Businesses not ready to cope with an ageing workforce

According to a new survey from the Chartered Management Institute and the Chartered Institute of Personnel and Development, businesses are not totally ready to face the ageing workforce trend currently witnessed in the UK. in spite of the removal of the default retirement age (DRA) in the UK, preventing employers from removing staff from jobs at the age of 65.

According to a report published last September by Personnel Today, the CIPD and CMI survey has shown that some 86% of managers and HR directors feel that their organisation has yet to prepare for how this will affect their company's staffing. In fact, 43% of the managers said they were not fully aware of their company's retirement policies. This shows that many organisations have yet to engage with the promised removal of the DRA. Meanwhile some 34% have expressed that there is no boardroom recognition of the issues.

However, 93% of the managers surveyed considered valuable to retain older employees and benefit from their greater experience.
"Employers will need to keep on their toes to respond appropriately to the phasing out of the DRA next year, which will have widespread implications," warned Dianah Worman, the CIPD's diversity adviser.
Petra Wilton, director of policy and research at CMI, said: "The age profile of the UK workforce is changing, yet UK businesses are woefully unprepared for the impact this will have on their business."