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"A Need For A Substantial And Far-Reaching Response To Our Demographic Revolution" Harriet Harman Outlines Her Vision For A Twenty-First Century Workplace

11 February 2010

Public policy and employment patterns must change significantly to accommodate older people in the workforce, Rt Hon Harriet Harman QC MP - Minister of State for Women and Equality, told the audience at the Employers Forum on Age (EFA) annual conference, earlier today (Wednesday 10 February). 

"Society as a whole needs to acknowledge that the over 60s also have aspirations, and employers have to draw out the skills and talents of the individual to ensure good future prospects.  Above all, the UK needs to make more progress in challenging the status quo and deal with the old-fashioned attitudes that still exist around this age group," she stated.

Other contributions included Professor Ray Barrell, Director of Macroeconomics Research and Forecasting, National Institute of Economic and Social Research, who stated that getting people to delay their retirement by just one year would reduce Government borrowing by 1% of GDP.

The conference, ‘Retirement 2010', brought together over 120 employers and key commentators including Dame Joan Bakewell CBE, Lord Young, Minister for Postal Affairs and Employment Relations, David Fairhurst, Senior VP and Chief People Officer, McDonalds, John Wrighthouse, Group HR Director, Nationwide, Sarah Veale, Head of Equality & Employment Rights, TUC to debate the future of employment and the implications for businesses.

With the review of the default retirement age being brought forward, and the deepening pension crisis, the timing of this conference is crucial.  With many of us enjoying a third of our lives after we hit pension age, we need a radical re-think on how we fund our longer lifespans, and this includes opening up the workplace to many more older people.

Recent research by EFA amongst human resources professionals revealed that there are clear benefits to allowing people to work later than 65.  Organisations that have removed a mandatory retirement age found:

• 76% considered it kept valued people in the organisation
• 85% said it maintained valuable skills within the organisation
• 52% believed it had improved morale among employees
• 52% said it has provided positive role models for younger employees
• 44% said that it had Improved their company's customer facing image

Denise Keating, Chief Executive of leading age campaigners, the Employers Forum on Age (EFA), commented: "We've been campaigning for the removal of the default retirement age for a long time, and are obviously delighted that the Department for Work and Pensions (DWP) announced that the Government is bringing forward the review into this year, neatly demonstrating the need to address one of the most pressing problems for this generation - how to fund our longer lives.

"Ultimately, a fixed retirement age is fundamentally discriminatory, as age is not an indication of capability.  Recent research by McDonalds proved that mixed age teams, which include at least one person over 60, deliver improved business performance. Every employer should look to those companies - B&Q, Nationwide, JD Wetherspoon, BT and M&S to name but a few - that have successfully removed mandatory retirement ages, and follow suit.  A change to the rules is inevitable, and needs to happen as soon as possible."

- Ends -

For further information please contact:

The Employers Forum on Age

Rachel Krys T: 07799 625 233  E: rachel.krys@efa.org.uk

Lansons Communications, Chantal Heckford
T: 0207 294 3630 E: chantalh@lansons.com

Notes to editors :

Speeches included :

Joan Bakewell

Joan focussed on how the default retirement age presents challenges with an ageing population.  Retirement should come gradually, particularly as it is not possible for the young to support the financial needs of the older generation.  Everyone should be offered the option of flexible/part time employment at the end of a working life - and an inter-generational workforce is both socially and financially beneficial to all involved.

Professor Ray Barrell, Director of Macroeconomics Research and Forecasting, National Institute of Economic and Social Research

The speech looked at the economic impact of increasing the number of years that people work, and how Government borrowing could be reduced by everyone working an extra year

Penny de Valk, Chief Executive, Institute of Leadership and management

Penny talked round how people were a company's real source of competitive advantage and we therefore need to understand the implication of an ageing workforce, particularly as expectations of our working lives are changing.  In addition, people are becoming more loyal towards their careers rather than their employers, and are expecting the rewards to match the effort expended.  All employers should start responding appropriately to the changing world view, and begin to understand that what made them successful in the past, will not make them successful in the future.

Sarah Veale, Head of Equality & Employment Rights, TUC

Sarah focused on the default retirement age and the legal implications to employers

Lord Young, Minister for Employment Relations, Department for Business, Innovation and Skills

Lord Young explained that the UK need to make the most of talent available within workforces, now a third of the UK population is over 50, and looked at the next steps for the default retirement age review

John Wrighthouse, Group HR Director at Nationwide / David Fairhurst, Senior Vice President & Chief People Officer, McDonald's

John and David looked at the employer's perspective.  Nationwide was the recognised market leader to remove 60 as a retirement age prior to any legislation.  McDonalds showcased the impact of older workers on the performance of the business and highlighted what benefits a generationally diverse workforce brought to the table.

Chris Sherwood Senior Lab Development Manager, NESTA

Chris gave a presentation from NESTA's Age Unlimited Programme, which pinpointed that there must be innovative new models to older working

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