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Lloyds TSB
Business
Lloyds TSB
Small Enterprise
Research Report
Produced by:
The Lloyds Bank/TSB sponsored series The reports were published conventionally,
of small business management reports in hard copy form, available via subscription
commenced in 1992, and concluded in – initially by the Small Business Research
2009. In total, 53 reports were published Trust, and since 2003, by the Small
over a period of 17 years. Enterprise Research Team (SERTeam),
a research charity based at the Open
Our target audience comprised the owner- University.
managers of independent small businesses,
typically employing a workforce of fewer than Regretably, SERTeam ceased operating in
50, and based in mainland UK. 2009, and so the authors felt that the more
recent reports would find wider interest
The series originated from a longitudinal if they were made freely available via the
study of small business management, Internet – especially with the UK economy
undertaken by the Polytechnic of Central presently set for a protracted journey out of
London (now the University of Westminster), recession, and with the government in turn
and culminating in: The Management of refocusing on smaller businesses to aid the
Success in ‘Growth Corridor’ Small Firms, recovery.
(Stanworth, Purdy & Kirby, Small Business
Research Trust, 1992). It is worth noting that the series commenced
as the economy headed out of the early
THEMES 1990s recession.
1996 (Vol.4)
2004-05 (Vol.2)
1 Training..................................March 1996
1 Education & Enterprise..........October 2004
2 A Day In The Life...................... June 1996
2 Made in Britain................... February 2005
3 Financial Management...... September 1996
3 Management &
4 Tax Compliance................. December 1996
Gender Differences................... July 2005
1997/8 (Vol.5)
2006 (Vol.3)
1 ‘Europe’ & Small Businesses.....March 1997
1 Local or Global ?...................January 2006
2 Employee Recruitment................ July 1997
2 Managing IT..............................May 2006
3 Information Technology..........October 1997
3 Networking in Business..... September 2006
4 Business Support Agencies.....January 1998
2006-07 (Vol.4)
1998/9 (Vol.6)
1 Owner-Manager
1 Entrepreneurship........................May 1998
Flexible Working............. December 2006
2 Work & Stress.................. September 1998
2 The Ageing Workforce................ April 2007
3 Employment Strategies...... December 1998
3 Travel & Transportation........... August 2007
4 Small Firms & The Environment... Mar 1999
2008-09 (Vol.5)
1999/2000 (Vol.7)
1 The London 2012 Olympic
1 The Impact of Holidays.............. June 1999
And Paralympic Games............ April 2008
2 Late Payment................... September 1999
2 Competition: Small Firms
3 Management Development December 1999
Under Pressure...................January 2009
4 Exit Routes.............................March 2000
2000/01 (Vol.8)
Liability Disclaimer
Web Version 1 E-commerce............................. June 2000
2 Sources of Finance........... September 2000
3 Transport & Government.... December 2000 The information and analysis in each report
4 Government & Regulations......... April 2001 is offered in good faith. However, neither
Small
the publishers, the project sponsors, nor
Enterprise
2001/02 (Vol.9) the authors, accept any liability for losses
Research
1 Marketing & Sales...................... July 2001 or damages which could arise for those
Reports
2 The Human Side of Enterprise...... Oct 2001
who choose to act upon the information or
3 Health Issues........................January 2002
2003-09 analysis contained herein. Readers tracing
4 Premises.................................. April 2002
web references are advised to ensure they are
adequately protected against virus threats.
Highlights ............................................................................................................................ 3
Background ............................................................................................................................ 5
Figure 1 Perceived Impact Of 2006 Age Legislation On Smaller Businesses............................... 6
Figure 2 Perceived Impact Of 2006 Age Legislation On Smaller Businesses:
Respondents Selecting ‘Neutral’ Analysed By Sector................................................ 7
Figure 3 Direct Impacts Of 2006 Age Legislation Within The Foreseeable Future........................ 8
Figure 4 Direct Impacts Of 2006 Age Legislation Within The Foreseeable Future: By Age............ 8
Figure 5 Expected Changes In Workforce Composition Over The Coming 10 Years...................... 9
Figure 6 Expected Changes In Workforce Composition Over The Coming 10 Years: By Size.......... 9
Figure 7 Compliance With 2006 Age Legislation: Procedures In Place To Retire Beyond 65...........
