Time to harness skills of older workers

Jul 1 2003 By Bill Midgley, The Journal

Among the endless stream of surveys that fall upon our desks was one indicating that the number of people in employment over the age of 50 is now increasing.

It may be that most of the people are actually employed in producing such surveys, as this appears to be a remarkable growth industry, and one which a Government badly in need of new forms of taxation might well turn its attention.

Indeed, if Peter Hain had suggested, say, a stamp duty on surveys rather than increasing direct taxation, he might have received a far more positive response from the Treasury.

However, what is more important in the short term is that there is a welcome increase in employment in the over 50s.

For far too long, many with skills that are badly needed in our economy have found themselves forced out of work and, because of what might be seen as an ageist attitude, have found it difficult to obtain new employment.

Many companies looking to cut costs, found that transferring staff onto the pension scheme, rather than having to meet their employment costs, had a distinct advantage, and that staff below 30 would generally be prepared to accept lower salaries than those who were over 50.

The option of early retirement on pension is in the main no longer available, which may be why we have seen a change in practice.

In 2005, European legislation banning ageism will be introduced, so there is an opportunity for all companies to look at their employment practices.

An area, however, where we need to do more is in providing support for older workers who seek a career change, particularly those who wish to set up on their own.

Until recently there has been a steady flow of new businesses utilising money which has been a commutation of part of an individual's pension scheme.

Again that is no longer available, but if we are to take advantage of the knowledge base that is available, then it is important that we look at new business ventures from those who are in the later part of their working life on the same basis as we look at those who are just starting their careers.

Much of what I am told is anecdotal, but there does appear to be a shortfall in support given for the over-50s setting up new businesses.

That is not only financial support and grants, many of which are readily available for younger people, but also the advice and mentoring which is often necessary for those who have worked for others rather than themselves.

There is a new initiative regarding business support agencies within the region, trying to co-ordinate the services they offer. There is much confusion as to which agency offers what to whom, and our regional development agency has taken a lead to try to ensure that appropriate advice can be given, and, perhaps more importantly, where to go for such advice.

An opportunity arises immediately to ensure that a generation which can provide skills and business experience, can receive the encouragement to direct those skills into new areas.

There is much concern about the lack of growth in our economy, with the level in the first quarter of 2003 being no more than 0.1pc - almost stagnation. The Chancellor has targets in this area, but to achieve them is going to be difficult unless there are new initiatives and new thinking.

To marginalize people with so much to offer is a waste of a resource which is recognised in many other countries, notably the US where age is never a barrier.