2007 will be the year in which enlightened employers must start to design and implement radical new policies and practices (Age Management Strategies) if they want to generate real business benefits from the “demographic timebomb”.

This is the view of specialist mature age-group advisors, in my prime, who maintain that a transitional approach is now required by which businesses consider how employees contribute to the organisation over their whole career, not just the immediate ‘pre-retirement’ years.

With fewer younger workers coming through to support the economy there are going to be skills shortages. At the same time older workers will be individually reviewing their need to work longer as they examine their financial security in the light of an increasing state pension age and increasing life expectancy.

Age Discrimination legislation per se is relatively unimportant. Ultimately the real issues are being driven by demographic and social change that is likely only to increase. By reacting positively and taking action now, businesses will ensure that they will be able to retain the skills and knowledge of their best workers over a longer period of time in a highly competitive market whilst adding to their image as enlightened employers. Ultimately they will see the benefits in terms of improved bottom-line results.

Richard Ciechan, Managing Director of in my prime, comments:

“Research * shows that the majority of public and private sector employers have now taken steps to ensure that their existing policies and procedures comply with the technical requirements of the new Age Discrimination legislation. Now, however, a more radical, strategic and far-sighted approach is required in order to ensure that in future they have engaged, healthy and productive mature workers who are able to fulfil their individual aspirations in respect of their final working years while remaining loyal, reliable and committed employees.”

In future, ‘retirement’ ideally will be a relatively seamless process, individual in its nature and reflecting the specific needs of both the business and the employee. Just as people do not leave work one day ‘young’ and come back the next as ‘old’, so in the workplace of the future people should generally no longer be ‘employees’ one day and ‘pensioners’ the next. Moving through one’s career is a transition and should be seen as such.                                                                                                 

In order to facilitate this there needs to be a greater emphasis on flexibility and planning over a longer period of time, focusing on regular career review and appraisal processes and the identification of each individual’s needs and aspirations in terms of current and future health, wealth and time issues. Employers should recognise that whereas increased numbers of older workers will continue to want to work, they may not be motivated by the same factors as younger employees. The traditional carrots of salary rises and promotion are unlikely to be top of the list. The ability to establish a good work-life balance, learn new skills or find new ways of contributing in the workplace are all likely to be more important, as will be the ability to interact on an equal footing with colleagues of all ages.

Age Discrimination by its very nature does not allow for ‘different’ treatment of individuals or groups based solely on the criterion of their age. Thus, there must be a greater focus for all ages - with accompanying education - on the knowledge and skills required to see people through their lives into a ripe and fulfilled old age. This includes: greater awareness of health and lifestyle issues, including more formal health screening; a greater understanding of personal financial planning; continuing education in emerging skills like IT.

Individual life planning and counselling from an early age, and the introduction of flexible and contract working arrangements including support and information about alternative working options such as self-employment should also be provided. Issues concerning each individual’s work-life balance should be addressed openly and positively. Re-training and mentoring schemes that enable the transfer of accumulated experience are to be encouraged.

It may be that there is less interest in these topics and less take-up of training from younger people but from an early age employees should be challenged and encouraged to take responsibility for planning and managing their futures, alongside their existing responsibility for managing their own attitudes and behaviour. To this extent employers can only be seen as facilitators and supporters, the onus has to lie with each individual to design a fulfilling and rewarding future.

Richard Ciechan concludes:

“Growing older affects absolutely everyone and there is no magic cut-off or ‘sell by’ dates when it comes to employee contribution. What are important are the aptitude, attitude, knowledge, skills and motivation of each individual. An engaged and productive workforce is in the interests of employers, workers and the nation as a whole. Employers must be sensitive to this and not make unsubstantiated assumptions about workers of any particular age. They should do their best to remove obstacles to continued employment not actively seek them out.”

* Research shows that while most organisations (89%) claim to have introduced or changed their policies and practices to comply with the Age Discrimination legislation which came into effect on October 1, almost a quarter (24%) still do not have an age discrimination policy and only just over half (54%) provide training to managers with regard to age discrimination.

- Findings taken from the Recruitment Confidence Index (RCI), produced by Cranfield School of Management, November 2006.