Figure 8 Compliance With 2006 Age Legislation: Procedures In Place To Retire Beyond 65:
By Employee Size............................................................................................. 10
Figure 9 Compliance With 2006 Age Legislation: Respondents With Procedures In Place:
Analysed By Sector........................................................................................... 11
Figure 10 Current Policy Towards Employee Retirement Beyond 65.......................................... 12
Figure 11 Current Policy Towards Employee Retirement Beyond 65: By Gender.......................... 12
Figure 12 Anticipated Retirement Age Of Respondents............................................................ 13
Figure 13a Generally Speaking, Older vs. Younger Employees Perform … (Ranked)...................... 14
Figure 13b Generally Speaking, Older vs. Younger Employees Perform … (Ranked)...................... 15
Figure 14a Generally Speaking, Older vs. Younger Employees Perform … (IT Skills): By Age.......... 16
Figure 14b Generally Speaking, Older vs. Younger Employees Perform … (IT Skills): By Age.......... 16
Figure 15a Generally Speaking, Older vs. Younger Employees Perform … (Punctuality): By Age..... 17
Figure 15b Generally Speaking, Older vs. Younger Employees Perform … (Punctuality): By Age..... 17
References Sources Of Further Information (WWW).................................................................. 17
Appendix 1 Additional Information About Sample...................................................................... 19
Figure 16 Profile Of Sample: Respondents By Industrial Sector................................................. 19
Figure 17 Profile Of Sample: Respondents By Region.............................................................. 19
Figure 18 Profile Of Sample: By Employee Size....................................................................... 20
Appendix 2 Age Legislation 2006: 20 Facts Your Business Needs To Know.................................. 21
Appendix 3 Survey Questionnaire............................................................................................ 23
ACKNOWLEDGEMENTS
The Small Enterprise Research Team (SERTeam) wishes to thank all responding
firms for their time and effort involved in participation in the production of this
management report. The SERTeam acknowledges the help provided by David Purdy,
The Open University, and The University of Westminster, in designing the survey,
processing data and analysing the results. The image shown as a background to the
report title on each page has been supplied courtesy of B&Q plc (90 year old Sydney
Lloyds TSB Prior on his Birthday at work in B&Q Wimbledon).
Vol.4, No.2
l Attitudes towards employee requests to
work beyond the age of 65 and gender
variations – 73% of women, as against
only 49% of men, were inclined to
consider such requests favourably.
RESULTS
BACKGROUND
The
Ageing
Workforce
No.11
2007
Vol.4, No.2
The Ageing Workforce an attempt to discover more, a number of
related questions were answered by our
Our planet is currently undergoing profound panel of small firm respondents.
change. Fossil fuel supplies are becoming
increasingly scarce. The planet is suffering 2006 Age Legislation
from the consequences of humans producing
excessive carbon dioxide, and the indigenous Debates along the lines of increasing the
populations of industrialised countries are birth rates in Western countries are beginning
withering on the vine. Strange to think to emerge. In some political circles,
that, only 250 years ago, we lived in a reproduction incentives are being discussed.
pre-industrial era with a tiny population However, for the moment, making greater use
compared to that of today. of older workers appears a more immediate
option with legislation having come into force
Does age matter ? Well, emerging economies as of 1st October 2006.
are witnessing rapid population growth and
very youthful populations. Mature industrial The legislation covers employment and
countries are witnessing low and delayed vocational training relating to people of all
birth rates. As female emancipation, birth ages – young and old. It includes access to
control and the growth of the consumer help and guidance, recruitment, promotion,
society with its high rates of material and development, termination, perks and pay.
service consumption, Western populations
are declining despite medical advances Crucially, a national default retirement age of
keeping people alive longer. Only Ireland 65 has been introduced, making compulsory
and Finland currently come anywhere near retirement below the age of 65 unlawful
indigenous population stability. In most (unless objectively justified). This will be
industrialised countries, even high rates of reviewed in 2011.
inward immigration from high birth-rate
countries are insufficient to stem trends All employees now have the ‘right to request’
towards an ageing workforce. to work beyond the default retirement age
of 65 and all employers have a ‘duty to
So, what are the likely future effects of consider’ requests from employees to work
an ageing population on small firms ? In beyond 65.
