How to retain your mid-life employees

However, since the pandemic we have seen a wave of resignations and early retirements in this age group, with data from the Office for National Statistics revealing three in five over 50s have left the workforce sooner than planned. 

This comes as the UK faces a skills shortage and many employers are struggling to recruit talent. A report from Monster – Flexible Future: UK Hiring Outlook 2022 – found that 90 per cent of UK employers are planning to recruit in 2022, up from 66 per cent in 2021.

People in their 50s these days are more likely to be in the middle of their careers, rather than thinking about their retirement.

It revealed 87 per cent of employers say they are struggling to fill positions, and just over half said that finding candidates with the skills they needed was their main challenge. 

A report from the Financial Services Skills Commission in March highlighted that financial services companies face stiff competition from other industries in accessing skills, and that in 2021 92 per cent of businesses had hard-to-fill vacancies. 

Valuable employees

Taking steps to keep the over 50s in the workforce has never been more important as employers do not want to risk losing valuable skills, knowledge and experience at a time when businesses are still trying to recover from the pandemic and when the economic outlook is bleak. 

Also, people in their 50s these days are more likely to be in the middle of their careers, rather than thinking about their retirement and could have another 20 years of work ahead of them. Staying in work will be a necessity for many, as they may have insufficient pension savings. 

In April 2022 analysis by the Pensions Policy Institute and B&CE, provider of The People’s Pension, found that more than half of households in the UK are not saving enough to maintain their work life living standard in retirement.

Employers will increasingly need to draw on the skills of older workers and find new ways to retain them.

Another report by Deloitte suggests UK savers will have to find on average an additional £10,000 each year between now and retirement if the nation is to meet a growing savings gap that could hit £350bn by 2050. 

Changing aspirations and people living longer and healthier also means that people do not just want to wind down in their 50s as they head towards retirement. Many want to continue in the workplace for longer, some are starting new careers in mid-life, and others are coming out of retirement. 

As the workforce and population ages, employers will increasingly need to draw on the skills of older workers and find new ways to retain them. They are a valuable part of a multigenerational workforce and bring enormous benefits that companies cannot afford to lose. 

In fact a poll by the Department of Work and Pensions, included in their Fuller Working Lives report, highlighted that older workers are seen by many employers as more reliable and productive, easier to manager than younger workers and are valued as mentors.

Here are six steps employers can take to retain over 50s workers:

1. Combat ageism

According to research from 55 Redefined, 39 per cent of employers admit to being less likely to recruit people over the age of 50, and only 35 per cent said they are prepared to retrain staff over that age. They also found that 92 per cent of workers in their mid-50s and over are prepared to take a salary cut to learn a new skill.

With this in mind, ageism is one of the first things in the workplace that employers need to address and check for signs of it in their training and promotion of staff, as well as whether older employees are disproportionately affected by redundancy or being encouraged to retire early.

For those serious about retaining older people, offering flexible or part-time working can encourage them to stay in work.

Additionally, whether the recruitment and hiring practices are completely inclusive and in no way discriminate on the basis of age. 

Age discrimination is not only illegal under the Equality Act 2010, but stamping it out could help foster a more inclusive workplace where staff feel valued whatever their age. 

2. Offer flexible or remote working

According to the Centre for Ageing Better, flexible working is the number one incentive older workers say would help them to remain in work, helping them to manage caring responsibilities and their own long-term health conditions.

Flexible and remote working proved to be a success during the pandemic, and many businesses now have a hybrid working model. 

For those serious about retaining older people, offering flexible or part-time working can encourage them to stay in work. It is also something that will appeal across the generations, with young workers especially often prioritising a flexible working culture over salary.

3. Focus on career development

Workers want to be challenged at every stage in their careers, but for some older workers this is essential to prevent boredom for those who may have been in the same role for several years. 

Offering training and progression keeps someone happy and motivated, and employers need to train managers to support workers of all ages and skill levels, initiating additional management training as needed.

Introducing mid-life reviews can be a great way to stimulate conversations about next steps.

4. Consider sabbaticals

Giving long-serving employees a sabbatical to re-charge their batteries and take time to focus is likely to be highly appreciated.

People in their 50s can feel stale or worn out, so a few months doing something different such as travelling or volunteering on a project enables them to return to the workforce fresh and energised.

5. Look after workers health

Encouraging an open culture where people feel comfortable discussing health concerns, as well as employers having appropriate support in place to help people manage health conditions, can make a big difference to someone staying or going.

The Centre for Ageing Better found that a quarter of workers with a health condition who are aged 55 and over were considering stopping work because of their poor health, compared to just 8 per cent of those with a health condition aged 25-34. 

6. Introduce mid-life reviews

Asking over 50s what they want out of their careers is important and introducing mid-life reviews can be a great way to stimulate conversations about next steps, career development and flexible career solutions. Companies such as Aviva are strong supporters of the mid-life review and introduced mid-life MOTs in 2018 for employees aged 45 and over. 

This is an important time for many as this is an age where they may face age discrimination. Employers need to be proactive and explore what kind of training or up-skilling people might need, as well as any changes to working patterns needed and the benefits package that might suit older workers.

It is an opportunity to discuss retirement aspirations too, and ensure employees are on the pathway to achieving them. 

These reviews can really help companies make the most of their existing workforce, reduce the risk of losing valuable talent and ensure people can enjoy fulfilling careers and continue contributing as much as possible for as long as possible. 

Steve Butler is chief executive at Punter Southall Aspire