Businesses must prepare for a workforce containing a growing proportion of over-50s, who want and need to work for longer, the over-50s possess skills and knowledge that businesses can struggle to replace. Harnessing the power of over-50s will boost productivity and benefit the economy.

72% of older workers either work flexibly already or want to do so. Yet many are not aware of their right to request flexible working and are not comfortable discussing it.

Many over-50s face significant shortfalls in their pensions savings, so helping them to stay in good work is essential.  Lack of access to flexible working can result in a complete exit from the workforce.

Over-50s are important to improving productivity. Staying in good work for longer improves their financial wellbeing which benefits them and the wider economy. Employers must therefore raise their game in retaining, retraining, and recruiting over-50s workers.

What’s new, research by the CIPD for this report found that part-time working is the most common form of flexible working among over-50s (33.2%). It varies considerably from sector to sector, suggesting some employers need support to successfully embrace it.

22.4% of the over-50 workforce work from home, while 12.9% use flexible time. Giving more support to older workers to access formal flexibility arrangements can benefit both workers and businesses.

Retain, Re/train, Recruit! Flexible work is important for both people and businesses in terms of retaining, re/training, and recruiting.

Retention of talent is vital to increase skills and productivity.  Flexible working is the most important consideration for over-50 workers wishing to remain in their current roles.

More must be done to help older employees to access flexible work. Normalising conversations about flexible working and removing stigma surrounding it, are important steps. Employers must be more proactive in promoting flexible working options.

Improving productivity depends on retraining in new technologies. 96% of over-50s say they will need additional training to continue doing their jobs until they retire.

Flexible options make retraining more accessible by overcoming barriers such as caring responsibilities. Tailoring training to individual needs increases the likelihood of success.

The proportion of job adverts offering flexible working has stalled at 31%. Flexibility is not routinely promoted during the recruitment process.

Supply of vacancies offering flexibility lags far behind demand with only 3 in 10 vacancies advertising flexible working options. Employers could be alienating a huge amount of potential over-50 talent.

The considerations of flexible work on over-50s health and wellbeing in work is good for physical and mental health and wellbeing. Re-employment improves health and self-esteem.

The circumstances surrounding early retirement can greatly influence an individual’s wellbeing with forced early retirement having a detrimental effect.

Matching work circumstances to the changing needs of older workers helps to maintain their health and safety at work, allowing them to work longer.

Expert stakeholders from unions and employer organisations were consulted regarding flexible working for over-50s and its practical application in different sectors, smaller organisations, in particular, are under pressure as they try to manage many different types of flexible working arrangements, without proper HR support.

Recommendations for government and business

Government: A) Should lead by example by monitoring uptake and effectiveness of flexible working.  This should be broken down by age.

1. B) Should provide a range of practical examples for use specifically with over-50s (including case studies) to help illustrate how flexible working can be used to aid retention, retraining and recruitment.
2. C) Ensure resources on HR support are available for small and medium employers (SMEs) to help them with the implementation of Flexible Work legislation, including issues such as phased retirement.
3. D) Should review the skills and training offering in both Job Center Plus and via Department for Education to ensure training offered can be undertaken on a flexible basis (e.g. apprenticeships/bootcamps).
4. E) Back the Centre for Ageing Better’s Age Friendly Employer Pledge.

Business, F) should actively promote the availability and range of flexible work options to both new and existing employees, monitoring the uptake and effectiveness of flexible working.

1. G) Should offer support to people managers to better support flexible workers of all ages.
2. H) Should include promotion of flexible work in all job adverts and/or discuss this early in the recruitment process.
3. I) Should ensure training and skills opportunities can be taken flexibly.
4. J) Should actively adopt and sign the Centre for Ageing Better’s Age Friendly Employer Pledge.

We hope that the recommendations to employers and to the government outlined in this report will help accelerate greater access to a range of flexible working arrangements for the growing demographic of workers over 50. There are clear benefits to businesses of all kinds, as well as in supporting people to have longer fulfilling working lives which is good for them, but ultimately also good for our communities and society.