50%
40%
Proportion
Lloyds TSB of
Sample
30%
22%
The 20%
14%
Ageing
Workforce 10% 7%
No.11 1%
2007 0%
No response Don't know Negative Neutral Positive
70% 68%
65%
60% 56%
Proportion 50%
of Sample/
Sub-sample 40%
31%
30%
20%
10%
0%
ALL Manufacturing Business Services Retail/Distribution
Guidance notes were published by Figure 1 shows that 56% of respondents felt
the Department of Trade & Industry that the legislation would be fairly neutral in
– Employment Equality (Age) Regulations its effects, with more considering the impact
2006: Notes on Regulations – comprising to be positive (22%) rather than negative
in excess of 300 paragraphs (53 pages, (14%).
undated). Regarding notification, the notes
said: When the responses are broken down by
business sector (Figure 2), around two-thirds
“Regulation 1 provides for the of respondents from the manufacturing
Regulations to come into force on and retail/distribution sectors have neutral
1 October 2006. The deadline for feelings compared with only 31% from the
implementation laid down in the business services sector. Business services
Directive is 2 December 2006. respondents were, in fact, split fairly evenly
This gives employers and others six over the positive/neutral/negative categories,
months in which to prepare for the with more (than in the other sectors) seeing
coming into force of the Regulations” opportunities and also potential problems.
Lloyds TSB
The
Ageing
Workforce
No.11
2007
Vol.4, No.2
Figure 3 - Direct Impacts Of 2006 Age Legislation Expected
On Respondents' Businesses Within The Foreseeable Future
No significant impacts 49%
'Red tape' - More 40%
Costs - Increased 21%
More widely dispersed age profile of workforce 16%
Nearly half foresee
Training - Increased 13%
no significant
Efficiency - Increased 12%
impacts, although
Efficiency - Decreased 10%
more ‘Red Tape’ is
Income/profit - Decreased 10%
expected by
Improved standing/perception of business by customers 10%
nearly as many
Training - Decreased 9%
Income/profit - Increased 7%
Costs - Decreased 3%
'Red tape' (administration) - Less 2%
Proportion of Sample
20% 19%
16%
Lloyds TSB 15%
Proportion
15%
of Sample/
Sub-sample
10%
The
Ageing 6%
Workforce 5%
No.11
2007 0%
ALL 35-44 years 45-54 55-64 65 plus
An increase in retraining 9%
Proportion of Sample
50%
43%
40%
38% Lloyds TSB
Proportion 34%
of Sample/
Sub-sample 30%
The
20% 17%
Ageing
Workforce
10%
No.11
0%
2007
ALL 0-4 FTE 5-9 FTE 10-19 FTE 20-49 FTE
Vol.4, No.2
Figure 7 - Compliance With 2006 Age Legislation:
Procedures For Employee Requests To Retire Beyond 65
50%
45%
45%
40%
10%
5% 2%
0%
New 65+ 'right to Procedures have not Presently undecided Other response
request' procedures been implemented,
have been but will be
implemented
smallest firms. However, this observation new employee ‘right to request’ agreement to
is probably explained by the fact that the work beyond the age of 65. A slightly larger
larger firms employed a wider range of skills proportion were intending to do so.
and thus felt more exposed to demographic
changes in the UK labour market. Compliance with 2006 Age Legislation
The 15%
Ageing
10%
Workforce
5%
No.11
2007 0%
0-4 FTE 5-9 FTE 10-19 FTE 20-49 FTE
59%
60% 55% Manufacturing
responses were
50%
44% possibly influenced
Proportion
of 40% because of operating
Sub-sample larger workforces
30%
20%
10%
0%
Manufacturing Business Services Retail/Distribution
Lloyds TSB
The
Ageing
Workforce
No.11
2007
Vol.4, No.2 11
Figure 10 - Current Policy Towards Employee Retirement
Beyond 65
60% 57%
50%
40%
Proportion 34%
of
Sample 30%
20%
10% 7%
2%
0%
65+ Retirement 65+ Retirement not Presently undecided Other/No response
requests viewed permitted
favourably
70%
60%
49%
Proportion 50%
Lloyds TSB of 40%
Sub-sample 40%
30%
21%
The
20%
Ageing
Workforce 10%
9%
Male
3% Female
No.11 0%
2007 65+ Retirement requests 65+ Retirement not permitted Presently undecided
viewed favourably
35%
29%
30%
25%
A majority expect
22% to retire before
Proportion
of 20% the age of 66
Sub-sample 16%
15% 13%
12%
10%
5%
5%
0%
Before the age Between 55- 61-65 66-70 Beyond 70 Probably never
of 55 60
before the age of 55 (22%) and more also to business goals, dedication, diplomacy,
anticipating ‘probably never’ as a retirement loyalty, punctuality, reliability and
date. However, the enthusiasm for ‘probably understanding of world/business issues (8
never retiring’ seems to wane as respondents issues in all), the most common response
age: falling from 28% for those aged 35-44, was that older workers were slightly better.
