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Retaining older workers is vital to plugging employment gap, says CIPD

British companies will need to retain their ageing talent as the number of people retiring over the next ten years may outnumber the number of people finishing education.

In the next ten years employers will need to fill an estimated 13.5 million job vacancies, according to research from the UK Commission for Employment and Skills.

However, only seven million young people will leave education during this period, leaving employers facing a potentially large employment gap.

The Chartered Institute of Personnel and Development (CIPD) is releasing new guidance to employers called Managing a healthy ageing workforce: A national business imperative, produced in collaboration with the Scottish Centre for Healthy Working Lives, stressing the importance of managing the ageing workforce.

Dianah Worman, Diversity Adviser, CIPD, says: “Organisations that respond appropriately to the challenges of an ageing workforce will gain a significant competitive edge, both in terms of recruiting and retaining talent, but also through supporting the well-being and engagement of employees of all ages.

“The business case for older workers is strong and research shows their impact and experience within the organisation enables better customer service, enhanced knowledge retention and can help to address talent and skills shortages.

“All of this will help to guard against potential age discrimination claims, thereby mitigating damage to the brand and any associated costs.

“With the removal of the Default Retirement Age last October, employers are freed up to adapt their workforce to the labour needs of the market.

"CIPD research shows that older workers are increasingly looking to extend their working lives, with more than 50% of workers aged over 55 planning to work beyond the previous state retirement age.

“Although financial reasons play a key factor, many older workers also wish to continue using their skills and experience and enjoy the social interaction they experience in the workplace."

Article from askGrapevine HR