Why age is an issue now

1
Why age is an issue now

• Ian Brown
• Employers Forum on Age

2
Who are the EFA?

• 160 employer members
• all sectors including many public sector and
  some NHS Trusts
• 14 of the UK workforce 3.5 m employees
• Employer led and funded
• Not funded by Government or EU
• Campaigns against age discrimination at all ages
• Promote business benefits of age diversity
• Key Focus 2004
• Ensuring employer friendly age laws
• Supporting members as they prepare for
  legislation

3
What have we achieved?

• Launched in 1996
• Now recognised as the leading authority on age
  and employment issues in the UK
• Established the scope of age discrimination
  that it affects all age groups
• Established the cost of excluding older workers
  from the UK economy at 31 billion
• Effectively influences UK Government

4
What does EFA do?

• Supporting members
• Making the case for age (business, social justice
  legal)
• Setting the agenda (retirement, legislation)
• Advice products (age profiling, policy review)
• Best practice
• Measuring Age profiling and benchmarking
• Campaigning
• Legislation
• Flexible Retirement
• Younger Workers

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UK Age Legislation - timetable

• EU Directive Article 13
• 1st stage Consultation spring 2002
• DTI focus groups with invited employers
• 2nd stage of Consultation summer 2003
• Announcement on Mandatory Retirement made 14
  December 2004.
• LoS pensions, Spring 2005?
• 3rd stage draft legislation spring/summer
  2005?
• the deadline - December 2006

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And thats a worry because

• Fully comprehensive and very complex just like
  UK race and sex laws
• Not just about recruitment
• Not legislation for minority groups, but laws
  that will cover everyone!
• BUT you will be able to justify discrimination
• in very limited circumstances
• a high risk strategy

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Direct discrimination

• Direct discrimination may be allowed but only
  in certain circumstances
• Protecting health, safety welfare
• Facilitation of employment planning
• Particular training requirements
• Encouraging and rewarding loyalty
• Need for a reasonable period before retirement
• But. all of the above must be evidence based and
  will be very difficult to use in practice!

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What we are clear about

• Many employment policies will have to change
• Retirement policy perhaps pension schemes rules
• Redundancy arrangements
• Impact on enhanced schemes
• Unfair dismissal

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What we have just learned

• National default retirement age of 65
• Review in 2011
• Right of employees to request working beyond set
  retirement age.
• Which means-
• Not able to retire before 65 unless justified
• Able to refuse to recruit/promote etc just before
  65
• Must consider request to continue working
• In all cases, will need a transparent, documented
  process.

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Undecided issues

• Pay and non-pay benefits
• Length of service (Indirect discrimination)
• Graduate and similar schemes
• Related legislation
• National Minimum Wage
• Health Safety
• Enforcement Guidance

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Pension Implications

• UK Occupational Pensions (DB) are riddled with
  both direct and indirect age bars including
• different contribution rates
• enhanced early retirement
• closing schemes to new employees
• The key issue is risk and if the UK Government
  want to protect good DB schemes it need to
  ensure they are not going to be subject to
  challenge of discrimination
• Employers will close schemes that are perceived
  to be at risk of discrimination claims

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Discrimination really exists

• Considerable evidence
• The 5 year window
• Graduates
• Too old at 29?
• UK estimates potential costs
• 193 million claims in the first year
• Government estimates a possible 8,000 claims in
  the first year compared to 1,000 on other new
  strands
• US cases
• have increased 41 in 4 years

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What is age discrimination?

• Paying an older person more than a younger
  colleague?
• Asking for 10 year experience?
• Looking for someone to fit in with a young,
  lively team?
• Hiring a young person to work in a teen fashion
  shop?
• Offering flexible working to those with young
  families
• Employing an older person to sell financial
  services to 50
• Increasing sick benefits after 10 years service?
• Sending a joke birthday card about being over the
  hill?

14
Ageism in action

• Hes too expensive, cant we find someone
  younger?
• How can I tell her what to do, shes the same
  age as my mum
• He wont be interested in that computer course,
  hes retiring soon
• At her age shell easily get another job

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Myths

• older workers cost more
• have you costed failed appointments, high
  turnover, early retirement packages?
• the older you are the sicker you get
• the evidence shows that younger workers have more
  short-term absences, older workers may have
  longer absences - but there is no major
  difference
• older workers are technophobic
• Nationwide have a lower turnover in their IT
  department than in the rest of the business -
  because they have such a high proportion of older
  workers helping deliver age diverse teams

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Stereotypes - Older workers

• Negative
• difficulty with change
• coasting to retirement
• little return on investment
• out of date / technophobic
• unable to grasp new ideas
• poor health
• slower learners / disinterested in training
• lacking energy creativity

• Positive
• stable settled
• better time keeping
• know the ropes
• varied experiences
• ability to teach mentor
• mature confident
• provide greater stability
• less concerned with image

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Stereotypes - Younger workers

• Negative
• immature impetuous
• social life more important
• not likely to stay
• No loyalty
• unreliable
• lack confidence
• not focused
• unreceptive to authority

• Positive
• energetic / enthusiastic
• new ideas / fresh approach
• willing to learn / easier to train
• try anything
• cheaper
• more adaptable
• innovative

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Ageist Job Ads Private Sector?

• ... the atmosphere in the office, although
  demanding, is lively, relaxed and young we are
  seeking a graduate, probably aged between 25 and
  early 30s (Times, 1 May 2003)
• .secretary traditional secretarial support,
  age 40 60wpm typing (Crème 21 May 2003)
• you are probably in your late
  twenties/mid-thirties, motivated by the desire to
  progress your career (inretail.co.uk, 6 June
  2003)
• . salary relevant to age and experience
  (Guardian, 1 May)

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Five questions you need to ask

• Have you removed age and date of birth from your
  application form?
• Can you justify the use of experience in job
  adverts?
• Can you provide evidence that staff of different
  ages have equal access to training?
• Can you show that salaries and benefits are not
  age related?
• Do you have any evidence that all age groups can
  access flexible working opportunities?

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And five more

1. Are you confident that age-related bullying does
   not occur?
2. Can you cross refer problems, such as high levels
   of stress by age?
3. Are you confident that your performance scoring
   is not influenced by age?
4. Can you demonstrate that age is not a criteria in
   redundancy selection?
5. Can you demonstrate that employees who work
   beyond company pension age have comparable terms
   and conditions to those below pension age?

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Smart answers

• Age profiling
• So you know where you are now
• Core measurements
• Adequate HR and management information systems
• People friendly policies
• Effective performance management
• Based on competence and skill
• Review policy practice
• Audit for age bias
• The EFA Policy Review Toolkit - One Step Ahead
  

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Remember

• The EU directive does not require employers to
  appoint people who are not competent
• Leading UK employers are addressing these issues
  now what are you doing?
• Age laws are not a threat, they provide forward
  thinking employers with an unparalleled
  opportunity to challenge lazy and inappropriate
  employment policies practice
• Take legal advice
• Dont leave it too late!

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To summarise

• Age is a more complex issue than many employers
  realise
• Ageism is still commonplace - age discrimination
  is often seen as acceptable
• Complaints about discrimination are rising
  already
• The gap between policy and practice can be very
  large
• Even best practice employers are vulnerable
• Good practice on age is a real opportunity to
  improve all business practices

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Membership or buy packages?

• Corporate membership 2,000
• Toolkit non-members, 1,200
• Any questions?