Guy Garnett explores the fascinating return of retirees to the workforce, driven by labour shortages and economic pressures.
A Surprising Shift in Recruitment Trends
Recent research from LinkedIn reveals that nearly three-quarters of UK businesses are actively hiring retirees to address labour shortages. Major employers, including EasyJet, Halfords, and McDonald’s, have launched recruitment campaigns aimed at attracting older workers, marking a significant change in workforce strategy.
This pivot comes after decades of favouring younger generations in hiring practices. The question is: what’s driving this change?
The Roots of the Labour Shortage
Two seismic events — Brexit and the Covid-19 pandemic — have reshaped the UK’s labour market. The end of free movement restricted access to EU migrant workers, creating a talent vacuum in several industries.
Additionally, research from the Office for National Statistics (ONS) reveals a concerning trend: half-a-million more people are out of work due to long-term sickness than pre-pandemic levels. The steepest health decline is among 25- to 34-year-olds, further exacerbating workforce challenges.
For employers, this labour deficit has prompted a closer look at older demographics. For retirees and over-50s, rejoining the workforce offers financial relief during the cost-of-living crisis and a chance to regain economic stability.
The Benefits of Hiring Older Workers
Employers are increasingly recognising the value older workers bring to the table: decades of experience, diverse skills, and a wealth of institutional knowledge. But recruiting within this demographic also requires careful consideration to ensure fairness and inclusivity.
Tackling Unconscious Bias in Recruitment
While the push to hire retirees is encouraging, it also exposes potential pitfalls. Unconscious bias, such as confirmation bias and similarity bias, can hinder inclusive hiring practices:
- Confirmation bias: Preconceived notions about older workers’ abilities can unfairly disqualify them before an interview.
- Similarity bias: Younger hiring managers may gravitate toward candidates who mirror their own backgrounds, excluding older applicants.
To combat this, businesses should:
- Review job descriptions for age-coded language.
- Standardise interview processes, asking all candidates the same questions.
- Rank candidates based on skills and qualifications rather than subjective impressions.
Diversity as a Driver of Innovation
Inclusivity isn’t just a moral imperative; it’s a business advantage. Studies show that diverse teams generate up to 19 percent more innovation revenue. With older workers rejoining the ranks, businesses can tap into a broader range of perspectives and experiences.
The current recruitment wave may spark overdue discussions about eliminating ageism in the workplace, fostering a culture that values contributions across all age groups.
Looking Ahead
The great “ex-retire hire” is more than a temporary fix; it’s a wake-up call for organisations to rethink their approach to recruitment and inclusivity. As older workers prove their worth, workplaces may evolve to accommodate a truly multigenerational workforce.
For now, this trend offers a silver lining for both employers facing labour shortages and retirees seeking renewed purpose and financial security.
By Guy Garnett Principal Consultant at New Street Consulting Group.