Small business owners should consider turning to older workers in a bid to beat skills shortages and take advantage of an ageing population, according to the Chartered Institute of Personnel and Development (CIPD).
Research conducted on behalf of the organisation by Cranfield School of Management examined what companies currently do to ensure their rewards and recognition package is attractive to older employees.
It concluded that organisations needed to look beyond salary to incorporate perks such as flexible or part-time work, training and promoting a greater work/life balance. Where such initiatives did exist, the research discovered, they tended to be as a result of a one-off measure introduced as an ad hoc response to a specific instance.
"Employers are recognising the importance of an older workforce but this is being influenced by the law and what they can and can't do, rather than what they should be doing," said Charles Cotton, CIPD reward and employment conditions adviser.
For instance, while employers have been examining pay progression, few have taken the opportunity to evaluate whether the way they structure pay is sufficiently flexible to meet individual aspirations across all age groups," he added.
"When reviewing and revising their reward approach, employers need to take the opportunity to examine whether how they reward their employees is appealing to older workers, as well as other groups."
The CIPD argues that a ‘total reward' approach can help employers attract older workers to their companies, providing a mixture of financial rewards and less tangible benefits that may appeal more to older workers than younger staff.
"Many employers are worried that providing benefits that appeal specifically to older workers is discriminatory, but this is not the case as long as they offer the same rewards to the whole workforce," said Dr Emma Parry, research fellow at Cranfield School of Management and author of the research.
"Our research shows that employees who are getting near to retirement have different needs to those at alternative stages of their careers," she added.
"The total rewards package offered to employees should be designed in such a way as to accommodate these differing needs so that workers of all ages are motivated to stay with the organisation."
