Extending working lives: age management in SMEs
| DOI | https://doi.org/10.1108/01425451311320477 |
| Date | 20 April 2013 |
| Published date | 20 April 2013 |
| Pages | 272-293 |
| Author | Vanesa Fuertes,Valerie Egdell,Ronald McQuaid |
| Subject Matter | HR & organizational behaviour |
Extending working lives: age
management in SMEs
Vanesa Fuertes, Valerie Egdell and Ronald McQuaid
Employment Research Institute, Edinburgh Napier University, Edinburgh, UK
Abstract
Purpose – The purpose of this paper is to present a study of age management in small and
medium-sized enterprises (SMEs) in the UK.
Design/methodology/approach – Qualitative data collection and exploratory research with six
SMEs comprising of: initial interviews with representatives from the SMEs; action research activities
designed to raise awareness of age management issues and age discrimination legislation; and
follow-up interviews to ascertain if awareness raising activities resulted in any changes, or planned
changes, in policy, practice and attitudes towards older workers.
Findings – Good practice in age management can be found in SMEs, but was not found to be part of
a systematic strategy. Negative practices and attitudes towards older workers are observed, with
positive and negative age stereotypes coexisting. Negative stereotypes displayed can undermine the
perceived economic value of older workers. There may be a gap between policy and practice, but
awareness raising campaigns that reach employers can influence existing ways of working by
showing the benefits of an age diverse workforce and helping reduce prejudices against olderworkers.
Research limitations/implications – The sample size is small and context specific. However, the
study usefully illustrates different approaches to age management policies and practices in SMEs, and
the potential benefits of age management awareness in influencing attitudes and practices towards
older workers in SMEs.
Originality/value – The experience of age management in SMEs is under researched and
examples of good practice in age management are often drawn from large organisations.
The paper highlights that SMEs often lack the resources to seek advice regarding age management;
therefore, those responsible for age management awareness raising activities may need to approach
businesses directly.
Keywords United Kingdom, Older workers, Small to medium-sized enterprises,
Human resource management, Ageing population, Age management
Paper type Research paper
1. Introduction
This paper presents a study of age management in small- and medium-sized
enterprises (SMEs). Populations across Europe and elsewhere are ageing (Lisenkova
et al., 2010) and in the UK it is projected that by 2035, 23 per cent of the population
will be aged 65 or over (Office for National Statistics, 2012b, p. 3). This will have a
significant impact on labour market and employment practices, in particular on the
greater need for employers to employ relatively mo re older workers, extend people’s
working lives and increase the productivity of all workers (McQuaid, 2007). Indeed the
number of people working beyond state pension age has doubled in the last two
decades (Office for National Statistics, 2012a). Employers’ age management policies
The current issue and full text archive of this journal is available at
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Employee Relations
Vol. 35 No. 3, 2013
pp. 272-293
rEmeraldGroup PublishingLimited
0142-5455
DOI 10.1108/01425451311320477
The authors wish to thank all those organisations and individuals who took part in the research.
The authors also acknowledge support from the Active Ageing project, (VP/2009/005/0163)
funded under the European Community Programme for Employment and Social Solidarity –
PROGRESS and from the partners in that project.
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ER
35,3
will become increasingly important, as they play a crucial role in increasing and
sustaining the labour market participation of older workers.
Half of those working beyond state pension age are employed in small organisations
(under 25 employees) (Office for National Statistics, 2012a) yet many SMEs, as well
as larger employers, are unaware of demographic trends and their likely imp acts (e.g.
labour supply) (Loretto and White, 2006b; Hollywood et al., 2007). While some
employers may expect labour market shortages, they do not see older workers as a
major solution (Van Dalen et al., 2009). Poor age management practices and prejudices
against older workers are often not noticed, and there may be a gap between formal
age policies and practices (OPASG, 2009). Employer awareness raising campaigns
(Advisory, Conciliation and Arbitration Service (ACAS), 2006; Department for Work
and Pensions (DWP), 2011) can change ways of working, but while considerable
research exists on age management in larger organisations, there is limited research on
SMEs. Nevertheless, existing research and theory highlights that SMEs often face a
different set of issues: fewer human and capital resources (e.g. in terms of having
dedicated human resources (HR) personnel and time available) or “resource poverty”
(Cassell et al., 2002); less formalised and strategic approaches to training and flexible
working or “short-termism” (Maxwe ll et al., 2007); and fewer opportunities for
flexible working (due, for instance, to being unable to cover the absence of an
employee). SMEs often do not have the resources to develop a HR management
strategy or to identify and se ek advice regarding age management; therefore, those
responsible for age management awareness raising activities may need to approach
SMEs directly.
This paper contributes to the body of research on SMEs, particularly in the area
of age management. It addresses the following research questions: what are SMEs’
policies, practices and attitudes towards older workers, age management and future
demographic trends; and how do SMEs respond to age management awareness raising
activities. The following section reviews the relevant literature, Section 3 sets out the
methods, and Section 4 reports the findings, whic h consider SMEs’ age management
practices, their recruitment, retention and retirement practices. Conclusions are
then drawn about the ways in which working lives can be extended and about the
potential benefits of age management awareness to influence attitudes and practices
towards older workers.
2. Extending working lives and sustaining older workers in employment
There is debate in the policy and academic literatu re on the best way to retain and
sustain older workers in employment. This section consid ers the UK policy context
and the role of employers in extending working lives, before examining age
management issues faced by SMEs.
2.1 Extending working lives: the UK policy context
In terms of supply side policies to extend working lives, the UK government has
introduced changes to pension schemes, increased the state p ension age and
introduced active labour market policies to help unemployed older workers back into
work (DirectGov, 2010, 2011). To influence employers (the demand side of the market),
the Employment Equality (Age) Regulations made it unlawful to discriminate against
workers, employees, jobseekers or trainees because of their age (HM Government,
2006). The Employment Equality (Repeal of Retirement Age Provisions) Regulations
further abolished the default retirement age (DRA) (HM Government, 2011), although
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Extending
working lives
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