Businesses in the South West are being urged to take action to stem the flow of older workers leaving the workplace in a bid to overcome severe talent shortages facing the region.
In the face of the steep rise in people aged 50-65 quitting work, one of the longest established and leading recruitment agencies in the South West, Exeter-based Cathedral Appointments, is warning the so-called ‘Great Retirement’ is ‘alarming’ and poses a real risk to the region’s economic prosperity.
The company is urging businesses to rethink their hiring practices and look to the older workforce to help plug the gaps in their workplaces and enable businesses to meet customer demand.
The warning comes on the back of a report published last week by the Office for National Statistics (ONS). It found that there are currently 386,096 more adults aged over 50 years who are economically inactive now than there were two years ago, which is higher than any other demographic.
Moreover, the ONS report showed that 58% of workers in this age group are open to returning to the workplace. This figure was higher for those aged 50-54 years (86%).
Jo Caine, Managing Director at Cathedral Appointments, said:
“The South West has the highest regional rate of population growth in the UK, the highest average working age of people in the country, and the lowest rate of unemployment and least number of people readily available to work. Yet the number of those in their 50s and 60s who are economically inactive has risen to its highest levels since 2006.
“This is not only a missed opportunity for those businesses struggling to overcome the talent shortages in their organisations; it is also putting the prospect of an economic bounce-back for the region at risk.
“Businesses across the South West are facing a skills shortage – there are more jobs available than there are people to fill them and as someone takes up a job it just leaves a new vacancy somewhere else. This has an impact not only on the ability of those businesses to satisfy their order books, but on their existing teams who are having to increase their own capacity.
Ms Caine, who has over 20 years recruitment experience in the South West market for private, public, Not-for-profit and charitable based companies, said she believed older workers had become increasingly disillusioned and needed to be assured of their value to the workplace.
She explained: “There is a significant pool of talent that is currently being underutilised yet has a wealth of skills, experiences, and knowledge that can both plug many of the gaps that exist and help drive the business forward.
“Not only have we got many older workers native to the area who may have dropped out of the workforce prematurely, but we are also unique in having many thousands of people who have moved into this area in recent years, ostensibly for a more balanced lifestyle, who could well be tempted back into the workforce.”
She added: “The trouble is that many older workers who left the workforce because they felt under-valued and also may have sought a different lifestyle post Pandemic are dissuaded from considering a return to the workplace for fear of issues like age discrimination – that employers will favour younger over older workers for jobs and promotions.
Ms Caine said that she believed the solution to plugging growing skills gaps was tapping into this older pool of talent but making employment work for them, adding:
“From providing flexible working, mental health support, and career progression opportunities to relevant perks and benefits such as caring support and employee assistance schemes – there are a number of ways that employers can tap into this valuable pool of talent that is readily available to them.”
“The skills crisis is not a new phenomenon; it has and will always be a factor of everyday business life. That is why it is so important for employers to rethink their hiring strategies and remember that there is a world of talent that can deliver real value to the business beyond the pool they are currently fishing in. They just need to cast their net a little further out.”
