”Human resource management (HRM) is a comprehensive and coherent approach to the employment and development of people. HRM can be regarded as a philosophy about how people should be managed, that is underpinned by a number of theories relating to the behaviour of people and organisations. It is concerned with the contribution it can make to improving organizational effectiveness through people but it is, or should be, equally concerned with the ethical dimension – how people should be treated in accordance with a set of moral values” (Armstrong, 2012) .
According to Michael Armstrong (2012) , a policy on managing diversity recognizes that there are differences among employees and that these differences, if properly managed, will enable work to be done more efficiently and effectively.
Age diversity is all different people of different ages having various ideas and beliefs.
According to Business Insider webpage, population ageing phenomena affects and moulds the business environment. According to UK labour market the number of people aged 50 and over in employment has grown strongly in recent years: overall employment in this group grew by 593,000 for men and 601,000 for women over the past 5 years lending to an increase of about 1.194,000 extra workers aged 50 and over in work, bringing the total number to 9,140,000 in 2015.
Retaining the 50+ employees at work has become a challenge within the human resource management.
Despite the fact of being covered by discrimination law, age diversity it is still an extreme topic for debate in HRM departments. The corporate environment has become a diverse cultural and ethnic context as it spreads into a worldwide environment. It is with the new ambition that the management team often does not accurately utilize the aged employee. In order to retain an old experienced worker, companies should first acknowledge what benefits it can bring within the company and find the way to motivate the employee to remain instead to go with retirement.
According to Lisa Marsh Ryerson, Next Avenue Contributor, shifting demographics, increased life expectancy and a host of other factors are putting substance to the notion that for those of us who have crossed the half-century mark, the best really is yet to come.
She states that we all must start to think differently about what it means to grow older in our nation.
According to www.gov.uk , an Age UK study showed that older workers are as productive and willing to work as flexibly as their younger colleagues and far from the stories which state how older workers interfere with younger workers ideas and efficiency, an IFS study found this was definitely not the case. As the workforce ages, exploiting the skills and experience of venerable workers will help us breakthrough the economy. According to Saga, “many employers recognise the great work ethic, experience and life skills that older employees offer.”
Paradoxical to popular illusion, the evidence shows that keeping more older people in work in reality, develops employment prospects for younger generations, and has in some circumstances even increased their compensations. There is also a clear business case as the ageing workforce is already starting to cause skill shortages in some departments which will only get worse in years to come if the most experienced workers retire as before. A active working life can also offer individuals the possibility to have the retirement they want as well as the other social and psychological benefits that working offers. So encouraging later life working is good for the economy and good for individuals – and it is also good for business, same document reveals.
According to – Managing an age-diverse workforce: employer and employee views report (CIPD, 2014), particular characteristics of older workers are : experience of work and life experience, loyalty, reliability and good time management skills, patience and calmness under pressure, ability to engage well with other people and strong customer service empathy and ability to mentor younger staff.
The survey findings revealed that to the question ‘How prepared are organisations regarding ageing demographics?’, 31 %HR respondents were more likely to say they deal with issues related to age diversity in a actively way due to fast expanding phenomena. On the other hand, 15% say that they don’t think that their organisation has considered the issue.
The most common benefit, in working with different ages, revealed by the same source was by far ‘knowledge sharing’, in proportion of 55%. In regarding the 50+ group, the main benefit of extending their working lives was identified the economic independence(55%) followed by stimulation(36%) and social interaction at work(34%).
There are the industries aware of the benefits elder workers can bring within. DIY retailer B&Q observed that having an age diverse workforce can supplement their business with an abundance of various abilities and knowledge.
In order to retain older experienced employees at work, rather than replace them, it has performed with no default retirement age for more than 15 years and plans to arrange age neutral benefits for it’s 32,000 employees. this means ensuring the perks for workers over its 300 UK branches, such as voluntary benefits. This benefits will apply to all and are not influenced by geography, age or gender. Paul Manzi,reward manager said ‘’ We try not to be age specific ‘’. B&Q recruits from all age groups, 28% of its workforce aged over 50 and many employees are semi-retired. The oldest worker is 96 years old and works on the checkout. The firm admits that for an older population physical restrictions apply such as injuries, bad back and people are more fragile, so it provides adjustments to utilise these people as well as it can. ‘’with a more diverse workforce comes years of experience, whatever the age or skillset, we accommodate those people” says Manzi.
