Turner blueprint calls for better treatment of older workers by the HR community

Recommendations in Turnerís Pensions Commissions report calls for Government and the HR community to offer a better deal to older workers to encourage and enable them to stay on beyond retirement age. It calls for better financial incentives for later retirement, a stronger focus on training and educating older workers and the removal of the default retirement age.

The Chartered Institute of Personnel and Development (CIPD) believe the government need to abolish default retirement age and work with employers to change negative mindsets surrounding the employment of older workers if this group is to achieve adequate pension provision.

A recent survey from the Chartered Institute of Personnel and Development and the Chartered Management Institute, ëCreating a New Age for Allí, suggests that older workers can offer real benefits to organisations in terms of skills and experience. The findings show almost a quarter of respondents perceive older workers to be more productive than the rest of the workforce and around three quarters believe they are more reliable and committed.

Charles Cotton, CIPD Reward Adviser, says: ìHaving a default retirement age goes against what the Government is trying to do in terms of abolishing age discrimination and increasing pension age. It is counter productive and unnecessary. Getting rid of default retirement age does not mean individuals will be made to work longer it is merely about offering the choice in terms of when employees decide to stop working.î

The research also shows that workers are attracted by financial incentives to stay on at work beyond retirement age. However, almost one third of respondents would like more independent financial advice on pensions and retirement income.

Cotton continues: ìIt is in the employersí interest to provide adequate information and good communication about pensions and other financial benefits. Effective communication is central to business and Government success ñ only when staff understand financial benefits and the importance of pensions will they value them and take such factors into consideration when joining an organisation or thinking of leaving.

ìBut good education and communication is not enough on its own. The retention of older workers relies on employers offering good incentives for later retirement, a strong policy on occupational health and strong focus on education and training of older workers. For this to happen mindsets need to change and employers need to recognise the benefits that older workers have to offer.î

Key findings from ëCreating a New Age for Allí show that:

- only a half of employers are aware of the new pension changes introduced by the Government earlier this year. These give employees the opportunity to defer both state pensions to enable them to receive a higher pension at a later stage or from April 2006 a tax free lump sum,

- younger workers receive more training than older workers. Training provision is pretty equal for both groups, but younger workers are more pro-active in taking-up training. Employers and government therefore need to work together to find ways of encouraging training take-up among older workers,

- there is a large demand for more flexible pensions and part-time working towards the end of peopleís careers. For instance, more than two thirds of workers say that they would anticipate part-time work towards the end of their careers,

- workers are attracted by financial incentives to stay on at work beyond retirement age ñ affordability is key.

- older workers are not more costly, do not have higher absence levels and are perceived to be more productive than the rest of the workforce,

- around a quarter of employers have no mandatory retirement age, with a further 10% planning to abolish their existing retirement age in the next two years,

- around a third of employers believe that the Governmentís proposed ëright to askí procedure which affects those who want to work beyond 65, would cause them problems.

www.cipd.co.uk