Flexible working the antidote to older worker exodus, research reveals

A lack of flexible job opportunities is the main obstacle preventing over 50s from staying in the workforce longer, new data released today reveals.

Research from insurer Zurich UK found that nearly one in five UK adults over 50 are deterred from applying for new jobs because of a lack of flexible working opportunities³. The stark reality is, less than a third of UK vacancies advertise any form of flexible working.

Availability of flexible working opportunities would mean 34% of over 50’s would stay in the workforce for longer - a further 28% could be tempted out of retirement if they simply had the option to work from home.

Despite this, data from Timewise shows that only 12%³ of job vacancies in the UK offer part-time hours and many of these are much lower paid roles. The same report found that just 30% of UK job vacancies advertise some form of flexible working such as remote working, home working or part-time hours.

This comes after the Bank of England voiced concerns that a marked rise in economic inactivity among the over-50s could hold back growth, with 386,000⁴  leaving the workforce since the pandemic. The new findings from Zurich suggest that less than a quarter of this age group have adequate savings for a comfortable retirement.

Meanwhile a recent House of Lords committee found that early retirement was the key driver of economic inactivity in Britain⁵.

The Government recently announced a £70m support package to address the exodus, and Zurich’s research indicates efforts could be bolstered if flexible working opportunities were available from more employers.

The over 50s will benefit from changes announced in the Spring Budget set to be delivered by the Department for Work and Pensions (DWP).

Measures include increasing the number of people who can access the Mid-Life MOT offer via their local Jobcentre and a new digital Mid-Life MOT that will be introduced to help older workers understand what their employment choices mean for the long-term and their finances.

While pay is a significant factor for nearly a third (32%) of people in encouraging them to unretire, flexibility at work appears to hold equal weighting (31%).

Timewise’s research found that 8.4m of those who work part time, do so out of necessity due to ill health, managing disabilities or caring for relatives.

Reflecting this, Zurich’s study shows that for more than one in five people, ill health or disability has been the catalyst for retirement, as well as mental ill health for a further 16%. Caring responsibilities are also a trigger for 16%. Interestingly, this figure rises to 26% for those aged 50-55, suggesting this cohort may be sandwiched between caring for different generations.

With many businesses struggling to fill vacancies, nearly a third of older workers (30%) believe that companies do not welcome their skills and experience. Nearly one in four also said that a workplace culture where they feel valued and welcomed would encourage them to extend their working lives.

Steve Collinson, Chief HR Officer, Zurich UK said:

“More than one in four of our UK employees is over 50 and we know that for them, flexibility is key. We’ve been a flexible working employer for over a decade and all new roles are advertised as being available on a part-time or job-share basis.

“The feedback we hear is that people want to carry on working, but in a different way. Our people tell us that they have other needs such as caring responsibilities, but they also want balance and time off for hobbies, volunteering, or travel. Our policies factor this in and include wellbeing and mental health support and more recently menopause. “

Minister for Employment, Guy Opperman MP said:

“Older people have a lot to offer, and we know that being in work provides financial security while growing the economy.

“That’s why we’re helping more older workers by removing barriers, encouraging employers to offer flexible roles, and bolstering the tools over 50s need to stay in or return to work.

“Investment is key to supporting adults of all ages back into employment and gives businesses the skilled workforce they need to become more productive.”

Dr Carole Easton OBE, Chief Executive at the Centre for Ageing Better, said:

“If employers want to address their skills and labour shortages, then they need to take an open approach to flexible working. We recommend employers advertise all roles as flexible for everyone, for any reason, where possible and also make clear that flexible, hybrid or remote working is welcome from day one, rather than on request. It is also vital that employers support line managers to develop and manage a flexible working arrangement that works for employer, manager and the organisation more broadly

“Some employers are already showing they truly value the vital contribution that older employees make and we are very impressed with the policies that Zurich Insurance have put in place to support their experienced workers. If other employers want to know how they can create a more attractive work environment for older workers, they can follow in the footprints of Zurich Insurance and sign up to our Age-friendly Employer Pledge.”

Notes to editors

• DWP measures represent an investment of £3.5 billion over five years to boost workforce participation and grow the economy. This includes £70 million investment in specific support for the over 50s
• Additionally, the expanded Jobcentre Mid-Life MOT will see the department’s 50 PLUS Champions continue to provide in person financial planning and awareness sessions, aiming to reach up to 40,000 individuals a year.
• The over 50s are also set to benefit from a boost to skills and better access to training through the Sector-based Work Academy Programme (SWAP), Train and Progress and the new Returnerships programme.
• Flexible working covers a range of working arrangements around the time, place and hours of work – including flexitime, compressed hours, staggered hours and annualised hours.
• Employees with 26 weeks continuous service already have the right to request flexible working under existing legislation, where employees can request a change to their hours, working patterns or location of work.
• Timewise are the UK’s flexible working experts. A 17-year-old award-winning social enterprise with commercial expertise, Timewise works with employers, people looking for flexible jobs, policymakers and influencers to create inclusive workplaces powered by flexible working.

What does the world look like for Zurich’s 1200 experienced workers?

• All roles are advertised as being available on a part-time or job-share basis as well as full-time – over 50s make up a third of Zurich UK’s part time working population
• Zurich has been a flexible working advocate for over a decade – for 77% of employees over 50, this makes the insurer their employer of choice⁶.
• Hybrid working is available for employees to balance their time between the office and working from home – this is the most popular benefit for 79% of employees⁷
• A recently launched menopause policy involved the roll-out of training for 700 people leaders
• The insurer has also introduced a mental health policy with training for all UK people managers and wellbeing support for all employees
• People have flexible retirement options – they can do so on a graduated basis or switch working patterns
• Employees are given private health care, life insurance and income protection – these benefits rank most highly for 61% of employees over 50⁸
• Zurich was one of the first signatories of the ‘Age-Friendly Employer’ Pledge from the Centre for Ageing Better
• Training and upskilling opportunities are available regardless of age - over the last 12 months, one in ten employees over 50 engaged with online learning
• Apprenticeships are available to all employees – around 60% are undertaken by established employees of all ages and not those just starting out in their careers.

¹ The Timewise Flexible Jobs Index© 2022 is based on analysis of over 6 million job adverts, posted in the period 01 January 2022 to 30 June 2022. The data source is Lightcast, and job adverts were filtered using 19 keywords relating to different forms of flexible working.
² Onepoll 2000 adults (1000 retired/1000 in employment) Feb 22-3 March 2023
³As above
⁴ Ons Reasons for workers aged over 50 years leaving employment since the start of the coronavirus pandemic - Office for National Statistics
⁵ https://committees.parliament.uk/committee/175/economic-affairs-committee/news/175197/early-retirement-and-our-ageing-population-are-causing-labour-shortages-says-lords-report/
⁶ Staff survey March 2023 429 respondents
⁷ Staff survey during March 2023 429 respondents
⁸ As above