South East: Generational tensions will surface as employees postpone retirement, says KPMG

Many of the South East’s youngest workers believe that older colleagues are in danger of stifling their career prospects by retiring later, according to a survey by KPMG, and that the prolonged presence of Baby Boomers and Generation X in the workforce could damage productivity. As the number of over 65s in the labour force tops one million*, a survey of 230 people based in the South East region reveals that these tensions may rise, with the growing need for employees to stay in the labour force for longer due to social and financial pressures. 

Carried out for KPMG by OnePoll, the survey suggests that many believe the interests of younger employees could increasingly become pitted against those of their older colleagues, with nearly half of locals surveyed (46%) agreeing that older members of staff need to retire so that younger workers have a genuine chance of career progression. Questioning their contribution to the workforce, half of those surveyed in the region agreed that a much older workforce would drain productivity. Worryingly, only 16% of local respondents surveyed felt that employees will want to retain older workers to learn from their experience – the suggestion being that many of those employed recently are unconvinced about the benefits that older workers can bring.

Yet, while younger employees feel they may bear the brunt of their older colleagues’ extended stay in the workplace, there is also a growing acceptance that older workers will have to continue working for longer.

Despite the fact that only a quarter (26%) of local people surveyed said that they were working to fund their retirement – the lowest response rate recorded in the country, the vast majority of respondents believe that insufficient pensions will become more commonplace due to longer life expectancy, with 80% saying that as a result of living longer, more people will end their lives in poverty. As rising long-term care costs drain retirement funds, nearly two-thirds of local respondents (63%), also believe that people will be forced to work until they die.

People services adviser for KPMG in the South East Ingrid Waterfield said: “As working for longer becomes common place, older workers will inevitably constitute a larger proportion of the workforce. Although this may create a perception that the younger generation will lose out, this does not have to be the case. Far from it – an older workforce brings a wealth of experience and Baby Boomers can potentially adopt the invaluable role of coach or mentor to those entering the workplace.

“Attracting and retaining talent is a major issue for employers, but the successful companies will be those who take advantage of what older workers can bring to the table, in a way that is both innovative and inclusive. They will be the ones who can find a way for the Baby Boomers in their workforce to be enablers for the young and help them to develop their careers; competitive advantage will be achieved if the five generations in the workforce are motivated to work together effectively to achieve optimum business performance."

The survey suggests that some aspects of what makes a company a great place to work never change – flexibility in the workplace is important for all generations, with two thirds saying the option to work beyond the narrow nine-to-five boundaries drives their choice of employer.

*Figures from the Labour Market Statistics published on 12 June 2013, Office for National Statistics.