‘Everyone’s a Winner’: How to Keep on Workers in Their 50s | by Brian Gallagher
I have a solution that will benefit everyone - and I am going to share it here.
Multiverse has released a report titled ‘The Great Unretirement’. It looks at the trend of people who are thinking of retiring in their 50s and those who have done so. It considers how to change this trend, to the benefit of employers and workers. The report makes sensible recommendations at the end, one of which is to invest in training and development. I have my recommendation – offer training but give a pay raise for it on its successful completion.
What does the report say?
The report interviewed over 3,000 people, effectively split between the UK and the US. Some differences are highlighted. In true Anglosphere spirit, I shall consider the joint survey results for the purposes of my idea.
Why might my concept work? There are some clues within the report itself that suggest this could be the case.
The report suggests that some two-thirds of workers over 50 think that they will retire early. The reasons given are spending time with their family (45%), health reasons (31%) and a lack of skills (11%). However, we are also informed that 61% cite wages as the main reason for staying in work. Why then, do many think they will be retiring early? As the report also points out, some people leave jobs early that they depend on.
Is something else meant by ‘retiring’?
We must look between the lines. ‘Retiring’ is, for some people I suspect, a euphemism. I suspect many respondents simply fear being laid off due to their age. Or indeed, fearing that new technology may be too much for them – the report says 36% of those thinking of retiring believe that not being able to keep pace with new skills is a factor in their thinking. 47% say their employer has not given them any training.
Of course, some people have good pensions enabling them to retire without concern happily, but the aforementioned 61% are not likely to be in that position.
As an aside, I wonder also about that 31% citing health issues for early retirement. That seems a little high. Could it be that some workers are concerned that employers may not be sympathetic to those who may develop conditions in mid-life that would, in reality, have little or no impact on their work? It would be naïve to dismiss fear of ageism as an unsaid factor in respondents' replies.
The top retention factor
The report points out that the top retention factor (cited by 43% of respondents) is a salary increase.
It seems then, that to retain existing staff, both training and pay are both top factors.
Why not then combine them? Employers should offer training in new skills. This is an incentive for many – and on top of that offer some kind of pay raise. This could be given in conjunction with training or upon successful completion. Aside from an immediate bulge in the pay packet, it would also mean more money for the pension pot, something that will be on the mind of the over 50s. This would be a great incentive for workers to not only complete training, but to stay on. The employer would retain better-skilled staff whom they already know and may even be more loyal as a result. The employer would spend less on having to recruit, new, untested staff.
As a certain British TV comedy character would say, ‘Everyone’s a winner’.
Brian Gallagher is a Media Analyst based in London, England and is writing for the Apprentice Lens. Here's more about him:
'Brian is a Multiverse Data Literacy/ Data & Insights for Business Decisions alumnus. He is keen to develop his data skills from his apprenticeship and is highly intrigued by Artificial Intelligence.'