Initiatives to leverage the expertise of older employees
In the UK the coalition government introduced two important measures to fight ageism. The Default Retirement Age (DRA) will be scrapped from October 2011 so that no forced retirements will be able to take place after 5 October 2012 (at the very latest). The Equality Act protecting ageism in employment, training and education will also guarantee increased protection when older people are receiving products and services, as of 1 October 2012 as well.
The scrapping of the DRA, which was proposed by AgeUK, especially makes a difference regarding the choices that older people have and the realisation of their preferences in retirement. Nowadays, employers can’t make employees retire without giving a reason except having a compulsory retirement age on health and safety grounds. But some or even many people are very confident about being on the job after 65. They feel vivid, useful and financially independent. Employers profit from the experience and motivation while the government will benefit from the tax-payments and reduced pay-out of benefits. “Macro-economic analysis also show that keep older employees does not take away jobs for the younger generation,” Diversity expert Michael Stuber adds, “just like migrants, economically active seniors enlarges the pie and increase opportunity for everyone”. Such models are thus strong and obvious win-win-situations. On the other hand no older employee is forced to carry on working. There will still be a Normal Retirement Age when people can leave work and claim their full pension benefits.
In Germany, the Otto Group has introduced its Senior Expert Consultancy as another example of how to keep leveraging older employees’ expertise. After 65, they can apply for appointments especially in advisory functions. Such consulting firms with former employees, mainly experts or managers, have been existing in a number of corporations including ABB, Deutsche Bank, Bosch and many more. Trade unions have criticised this move at times as they were concerned about the employment of younger people. This obviously did not take into account the growth effect neither the different segments in which employment takes place.
With lesser age limits, employees aged 65 and above will have the same job security as younger ones. Looking at labour force challenges ahead, many stakeholders will have to change their perspectives on retirement and the contribution people can make in their 50s and 60s. “We need to move beyond the current countdown culture”, Stuber concludes.
