Doing Business in the Age of Accountability

Age discrimination is bad for business. Not only is it unfair, but it also wastes talent, experience and knowledge, and it is now illegal to treat someone less favourably in the workplace because of their age.

The age legislation, which came into affect in October 2006, covers all aspects of employment. It has meant that organisations must ensure that their HR policies and practices do not discriminate on the grounds of age.

The new law makes it unlawful to discriminate against workers, employees, job seekers and trainees because of their age, but the regulations left some organisations confused. Businesses were left wondering whether they needed to close graduate recruitment schemes and lose language such as 'experienced, young and dynamic' for fear of falling foul of the law.

Research carried out by the Chartered Institute of Personnel and Development (CIPD) shows that some aspects of employment are causing employers more challenges than others.

AGE DISCRIMINATION IN RECRUITMENT

But why should we focus on recruitment? It is not the only issue facing HR, but it is the reason that most organisations to date have ended up defending their actions against an age discrimination claim.

The CIPD recruitment and retention survey of 2007 shows that only 29% of organisations have addressed or reviewed their recruitment policies and practices in light of the new legislation. This suggests that many firms are not prepared for the potential impact of this legislation.

Being positive about age is about building an effective workforce of different ages. Businesses of all sizes can benefit from employing an age-diverse workforce, namely a higher retention rate, lower absenteeism, increased motivation, greater flexibility and a wider pool of skills.

COMPLYING WITH THE AGE LEGISLATION

Many organisations, when learning themselves, have shared their experiences in trying to address recruitment in light of the new legislation.

HSBC removed the date of birth and indeed all indications of age from their application forms. They no longer ask for dates for qualifications, schooling and work experience. HSBC has also gone through a due diligence procedure with the recruitment agencies that they use.

They have examined the agencies' standards on diversity and reduced the number of agencies that they use considerably, so that they are easier to monitor. Whilst the legislation doesn't stipulate that this needs to be done, many organisations have adopted this as good practice to ensure that age is not a factor in the initial screening stages.

Nevertheless, the issue is not just about compliance. Over the next ten years, the age structure of the working population in Europe will change significantly: the number of young people (15-19) will fall by over one million, and those aged 20-29 will fall by nine million, whereas the number of persons aged 50–59 will grow by 5.5 million and the 60-64 age group will grow by one million.

In the UK, there are currently around 19 million people aged 50 and over. It is expected that this age group will increase by a further three million by 2020.

AN OLDER, WISER WORKFORCE?

These population changes mean that organisations will be forced to recognise the importance of employing older workers and using their skills and expertise wisely. Demographic change, improved health and pressure on pensions, will mean that there will be a diverse range of older workers wanting to work and young workers, although fewer, will be more highly skilled and better educated than ever before.

More still needs to be done but research shows how a number of employers are starting to move beyond good intentions towards delivering strategies that contribute to a more diverse workforce.

Businesses need to ensure their recruitment practices and policies attract the right kind of people for their organisation whatever their age; otherwise they could miss out on the talent. Bringing in the right policies and practices in the workplace is a huge step towards eliminating age discrimination.