Developments for age management by companies in the EU Erika Mezger, Deputy Director EUROFOUND, Dublin Workshop on Active Ageing and coping with demographic change Prague, 6 September 2012 12/09/2012 1
In this presentation: The European context Perceived sustainability of work evidence from the European Working Conditions Survey Extending working life: Responses from governments and social partners Extending working life: Initiatives at the company level Promoting work-ability of workers The impact of the financial crisis Reconciliation of working and caring Work after retirement Priorities for policy and practice 12/09/2012 2
Europe 2020 The EU s active population will start to shrink as from 2013/14. The number of people aged over 60 is now increasing twice as fast as it did before 2007 by about two million every year compared to one million previously. The employment rate of the population aged 20 64 should increase from the current 69% to at least 75%, including through the greater involvement of women, older workers and the better integration of migrants in the workforce. To recall: Lisbon strategy target 50% employment rate for older workers 12/09/2012 3
80,0 70,0 Older workers employment rate, 2001-2011, 55-64 years 60,0 50,0 40,0 30,0 2001 2011 20,0 10,0 0,0 Source: compiled from on-line Eurostat database (1 June 2011), LFS data
Projected change 2005-2050 in the WAP and the share of older people (55-64) in the WAP 12/09/2012 5
Counteracting the effects of a shrinking WAP Increase the employment rate of each age group Lengthen working life Increase hours worked each year Increase productivity While the demographics of our societies are difficult to influence, the potential for increasing the overall employment rate and the length of working life is enormous in Europe. The high variation of employment rates of older workers is proof that the length of working life is not primarily due to absolute biological limitations. 12/09/2012 6
Making work sustainable Ageing is not a state (of being old) but a process throughout working life The capacity to work longer is determined by working conditions throughout working life Workplaces that have age management for the entire workforce (with a life course perspective) will best meet the demographic challenge so will societies with a life-course perspective on ageing Which are the aspects of current working life that are conducive to a long working life? 12/09/2012 7
Turkey Slovenia FYROM Portugal Kosovo Montenegro Greece France Hungary Croatia Spain Poland Albania Bulgaria Luxembourg Slovakia Malta Czech Republic Lithuania Romania Austria Belgium Latvia EU27 Estonia Italy Cyprus Finland Sweden United Kingdom Denmark Norway Ireland Germany Netherlands 80% Being able to do your job at 60 70% 60% 50% 40% 30% 20% 10% 0% 12/09/2012 8
Key factors related to perceived job sustainability Largest effect: Exposure to ergonomic risks: posture and movement related risks (standing, carrying heavy loads, repetitive arm movements etc.) Experience of discrimination, violence, abuse, bullying or harassment both associated with lesser levels of job sustainability Relatively large effect: Work life balance is positively associated with sustainability of jobs Career prospects are positively associated Also important: not having monotonous tasks; cognitive dimensions of work; autonomy (protective role); work intensity (deterrent role) 12/09/2012 9
Extending working life: How governments have responded over the last decade Adaptation of social protection systems: - Pension reform (increasing statutory retirement age; equalising ages for women and men; increasing minimum contribution periods; adjusting benefits for early and late retirement) - Reduced access to early retirement revised age for eligibility - Reduced access to disability/incapacity schemes Promotion of learning and compensatory education Programmes to encourage companies to promote health Collective agreements to adapt workload for older workers Legislation banning age discrimination Awareness campaigns to modify attitudes to older workers 12/09/2012 10
How can companies respond: Measures to promote work ability of older workers Health promotion Work design and organisation Work ability Training and skills developments (Ilmarinen and Tempel, 2002) HR management and corporate culture 12/09/2012 11