People in North America are living longer, and the proportion of over 50s in the workforce is increasing. Considering the needs of these workers is vital if the country is to benefit from the huge resource of skills and experience that they offer. Discussion and research tend to focus on workers in the earlier years, of their career, while relatively little attention is given to their more mature colleagues as they enter the later stages of their working lives.

A large body of work from a variety of organisations demonstrates the advantages of flexible working. However, there is a lack of research into flexible working among the over-50s, as highlighted by Chartered Institute of Personnel Development (CIPD). This lack of attention directed towards older workers is also felt by them with 88% respondents in the recent Phoenix Insights research agreeing with the statement “older people are left behind by employers” (PI). Research from the Centre for Ageing Better and Timewise reveals that flexible working is a highly valued benefit for those over-50s currently in work, and that lack of access to it is a key reason for leaving work. Raising awareness and consideration of flexible work is fundamental to both recruitment and retention of older workers who make up more than 30% of the working age population.

From a legislative perspective, a current bill coming into force April 2024, means employees have the right to request flexible work from day one, and employers must consider any request. Flexible working is a broad term. It can relate to working hours or patterns including part-time, term-time, compressed hours, or adjusted start and finish times.

It can also include flexibility over where someone works, whether that be from home or a satellite office (Department for Business and Trade). The introduction of the bill compels employers to understand how they can make this work best for their workforce and obliges the government to do all it can to support both employers and employees.

The government-appointed Flexible Working Taskforce has been investigating the issues and opportunities offered by flexible working. The Taskforce is co-chaired by Peter Cheese, CEO CIPD, and the Minister for Trade. Its membership includes representatives of the Older Workers Roundtable, co-chaired by the Minister for Employment and Andy Briggs, CEO Phoenix Group, and government Business Champion for Older Workers.

This report explores what ‘flexible working’ means for the over-50s and assess evidence that indicates it can be mutually beneficial for the individual and the organisation. As well as consolidating previous research on flexible working, the report introduces new data analysis conducted by the CIPD that focuses on people aged over 50. It also discusses why flexible work is important to this group, exploring the positive impact it has on the business world’s ‘three Rs’ (retain, retrain and recruit) and the health and wellbeing of older workers. Finally, the report considers the ‘how’ of flexible work after 50, considering the views of subject-matter experts in the field and introducing case studies from various sectors where flexible work is already paying dividends. Throughout the report, recommendations will be made for meaningful action that can be taken by government and business. These are summarised at the end.

Why flexible work should be a priority for the over- 50s and for business

People are living longer, meaning that the proportion of older workers in the UK workforce is steadily increasing. Already, around one in three workers are over the age of 50 and this increasing trend is expected to continue. On average, 65-year-olds in the UK are now expected to live for another 20 years and this longevity is projected to rise further (Office for National Statistics). This means it is increasingly important that businesses prepare for a workforce that will comprise five generations and contain a growing proportion of over-50s. This demographic change coincides with an increase, in the national pension age, a reduction in the number of final salary pension schemes and an associated requirement for individuals to self-fund their lifestyles when they no longer work. Consequently, more people want and need to work for longer, but not necessarily in the same way as they have done previously; for many this means embracing flexible work.

The 2020 research from Centre for Ageing Better & Timewise provides much of the insight for this report. One issue it highlighted is an increase in the demand for knowledge-based roles. People aged over 50 often possess a wealth of skills and knowledge that businesses struggle to replace when they leave the workforce; their experience means that the contribution of older workers can be essential to the success of a business.

In many sectors, the skills gap exacerbates the challenges faced by employers; harnessing the power of the over-50s presents an opportunity to boost productivity and benefit the economy.

We know that flexibility is an essential part of good work and that it is even more important to older workers than to other age groups. Research from the Centre for Ageing Better and Timewise looked at how flexibility for people aged 50 and over can be made practicable. The research shows that while there is demand for flexibility across all age groups, that demand is higher among older workers, with 72% of those workers either working flexibly already, or wanting to do so. According to a study conducted by the DWP, for people aged over 50, flexible working is the number one workplace practice that would allow them to work for longer. This also echoed in Phoenix Insights research which shows how important flex is as a factor to encourage economically inactive over 50s back to work.

