling managers to understand where skills gaps lie in the organisation and the training interventions that are needed for each individual that will improve their performance and productivity. This knowledge will not only enable companies to deliver more targeted training and development programmes and improve the performance of individuals, but will ensure they maintain and improve the skills of all workers, whatever their age or stage in their careers.

Assessments will also highlight transferrable skills which will give managers the insight they need to make the best decisions about who to redeploy in other parts of the business. Star performers will be pinpointed too so decisions can be made about whether they need greater responsibility, a promotion or if they can be used to mentor or coach other staff to ensure their knowledge is passed on.

From October, when employers will no longer be able to require employees to retire at a certain age, they will need to ensure that they give the same focus and attention to the training and development of older workers. They need to ensure they have the right performance management systems and practices in place that will equally look all their workers whatever their age. By using assessments, companies can gain insight immediately into the development needs of each individual, and this knowledge can help managers make the best decisions about getting the most out of all their staff, whether they are new starters or their oldest employees.