to 9% for those in the 55-64 range. Only on the issue of IT skills did older
workers come a serious second with 72%
The overall range of expected retirement ages of respondents (19% + 53%) claiming
is illustrated by Figure 12, with a majority that younger workers were superior to older
(56%) expecting to retire before the age of workers.
66.
The respective responses for each of
Older Vs. Younger Employee the performance issues are illustrated in
Performance Figures 13a and 13b (the ‘worse- better’
axis in 13b has been reversed to reveal the
The final question (Question 10), asked responses hidden in 13a), which suggest an
respondents to compare older with younger appreciable skew amongst respondents in
employees on a range of performance issues, favour of older employees.
spanning from enthusiasm and diplomacy to
punctuality and IT skills. Out of a total of 16 Also, the responses in Figures 13a and 13b
issues, the most common response was that have been ‘ranked’ in descending order on
older and younger workers were much the the balance of % values in favour or against
same. older employees. For example, for ‘reliability Lloyds TSB
overall’, the balance % value is +77%
Concerning accuracy, enthusiasm, flexibility, (28% ‘much better’ plus 49% ‘slightly
pragmatism, seeking a challenge, team spirit better’ minus 0% ‘slightly worse’ minus 0%
The
and trustworthiness (7 issues), the most ‘much worse’). Thus at either end of the Ageing
common response – ranging from ‘much performance scale are where the younger and Workforce
better’ to ‘much worse’ in 5 steps – was that older employees appear respectively to be at
they are the same. their strongest, at least in the eyes of small No.11
business owner-managers. 2007
But concerning assertiveness, commitment
Vol.4, No.2 13
14
Workforce
Lloyds TSB
Ageing
No.11
2007
The
Figure 13a - Generally Speaking, Older Employees vs. Younger Employees Perform … (Ranked)
53%
42% 45%
42%
39%
30% 60%
35% 41%
19%
41%
28% 50%
2% -
49%
28%
IT skills 27%
40%
Seeking a challenge
23% 27%
Enthusiasm
Proportion
Team spirit
30% of
Flexibility 28% Sample
Younger
Small Enterprise Research Report
Pragmatism
Employees' Accuracy 13%
(No/other
17% 20% responses
Strengths Assertiveness
17% not shown)
Trustworthiness
18%
Commitment to business goals
0% 10%
Understanding of business/world issues
0%
Punctuality
Diplomacy 0%
Loyalty
Much
Dedication 0% Slightly better
Older
0% Same better
Employees' Reliability overall
Slightly
Strengths Much worse
worse
Vol.4, No.2
Figure 13b - Generally Speaking, Older Employees vs. Younger Employees Perform … (Ranked)
53%
42% 45%
42%
39%
19%
19% 35%
30% 60%
41%
Punctuality
0% 0%
Diplomacy
0%
Loyalty
Much
Dedication Slightly worse
Older
Same worse
Employees' Reliability overall
Slightly
Strengths Much better
better
Workforce
Lloyds TSB
Ageing
No.11
2007
The
15
Figure 14a - Generally Speaking, Older Employees vs.
