The Employers Forum on Age

Government Code makes no impact on ageist bosses
3 April 2001

Almost two years since the Government launched its Code of Practice on Age Diversity in Employment, joint research revealed today (3 April) by IRS Management Review and the Employers Forum on Age shows that the Code is still failing to make an impact on ageism in the UK workforce. Coinciding with the Government's own research and Employment Select Committee's report on ageism, the findings show that while knowledge of the Code is becoming more widespread, only one in four employers have adopted the guidelines.

The report, Employing Older Workers, also warns that although 96 per cent of employers are aware of the demographic changes affecting the UK, only around half of respondents have put in place, or are planning to implement, policies and practices specifically aimed at recruiting and retaining older workers - suggesting the Government has failed to communicate the business implications of demographic change. The findings also confirm the worrying trend of early retirement: of the 79 organisations that provided information on the age at which employees retire, almost half of their employees retire before the official company retirement age (51 per cent of men and 48 per cent of women).

Sam Mercer, campaign director of the Employers Forum on Age, says: 'We urge the Government to learn from its mistakes in promoting the Code, particularly in the run up to age legislation. While we believe the Code is a valuable document, its failure to make a significant impact reinforces the view that more must be done to convince employers of the business benefits of an age diverse workforce. Businesses failing to stamp-out age discrimination not only face a legal backlash once legislation comes into force, but also risk losing their competitive edge in a labour market governed by skills shortages and an ageing society.'

Other findings include:

Sixty-six per cent of those surveyed monitor the age profile of their workforce, but few are examining recruitment and training decisions by age to identify possible bias (43 per cent and 22 per cent respectively)
Two in three say that the most important characteristic that older workers bring to the workplace is their experience; followed by commitment and customer awareness/handling skills as the three qualities associated with older workers that are most highly valued by employers
Public sector organisations are more likely than private companies to have a policy on age discrimination
Flexible working arrangements are by far the most common practices being used by organisations to recruit and retain older workers. Part-time working is the most popular measure, having been implemented by 86 per cent of respondents, followed by job sharing (used by 74 per cent of companies) and flexi-time hours (64 per cent).

Paul Suff, author of the report and editor of IRS Management Review, says: 'Our research indicates that most employers are aware of demographic change and the need to recruit and retain older workers. Yet few have been imaginative in adapting their workplaces to accommodate the needs of the over 50s. Most have simply added age to their existing equal opportunities policies without establishing monitoring mechanisms to ensure adherence. Fewer still have attempted to tackle their own complex occupational pension rules that they themselves say are the big barriers to employing older people.'

The Government's own evaluation of the Code of Practice's effectiveness, Age Diversity: Summary of Research Findings - published 27 March 2001 as part of a Select Committee report on ageism - shows there was little spontaneous awareness among employers of Government initiatives in the area of age discrimination. Around half those surveyed felt that the Government had done too little in this area, with awareness of the Code among employers at 37 per cent. The Code was also criticised for having been insufficiently publicised and there were doubts as to whether it would be effective in changing company policy.

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