info sheet

WHAT is the context?

Over the past decade, the challenges arising from the
ageing of the workforce in Europe have triggered a
range of different policy responses from governments
and social partners. The increased participation of older
workers in the labour market is seen as a major factor in
achieving more sustainable economic and social
development in the European Union. Concerns about
pensions, economic growth and the future labour
supply have fuelled a range of policy recommendations
and initiatives to support longer working lives and later
retirement.
Over the next 20 years, the average age of the working
population will increase and the number of men and
women of working age will decline. The challenge is
how to develop the skills and employability of older
workers, while maintaining the health, motivation and
capacities of workers as they age. Actions need to be
taken to combat discrimination and negative
stereotypes of older workers. Above all, working
conditions as well as employment opportunities must be
appropriate for an age-diverse workforce.
WHY this research?
In the mid-1990s, the Foundation began research into
barriers and opportunities for age management in
companies. At that time, more than 150 case studies of
good practice in companies were documented. These
case studies covered public and private sectors and
small, medium as well as large enterprises. They
highlighted good practice in relation to such issues as
recruitment, training and development, flexible
working, health and ergonomics.
The Foundation has followed up these initiatives,
analysing their effects on attitudes, the workforce in
general and company policy. Lessons from the case
studies are drawn together in a report that documents
policy developments over the last decade and looks at
the evolution and impact of initiatives at the workplace.
The research has been extended to the new Member
States, where the employment situation of older workers
differs from country to country but where employment
rates are also relatively low and the average exit age is
similar to that in other Member States. The search for
case studies of good practice has been under way in five
of the new Member States, as well as in Bulgaria and
Romania.
WHAT are the findings?
Range of measures
Good practice in age management involves
specific measures to combat age barriers or
promote age diversity.
Such measures, however, may co-exist with other
measures which restrict employment opportunities
for older workers.
Many companies, particularly larger companies,
opt for a comprehensive approach: for example,
flexible working hours combined with health care
measures.
Most initiatives that benefit older workers have
been introduced at relatively low cost.
Integrated and comprehensive human resource
policies for active age management are not
common.
Measures are oriented towards both prevention
for example, health, training, ergonomic or work
life balance and compensation, to make up for
lost opportunities.
In the new Member States, Bulgaria and Romania,
less priority has been accorded to the promotion
of active ageing and to increasing employment
rates among older workers, especially women and
those with low skills.
By remaining in the workforce, older workers can continue to contribute
to the economy, to society at large, but also to their own personal dignity
and well-being.
Vladimr pidla, Commissioner for Employment, Social Affairs and Equal Opportunities,
XVIII International EURAG Congress, Ljubljana, 30 September 2005
Age management
in companies in Europe
EF/06/08/EN
In many businesses, the ageing of the customer base
has led to a demand for older employees to match
client preferences or expectations.
Changes in public policies or financial supports have
influenced some company practices for example,
changes to the statutory retirement age or pension
laws.
Benefits for workers
The case studies point to improved well-being, more
positive work attitudes and increased employability
of older workers.
There is a positive impact on all workers in terms of
inter-generational relationships, and on knowledge
and attitudes about older colleagues.
Older employees were found to be open to new
possibilities for learning and development.
Good practice in comprehensive approaches tends
to be characterised by a focus on the whole working
life and all age groups, not just older workers.
Some initiatives directed at older workers involve
personal development, readjustments to work
schedules, health checks or opportunities for further
qualification.
WHAT now?
Recent changes in public policies and developments such
as anti-discrimination legislation go some way towards
addressing the challenges and opportunities of an ageing
workforce. The agenda for action to improve the
employment of older workers involves government
policies at different levels, the social partners and social
dialogue, and companies, as well as older workers
themselves.
The Foundations research and database of case studies
offers an up-to-date resource of ideas, initiatives and
incentives to respond to demands for better age
management at the workplace. In future there is scope for
increasing the level of awareness and commitment and
stimulating change in all organisations, particularly in the
new Member States. At policy level, changes in early exit
and retirement policies need to be accompanied by
investment in an ageing workforce.
Successful outcomes
Including workers in the change process was often a
more important factor in a positive outcome than the
initiative itself.
Successful examples often involved mixed-age teams,
which combine the skill advantages of different age
groups.
Targeted initiatives to promote the health and skills
of older employees have proved more advantageous
to employers than redundancies or early retirement.
Successful outcomes depend not only on
commitment from top management but also on
training for managers and supervisors, the
involvement of workers representatives and
company-wide age-awareness campaigns.
Employment rate of the older population (aged 55-64 years)
in 2004, by country
Benefits for companies
For companies, the main advantages were viewed in
terms of economic factors, productivity and labour
supply issues.
Developing and implementing good practice is
usually triggered by the direct business needs of
companies, rather than pressure from public policy
or age-awareness campaigns.
Recruitment and retention of workers with particular
skills is a key strategy many firms have identified
specific skills and more general qualifications or
experience of older employees as an asset.
0
10
20
30
40
50
60
70
80
E
U
2
5
SE DK UK EE FI PT CY IE LV LT NL CZ DE ES EL FR HU MT LU IT BE SI AT SK PL
26.2
26.8
28.8 29
30 30.5 30.8 30.9 31.1
37.3
39.4
41.3 41.8
42.7
45.2
47.1
47.9
49.5 50.1 50.3
50.9
52.4
56.2
60.3
69.1
41
%
Source: European Commission, Employment in Europe 2005.
Further information
Teresa Renehan at ter@eurofound.eu.int
Database of employment initiatives for an ageing workforce
http://www.eurofound.eu.int/areas/populationandsociety/
ageingworkforce.htm
The good practice guide and report on developments in age management in
workplaces over the past ten years will be published in 2006, available at
http://www.eurofound.eu.int/areas/populationandsociety/index.htm
Foundation work on related issues
Combating age barriers in employment
http://www.eurofound.eu.int/areas/populationandsociety/ageing.htm
Ageing and work in Europe
http://www.eurofound.eu.int/publications/htmlfiles/ef0483.htm
EWCO topic report: Ageing and work in Europe
(http://www.eurofound.eu.int/publications/files/EF0483EN.pdf)
European Foundation for the Improvement of Living and Working Conditions
Wyattville Road, Loughlinstown, Dublin 18, Ireland
Telephone: (+353 1) 204 21 00 Email: postmaster@eurofound.eu.int
website: www.eurofound.eu.int
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