How to get more 50+ workers into employment

Enterprise Nation recently held a roundtable event to discuss what can be done to get more workers aged over 50 into employment. The discussion highlighted key challenges faced by employees and employers, potential solutions, the role of the government, and public-private sector collaboration.

The event was part of Enterprise Nation's Talent Hub, supported by Indeed, Employment Hero and Unibeez, which provides entrepreneurs with support on finding, attracting, recruiting and training talent to fuel business growth.

The attendees of the roundtable were:

• Emma Jones, CEO, Enterprise Nation

• Liz Slee, head of media, Enterprise Nation

• Dan Martin, news reporter, Enterprise Nation

• Paul Henderson, public sector partnerships manager, Enterprise Nation

• Andy Ayanful, policy lead, Department for Work and Pensions

• Andrew Jennings, policy lead, Department for Work and Pensions

• Lyndsey Simpson, CEO, 55 Redefined

• Suzanne Noble, co-founder, Startup School for Seniors

• Catherine Sermon, head of public engagement and campaigns, The Phoenix Group

• Jen Summers, public affairs manager, The Phoenix Group

• Garreth Hayes, marketing director, Indeed

• Sarah Atkins, commercial and marketing director, Chartered Institute of Personnel and Development

• Stuart Lewis, CEO, Rest Less

• Kevin Fitzgerald, UK managing director, Employment Hero

• Tracy Riddell, senior programme manager, Centre for Ageing Better

• Chris Keenan, CEO, Unibeez

Employee motivations

The conversation began by exploring the motivations of individuals over 50 returning to work.

Research shows that pay is often not the primary driver, with a desire for flexibility the top priority. Examples include part-time work, varied work patterns like three weeks on, one week off, and seasonal employment.

Purpose is another factor. Younger generations often focus on a company's overall ethical or sustainable mission, but many over 50s are driven by the feeling of doing meaningful work and making a positive contribution themselves.

Inclusivity is also important. The older demographic looks for workplaces where they don't feel out of place due to their age. The use of phrases like "early careers" in job advertisements can be a big deterrent for the over 50s.

Confidence to seek work is another key point. Even though they are aimed at encouraging self-employment, start-up training schemes sometimes don't lead to older individuals starting their own business but provide them with the confidence and skills they need to seek and secure a job with an employer.

The point was raised that while many of the current over 50s workforce benefits from final salary pension schemes, this is changing as people are increasingly reliant on defined contribution schemes for their pensions. This places more risk and uncertainty on individuals and means more people expect and need to continue working through their 60s and beyond.

Employer perspectives

Employers, particularly small businesses, often express a desire to tap into the wisdom and experience of older workers. However, they face challenges in attracting and integrating this demographic, such as where they can advertise to reach this group, and how job descriptions are worded to ensure inclusivity.

A significant barrier for small and medium-sized enterprises (SMEs) is the perceived risk and cost associated with retraining older workers. Despite the fact that many over 50s are willing to take pay cuts to change careers, employers are often hesitant to invest in their reskilling, preferring candidates with directly relevant experience. This highlights a need to shift towards a skills-first hiring approach, focusing on transferable skills rather than solely on past roles and job titles.

The conversation also discussed the limitations of traditional recruitment methods like CVs, which can be ineffective in showcasing transferable skills and the potential of career changers.

Alternative approaches, such as skills-based assessments and experience days, were presented as successful models. These techniques are used effectively by large companies hiring significant volumes of employees, so there is a challenge in how to adapt these best practices for small businesses who are looking to employ fewer staff.

One way SMEs can find older workers to recruit is using newer channels such as social media.

Department for Work and Pensions interventions and public-private sector collaboration

The role of the Department for Work and Pensions (DWP) was discussed.

The DWP currently has two main policy interventions aimed at supporting the over 50s into work:

• 50 PLUS Champions: These individuals are based in Jobcentre networks and engage with businesses to promote inclusive recruitment practices.

• Midlife MOT: This initiative aims to provide individuals with a holistic assessment of their work, health, and finances.

Feedback from a private sector pilot of the Midlife MOT revealed challenges such as employers lacking time to engage and concerns about providing retraining information to staff who might then leave. This highlights a need for a centralised employer hub providing guidance on flexible working, inclusive recruitment, and the benefits of hiring older workers.

Challenges raised included the relationship between the public and private sectors. Some attendees representing commercial businesses expressed frustration at struggling to collaborate effectively with the DWP to reach the over 50s.

Reputational issues also exist, with many older professionals reluctant to engage with Job centres.

The role of government and future considerations

The conversation highlighted the need for cross-departmental collaboration within the government, particularly between the DWP and the Department for Business and Trade (DBT), to address issues like IR35 regulations that might disincentivise small businesses from offering part-time or contract roles.

The emergence of new employment models, driven by the Employment Rights Bill, could see an increase in part-time and contract-based hiring by SMEs. Making these options more tax-efficient could be crucial in facilitating the employment of older workers seeking flexible arrangements.

In conclusion, the discussion showcased the significant potential of the over 50s workforce but also highlighted the need for a multi-faceted approach involving employer education, a shift towards skills-based hiring, government support, and improved collaboration between the public and private sectors to unlock this valuable talent pool.

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