It’s no secret that the generous benefits systems, plus high levels of taxation, in both the UK and Ireland are helping to persuade many workers to opt out of full time employment. The BBC reported last year that one in five UK adults were “not looking for work,” the highest ever recorded at an estimated 2.8 million people. In Ireland the Housing Assistance Benefit system means monthly rents are paid direct to the landlord – to a certain limit – plus Jobseekers, or other benefits may be paid, so there is a natural disincentive to get off that arrangement by taking a job, unless it offers a pre-tax wage well in excess of the total benefits package.
However older workers might have a mortgage, dependants to consider, or simply hold a different view of work as having a value in itself, in terms of self respect and mental wellbeing. These can be motivational factors when it comes to accepting paid employment on sub 28K euro wages. So the over 50s can be excellent employees potentially, the question is how do insurance brands reach them? Here’s the word;
Mason Hayes & Curran released results from their survey of over 100 employers on the topic of employee age as an asset. The findings suggest a surprising lack of data evaluation, strategy or risk analysis on age by employers. Only 10% of employers have trained their staff on age inclusion or how to lead the 5 generations now engaged in the workforce.
78% of Irish employers are still stating a mandatory retirement age in their employment contracts or policies, which varied from 60-70 years. It is against the law to discriminate on the basis of age in Ireland. Irish law stipulates however that it is not discriminatory to fix a retirement age for employees, provided the age chosen can be objectively justified by a legitimate aim and the means of achieving that aim are appropriate and necessary.
MANDATORY RETIREMENT AGE? THAT’S ON THE WAY OUT
Ireland is at risk of becoming an outlier as mandatory retirement becomes broadly prohibited across the rest of Europe. It has also become increasingly apparent that the Workplace Relations Commission (“WRC”) will heavily review the imposition of mandatory retirement ages in the workplace if challenged by an employee.
To seek to address the issue of employee age awareness, Mason Hayes & Curran has organised an executive conference on 23 January to bring together experts on this topic and ensure that Irish leaders become more longevity literate. Joining this event as a keynote speaker is Lyndsey Simpson, a global expert on ageing populations and how businesses can unlock the value of this shifting demographic. Limited spaces are still available and you can register by emailing events@mhc.ie
Melanie Crowley, Partner, Mason Hayes & Curran, said
“The benefits of having older workers in organisations cannot be overstated. Experienced workers have a wealth of experience and wisdom that can benefit organisations, and they often hold the key client relationships in a business or sales context. With life expectancy and the cost of living increasing for people all over the world, including Ireland, employees, whether by choice or necessity, are increasingly seeking to stay in the workforce beyond the age of 65. Organisations need to be prepared for this and ensure they do not leave themselves exposed to potential claims of discrimination in the workplace if such employees are not recruited or retained.”
Lyndsey Simpson, Founder and CEO of 55/Redefined, said:
“If you don’t have an age strategy, you don’t have a growth strategy! Ireland now has the lowest birth rates on record, falling from 4.07 live births per woman in the 1960s to 1.78 in 2024. This is below the required replacement rate of 2.1 and means that the area of growth for talent and consumers is the over 50s demographic and not youth. Coupled with this, a huge 30-year leap in life expectancy, means that Irish employees are not ready or wanting to retire in a traditional way in their 60s and instead are seeking opportunities to upskill and change careers and work more flexibly. Employers must focus on attracting & engaging over 50s talent and consumers to have a sustainable growth strategy.”
Catherine O’Flynn, Partner, Mason Hayes & Curran, said:
“The population of Ireland is getting older and by 2031, it is forecast that at least 32% of the workforce in Ireland will be aged over 50. With such a mature population comes that risk that skilled workers will be lost prematurely if employers do not have an age strategy ensuring their recruitment and retention in the workforce. To seek to recruit and retain such workers and maximise upon the opportunities presented, employers in Ireland should be considering introducing intergenerational learning initiatives, mentoring between older and younger workers and unconscious bias training at a minimum.”
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