Yet nearly one in three do not realise that they have the right to request flexible working and almost one in four are not comfortable discussing this issue with their employer.

While the specific data will have evolved, the results nevertheless illustrate the important role of government and business in providing and promoting flexible work. The DWP findings are reinforced by the more recent Centre for Ageing Better and Timewise research which shows that many in this group are not aware that all employees have the same rights to flexible working. Addressing this lack of awareness is a key requirement needing action.

Enabling businesses to make use of the talents of the entire workforce and supporting more people to be economically independent is mutually beneficial. Many older workers want or need to keep working to supplement their savings and pensions. The introduction of automatic enrolment into pensions has seen a huge shift in default pension contributions, but many people only became auto-enrolled mid-career and are now facing significant shortfalls in their pensions savings. This potential savings gap is exacerbated by the increase in the retirement age.

Research published by the Social Market Foundation found that among people aged 50-64, two-fifths are not confident of being able to meet their desired income in retirement.

Offering flexibility to older workers through methods such as phased retirement (workers gradually reduce hours as they move towards retirement) is an important measure to ensure people can continue to work longer, both to support themselves financially and to balance other personal priorities. Flexibility can provide a bridge to retirement, giving workers more control over how long they remain in employment, and allowing them the time to build a life beyond work.

At every life stage, people’s priorities, needs and motivations can change. Those over 50 are no different. The Centre for Ageing Better and Timewise research looked at older workers over a wide range of job types, skill sets and levels of seniority across different employers. Despite the variations in their circumstances, their reasons for wanting more flexibility were universal:

• caring responsibilities
• physical aspects of ageing
• support for extended family
• wanting to enjoy other aspects of life
• managing the transition to retirement.

Flexibility in work can enable people to continue to balance work with other life demands. Most people (72%) cited work-life balance as a reason for flexible working. Having more time for themselves (34%), caring commitments (34%), managing commutes (31%) and health reasons (29%) are also stated as reasons for flexibility. This shows a keen level of awareness of the benefits of flexible working in the over-50 age group and their desire to experience these benefits. It also reveals that not having flexibility can result in people choosing to leave the workplace.

With increasing life expectancy, an ageing UK workforce, and the ever-increasing demand for skilled workers, workers aged over 50 have never been more important to the economy. Indeed, they could be the key to greater productivity in the UK workforce. Being able to stay in good work for longer can also have a positive impact on older workers’ financial wellbeing; it enables millions of people to boost their savings by returning to the workforce or remaining in work for longer. This benefits both the individual workers and the wider economy. To reap these economic benefits, employers must raise their game in terms of how they retain, re/train and recruit over-50s workers.

If employers can utilise flexible working to make the most of the knowledge, skills, and talents of older workers they could be trailblazers for growth and wellbeing over the next decades.

To support this report, the CIPD conducted a new analysis of formal and informal flexible working arrangements in the over 50s age group.

This analysis found that the most common formal flexible working arrangement within the over-50s age group is part-time working (33.2%), representing 3.6m people. The rate of part-time working in the over-50s age group has remained at around 33% since 2011 but the level of over 50 working part-time has been increasing. This maybe because part-time working is the best-known form of flexible working and there is a lack of awareness of other arrangements. The use of part-time work is most common in the health and social care industry (666,606 workers) and education (544,141 workers). Interestingly part-time working is the most common in industries thought of as vocational. It is least common for workers in occupations involving process, plant, and machinery (157,151 workers) and among skilled traders (230,671 workers). This may suggest that part-time work is largely accounted for by those wishing to carry on with work in sectors that can facilitate it. It could also suggest that in sectors where part-time work is not common, employers may need more support to successfully embrace flexible work arrangements.