Younger Employees Perform … (IT Skills): By Age
60%
58%
50% 39% 58% 50%
40%
Proportion
30% 30%
46% of
6% 15% 20% Sub-sample
23%
10%
35-44 years 0%
5% 8%
45-54 15% Much
55-64 Slightly better
Same better
Respondent age 65 plus
Slightly
IT skills - worse
Much
worse
There was some evidence of the younger following unsolicited comment appeared
respondents favouring younger employees, to capture the spirit of much of what our
and similarly older respondents with older respondents were saying:
employees, e.g., regarding IT skills (Figures
14a and 14b), but this was much less “My business (hardware and
evident elsewhere, e.g., regarding punctuality ironmongery) very much favours the
(Figures 15a and 15b). use of more mature staff. Common
sense and practical experience
However, being young cannot be considered are values that customers look for.
a crime or a hanging offence and most older These appear to be sadly lacking in
workers would almost certainly like to swap the younger generation as does an
places with their younger counterparts. The interest in practical matters. Youth
50%
58%
58% 60%
39%
50%
46%
23% 40%
Proportion
Lloyds TSB 30%
30% of
6% 15%
20% Sub-sample
15%
10%
35-44 years 0%
The 8%
45-54
Ageing IT skills -
55-64 Slightly Much
Workforce Same worse worse
Respondent age 65 plus
Slightly
56%
60%
35-44 years 0%
45-54 Much
55-64 Slightly better
Same better
Respondent age 65 plus
Slightly
Punctuality worse
- Much
worse
today seems to want to be all chiefs spectrum for older employees, and at the
without first being an Indian.” opposite end for younger staff.
56% 60%
50%
40%
38%
42%
Proportion Lloyds TSB
30% of
22% Sub-sample
27% 20%
30%
10%
23%
35-44 years 23%
0%
The
45-54 Punctuality Ageing
55-64 Slightly - Much Workforce
Same worse worse
Respondent age 65 plus
Slightly
Much better No.11
better 2007
Vol.4, No.2 17
expressed via these sources. Some web sites retirement. The Age Positive campaign
have appeared before, but there is usually a promotes the benefits of employing a
section noted with interests relevant to the mixed-age workforce that includes older
theme of this report. and younger people.” Offers information
about: Case Studies, Events, Flexible
Special care should also be taken with Working, Good Practice, Jobseeking,
material obtained from outside the UK, for Legislation and New Deal 50 Plus.
example, the USA, where different legal www.agepositive.gov.uk/
issues may apply.
l BBC News
N.B. Some pages may contain links to other ‘End of ageism ?’ Special Report, also
WWW pages offering related material. Tip: has a visual pie chart illustrating how the
The WWW links were functional at the time UK’s population is changing.
of going to print, but the world wide web http://news.bbc.co.uk/1/hi/in_depth/
is in a state of constant change. So if later business/2006/ageism/default.stm
problems arise with a link, edit the link back
to the ‘home page’ – e.g., truncate http:// l Department of Trade & Industry (DTI)
www.bized.ac.uk/fme/xyz.htm back to http:// Offers Age Legislation Factsheets:
www.bized.ac.uk/ – and look for a similar including, ‘Objective Justification’,
topic heading there. ‘Transitional Arrangements’, ‘Vocational
Training’, ‘Service Related Benefits’,
l Acas (Advisory, Conciliation and ‘Redundancy’, ‘Retirement’, ‘Occupational
Arbitration Service) Pensions’, and a link to The Employment
“Aims to improve organisations and Equality (Age) Regulations 2006 - SI No
working life through better employment 2006/1031 and related material.
relations. We provide up-to-date www.dti.gov.uk/
information, independent advice, high
quality training and we work with l Federation Small Businesses (FSB)
employers and employees to solve “Britain’s biggest business organisation
problems and improve performance.” with over 205,000 members. It exists
Offers ‘Age and the workplace: Putting the to protect and promote the interests of
Employment Equality (Age) Regulations the self-employed, and all those who
2006 into practice’, including ‘Fair run their own business.” Guide: ‘Age
retirement’ and ‘Request to work beyond Legislation – it won’t affect me, will it ?
retirement’ flowcharts. Yes it will !’
www.acas.org.uk/ www.fsb.org.uk/
34%
35%
29%
30%
Proportion 25%
of
Sample
20%
15%
10%
5%
0%
Manufacturing Business Services Retail/Distribution
35% 33%
30%
Proportion 26%
of 25% Lloyds TSB
Sample
20%
15% The
10%
Ageing
Workforce
5%
No.11
0%
2007
Midlands North South
Vol.4, No.2 19
Figure 18 - Profile Of Sample:
By Employee Size
40%
35%
35%
30%
14%
15%
10%
7%
5%
0%
0-4 FTE 5-9 FTE 10-19 FTE 20-49 FTE 50+ FTE
to the foregoing sector which offers the The South region has the largest
closest match. representation, with 41% of the sample’s
respondents (42% previously), see Figure
Regions - firms are also classified according 17.
