The UK could face serious skills shortages over the next 20 years if employers do not update their approach to workforce planning in the face of population ageing and rising demand for certain services.
New research from the CIPD - the professional body for HR and people development - and the International Longevity Centre-UK, has shown that while the employment rate of older workers has increased in recent years, there is still a 64 per cent drop in the employment rate between the ages of 53 and 67.
Unless organisations start improving how they recruit, develop and retain older workers it is estimated that the UK economy will struggle to fill one million jobs by 2035, even taking into account the impact of migrant workers.
The CIPD is therefore urging employers across all sectors to take steps now to reap the benefits of a more age diverse workforce, rather than fall victim to a mass exodus of skills as their workforce ages.
The health and social work, education and public administration sectors are most at risk of skills shortages, because they are not only highly reliant on older workers - around a third or more of their workforces are over 50 - but also struggle more than other sectors to remain attractive to older workers.
Ben Willmott, head of public policy at the CIPD, said that while 2035 may sound far off, the reality is that organisations need to get to grips with the ageing workforce challenge today or face skills shortages that will affect their ability to grow in the very near future.
“Employers need to recognise the value that older workers can bring to their organisation when recruiting new staff, continue to invest in people’s training and development at different stages of their careers and think about how they can transfer older workers’ knowledge to other parts of the business when they do retire.”
He also suggested that employers should think about how they can support the health and well-being of their staff and provide more flexible opportunities to allow older workers to downshift and benefit from more gradual transitions into retirement.
Pensions minister Ros Altmann added that employers need to realise what they stand to lose if they fail to give opportunities to older staff.
“Ensuring all employees and new applicants are considered on their merits is vital, especially given the demographic challenges that our economy faces. I hope employers will remain open-minded to recruiting and training older staff, as well as considering the benefits of flexible working.”
peter.walker@ft.com
