Older workforce brings benefits

A third of employers have seen the average age of their workforce increase over the last year, following the abolition of the default retirement age (DRA) in 2011.

One in four employers (25%) told Group Risk Development that DRA removal has enabled them to retain knowledge and experience within their business.

A further 17% said they felt it has increased the diversity in their workplace. This is additional proof of a positive response from employers to the UK’s newly “ageless” workforce.

Three in five (59%) respondents felt that the removal of the DRA meant they were more likely to recruit employees aged 50 and over.

Benefits perceived by employer of older workers included the fact that such workers were a store of knowledge. This was cited by one in four (23%) employers, while 22% said they were more likely to be loyal to the company. A further 14% said that older employees had the ability to motivate other staff.

On the downside, a more age diverse workforce can raise issues — particularly with regards to absence management. Over a quarter of employers (27%) have seen an increase in absence rates or age-related health conditions, such as diabetes and arthritis.

www.grouprisk.org.uk/documents/minutes/public/130115%20DRA%20FINAL.pdf