Employer attitudes to older staff must change

News Article - 17 March 2010
Category: Business

Delegates at the Employer's Forum on Age have warned employers that internal attitudes to older staff must modernise. The event saw widespread agreement that as older people remain healthier and the number of young people falls, employers must abandon old-fashioned attitudes towards older employees. In addition, companies should support older workers who wish to remain in employment.

Currently employers are able to force staff - even those wanting to remain - to retire at 65. This has been controversial as research suggests a number of employees would voluntarily choose to work past 65, many for financial reasons. Since the economic crisis hit, a significant proportion of older homeowners have been unable to cope on a state pension alone, yet employers' reluctance to hire older workers means they frequently struggle to find jobs.

Over the last several months there has been increasing pressure on employers to let staff continue to work for as long as they wish to do so. In January, Harriet Harman proposed the idea of scrapping compulsory retirement and spoke of the need for a 'massive public policy change' to allow older people to continue to work. In the same month, the Equality and Human Rights Commission (EHRC) pledged its own support for removing the compulsory retirement age.

With the general election due in May, politics is likely to be dominated with the major parties appealing to as wide a demographic as possible to win support. With retirement age such an important issue for many older people, it is expected each party will pledge to revise current legislation to make the economy more supportive of older workers.

The compulsory retirement age is not the only area of employment legislation facing reform. The Single Equality Bill, to be introduced in October, makes reporting gender pay gaps compulsory in 2013, in addition to strengthening the powers of employment tribunals. HR departments must watch developments closely to ensure adequate preparation can be taken to comply with upcoming regulations that may occur.

Integrated software solution can help HR departments comply with revised compliance regulations with regard to employee rights. Payroll and HR software offers a variety of features, including employment grievance tracking, to ensure the HR function is constantly aware of employees' wishes and that these are reflected in employment policies. With this information to hand, companies will be more able to fulfil compliance regulations and also help influence workplace productivity. Full integration with the finance function also allows accurate data on gender pay gaps to be produced automatically.

Article keywords: HR software systems, payroll software, HR management software solutions

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