There might be a problem for the UK’s workforce – perhaps you’ve noticed it in your organisation? There’s been a marked increase in older workers leaving employment, what one tabloid has called the ‘silver exodus’.
The trend took hold during the pandemic, and while it shows signs of slowing, it has impacted businesses and the economy.
This post takes a closer look at this recent phenomenon, the reasons behind it, and how you can address it if it’s affecting your business. And, of course, how you can use your employee benefits for over-50s retention.
What’s behind the ‘silver exodus’?
According to the Office for National Statistics, nearly 3.5 million over-50s are now out of the job market. That’s roughly 300,000 more 50 to 65-year-olds than before the pandemic.
Wholesale, retail and customer service occupations are among the industries which have seen the largest changes. Transport, storage and manufacturing have also been affected. Hard hit during Covid, workers in these sectors might have thought they wouldn’t get their job back or find it hard to get another because of their age, so chose to retire instead.
Workers who saved during the lockdown could also afford to retire earlier than planned. Pension freedoms introduced by the then chancellor George Osborne in 2015 also allowed some over-55s to draw on their retirement funds early.
The pandemic also led to many wanting a change in lifestyle and more time at home. If you’re in a stressful or low-paid job, then early retirement could look attractive if it was financially possible.
Health concerns
The other big factor in over-50s leaving the workforce is health. If you can’t work from home and have a lot of contact with other people, post-pandemic health worries might mean you don’t feel confident returning to the workplace.
The number of people not working because of long-term sickness has shot up since Covid hit. An increase in mental health conditions and longer waits for treatment means more people are having to take time out, with older workers being especially vulnerable.
Stress, not feeling supported in your role, and caring responsibilities can also influence the decision to stop working.
Should employers be worried?
A younger workforce could leave an experience gap that’s hard to fill quickly. Firms might find it difficult to grow if they can’t find enough staff. Fewer people in the workforce also means less tax to invest in the economy.
There are some indications the trend might be turning, although it is too early to say for sure. Many people with health issues can get back to work with the right support. Some companies are already putting new plans in place to keep over-50s in the workforce, and some of these measures can appeal to staff across the age spectrum.
What can you do?
An Enjoy Benefits package of support offers a suite of attractive options for older workers who might be thinking about leaving. A flexible working policy and the opportunity to buy extra time off via our Holiday Purchase Scheme offer an improved work-life balance that some are seeking.
Our Health and Wellbeing package includes support for mental health issues plus advice on sleep, nutrition and finances, which can all help to reduce the impact of the current cost of living crisis.
Access to treatment quickly through private medical insurance and risk benefits including critical illness cover and income protection can reduce health worries, time off, and keep staff in work for longer, which means more money in the pension pot and a healthier, more stable workforce.
More ideas that will benefit your staff and business
We offer a complete package of staff benefits from employee rewards to discounts for days out and reduced gym membership. There are opportunities to save on the costs of a new car or bicycle and the latest gadgets, all of which can make life easier during the cost of living crisis.
Many of our benefits come at no extra cost to your business and with reductions in tax and NI. To find out more check out our website or speak to us today.
About Us
At Enjoy Benefits, we have great experience in helping companies of all sizes introduce benefits that are suitable for their workplace.
Benefits are easy to set up and ongoing administration is then run through a hub, allowing employees to manage their own benefits while the employer can see which benefits are proving popular and what level of take-up each has had.
If you would like an obligation-free chat to discuss which benefits might work for your business and your employees, please contact us by calling 0800 088 7315 or using our Contact Form.
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