35 | P a g e
D Clearly, when older people do heavy physical work, their age may affect their
productivity. But other skills may increase with age, including many that are crucial for
good management, such as an ability to handle people diplomatically, to run a meeting
or to spot a problem before it blows up. Peter Hicks, who co-ordinates OECD work on the
policy implications of ageing, says that plenty of research suggests older people are paid
more because they are worth more.
E And the virtues of the young may be exaggerated. “The few companies that have kept
on older workers find they have good judgment and their productivity is good
,
” says Mr
Peterson. “Besides, their education standards are much better than those of today’s
young high-
school graduates.” Companies may say that older workers are not worth
training, because they are reaching the end of their working lives: in fact, young people
tend to switch jobs so frequently that they offer the worst returns on training. “The median
age for employer-driven training is the late 40s and early 50s
,
” says Mr Hicks. “It goes
mainly to managers.”
F Take away those seniority-based pay scales, and older workers may become a much
more attractive employment proposition. But most companies (and many workers) are
uncomfortable with the idea of reducing some
one’s pay in later life - although workers on
piece-rates often earn less over time. So retaining the services of older workers may
mean employing them in new ways.
G One innovation, described in Mr. Walker’s report on combating age barriers, was
devised by IBM Belgium. Faced with the need to cut staff costs, and having decided to
concentrate cuts on 55-60-year-olds, IBM set up a separate company called Skill Team,
which re-employed any of the early retired who wanted to go on working up to the age of
60. An employee who joined Skill Team at the age of 55 on a five-year contract would
work for 58% of his time, over the full period, for 88% of his last IBM salary. The company
offered services to IBM, thus allowing it to retain access to some of the intellectual capital
it would otherwise have lost.