Unlock talent with age-inclusive hiring: How older workers can help SMEs overcome staffing challenges

By Mike Mansfield, CEO, ProAge

The labour market, both nationally and in the West Midlands, is facing a persistent challenge: too many job vacancies and too few applicants. Nationally, 841,000 vacancies were reported between July and September 2024. Here in the West Midlands, the Department for Work and Pensions (DWP) lists nearly 11,400 open roles, with sectors like health and retail seeing some of the highest demand. This shortage creates productivity issues, pressures wages, and strains essential services, from healthcare to retail.

Could the solution lie in more age-inclusive hiring practices to attract and retain older workers?

Following the numbers

Older workers are a growing demographic in the UK labour market. Since 1992, the number of workers over 50 has surged by 4 million—double the growth of workers aged 25 to 49. Now, people over 50 make up 30% of the UK’s workforce, a proportion set to rise due to longer life expectancy and declining birth rates.

In parallel, economic inactivity among those aged 50-64 has also grown, with 3.6 million people in this age range not working or claiming benefits. In the West Midlands, 27% of people in this age group—about 305,000 individuals—are economically inactive. Engaging this talent pool could be transformative.

UK workforce by age (source, ONS):

Why West Midlands businesses should recruit older workers

Older workers bring extensive experience, commitment, and fresh perspectives. Here’s why they could be the key to solving your hiring challenges:

1. Skills and experience: Older employees often bring years of industry-specific knowledge, helping to train younger staff and bridge skills gaps. In fact, 79% of employers in England believe older workers enrich skill-sharing within teams.

2. Increased retention: Studies show that older workers are typically more loyal, reducing turnover and fostering stability in teams.

3. Enhanced problem solving: Multigenerational teams combine varied viewpoints, enhancing brainstorming, problem-solving, and aligning better with diverse customer bases.

Becoming an age-inclusive employer

ProAge and Brave Starts surveyed 225 HR and DEI professionals and led workshops with nearly 100 business leaders to explore what organisations can do to attract and retain older workers. Our findings highlight three key areas:

1. Culture: Combating ageism benefits everyone, enabling all employees—regardless of age—to fully contribute. Review your recruitment policies, training opportunities, and even company imagery to ensure age inclusivity. Highlighting the value of older workers can send a strong message to prospective hires.

2. Operations: Many recruitment processes lean heavily on technology, which can alienate older candidates. Simplify applications and shift to skills-based recruiting that focuses on transferable abilities, rather than requiring specific past roles or technical proficiencies.

3. Benefits: Consider benefits that meet the needs of employees at all stages of life. Adding programmes like retraining, transitional retirement, menopause support, and mid-life skills checks can signal your commitment to valuing all ages.

A forward-thinking strategy for a stronger workforce

Embracing age-friendly practices positions your organisation to access critical skills and experience. In a world where demographics are shifting, the businesses that succeed will be those that are prepared. Age is the one characteristic we all share; let’s make workplaces that reflect that.