The New State Pension Age And What It Means For Employers
In George Osborne’s latest autumn statement he announced that the national state pension age will be calculated using a new formula to keep pace with increasing life expectancy.
This means that anyone now in their 40s or below will be affected by the change. Some industries that are labour intensive now have to consider developing a strategy for the development of an ever increasingly aging workforce.
Others will say that it will encourage the retention of much needed skills in the workforce that are being lost due to the “baby boomer” generation (1945-1955) that have already started to retire.
So what does this actually mean for employers?
The combination of an already aging workforce and the loss of the “baby boomers” who are now retiring will result in a loss of skills across many industries. The result? Vital experience that could have been passed on to the next generation – lost.
Some organisations are not aware of these impending problems. If you do not have a long term strategy, now is the time to make one in order to keep ahead of competition; to keep your key talent and not squander the organisation’s invaluable insights.
Change the way you train, develop and engage.
The way many businesses train is focused on the early development stages after an employee enters the workforce; however there must be continual training throughout their whole working life cycle.
The training should adopt a targeted approach especially when tailored to the older person. Recent studies suggest that older workers are less inclined to participate in training because they feel that a lot of it is targeted more towards a younger audience. It’s like making a product for a teenager to use and targeting it at an older generation. It just doesn’t make sense.
The benefits from continual training are plentiful: from greater loyalty to increased motivation and of course productivity.
Managing health and well-being
As your workforce ages, you have to be prepared to give them flexibility in the workplace as well as being more sensitive to their health needs. If you do not then the likelihood of a dissatisfied, unmotivated employee who will possibly leave, then their skills will be lost.
Invariably employees enjoying good health care and flexible hours are more productive, more motivated and loyal.
What are the benefits of an aging workforce?
Contrary to perceived wisdom the benefits to having an aging workforce can be huge. An organisation that is attractive to older employees has major advantages because they will bring a wealth of experience and knowledge that will benefit your organisation.
Martin Wilde is a Marketing Executive with Ramsey Hall Ltd. Ramsey Hall is a highly respected and long-established boutique Talent Management Consultancy.
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