Labour market shortages

Aged, but not out

The UK has managed to avoid recession for the moment even though it’s suffering an unpleasant bout of inflation.

One of the reasons for this is one of the lowest unemployment rates in 50 years – 3.8% – combined with a large number of people leaving the workforce for a number of reasons, including ill-health.

Indeed, Office for National Statistics (ONS) data published in 2022, based on Census 2021, found that between June and August 2022, “around 2.5m people reported long-term sickness as the main reason for economic inactivity, up from around 2m in 2019.”

But of course, there is more to the story. A recent post on current affairs website The Conversation, ‘What is driving current labour market shortages and how older workers could help’, notes that while some think Covid is the main cause of workers departing, the real reason is more basic: a general decline in workers aged 35 years and under along with an ageing workforce.

And this isn’t a problem that is unique to the UK as countries around the world are experiencing demographic change along with falls in population. As a January 2023 Euronews story, ‘The countries where population is declining’, commented, China’s population fell for the first time in 60 years and numbers are falling in Italy, Portugal, Poland, Romania and Greece (albeit partly because of migration). And Japan has a serious problem resulting from a low fertility rate and low immigration. 

Emma Delap, managing associate at Lewis Silkin, sees increased life expectancy and declining fertility rates driving the ageing of the world’s population and says that “this demographic challenge looks set to continue and there are now more people aged 65 and older than there are aged under five”.

Employers, globally, are struggling to recruit. And indeed, the print sector has recognised this and is looking for solutions.

Back in February 2023, Printweek reported that “printers have said they are happy to hire older workers as the government attempts to get over-50s back into work” and that “the majority of Printweek readers have said that age is no barrier to recruitment in their business and they regularly hire staff over the age of 50”.

The older worker comes with benefits

Keeping the employment cycle running requires more than a decent job with appropriate pay and conditions; it also requires either the young to feed into the process or the old to stay employed.

Given that there’s very little that employers can do to influence the country’s birth rate, that leaves them with only the ability to influence the departure of their more experienced staff along with attempts to hire others from the same generation.

And there is in fact a body of evidence to show that older workers can bring much to the table.

A 2017 report from the Centre for Ageing Better, What do older workers value about work and why? reckons that there are clear benefits to employers in retaining older workers and keeping them engaged.

It noted that just because a worker has grey hair doesn’t mean that they cannot perform well beyond state pension age: “Many older workers may actually be more adept in their role because of the expertise they have gained; they often have highly developed communication skills and can confidently solve problems, handle tricky situations and contribute well to teams. Older workers often have unique insights and good judgement gained from their years of experience.”

From a practical perspective, Delap feels that “older workers have lots of skills and experience to offer, employers can benefit by taking steps to retain their existing workers as they get older as well as to recruit older workers into their organisation”.

Legal background

It should be said at this point that age is a protected characteristic under the Equality Act 2010 (EqA). In short, this means that employees must not be treated less favourably due to their age unless this can be objectively justified.Delap explains that the EqA protects employees of all ages, so employers “must be careful that any benefits or policies they introduce which aim to support older workers do not unjustifiably disadvantage younger groups”.

Equally though, employers must find a balance between paying proper attention to the needs of their older employees while not indirectly discriminating against them on the grounds of age.

While “positive action” to address under-representation of other protected groups, for example women and people from certain ethnic groups, is permitted says Delap, she warns that the legal framework around positive action is heavily restricted. Notwithstanding this, she explains that “age is an unusually protected characteristic because, although employees of all ages are protected, employers are allowed to positively and directly discriminate on age grounds, where this can be objectively justified”.

She continues: “Direct discrimination on age grounds is only allowed on legitimate social policy grounds (not the private interests of the employer) but, according to the Equality and Human Rights Commission, this could encompass objectives such as ensuring a generational mix or facilitating the participation of older workers in the workforce.” In other words, employers do have some legal leeway when it comes to initiatives aimed at recruiting and retaining older workers.

Keeping the older worker

Many older workers, but not all, have choices. They are probably going to have independent children, be mortgage-free, may have received an inheritance, and hopefully will have built a retirement nest egg. Work could be something they’ll do out of choice rather than necessity.

As a result, employers must recognise the need to give older workers a reason to stay active through challenging work that uses their skills and experience since money may not hold the same attraction as free time. Giving these workers some freedom over what they do, how they do it along with flexibility over hours is one way to accomplish this. 

In fact, a December 2022 survey of 2,000 older workers for workingwise.co.uk found that older workers are “tired of feeling overlooked and undervalued at work,” with 48% of those considering retiring saying this is “because they are fed up with their job” – significantly higher than the 34% who said ill-health would cause them to retire.

The survey also found that 62% of older workers said they needed greater flexible working provisions, 51% said needed to be valued more, 43% needed higher pay and just 38% said they wanted a good benefits package.

Thus it’s evident that for many older workers life isn’t all about money. However, Delap points out that the government currently offers online assistance to encourage people to undertake a ‘mid-life MOT’ considering work, health, money, etc. She says that toolkits are available to help employers offer this type of assistance in the workplace and that “employers could take advantage of this existing programme or they could offer other, privately organised, advice and assistance”. 

She adds: “It is unlikely that someone would choose to work for an employer simply because they offer this type of benefit, but existing employees may find it helpful and it may assist them to look at opportunities and arrangements to keep them in work longer.”

Another aspect to consider is the suggestion that older workers are more likely to want to collaborate with others or have contact with clients and members of the public. Interestingly, more than two-thirds of employees in a December 2022 Harvard study, 7 Principles to Attract and Retain Older Frontline Workers, prioritised ‘fun places to work.’ The study noted also that many essential roles can be monotonous and difficult and so a “fun-loving workplace where employees enjoy each other’s company can mean a lot to the frontline experience. What is more, customer satisfaction and employee happiness are correlated”.

