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Employing an older workforce has rarely been an option in the past, but removal of the Default Retirement Age has allowed employees to continue working later in life. The DRA was introduced in 2006 and meant that employers could force their staff to retire at the age of 65.

Employees could request an extension to this age limit, but the employer was under no obligation to do so. The average age of a typical workforce has increased as a consequence, which has organisational benefits and drawbacks.

Benefits

 

  • Greater retained knowledge and experience
  • Stability among a younger workforce
  • Older workers tend to be more loyal
  • In-house mentoring of younger members of staff

 

Drawbacks

 

  • Potential for increased absenteeism and associated costs
  • Greater requirement for health provision and benefits within the organisation
  • Problems in managing absence effectively

 

Under different circumstances, the older members of your workforce may have chosen to retire, but absenteeism among this group need not be a problem if you use the right leave software.

LeaveMaster controls the costs of absenteeism by providing a detailed overview of sickness absence within your company. It allows you to take action quickly to reverse the financial effect of prolonged absences, and helps to manage the productivity drain of frequent unwarranted sick days.

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