News peg: Default Retirement Age is scrapped tomorrow

Older workers deliver benefits in business

Employers should harness the benefits of older workers as the Default Retirement Age is fully removed tomorrow

The face of the UK’s workforce will change dramatically tomorrow as a result of the Government calling time on the Default Retirement Age. From tomorrow, employers will not be able to use the DRA to compulsorily retire employees. As a result, workers will get older and companies will have to review their recruitment policies to ensure they continue to stay within the law.

Although the Government cited the healthier and longer lives of workers as the reason for scrapping the DRA, according to Liz Field, CEO of the Financial Skills Partnership (FSP), it also addresses age diversity in the UK’s workforce that often focuses on the younger end of the spectrum.

She said, “The experience and benefits older employees can bring to business should be harnessed. In these difficult economic times, older workers can add resilience to a business’ workforce offering a vital blend of hard-soft skills that allow them to react in a more productive manner to economic crises.

“This group tends to be very competent and reliable, inherently understands employer expectations and usually do not require much additional training, although such training may need to be delivered in a more flexible way. In some ways this group actually beats their younger counterparts in areas like soft skills including; attitude, work ethic, teamwork ability, problem solving and commitment by using the total sum of their life skills and work experiences – all of which are highly valued by employers.”

The legislation tomorrow will mark the completion of the phasing out of the retirement age which began in April when employers were no longer able to issue notifications for compulsory retirement using the DRA procedure. Employers are now being urged to consider a more flexible approach to recruitment and utilise the valuable skills base.

The Financial Skills Partnership is currently planning initiatives that provide emphasis on the benefits older workers can provide. Untapped resources for boards include older, experienced executives who are stepping down from their company roles who could bring vast experience as a Non-Executive Director (NED) in our sector. Likewise, senior public service figures leaving through retirement or displacement are another source of valuable expertise. FSP is looking to help the sector utilise these personnel to a greater extent in a move that will undoubtedly enhance the industry.

Liz concluded, “The sector needs to take into account all of the disadvantages of retiring people too soon and the benefits this group can bring to an organisation - for if a company loses its ‘corporate memory’ it can have a huge impact on its business success. Both the economy and society we live in are changing and demand greater flexibility. The skills, past experience, customer knowledge and soft skills provided by older workers are therefore essential in enhancing a changing market.”

ENDS

Notes to Editors and Journalists on the Financial Skills Partnership

‘FSP’ and the Financial Skills Partnership is the new name for the Financial Services Skills Council.

It is the skills champion for finance, accountancy and financial services organisations to provide employer leadership to address skills needs within our sector and galvanise employer ambition and investment in skills.

Its new name better describes the organisation’s partnership working approach with stakeholders and employers and is fundamental to our culture.

The Financial Skills Partnership (FSP) is a strategic, impartial, employer-led organisation which aims to support employers in developing and retaining a skilled workforce in finance, accountancy and financial services across the nations and regions of the UK. It acts as a link between industry, government and education. It is also a UK-wide sector skills council, licensed by the Government to articulate the employers voice on skills and develop innovative skills solutions.

The FSP covers the whole of the finance function including accountancy and finance, banking and building societies (wholesale and retail), financial planning, insurance, wealth, investment management and pensions.

All of these sectors have Sector Panels and there are also 3 nations panels. The purpose of these is to provide strategic direction regarding the future demand for skills and prioritising for the sector or nation.

The FSP's flagship product Directions is an online careers guide, with additional consultancy services aimed at informing people of the range of career options within the sector and helping employers attract diverse talent at all levels. For more details visit: www.financialskillspartnership.org.uk/directions

The FSP is one of a number of Sector Skills Councils. Visit www.financialskillspartnership.org.uk for more information. SSCs are key strategic partners in creating the conditions for increased investment in skills.

For further information or comment about these issues and the wider skills and employment brief please contact fsp@flamepr.com or call +44 (0) 203 357 9740.