to their physical location, namely, North,
Midlands and the South. Manufacturing and business services
firms in samples can tend to be larger, in
Employee size - finally, firms are placed in terms of employees, whereas the firms in
bands according to the number of employees. retailing/distribution may have fewer full-time
Each part-time employee is assumed to equivalent employees. Likewise, the sample
be equivalent to 40 per cent of a full-time is biased towards the smaller businesses
employee (‘FTE’ = full-time equivalent). All – but not the very smallest (sole traders),
of the surveys to date have received only a of which there is a preponderance amongst
small number of responses from firms with the small firms population generally. The
50 or more FTE employees. These responses employee size distribution for the sample is
have been included in the breakdowns for shown in Figure 18.
the sectoral and regional analyses, but have
been excluded as a ‘50+FTE’ band in the In terms of respondent age, they are
employee-size analyses (the ‘All’ band in predominantly 35 years or older, with the
each histogram includes all usable responses bulk between 45 and 64 years’ old.
regardless). This is because a percentage
breakdown band based on just two or three Finally, the sample is predominantly male
Lloyds TSB firms may not be representative of this size of (67%, compared with 71% previously).
business.
Abbreviation of questionnaire text
Distribution of firms
The
It should be noted that, for reasons of
Ageing
Workforce The highest proportion of respondents is in space and, hopefully, clarity, questions and
manufacturing (37%, compared with 38% in response options are sometimes abbreviated
No.11 business services for the previous report), see in the report text and the accompanying
2007 Figure 16. figures. The exact wording used is shown in
the questionnaire appendix.
10 Key Points
1. Age Regulations are due to come into This will be reviewed in 2011.
force 1 October 2006. 8. All employees will have the ‘right to
2. Regulations cover employment and request’ to work beyond the default
vocational training. This includes retirement age of 65 or any other
access to help and guidance, retirement age set by the company
recruitment, promotion, development, and all employers will have a ‘duty to
termination, perks and pay. consider’ requests from employees to
3. The regulations cover people of all work beyond 65.
ages, both old and young. 9. Occupational pensions are covered
4. All employers, providers of vocational by the regulations, as are employer
training, trade unions, professional contributions to personal pensions.
associations, employer organisations However, the regulations generally
and trustees, and managers of allow pension schemes to work as
occupational pension schemes will they do now. See regulations for more
have new obligations to consider. details.
5. Goods, facilities and services are not 10. The regulations do not affect state
included in these regulations. pensions.
6. Upper age limits for unfair dismissal
and redundancy will be removed. Please note: Acas is the nominated
7. A national default retirement age agency to provide advice and guidance on
of 65 will be introduced making age issues - to contact their Helpline call
compulsory retirement below age 65 0845 7474747 or go online at www.acas.
unlawful (unless objectively justified). org.uk
1. Who does the law cover ? l All forms of training and retraining
courses, practical work experience
l All workers including self employed, and guidance that contributes to
contract workers, office holders, employability, training provided by
the police and members of trade employers or private and voluntary sector
organisations. providers, vocational training provided by
l People who apply for work and, in further and higher education institutions
some instances, people who have left and adult education programmes. Lloyds TSB
work.
l People taking part in or applying for 4. What do the regulations cover ?
employment related vocational training The
including all courses at Further Education l They cover direct and indirect Ageing
and Higher Education institutions. discrimination, harassment and Workforce
victimisation.
l Employers can be held responsible
No.11
2. Who isn’t covered by the regulations ?
2007
for the actions of employees in all four
cases.
Vol.4, No.2 21
5. Are there any circumstances when not mean you need to set a retirement
treatment on grounds of age will be age at 65 either – you can operate with
lawful ? no retirement age, or set a retirement age
of 65 or higher. All employees will have
l Exemptions will be allowed on the ‘right to request’ to work beyond any
Genuine Occupational Requirement retirement age.
