Entrepreneurs favour older workers to plug skills gaps

New statistics from a leading accountancy firm suggests that entrepreneurs in the UK are increasingly turning to older workers to plug skills gaps in their businesses.

The research, carried out by The Tenon Forum, shows that 45% of UK owner-managers are concerned about skills shortages and many claim younger recruits are often just not up to the job. Over a third (34 per cent) of SMEs report a lack of work readiness amongst graduates and 31 per cent cite poor literacy and numeracy amongst school leavers as a key issue facing their business.

However, many entrepreneurs are now looking to the previously untapped potential of older workers to plug the gap, with two thirds (66 per cent) of SME leaders agreeing that the employment of workers aged 50 plus is a good solution to skills shortages. And more than a fifth (22 per cent) of entrepreneurial businesses actually favour the hiring of older workers over college leavers as a solution to staffing problems.

The research reveals that three in ten SMEs have a strong representation of employees aged over 50, with many businesses utilising the experience of older workers as coaches and mentors for younger employees (20 per cent) or in the capacity of consultants following retirement (12 per cent).

Businesses in the East of England have the largest pool of more experienced employees, with four in ten claiming to have a strong representation of older workers in their workforce in contrast to 22 per cent of London-based SMEs. The manufacturing industry in particular is flying the flag for older workers, with over a third (34 per cent) of those facing staffing issues in this sector saying their business favours the hire of older workers over their younger colleagues.

UK entrepreneurs are also adopting a range of other strategies to deal with gaps in the workforce. One in five (21 per cent) of those with staffing problems have increased training budgets to tackle skills shortfalls, 13 per cent outsource their HR function to external consultants whilst 12 per cent are relying on the skills of foreign workers.