Attracting and retaining talent with a changing population dynamic

Scotland has an ageing population and workforce. According to a 2022 CIPD report on Understanding older workers in Scotland, by 2045, the number of people aged 65 and over is projected to grow by nearly 30%. This increase is exacerbated by a reduction in a predicted fall in the number of children. Employers need to be aware that the workplace dynamic will inevitably largely reflect the population dynamic, and therefore should proactively consider how to attract and retain workers. Of course, age-inclusivity is not just about older workers, it’s about attracting and retaining younger talent to the workforce too. However, many of the same tools will inevitably attract younger workers – particularly with the increased focus on work-life balance – in addition to proving advantageous to older workers. Flexible working arrangements will likely become more prevalent, particularly considering the changes to legislation in the coming months. From 6 April 2024, the right to request flexible working will no longer require an employee to have 26 weeks’ continuous service but will instead be a ‘day one’ employment right. Further, the number of flexible working requests which can be made in any 12-month period will be increased from one to two requests and the requirement for employees to explain the effect they anticipate their request will have on their employer will be removed. Employers will also be required to respond to a flexible working request within two months (as opposed to the current three-month period) and, if it is being refused, to consult with the employee making the request beforehand. It is anticipated that these changes will come into effect in July 2024. To supplement these changes, an updated Acas Code of Practice on flexible working has been produced. Whilst the flexible working legislation still only gives the right to request flexible working, not to have such request granted, employers should be prepared to give due consideration to requests. Not only are there potential legal implications (including discrimination claims) arising from a rejection of a request, such a rejection may also demotivate an employee and lead them to seek employment elsewhere. It may well be that an inflexible employer finds it difficult to retain and attract talent. Older workers may be looking to reduce working hours to allow more leisure time or due to grandparental caring responsibilities. Decisions to not accommodate flexible working (where appropriate and possible) could lead to valuable skills and experience being lost altogether. In addition, there is an increasing attraction to a four-day working week, with recent trials amongst businesses in Scotland of this shift, without reduction of pay. The Scottish Government has, this year, launched its own trial, with some staff doing a four-day, 32-hour week. Such flexibility will likely attract younger, as well as older, workers. Benefits of the previous trials have included increased productivity during time in the workplace, as well as reduction of stress. Clearly, flexible working is just one element of attracting and retaining a diverse workforce. Training, development and support also all form part of a workforce culture to allow workers of all ages to flourish. However, employers who embrace the possibility and opportunities of flexible working, as opposed to the traditional 9-5, Monday to Friday for all staff, may find their ability to attract and retain staff enhanced. There’s sure to be more insight on this topic at the CIPD conference on 12 March. I will be attending the conference, along with Kate Sutherland, Senior Associate and Laura Brennen, Senior Solicitor. We’ll all be available at the Harper Macleod stand on the day. We’d be happy to discuss more about flexible working, age discrimination, or any other employment law topic with delegates on the day. Take a look at our other blogs on topics which are likely to form part of the day’s discussions including women’s health in the workplace and what employers need to think about when using generative AI.