Allied to this is the ability to keep learning – Business in the Community (BITC) noted in May 2023 research, conducted by YouGov, that only 21% older workers (aged 50-59) felt that their employer pushed them to upskill at work, compared to 56% of those aged 18-29. Indeed, Kate Carr, employment and skills manager at BITC commented that “it is crucial that employers support all workers, regardless of age, to learn and develop in their roles”. She added: “With the news that the UK retirement age could soon increase to 68, employees in their early 50s will still have nearly 20 years left of their career and employers who fail to invest in developing the skills of this crucial talent pool could be missing a trick.” The last part of that sentence is the key for it recognises that employees need to be given a reason to stay in the workforce.

Also, the review found that older workers prefer managers who make plain their expectations. Meeting this expectancy is simple – firms just need to train younger managers on how to properly communicate to staff in all age bands.

It is just as important to note that as we get older our health needs change: aches, pains and medical conditions can lead a worker to feel that it’s time to retire. Indeed, it’s been said ‘never ask a man over 50 how he’s feeling – you’ll get a long answer’. Employers need to make workplace adjustments if they want to keep older workers.

Suitable adjustments can counter this – and it’s something that Bishops Printers understands (see boxout). Adjustments don’t have to be expensive – they can be as simple as access to occupational health support, appropriate physical adjustments, together with equipment that can help reduce the physical effort required to complete a task.

Many young parents consider flexible working essential. But the same also applies to the older worker according to the workingwise survey. It noted that “work-life balance is a huge issue for older workers: 85% said what they want from work has changed since they were younger, with the most significant reason – cited by nearly three quarters – being that they want more work-life balance”.

And so, to make work more age-friendly, reduced hours or the ability to be flexible on times and possibly location of work is a vote winner. It’s a point backed by the Harvard study which found that an important part of a great workplace culture is flexibility regarding shifts and leave of absence.

Summary

It’s clear that we’re in an age of tight recruitment and that all avenues should be explored. Older workers have much to offer and a wise employer will target them much as they would someone fresh to the workplace. 


Case study: Bishops Printers values older workers

Paul Cull, senior production manager, and Michelle Pearce, commercial director, both see older workers as part of the workplace.

For Pearce older workers “bring life experience which tends to translate into a more pragmatic, less hot-headed, more solutions-oriented responses to challenges”. Cull, however, sees other values in that family pressures have generally settled, and “they bring a strong work ethic, sense of loyalty and stability to the workplace”. He also thinks that they’re “more likely to embrace shift patterns, preferring longer days and more quality time away - which can also make longer commutes less of an issue”.

That said, Cull knows that this group are not a panacea to recruitment problems. He says: “In a production environment, being on your feet for a 40-hour week and handling heavy paper stacks is physically demanding.” This is why he seeks a mix of young and older workers. 

Greater wisdom

With age comes wisdom and gravitas which Pearce sees as bringing “a sense of calm and control to what can be quite difficult conversations, simply by virtue of life experience”. Cull, on the other hand, sees experienced older workers passing on their knowledge which “gives them a real feel-good factor… a proper sense of pride as they watch team members grow and develop”.

The generations at Portsmouth-based Bishops mix well which Pearce says is “partly down to the recruitment process and finding the right fit for us”. She adds: “But we also have social nights out together, fun incentives, random team rewards and excuses for cake days that bring us together in an easy, relaxed way.” 

She says that younger team members, quickly discover that a person doesn’t lose their sense of humour as they get older.

Cull points out that he deliberately pairs older and more experienced hands with younger mentees because of the benefits to all parties: “The older guys are often grandfathers and clearly enjoy passing on their knowledge and experience, and the mentees feel supported. It’s a win-win situation”.

And he’s seen the young learn so much from their elders: “Everything from how to avoid and mitigate mistakes, to how to keep kit running when replacement parts fail to arrive, how to run jobs more efficiently, and the why behind the way we do things the way we do.” Interestingly, he says that the older generation certainly know a thing or two about stamina, focus and tenacity: “Not everyone takes that onboard, but the ones that do are the ones that do well at Bishops.”

It’s just as relevant to know that in terms of new technologies, Cull says that Bishops has few problems because it regularly upgrades its machines and has a culture of continuous learning. By way of example, he says: “We recently introduced PrintIQ MIS which saw the entire production process digitised with touchscreen technology. We didn’t have any kick-back from staff and the launch went really smoothly. So, as long as you take the time to explain and train properly, there shouldn’t be an issue.” 

Retirement?

On the matter of a retirement age, Cull notes: “Our chairman, who is well into his 70s, still likes to put a shift in on the guillotine.” That said, he explains that the company doesn’t encourage production staff to continue working if they’ve reached the point they want to retire, simply “because we know how physically demanding the job is, and they’ve earned the right to take life easier”.

And Cull does see people leave: “In terms of production, it tends to be related to health. But we mitigate where we can by employing a chiropodist to help staff look after their feet.” He does see staff realising that they can afford to downsize and reduce their working hours.

If workers do want to stay Cull will look to reduce the length of shifts, train them on a different piece of machinery, pair them with younger mentees, encourage breaks, or provide a stool where appropriate. But there again, he says: “It’s usual for a Bishops member of production to be multi-skilled, so moving into different roles on the production floor isn’t usually an issue.”

Lastly, from a commercial perspective, Pearce sees older workers increasingly giving up work to look after grandchildren or support elderly relatives. As she says: “Covid gave people time to think, take stock and adjust to a slower pace and simpler life - our perceptions of what constitutes quality of life has changed.” However, she knows that some older workers leave because “the cost of living means their children can’t afford care for their own children and both parents need to work.”