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Have You Acted to Meet Age Laws?
 If
you have not yet acted to meet the recent
age discrimination laws then you need to do
so quickly; however, you are by no means
alone. Three quarters of Britain’s small
firms have yet to put in place procedures to
allow their employees to carry on working
beyond 65, according to new research from
Lloyds TSB Business and the SERTeam at the
Open University.
The study found that only a quarter of firms
(25%) had put in place the ‘right to
request’ rules for employees, which make it
possible for staff to work beyond retirement
age. Almost half (45%) of those questioned
said they were still undecided as to whether
they would implement the procedures, while a
third (28%) claimed they intended to do so.
Those employers who are yet to implement the
rules, introduced in October 2006, appear to
be holding back for a number of reasons. Two
fifths (40%) expected the laws to create
more red tape and a fifth (21%) anticipated
rising costs. However, half (49%) of
employers didn’t believe the changes in
legislation would have a significant impact.
When asked how they would treat requests
from employees to work beyond the age of 65,
just over half (57%) said they would do so
favourably, while one in ten (7%) said they
would be inclined not to honour such
requests.
The survey also revealed that small
businesses who fail to plan for future
workforce succession could be setting
themselves up for a fall. Despite the
apparent reluctance to encourage staff to
work beyond the age of 65, more than a third
(34%) of those surveyed said they were
bracing themselves for a drop in the number
of younger workers over the next decade.
Amongst larger firms this view was even more
widely held, with 57 per cent of firms
employing 20-49 people expecting a fall in
younger employees. Also surprising, given
the number of firms yet to put in place the
‘right to request’ rules, is that most
employers admit the skills of older workers
are at least equal to, if not better than
younger employees. In fact, most business
owners rated older workers as having a
slight edge over younger staff in several
areas, including commitment to business
goals, loyalty, diplomacy, reliability and
punctuality. IT was the only skill in which
younger workers were seen as markedly
stronger.
Stephen Pegge, head of communications,
Lloyds TSB Business, said: “Older workers
clearly have everything to offer businesses
in terms of their skills and knowledge and
as this study demonstrates, employers do
recognise these strengths.
“Given their positive attitudes to the
contribution made by older workers, it is
surprising that so many small firms are
still undecided about whether to allow their
staff to work beyond 65. Potential costs are
one the reasons given by some firms which
have not yet established systems to allow
their staff to carry on working, but it’s
important that all businesses create an
environment where older workers are
encouraged.
“With skill shortages one of the biggest
issues, it’s vital that small firms make the
most of the talent older employees have to
offer and this may save them money in the
long term. Planning ahead now could also
avoid costly legal disputes in the future.”
More information on employment issues is
available in our You and Work portal.
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