Employers’ use of older workers in the recession
| Pages | 257-271 |
| Published date | 20 April 2013 |
| DOI | https://doi.org/10.1108/01425451311320468 |
| Date | 20 April 2013 |
| Author | Vanessa Beck |
| Subject Matter | HR & organizational behaviour |
Employers’ use of older workers
in the recession
Vanessa Beck
School of Management, University of Leicester, Leicester, UK
Abstract
Purpose – The purpose of this paper is to explore the degree to which there have been changes
during the recession in the behaviour of employers with regards to their employment of older workers.
The paper aims to show that there has been substantial change since the last recession and that there
are, potentially, significant developments still occurring.
Design/methodology/approach – A small group of employers from a range of sectors were
interviewed twice, once at the outset of the (first) recession and once towards its end.
Findings – The situation for older workers in employment is better than in previous recessions,
mainly because employers are less likely to resort to redundancies for workers of all ages. Instead, a
range of flexible working options are being utilised, including flexible retirement and adjustments to
work processes. In the main the flexibility was instituted and controlled by the organisations.
Employers are looking for alternative strategies to deal with a shift in control over the retirement
process as a result of the abolishment of the default retirement age.
Research limitations/implications – The research was undertaken with a small sample, which
has implications for the generalizability of the results. Although it would be difficult to further
investigate the developments of employer behaviour during the recession, the long-term implications
and the effects of the recession, in particular on older workers, are yet to emerge.
Originality/value – The paper shows a new development in dealing with older workers during
a recession.
Keywords United Kingdom, Labour market, Older workers, Employment,
Employers of older workers, Recession, Skills
Paper type Research p aper
Introduction
In 2009 and early 2010, there was a short phase of media interest in older workers in
the recession. A piece in Personnel Today (2010) mentioned that the use of the default
retirement age (DRA) had “spiralled out of control” as it was used “to retire more than
100,000 older workers during recession”. The implication was that older workers were
being pushed out of the labour market and into unemployment or early retirement to
ensure sufficient work for younger cohorts. However, public focus quickly moved on as
youth unemployment rose. There were some who argued that older workers had a role
in this as they occupied jobs that were therefore not available for younger workers.
However, as Brendan Barber (quoted in TAEN, 2011c, p. 4) pointed out, older workers
“tend not to be doing the jobs young unemployed people might expect to get”. This
paper addresses the issue of older workers’ employment in the context of the current
economic crisis and with this presents new insights into the role of this group in the
labour market. It is argued that older workers are so far faring better than in previous
recessions. Considerable changes have occurred in terms of legislation, he alth and
lifestyle, social expectations and industrial structure since the last recession, thus
fundamentally changing the position of older workers.
It will be argued that employers participating in this research had initial concerns
about redundancies and the recession but that these have been overtaken by
trepidations about the changes to retirement and how they will affect organisations.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0142-5455.htm
Employee Relations
Vol.35 No.3, 2013
pp. 257-271
rEmeraldGroup Publishing Limited
0142-5455
DOI 10.1108/01425451311320468
257
Employers’ use
of older workers
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