New report warns of the economic impact of prematurely losing workers over the age of 50
More than a third of employees over the age of 55 would consider resigning without flexible working hours, according to a new report in the United Kingdom.
New research from the Standard Life Centre for the Future of Retirement recently polled 4,000 UK adults to discover the critical role of flexible work in retention.
It found that 37% of workers aged 55 and above would consider leaving their job if their employer restricted their ability to work flexible hours.
A further 24% even said they would take a pay cut in exchange of flexible working options.
Patrick Thomson, Head of Research Analysis and Policy at the Centre, attributed older employees' strong desire for flexibility to their need to balance work with other factors such as health or caring responsibilities.
"Flexible work can be the difference between retaining skilled employees or seeing them walk out the door," Thomson said in a statement. "If we want to drive growth in the economy, we can't afford to lose their experience."
Impact on the economy
The findings come after a previous report from the centre revealed that eight key sectors in the UK's Industrial Strategy are heavily reliant on workers over 50.
The strategy, which aims to boost the UK's economic growth, productivity, and competitiveness, targets support at eight sectors including:
- Advanced manufacturing
- Clean energy industries
- Creative industries
- Defence
- Digital and technologies (including AI and quantum computing)
- Financial services
- Life sciences
- Professional and business services
However, these key sectors are also losing about 440,000 employees over 50 each year through early exits, resulting in a £31-billion loss annually for the UK economy, according to the centre's report.
"Over 50s are a crucial part of the workforce in these sectors, meaning that retention and upskilling is just as important to the Strategy's success as attracting and training new entrants," the report read.
Improving retention for workers
A key recommendation from the centre is the introduction of more flexible working options and the improvement of job design to support longer and more fulfilling work lives for employees.
It also recommended expanded access to occupational health and in-work support for those managing health conditions, as well as improved availability of midlife training, career guidance, and financial advice.
"Retaining experienced workers boosts productivity, eases pressure on public services, and supports long-term economic growth," Thomson said.
"Backing older workers isn't just the right thing to do - it's smart economics."
