UK Plc Must Kick Its Youth Addiction

The Governmentís radical pension overhaul, announced yesterday, will be unworkable if companies donít change their attitude to employing the over 50s, reports Executives Online.

According to Executives Online, the fast-track recruitment specialist, many firms are too keen to retire off their senior executives in favour of fast rising management trainees and younger staff. Executives Online says that employers and the Government need to shift employment perceptions so that workers over 50 are valued and retained in the workforce. The company says that not only will this be vital given the shift in pensionable age, it will also keep more talent in British businesses and will address the growing problem of a demographic imbalance faced by the UK.

Norrie Johnston, Managing Director of Executives Online explains: ìThe Government wants to raise the retirement age so we can all provide more for our pensions and take the tax burden off younger workers, yet many companies are actively getting rid of workers as soon as they hit their 50s. This does not make sense. If the Government wants people to work longer then it must also encourage a business culture where older workers are actually valued and retained by firms. There are people out there that have built up skills and experiences all their working lives, only to be literally sent out to pasture when they are arguably at their peak in the business world.

According to Executives Online, the statisics bear this out. Nearly three-in-five people2 (59%) who describe themselves as fully retired actually retired before the state pension age. However, of those that are fully retired, almost two-in-five (39%) felt that retirement had been forced upon them. Although this was often down to ill health, 30% said that they had been made redundant.

Executives Online believes that if the Government took steps to halt this trend towards exiting over 50s from the workforce it would be better for business too.

Johnston explains: ìThe Government and employers have put so much focus on recruiting and training young people with new ideas that they have forgotten that what companies often need to guide them through major changes and difficult challenges is an old head on young shoulders.î

In addition, with the UKís current low rate of unemployment, companies are finding it difficult to recruit younger candidates for their most senior positions. Executives Online says that organisations should not be so hung-up on age when employing managers and directors, particularly as older applicants may actually prove to be better suited.

Many companies turn to Executives Onlineís fast-track recruitment service to provide them with senior managers and directors, often on an interim basis. With more than 8,000 skilled executives in its talent bank, the company estimates that the average age of its candidates is 48, boasting a total of 240,000 yearsí worth of business experience.

Johnston continues: ìWhen clients come to us for help it is usually because they have a clear requirement in mind. They have a project that needs managing, results to be delivered or a problem to be fixed. They know that because of the breadth of experience in our talent bank they will find the candidate with the right skills and, importantly, the right maturity and gravitas to get the job done.î

The Governmentís own figures1 reveal just how valuable workers aged over 50 can be, as well as their desire to keep on working. Almost one-in-five (19%) of workers aged over 50 are self-employed, compared with just 14% of the 25 to 49 age group. In fact when it comes to men, more than 26% of workers over 50 are self-employed. A self-employed man in his 50s is also more likely than an employed man to still be working in his 60s.

For more information about Executives Onlineís talent bank or for further reading from the companyís own research on employment trends, visit www.executivesonline.co.uk

Sources
1. National Statistics Office
2. Factors affecting the labour market participation of older workers, a report published by the Department for Work and Pensions