Each generation has a number of value systems and is important to know what these are, in order to retain its representatives. Speaking about the generation preparing to retire, subject focuses more on the baby-boomers
The most important values for an older worker are respect and recognition. Considering the assets the older member of a team can bring within the organization, will make the profile of a good mentor for the new young employees. If a team choses to use the knowledge gained from experience in order to train the new workforce, both parts will feel accomplishment. Showing respect and recognition is a easy equitable way to retain valuable experienced older workers.
The communication between the young team and mature team mostly requires respect, patience and most important, the ability to listen. These skills are not taught in schools to the new energetic youthful team member. These virtues are built in time, and require years of experience. In order to make everyone aware of the requirements different generations needs, an age diversity training should be offered every year. This will give to all employees the basic idea about how to expect, and respect the age differences. This training can have big impact against ageism, and can minimise the retirement rate, having a understanding environment at the workplace.
According to the same CIPD study, being old has more disadvantages than pluses, mostly because of the physic limits that often may occur. Offering part time jobs and career breaks in case of sickness also is as important factor in retaining the frail workers. ‘Part time working and flexible working are considered the most effective ways of supporting older employees to remain in employment.’
Same survey disclose the employee’s preferences when ‘were asked their views on employer–employee insurance contribution schemes to protect employees against unemployment and ill-health. Half of respondents (50%) felt that this is a good idea, with just 18% believing it to be a bad idea and quite a high proportion, almost a third (32%), responding ‘don’t know’ to this option’.
Finally, in order to support older workers to remain in employment, human resource managers need to understand the value they can bring within the organization. With this will help the seniors realize the importance they have and how they can have many productive years ahead. The youngest baby boomer can easily be productive for at least 20 more years. By acquiring new skills they can bring even more contribution than they do.
Altmann, R. (2015). A new vision for older workers: retain, retrain, recruit. Retrieved from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/411420/a-new-vision-for-older-workers.pdf
Armstrong, M. (2012). Armstrong's handbook of human resource management practice (12th ed.). London, U.K: Kogan Page.
Barton, T. (2011, August 1). Case study: B&Q fits in older workers. Retrieved from https://www.employeebenefits.co.uk/issues/august-2011/case-study-bq-fits-in-older-workers/
CIPD. (2014). Managing an age-diverse workforce. Retrieved from http://www.cipd.co.uk/hr-inform/ToolClicksDownload?BinaryUri=tcm%3A44-108744&BinaryFileName=%2Fhr-inform%2FImages%2Fmanaging-an-age-diverse-workforce_2014_tcm44-108744.pdf&BinaryExtension=PDF
CIPD. (2015). Diversity in the Workplace. Factsheet. Retrieved November 17, 2016, from https://www.cipd.co.uk/knowledge/fundamentals/relations/diversity/factsheet
Department for work and pensions. (2015). Employment statistics for workers aged 50 and over, by 5-year age bands and gender. Retrieved from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/568240/employment-stats-workers-aged-50-and-over-1984-2015.pdf
Giang, V. (2013). The Strengths And Weaknesses Of Millennials, Gen X, and Boomers – Business Insider. Retrieved from http://www.businessinsider.com/how-millennials-gen-x-and-boomers-shape-the-workplace-2013-9?IR=T
Marsh Ryerson, L. (2015). Forbes welcome. Retrieved from http://www.forbes.com/sites/nextavenue/2015/06/10/disrupting-the-way-we-think-about-older-workers/#7f0b0f8818fc
Smith, L. (2014, June 26). How to attract and retain older workers. Retrieved November 23, 2016, from http://www.hrmagazine.co.uk/article-details/how-to-attract-and-retain-older-workers