Businesses need to consider the risks of of an aging workforce, Britain's top companies warned
Older workforces will mean added risk and opportunity in equal measure. Either way, they are going to be a fact of life and employers need to get on top of the issues.
That was the message today from a debate at the AIRMIC conference, chaired by Mike Crisp, a partner at broker and global risk management advisor Jardine Lloyd Thompson.
Longer life expectancy, lower birth rates, increased aspirations among old people, legal changes and sheer necessity mean that an increasing proportion of employees will be over 50, risk management advisors heard.
“How many organisations here have considered the implications?” asked Mr Crisp, an expert in employers’ liability insurance.
He added: “Many employers have found taking on older people a very positive experience. The evidence shows that they are no less productive than younger workers, except in a limited range of jobs.”
“They are less likely to be absent and their motivation is higher, whilst their better experience, inter-personal skills and motivation offset their loss of speed, strength and memory.”
One of the leading positive examples, he said, was that of Sainsbury’s which employees 420 people over the age of 65, the oldest being 93. The benefits for the company have been low absenteeism, high motivation and positive customer feedback.
But, added Mr Crisp: “Despite these benefits, staff over 50 create a range of issues. This will almost certainly require those responsible for risk management to work more closely with their Human Resource colleagues.”
For example, the way workplaces are designed may need to be reconsidered as well as what happens when workers are injured. Statistics show that older people are less likely to be involved in workplace accidents but, when they are, the absence can be considerably longer.
“Firms have historically encouraged injured workers over a certain age to take early retirement whereas their younger colleagues may receive rehabilitation,” said Mr Crisp. “This discrimination is going to be increasingly difficult, partly because staff don’t always want to be pensioned off, but also because you’re going to need them.
“Rehabilitation strategies will need to reflect the facts of life.”
Some relevant facts:
- By 2031 41% of the UK population will be aged 55 or over.
- By 2022 there will be 1m fewer working-age people under 50 and 3m more aged over 50.
- Falling birth rates and increased further education will also shrink the workforce.
For further information, contact Mark Baylis at the conference, 07775 693994
Note to editors: AIRMIC (The Association of Insurance and Risk Managers) represents risk managers in the UK, including 80% of FTSE 100 companies. Their annual conference in Bournemouth runs from June 13-14, www.airmic.com