A third of UK firms are actively hiring older workers, according to new research from independent consultancy Barnett Waddingham.
Two fifths of UK employers (40%) are actively hiring people returning from a career break, while around a third are actively hiring (31%) – or looking to retain (37%) – older workers, the study reveals.
The consultancy said the findings reflected “an environment of mounting pressures both within, and outside, of businesses”. Internally, a growing number of people are delaying their retirement and choosing to work for longer; earlier this year nearly two fifths (36%) of employees said they had already, or were considering delaying their retirement because they wanted to continue working, or due to financial reasons (34%).
The study also showed that employers are concerned about staff lacking the skills they need to work (77%), rising mental health challenges among employees (73%), and persistent long-term sickness (68%).
With external talent pipelines under strain – due to new immigration policies and the shrinking availability of overseas talent, declining birthrates and other factors impacting the way that especially younger workers approach employment, three in five (62%) employers said they were concerned about the future availability of domestic talent.
This, the report said, was seeing employers increasingly resorting to retention strategies to minimise the organisational risk associated with these pressures. In the past year, 84% have increased the amount they pay their staff, 81% their investment in their values and purpose, while 79% are increasing the amount of training they offer mid- and senior-level staff.
Julia Turney, Partner and Head of Platform and Benefits, Barnett Waddingham, said: “The labour market has bared its teeth yet again – bringing some new, and some familiar, challenges for businesses to contend with when tackling their balance sheets.
“Skills gaps, sickness, a shortage of talent and tightening regulations are all colliding to squeeze employers from every angle. But businesses aren’t standing still: they’re investing in their people and looking to older workers and returners to bridge the gaps.
“But as the makeup of their workforce continues to shift, data and analysis will be the key differentiator. Older workers, for example, bring with them a wealth of experience and knowledge that is hugely advantageous to a business, but their needs and wants are notably different from those of younger employees. Understanding these workforce nuances will allow firms to target investment effectively and ultimately retain talent while minimising risk.”
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