With age discrimination employment legislation coming in to force in 2006, and the knowledge that the UK’s talent pool of young workers is rapidly shrinking, one might assume that the creation of an age diverse work is on every employer’s agenda. However, although we are seeing many firms look at their workforce diversity in terms of gender and ethnic mix, it appears that age continues to be overlooked.

With only 9% of UK managers being fully aware of forthcoming age discrimination legislation and 78% of managers believing that the legislation will not change their current recruitment practices [1], it seems that most businesses are failing to grasp the full implications of forthcoming legislative changes, both in terms of the level of work required to become compliant, and the potential litigation costs they will incur if they continue to discriminate on age.

A shrinking talent pool

Increased life expectancy and declining birth rates are already leading to a scarcity of young people entering the marketplace. By 2006 there will be more 55-64 year olds than 16-24 year olds for the first time, and 45-59 year olds will form the largest group in the labour force [2].

A scarcity of young talent will force businesses to either import talent from outside their local markets, or to extend their workforce to encompass people outside the preferred 25– 34 year age bracket [3].

Business benefits

The impact on employers

In light of the forthcoming legislation, we see employers as having two options: either they facilitate a cultural change within their existing workforce, or they focus on defending their existing recruitment practices and trying to safeguard themselves against potential litigation.

Defend strategy

The cost of adopting a defend strategy, combined with the cost of litigation should organisations fail to defend themselves adequately, will be extremely high. The Employers Forum on Age estimate that age laws could expose UK employers to £73 billion in litigation costs (£193 million in the first year). Perhaps more importantly, if employers continue to discriminate on age and focus merely on protecting themselves from any subsequent litigation, they will be failing to tackle the main issue of the impending talent shortage and the business benefits that an age diverse workforce brings.

Cultural change

We believe that a cultural shift is required, of the scale of when women started entering the workplace en masse. Employers need to educate their employees about the importance and benefits of an age diverse workforce and the need to attract and retain older workers. Re-education is also required in older workers themselves, who will need to be trained in change awareness and managing change, and equipped with the flexibility and techniques needed to succeed in the modern workplace.

Recruitment methodologies

Modern recruitment practices must be adopted to remove age prejudices from the selection process, to ensure that businesses are selecting candidates based on ability, and to safeguard against accusations of age discrimination.

Employers will need to review their existing candidate attraction methods and ensure that they include candidates of all ages. Techniques such as job analysis, competency framework design, and ability and aptitude testing, need to be developed and measured to create more transparent and fair frameworks for attracting, screening, promoting and developing staff.

Organisational change and development programmes need to be implemented to promote fair hiring and appraisal decisions, to instigate a cultural mindset change in hiring managers, and to ensure that individuals are recruited, appraised and rewarded based on outputs and success alone.

The bottom line

Clearly penetrating an age diverse talent pool, and safeguarding against potential litigation is no small task for employers. However, it would seem that tackling this issue is crucial for both employers and the wider economy in the coming years.

The most significant challenge facing employers, (and society in general) perhaps, is the cultural change required to eradicate prejudices and stereotyping based on age. Although the proposed legislation will certainly assist in breaking down age discrimination in the workplace, employers need to focus on how they will promote and manage change within their organisations both from the perspective of hiring managers, and employees themselves.

If you would like to discuss your diversity strategy with one of our expert consultants, please call us on 020 7845 4200.

[1] The ageism in business survey 2003, published by Kelly Services and the Employers Forum on Age. back

[2] Employers Forum on Age. back

[3] ‘Promoting age diversity in employment with small and medium sized employers according to the standard set by the code of practice on age diversity in employment: a model programme’ produced by Age Concern Training and the Employers Forum on Age. back

[4] Research conducted by the Employers Forum on Age reveals that the average length of time in current employment is much higher for older workers (13 years compared with 7 years for those aged 25-49). back