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Thursday, 18 July 2024 17:16

Who Decides When We're Too Old to Work?

Recent news stories regarding President Joe Biden facing calls to step down from his presidential election campaign owing to concerns about his cognitive and physical abilities highlight the issue of an ageing workforce on a global stage.

We tend to accept that with age often comes diminishing health. It's an unavoidable fact that as we get older, we may become less supple, lose muscular strength, and are increasingly affected by worn joints and connective tissue. Such physical changes can significantly impact job performance, particularly for manual workers. Businesses operating on tight margins may face difficult decisions if an older worker's productivity falls below a profitable level. Additionally, health and safety considerations must remain paramount.

Dementia and other cognitive decline have also become considerations for employers in recent years. At HR Champions, we have encountered cases where employers have had to manage employees showing signs of senility. As a mental health issue, dementia is potentially covered by the Equality Act 2010, meaning employers must make reasonable adjustments for affected employees. However, dementia is notoriously difficult to diagnose, especially in its early stages, complicating any such adjustments.

The default retirement age in the UK was abolished in 2011 so there is no longer a set age at which employees must retire. This change acknowledges that many people are capable of and wish to continue working well past traditional retirement ages. However, it also raises the question: who decides when someone should retire?

Without a default retirement age, it is up to the individual when it is time to step down. This flexibility supports the rights of older workers but also requires careful management to balance business needs with employee rights.

We are continually promoting staff appraisals as an effective management tool and employers might consider applying an appraisal system throughout an employee’s career to assess their ability to perform their job effectively continually. While this approach seems practical, it has inherent flaws. An individual might not agree with the feedback and measurement of performance, leading to conflict. There are also legal and ethical issues to consider when exiting a loyal and long serving employee on the grounds of capability.

Age discrimination contravenes the Equality Act, posing significant risks for businesses that attempt to force older employees to resign based solely on age. It also comes into effect at recruitment as job candidates cannot be refused a fair crack at a job application just because someone on the recruiting team thinks they are too old.

Another layer to this issue is the proposed changes to the National Minimum Wage by the new Labour Government, which aims to set it equal for all adults. While this move is designed to ensure fairness and reduce exploitation, it inadvertently reduces the financial incentive for businesses to hire young people. When the cost of employing a young, inexperienced worker is the same as hiring an older, more experienced one, employers may lean towards the latter, potentially exacerbating youth unemployment.

Despite these challenges, there are significant benefits to employing an older workforce. The experience and skills gap often seen in younger employees can be mitigated by retaining older workers longer. Their knowledge and expertise can be invaluable, offering opportunities for mentoring and skill transfer to younger employees. Additionally, older employees tend to be more less transient, preferring job security and work-life balance over career advancement and higher salaries.

Employers should engage in strategic workforce planning, which includes having open discussions about career planning regardless of an employee's age. These discussions allow employers to make informed decisions about recruitment, development, and promotion at the appropriate times, ensuring a balanced and effective workforce.

Managing an aging workforce requires a delicate balance between legal obligations, ethical considerations, and business needs. By recognising the value of older employees, implementing fair appraisal systems, and planning strategically, businesses can navigate these challenges effectively. Age should not be the sole determinant of an employee's worth or capability, and with careful management, the benefits of an experienced workforce can be fully realised.

For help and support in managing employee issues and developing a succession plan, contact HR Champions at 01452 331331 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

  

Read 1194 times Last modified on Thursday, 18 July 2024 17:25

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HR Champions provide first class HR and Employment Law support and advice to UK businesses; operationally and strategically. If you're an employer you'll potentially need some, if not all, of the services we offer.

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