In his first spring Budget, UK Chancellor Jeremy Hunt announced an increase in the tax-free ... [+]
When the U.K.’s Chancellor of the Exchequer, Jeremy Hunt, introduced his latest Budget last month, there was inevitably much discussion of his plan to scrap the amount of money individuals could save in pension plans without incurring tax. Although presented as a measure to help stem the outflow of senior NHS doctors, it was labelled by political opponents as another benefit for the well-off in a country in which increasing numbers of people were struggling under a “cost-of-living crisis.” But the predictable political point-scoring overshadowed the fact that this was but one proposal for dealing with Britain’s shortage of workers. This was holding back growth, Hunt, said, adding that we wanted more over-50s, people with disabilities and those with young children to return to work.
Time will, of course, tell whether such measures as extending free childcare will achieve this aim. But the signs are that change is already afoot. At PeopleScout, the provider of recruitment services for companies around the world, Robert Peasnell, head of growth, said that he and his colleagues were already seeing older workers “coming to the market.” This is no doubt partly a result of the economic environment, with many people concerned that their savings might not stretch as far. But there is also a realization that not every 50-something is ready for a life on the golf-course, but may feel constrained by what is on offer in the workplace.
Octavius Black, co-founder and CEO of the behavioral science consultancy MindGym, suggests that part of the problem lies in the fact that seniority is traditionally associated with higher pay. Pointing out that research suggests that employees are typically of greatest value to their organizations when aged somewhere between their mid-40s and their mid-50s, he calls for a “rethink” of remuneration. At the moment, employers feel barred from having a conversation about reduced remuneration for older workers because of anti-discrimination legislation, he says. But he adds that he believes many of these workers would acknowledge that, while they have plenty of knowledge and experience to share, they may not be as energetic and as ready to work long hours as they were earlier in their careers — and so might be prepared to enter new arrangements if the terms were appropriate.
Indeed, Peasnell says that research indicates that 56% of those aged over 50 want to continue working beyond 65, with 89% prepared to take a drop in salary to retrain for a new role or industry. At the same time, he says his business is seeing signs of older workers having similar aspirations in terms of working conditions as their younger colleagues. “They want to be valued. They want to work for an organization with a clear employer brand,” he said in an interview.
Meanwhile, it appears that some are starting to change their approach to recruitment in light of the changed environment. A particular concern for employers around the world is demographics, with the youth labour force dropping to such an extent that there is a need to hang on to older workers. But the uncertain economic outlook is also encouraging more people to remain in existing roles. A YouGov poll of 1,000 adults in full-time employment commissioned by TMP Worldwide, PeopleScout’s U.K. talent advisory business, found that 62% were less likely to look for a new job in 2023 than they were last year.
One way in which employers can help themselves is by making the recruitment process more attractive. For a variety of reasons, including worries about bias, cost and efficiency, choosing people to fill roles has become more remote over recent years — and does not appear to have always had the desired outcomes. In particular, candidates of all ages have long been frustrated by employers seeking proficiency in a whole range of competencies rather than assessing their potential. Peasnell says some recruiters are responding by moving towards testing how candidates would act in certain scenarios and trying to make the process more personalized.
One business that appears to be taking a different approach is N Family Club, a fast-growing provider of early-years care for U.K. children. Mark Hassan-Ali, head of HR, said in an interview that the early-years care sector traditionally attracted younger people, but that the company saw a role for older workers who could bring greater life experience but might not want to commit to full-time work.
Recognizing that flexibility is increasingly important to a wide range of employees, it offers 26 different working patterns. Moreover, an employee only has to work for 20 hours a week to qualify for development opportunities. On top of this, the company, which now has about 800 employees, has established its own academy to train employees in a variety of skills and has teamed up with Rest Less, a digital community for older people, to provide access to apprenticeships. Hassan-Ali said in an interview: “The big thing we’ve realized is you can’t be one-size-fits-all. You’ve got to tailor your approach.”
He also believes that N Family Club’s B Corp status (meaning it satisfies certain environmental, social and governance measures) alongside the type of work it does makes it attractive to employees seeking purpose and meaning. Not that he thinks these things alone are enough to win over the best workers. “There are still a lot of employers who think they are in control. That’s old-fashioned,” he said, adding that he did not understand why organizations did not take the time to understand employees and their needs. “It’s time well spent,” he added.
