Abstract
PurposeThe 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/approachA 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.FindingsThe 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/implicationsThe 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/valueThe paper shows a new development in dealing with older workers during a recession.
Highlights
In 2009 and early 2010, there was a short phase of media interest in older workers in the recession
A piece in Personnel Today in February 2010 mentioned that the use of the default retirement age (DRA) had “spiralled out of control” as it was used “to retire more than
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
Summary
In 2009 and early 2010, there was a short phase of media interest in older workers in the 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. 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. These new concerns do not seem to account for the possibility that there may yet be long-term implications of the recession, including further redundancies. The first section provides background information and data on older workers role in the labour market as well as the previous and current recession.
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