(GOR) and if there is an objective l Employers will have new time-bound
justification. However, both are likely to responsibilities to inform employees of
be difficult to prove. their ‘right to request’ and they will have
l The ‘test of objective justification’, a ‘duty to consider’ all such applications.
means employers will have to show l Where an extension of work is
with evidence that they are pursuing agreed, the ‘right to request’ and ‘duty
a legitimate aim and that it is an to consider’ will remain in place when
appropriate and necessary (proportionate) retirement is next considered.
means of achieving that aim.
l The legislation will protect individuals 9. What will the new regulations say about
or companies who are forced to occupational pension schemes?
discriminate on age grounds in order to
comply with other legislation e.g. bar l Occupational pension schemes are
staff serving alcohol must be at least 18. included (although the draft legislation
allows occupational pension schemes in
6. My employees’ pay and benefits vary general to work as they do at present).
according to length of service. Can this l Personal pensions not provided by
continue ? the employer (except the employer’s own
contribution) are not covered by the draft
l Benefits based on a length of service regulations.
requirement of 5 years or less, the ‘5
year exemption’, will be exempted and l Employers will be able to provide
will be able to continue. different pension schemes to employees
l After the 5-year exemption, of different ages or with different
employers must show that there will be lengths of service and use minimum
an advantage from rewarding loyalty, and maximum ages for admission to
encouraging the motivation or recognising pension schemes and for the payment of
the experience of workers by awarding pensions.
benefits on the basis of length of service. l The details are fully outlined in the
[draft] regulations - see how to access
7. How does the legislation impact on the below.
National Minimum Wage ?
10. What should I do now ?
l Employers will be able to follow the
age bands and minimum wage levels l Be prepared.
used in the national minimum wage l Review your employment policies and
Lloyds TSB legislation. practices.
l Seek advice if you have concerns. If
8. What should I know about the default you do not have access to your own legal
The retirement age ? advice, Acas is the nominated agency to
Ageing give advice and guidance on age issues.
Workforce l The default retirement age will be
set at 65 for men and women. It means For good practice help and information, visit the
No.11 mandatory retirement before that age will Age Positive website www.agepositive.gov.uk
2007 be unlawful unless a lower age can be
To view the full [draft] regulations, visit the DTI
website www.dti.gov.uk/er/equality/age.htm
exceptionally objectively justified. It does
We are seeking the views of small firm owner-managers. This questionnaire will take approximately 5-10 minutes to
complete – most answers require only a single tick. All information received will be treated in complete confidence.
PLEASE RETURN AS SOON AS POSSIBLE.
Costs - Increased.......................... o B
Efficiency - Decreased................... o E
25-34......................................... o B
Efficiency - Increased..................... o F
35-44......................................... o C
Income/profit - Decreased.............. o G
45-54......................................... o D
Income/profit - Increased............... o H
55-64......................................... o E
Training - Decreased...................... o I
65 or over.................................... o F
Training - Increased....................... o J
Improved standing/perception of o K
1c Respondent gender – Your gender:
business by customers
More widely dispersed age profile of o L
Male............................................ o M workforce
Or No significant impacts................... o M
Female........................................ o F
of 50-64 year-olds
Positive........................................ o A
A shortage of younger people o B
Or Neutral........................................ o B
entering my type of business
Or Negative...................................... o C An increased use of migrant labour o C
employees
3 Training of older employees – As a result of
the 2006 Age Legislation, have you found Or No significant changes................... o F
Yes.............................................. o A
Or No .............................................. o B
Or Between 55-60............................ o B
Tick ONE only
Or 61-65......................................... o C
We intend to view such requests o A
favourably Or 66-70......................................... o D
Or Don’t know................................... o G
10 Older versus younger employees – Generally speaking, how would you say older employees (50 or older) perform
against (fully-trained) younger employees in each of the following areas ?:
Accuracy o o o o o A
Assertiveness o o o o o B
Dedication o o o o o D
Diplomacy o o o o o E
Enthusiasm o o o o o F
Flexibility o o o o o G
IT skills o o o o o H
Loyalty o o o o o I
Pragmatism o o o o o J
Punctuality o o o o o K
Reliability overall o o o o o L
Seeking a challenge o o o o o M
Team spirit o o o o o N
Trustworthiness o o o o o O
1 2 3 4 5
Thankyou for your co-operation. Please return the completed questionnaire, using the pre-paid envelope, to:
Ms. Beverley Dash, SERTeam - Open University Business School, Walton Hall, Milton Keynes MK7 6AA
2
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