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Fuller Working Lives

“Work for All”

PES and effective employment of older workers -

Sofia, Bulgaria

Tuesday 17th November 2015

Sofia Stayte, DWP

2Department for Work & Pensions

Video

featuring,

Ros Altmann - Minister of State for Pensions

Yvonne Sonsino - Mercer UK

Mercer is a global consulting leader in talent, health, retirement, and investments.

Mercer helps clients around the world advance the health, wealth, and performance

of their most vital asset – their people. Mercer's more than 20,500 employees are

based in more than 40 countries, and we operate in more than 130 countries.

Louise Griffin - Steelite International

Steelite International are a UK manufacturer of tableware for the catering industry,

trading with over 140 countries across the Globe. Winner of the National Business

Awards, UK 2014.


First, the good news…

• There are more older people in employment than ever before:

– 9.4 million 50+ workers in the UK

• Employment rates for older workers have been increasing. Over the

past 10 years:

– For people aged 50-64 it has increased from 64.5% to 69.4%

– For people aged 65 and over it has increased from 6.2% to 10.3%

• The corresponding employment rate for people aged 25-50 has been

broadly constant and is currently 82.4%


Attitudes are changing…

Recent polling said:

• Over 75% employers believe the main benefit from having 50+ workers

is their experience;

• 65% highlight reliability and

• 54% their role as mentors to younger employees.

And people want to work longer?

• 48% respondents over 50 still want to be working between 65-70

• 39% would prefer winding down gradually with part-time work,

rather than retiring

• Only 15% of respondents in their 50s said they would like to stop

working altogether between 60-65

• 38% of retirees said they miss work because they ‘miss the social

interaction’


But early labour market exit still a significant

issue


The future workforce in the UK

In the next 10 years,

2014-2024,

there will be

200,000 fewer

people aged 16-49,

but 3.2 million

more people

aged 50-State

Pension age.

3.2m50-State

Pension age

To find out what action the Government is taking, please visit www.go.uk

200k16-49


The impact on individuals of early exit from

the labour market

• Early exit from the labour force has damaging effects for

individuals, employers and the public finances:


The economic cost of people leaving the

labour market early – GDP implications


Fuller Working Lives: A Framework for Action

• Analysis of the issue

• Business case for

individuals, businesses

and wider society of

later life working

• Action by Government

and others


Targeting – what we know

2.9m people 50+ are out of work. The top two causes are:

• 1.0m (34%) Health conditions or Disability

• 0.4m (14%) Caring responsibilities

Half of economically inactive older men previously worked in one of just

four sectors:

• Manufacturing

• Construction

• Transport

• Wholesale/retail

Two thirds of economically inactive older women previously worked in:

• Education

• Health/social care

• Public administration

• Wholesale/retail


Ministerial steer

As Business Champion for Older Workers:

Rethink retirement:

• “This is not about being forced to work on, but enabling and

encouraging those who want a fuller working life. Older workers can

play a vital role in future growth both for individual businesses and the

wider economy as a whole”

Focus on the 3 ‘R’s:

• “Retain - keeping older workers and their skills in the workplace…

• Retrain - ongoing workplace training irrespective of age…

• Recruit – stamp out age discrimination from the recruitment process”


Key policy responses

• Abolished the default retirement age (2011)

• Extended right to request flexible working to all employees (June 2014)

• State Pension age reform (currently rising to 67 by 2028)

• Fit for Work service (late 2014)

• Pension flexibilities (April 2015)

• Working with Local Enterprise Partnerships

• Trials and pilots: carers, back-to-work support

• Employer Toolkits - Guidance for managers of an ageing workforce by sector

• Business Champion for Older Workers


Next steps – some examples

• Targeted communications and case studies – for media, employers and

individuals

• Working with employers and their networks:

• Business Task Force: Barclays and National Express return to work

apprenticeships and Business in the Community Age and

Intergenerational Workplaces Leadership Team

• Local Enterprise Partnerships – employer engagement events and

workshops

• Back to work support - support to become self-employed, older

claimant champions and piloting what works including mid-life career

reviews

• Further research and analysis

• UK Govn to respond to the recommendations in “A new vision for older

workers: Retain, Retrain, Recruit”


The Employer Toolkit

• We worked with nine sectors to produce guidance relevant to sectorial needs:

– Care,

– Construction,

– Health,

– Hospitality,

– Manufacturing,

– Public Administration,

– Retail and transport

• Expert sector and trade bodies have been engaged in the process of drafting

the guidance.

• Published first part with general guidance for all business spectrum in March

2015.

• In June we launched the Health, Transport and Higher Education sector

toolkits.


Our Landing page can accessed via the Age Action

Alliance website simply click on the toolkit tab


Using an accordion page for each sector, there are up to 15 sections

covering Action Planning through to Performance Management


Carers Pilot Project

• The Government, working with the Social Care Institute for Excellence,

has commissioned a two-year project to develop nine pilots.

– Help carers to remain in employment and economically active.

– Support carers to manage their caring responsibility alongside their

paid work.

– How businesses can help employees with caring responsibilities e.g.

flexible working patterns, setting up carers’ ‘surgeries’

Specific examples:

• Digitally connecting carers to the community – Carers in Cheshire

West & Cheshire to identify practical tasks around an IT system which will

be supported by local volunteers, businesses, plus the carers own network

or family and friends.

• Investing in assistive technology – Bury are investing in sufficient

technology to support 75 carers.

• Carers Star Scheme - several pilots are using variations of this to

measure outcomes and value added.


Business Strategy Group

• Made up and driven by employers to develop a national strategy on

Fuller Working Lives, based on their need for a sustained, skilled

workforce.

• Employers tell us they are far more convinced by hearing messages

directly from other businesses than from Government.

• The Business Strategy Group attracted high level involvement at

Director level which meant direct commitment to action.

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Task & Finish Groups

• A subset of six task and finish groups has emerged out of the Business

Strategy Group.

• These groups are led by employers, who will report back regularly to

demonstrate the progress being made.

The focus will be on:

• Age Discrimination in Recruitment

• Skills

• Managing an Ageing Workforce

• Financial Wellness

• Health Management

• Innovation


And finally – what our partners say…

“At McDonald’s, our people are at the heart of everything we do and we have worked hard to be a good employer, because we need a workplace of motivated people to prepare good food and

deliver great service for our customers. We recognise the value of hiring older workers and the

advantages that older workers can bring, including a lifetime of training; on-the-job experience;

and flexibility. Research, conducted with Lancaster University Business School in 2009, found

that our customer satisfaction levels were on average 20% higher in restaurants that employed

staff aged over 60.”

Steelite International: “As a successful British manufacturing business which exports to over

140 countries across the globe, we owe our success to the quality of our workforce, a key

element of which is the diversity of age and experience we have within the business. Over

decades, we have found that working hard to recruit the right older workers, as well as investing

in apprenticeships and developing school leavers and graduates, gives our workforce the correct

balance and subsequently enables us to reach the levels of success that we have.”

AT Brown Coaches: “They’re like gold-dust. Their experience and flexibility would be hard and

costly to replace. At the same time we do also have a 16 year old apprentice mechanic who is

shaping up well and is very keen. Life is full of conundrums, but the bottom line is that I manage

my human resources for the best return. It’s better for my business to keep our older workers,

many working flexibly, than to recruit replacements. It’s all about long-term survival, even more

so in the current climate.”

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