Continuing our series highlighting different areas of discussion that have come to the fore recently, we look at the imminent phasing out of the fixed retirement age and congratulate the winners of the 2011 Shine Awards announced at the Savoy last night.
When I’m 64……
The older worker and the end of the Default Retirement Age (DRA)
From 6th April the DRA is being phased out and in the future employers will not be able to use the DRA to compulsorily retire people unless the retirement can be objectively justified.
There are already 850,000 people over the age of 65 who are still working in the UK. With the abolition of the DRA this number is bound to rise. By 2020 it is estimated that almost a third of the UK workforce will be over 50 years of age. Obviously the ageing of the population presents a particular challenge to the Hospitality Industry with half the present workforce being under 30 years old.
Certain employers, such as McDonalds, have taken account of the changing demographics. They found that that the higher the mean age of the workforce the higher the service quality becomes. In August 2009 Lancaster University carried out a survey of over 400 McDonald’s restaurants and found that customer satisfaction rose by 20% in those employing people over 60 years of age.
JD Wetherspoon stopped having a set retirement age in 2006. As a result they have seen improved customer satisfaction levels and better staff retention rates.
However many Hospitality companies still need to adapt to the changing demographics. As Philippe Rossiter, Chief Executive of the Institute of Hospitality, notes:
“In the UK, the retail sector has already heeded the need to recognise the demographic changes affecting the workforce. Hospitality is lagging behind, and really needs to change its attitude if the industry is to meet the staffing challenges which are looming.”
For further reading on this issue there are two relevant articles in EP Magazine:
Is going ‘grey’ a solution to industry retention issues?
Older workers are a key ingredient in the recipe for success
and on the abolition of the DRA and other considerations in managing an older workforce Business Link have a useful selection of articles at:
Finally People 1st are interested in your views on this subject and would welcome emails addressed to email@example.com.
2011 Shine Awards
Last night Women 1st hosted the 2011 Shine Awards at The Savoy which recognise and celebrate female success within the hospitality, leisure, travel and tourism industry. Our congratulations go to:
Outstanding Entrepreneur Award
Winner: Jillian MacLean, managing director, Drake & Morgan
Rising Star Award
Winner: Xoe Donovan, general manager, The Longford House Beefeater and Cannock South Premier Inn
Mentor of the Year Award
Winner: Lou Willcock, founding director, IndiCater
Woman of the Year Award
Winner: Victoria Sanders, managing director, Teletext Holidays
Lifetime Achievement Award
Winner: Robyn Jones OBE, chief executive, CH&Co
Small Business Award
Winner: ABode Hotels
Large Business Award
Winner: Sodexo UK & Ireland