The number of workers aged over 50 who work from their own home has rapidly increased from 10% in April to June 2020 to 22.4% in same period in 2023. Home working is most popular with over-50s working in professional, scientific, and technical activities (408,845 workers) and public administration and defence (344,317 workers). Pre-pandemic, working from home was most common among the over-50s, now it is most popular among workers aged 40-44 years old. Over-50s workers sit in the middle of the range in terms of their propensity to work from home. Only among workers aged 16-19 and 20-24 were there lower percentages of home working.

The CIPD’s research also considered workers aged over 50 using flexitime (a working schedule which allows employees to choose when to start and end their workday, and/or how long to take their break for, within agreed limits). 12.9% of the over-50 workforce fall into this category with flexitime being most popular in the public administration and defence industry (340,490 workers) and in the health and social care industry (185,265 workers).

Other arrangements include the 5% of over-50s workers who are contracted to annualised hours, 4.6% who have term time working agreements, 2.6% of workers who are on zero hour contracts, 2.4% work on call, 1.5% work condensed hours and 0.3% of over-50s workers job share. Older workers are clearly making use of various flexible working arrangements although this suggests that they may be missing out on the benefits of the less commonly used formal flexible arrangements.

The difference in usage levels could be down to preference or suitability to role. If employers were to give more support to older workers wanting to access formal flexibility arrangements – that suited both the individual’s and business’s needs this could increase the use of these arrangements and, in turn, improve the benefits they provide to both workers and businesses.

In general, the use of informal flexible working arrangements increases among over-50s, with workers being able to make decisions on many arrangements without any restrictions. Workers in the over-50s age bracket see the most flexibility when it comes to making decisions around the start and end time of their working day and the possibility of taking one or two hours out of the normal working day for personal or family matters. The expert interviews conducted for this report suggested that this increase in access to informal flexibility among older workers could suggest that employers place more trust in older worker and thus are more accepting of this type of flexibility for this cohort.

It is also important to note that, given the lack of clarity among some employers as to what constitutes flexible working, many people may be engaged in a form of flexible working without it being defined or recorded as such. Often employers don’t keep records of the flexible working methods that they use, especially informal arrangements, as this can be challenging, particularly for smaller business who do not have dedicated HR departments.

Recognising this challenge government should lead by example by monitoring uptake and effectiveness of flexible working. This should be broken down by age.

Retain, Re/train, Recruit, Flexible work is important for both people and businesses across the employee lifecycle whether the focus is to retain, re/train or recruit.

Retention of talent is arguably the most effective lever available to a business in the drive for increasing skills and productivity. Flexible working options are not only an important consideration for over-50 workers when they are seeking a new role; they are also extremely important in retaining older workers. The research referenced earlier, from the Centre for Ageing Better and Timewise, highlighted that offering more flexible working options was the most powerful action an employer can take to retain the over-50s age. It also allows older workers to continue in good work for longer.

However, recognition is only a precursor to action. More must be done to help the current generation of older employees to access flexible work that meets their needs, to prevent them leaving the workforce. Increasing awareness of the role of flexible work in increasing retention can be achieved by normalising conversations about it and taking actions to remove the lingering stigma surrounding it. Expert interviews conducted for this article revealed that some over-50s believe there is still stigma attached to flexible working as they consider it unprofessional.

This lack of awareness and normalisation among the workforce is just one side of the equation. Employers also lack confidence when it comes to promoting and discussing flexible working options. The Centre for Ageing Better and Timewise found low levels of employer proactivity on the issue of flexible working with four in five-line managers saying they have never taken the initiative in raising flexible working at annual appraisals. If they are to proactively manage the retention of their workforces, employers must do more to reassure their people that their managers have the necessary skills to successfully implement and manage flexible working for all team members.

Bio:

Dr. Bill Pomfret of Safety Projects International Inc who has a training platform, said, “It’s important to clarify that deskless workers aren’t after any old training. Summoning teams to a white-walled room to digest endless slides no longer cuts it. Mobile learning is quickly becoming the most accessible way to get training out to those in the field or working remotely. For training to be a successful retention and recruitment tool, it needs to be an experience learner will enjoy and be in sync with today’s digital habits.”