Company-level developments in measures mid-90s to mid-00s Most common measures are in training and development followed by flexible working Increase over time in the diversity and complexity of approaches to age management Tendency for measures to promote health and well-being to be reported more, and specific measures for recruitment or redeployment less Targeting to skilled manual workers still prominent but more attention to professional and managerial staff and more attention to all age groups Little specific attention to low-skilled, or to gender issues 12/09/2012 12
Initiatives for an ageing workforce in the financial crisis Employment rates of older workers have remained relatively stable - especially compared to young age groups - but big country differences remain Context of restructuring in individual establishments - sometimes encouraged use of early retirement when cutting jobs (age discrimination laws prevent age based compulsory redundancies) Generally continuation of age management policies and practices where these have become established 12/09/2012 13
Company age management pays increasing attention to: promoting 'employability' (skills), including specifically for older workers intergenerational knowledge transfer, involvement in training younger workers flexible working arrangements, with more partial retirement schemes 12/09/2012 14
Flexibility needed: Reconciliation of caring and working in an ageing workforce 80% of care hours are provided by unpaid (family) carers In nearly all countries more than half of carers of working age combine care with employment 6%-10% of employees are providing regular care, especially older (female) workers (13%-16%) Among those with care responsibilities only half of women but 9 out of 10 men (are able to) work full-time Generally lack of action in the workplace to support working carers benefits, information, services, flexible working times, work organisation and leave entitlements. 12/09/2012 15
Would you like to continue working after the age when you are entitled to a pension? Source: Special Eurobarometer 378, 2011 12/09/2012 16
Employment rates in the EU27 by age group and gender, 2001-2011 90,0 80,0 70,0 60,0 50,0 40,0 30,0 Males Females 20,0 10,0 0,0 2001 2011 2001 2011 2001 2011 2001 2011 50-54 55-59 60-64 65-69 Source: compiled from on-line Eurostat database (1 June 2011), LFS data
Working after 65 & the work they do % employed 2006Q1 2011Q1 65 and over 6.7 7.7 65-69 8.7 10.0 % employed, EU27 (ISCED education codes) 2005 2010 15-64 65-69 15-64 65-69 Level 0-2 47.4 8.4 45.1 8.2 Level 3-4 68.2 8.9 68.4 9.6 Level 5-6 82.5 18.2 82.3 18.0 % employed, 65 to 69 year olds 2006Q1 2011Q1 EU27 8.7 10.0 EU27 (female) 6.0 7.6 EU15 7.9 9.9 Part-time employment (% of employed) 2006Q1 2011Q1 65 and over 54.2 56.9 20 to 64 17.1 18.3 Mainly relatively young retirees Mainly highly educated Mainly male, but the gap is decreasing No EU15-EU12 distinction in terms of uptake anymore Mainly doing part-time work, relatively often as self-employed Note: different clusters! E.g. male fishermen in Portugal who mostly work because they need to, and female entrepreneurs in UK and academics in Sweden who work because they want to. Source: LFS
Why have people 65+ been in employment? The drivers of work after age 65 a) Need Strength of each driver s impact depends on individual & regional situations. c) Opportunities (enough accessible, suitable jobs) WORK? b) Interest
Motivations for company level measures Business case for employers costs of lost days and productivity; staff and expertise Reduce staff turnover Reduce recruitment and training costs Reduce stress and sick leave Improve staff morale Improve service delivery Increase loyalty and commitment 12/09/2012 20
Priorities for policy and practice Raise awareness and promoting good practice - Amongst companies; among workers - Also at policy and social dialogue levels Increase take-up of measures - Support of line managers and colleagues - Reflect preferences of male and female workers Ensure wider and more consistent provision - Labour legislation (EU and Member State) - Formal provisions in social dialogue (EU, Member State, sectoral) Develop a joined-up approach - Better integration of employment policy (and practice) and social policy (and services) - Adopt a systematic life-course perspective with time for working, learning and caring across working life 12/09/2012 21
An opportunity for peer learning As the employment rates of the over 55 year olds vary so considerably among Member States, the scope for peer learning is enormous. 12/09/2012 22
For more information, visit: http://www.eurofound.europa.eu/areas/ populationandsociety/index.htm 12/09/2012 23