How offering older workers flexible working could help fill record vacancies

By Nicola Smith, Director of Development and Innovation

There’s been much discussion in recent months about increasing numbers of older workers leaving the workplace. The ONS figures back this up, showing that over 200,000 people aged 50-65 have left the jobs market over the last two years. Commentators, including the Resolution Foundation and the Institute for Employment Studies, have also concluded that post-pandemic shifts in labour supply have largely been driven by falling numbers of people aged 50 and over looking for and available to work.

So it follows that a key way to fill the high number of vacant roles would be to encourage and support older workers to stay in their roles, or come back into the workforce. And the good news is, flexible working can help make this happen.

Why older workers want and need flexible working

It’s worth noting that ‘over 50s’ is a very wide category. As a result the health status, caring responsibilities, skills and incomes are probably more varied within this group than those of people in any other commonly used age bracket.

And while it’s relatively well understood that flexible working can support those with ill health and disabilities to remain in or return to the workplace, that’s not the only factor. There are other reasons why members of this group are leaving employment – and for which flexible working can also be part of the solution.

Recent ONS analysis gives some particularly useful insight into the varied experiences of older workers who have left the jobs market since the pandemic begun. Findings include:

• Some people are taking early retirement – particularly those in their 60s. This group are less likely to be in debt and more likely to be confident they have sufficient provision for their retirement. But the ability to work flexibly could offer a pathway to ease into retirement more slowly – or come back to work.
• Caring responsibilities play a role, with 12% of those in their early 50s giving this as a reason for leaving work. This will almost certainly be higher for women than for men. Flexible working would allow them to balance their jobs with their personal commitments, and allow their employers to retain their experience and expertise.
• Less than 20% of the group say that they don’t want to work anymore – suggesting that 80% might consider returning to work in the right job.

Crucially, the figures also show that, among those who would consider returning to work, a third said the most important factor was flexible hours. Good pay came second (at 23%), followed by being able to work from home (12%) and work that fits around caring responsibilities (10%), both of which are linked to flexibility.

Employers need to offer the roles that older workers want

Clearly, then, offering flexible working is a critical part of the answer to employers’ retention and hiring woes. By helping to overcome the medical, personal or financial reasons why older workers are leaving the workplace, it could encourage them to stay for longer, or encourage those who have already left to come back.

Our work with the Centre for Ageing Better set out how and why employers can use good flexible working to boost the retention of older workers. And when it comes to supporting them back in, the answer is clear: employers need to advertise flexible roles from the point of hire. In both cases, this means going through a job design process that explores when, where and in how much time the role can best be fulfilled.

Today’s data make an even more compelling case for why everyone needs to act – and is a pertinent reminder of the benefits that more, good flexible working at the point of hire could bring for business and workers alike. We know that many employers are already doing this well, and that many others recognise that they need to make the shift; if you need support with this, we’re here to help.

In the meantime, keep an eye out for our new Flexible Jobs Index, launching later this month, which will highlight how far we still have to go in terms of making flexible jobs available from day one. It will be published alongside a new study, undertaken in partnership with the IES and supported by the Joseph Rowntree Foundation, which explores the challenges employers face and the actions needed to widen access to good flexible roles.

Published November 2022