The Chartered Institute for Personnel and Development warns that there is an employment deficit in the UK that will force businesses to employ older workers. The institute estimates that there will be about 13.5 million job vacancies for UK employers to fill within the next 10 years. However, only about seven million young job seekers are expected to join the labour market within this period.
As a result, there will be an increasing need for employers to rely on the old workers to fill the yawning gap. According to the Government Actuary's Department, about 36 percent of workers will be more than 50 years old by 2020.
The labour market will also have more old workers because new regulations bar employers from giving compulsory retirement notices to workers who have attained the retirement age unless they can give objective justification.
According to CIPD's guide titled "Managing a healthy ageing workforce," employers must take proactive steps to prepare for the challenges of using an ageing workforce.
The institute's diversity adviser, Dianah Worman, said that organisations that will have an appropriate response to the challenges will have a major competitive edge in retaining talent, recruiting new talent and supporting the engagement and wellbeing of all employees.
Older workers can provide more value to businesses than simply filling positions.