1. Achieving an Age Diverse Workforce
Caroline Waters
Director People & Policy, BT Group

2. Agenda Overview of age discrimination legislation
Facts, figures and the business case
BT’s response to age legislation
BT’s policy and process review
How we can avoid discrimination
Where to go for help

3. Overview of age discrimination legislation
Employment Equality (Age) Regulations 2006 comes into force on 1 October in the UK
Introduced to comply with the EU anti-discrimination legislation. All member states have until December 2006 to introduce equivalent national law.
Covers employees working abroad but do business in the UK, or who have worked for BT in the UK at some point of career.
Covers workers, employees, job seekers and trainees.
Covers all aspects of employment and vocational training e.g.
selection, interviews, recruitment, performance management, retention, training decisions, annual leave, redundancy, ill health and disability discrimination, retirement
Covers ALL ages

4. Overview of age discrimination legislation
Covers direct & indirect discrimination, harassment & victimisation
Direct discrimination, i.e. it will be illegal to use age bars
using ‘no older than’ or ‘no younger than’ e.g. “applicants must be aged under 30”
basing decisions on perceived or apparent age
Indirect discrimination, i.e. using a neutral criteria which disadvantages a particular age group
such as using time-linked experience, or years of service
e.g. BT’s annual leave policy or common use in job adverts
Age harassment and victimisation will always be unlawful
ageist banter

5. Overview of age discrimination legislation
The Regulations allow organisations to justify some policies and practices
general justification test
length of service related benefits e.g. long service awards
To be justifiable a policy or practice must satisfy a ‘legitimate aim’ and must be ‘proportionate’ and ‘necessary’
General exemptions:
up to 5 years service
meeting other statutory requirements e.g Health & Safety
some pension-related criteria
No qualifying period
No cap on awards

6. Facts, figures and the business case
Growing numbers of people over % of the UK population will be over 50 in 2031
Fewer younger workers - 16 to 24 year-olds will fall from 6.9 million in 2005 to 6.6 million in 2020, a 4.9% decrease
From 2010 onwards, young people reaching working age will fall by 60,000 every year, fundamentally changing the shape of the workforce.
Average retirement is less than the State Pension Age (65) - the UK’s average retirement age is 63.8 years
More people over State Pension Age will need/wish to work in the future - people over 65 still economically active will increase by 33% by 2020.

7. The business case for BT
The global workforce is growing steadily older
causing the labour pool to contract
We can:
access a wider talent pool
increase return on investment
benefit from a skilled and motivated workforce
avoid Employment Tribunal costs
identify new markets and get closer to customers
become an employer of choice in an increasingly competitive labour market
build on our reputation as an ethical and intelligent employer
retain corporate knowledge
“The business benefits of a mixed-age workforce are now widely recognised. There is clear evidence that both staff turnover and absenteeism are reduced and that motivation and commitment are improved in organisations employing people of all ages.”
Return on investment e.g. if you invest in training someone who is 50 you are investing money for another years. If you train a 20 year old you are potential paying for training for your competitor.
Employment Tribunal claims are rising - UK employers spend £210 million on Employment Tribunal claims a year and this is expected to rise in 2007 to £360 million (Researched by Think Tank ‘Committed2Equality’, featured in Observer ). Age claims will outstrip other discrimination claims - The UK Government anticipates 8 times as many claims on age as those on sexual orientation & religion & belief. If true, we could see nearly 5,250 claims on age in 2007/8. (DTI 2005)

8. BT’s response to age legislation
Age Action Group established to identify all policies/practices which will be impacted
Worked closely with UK experts: DTI, Employers Forum on Age
All policies and practices reviewed, amended or justification created
Communications messages on-going - retirement transitional arrangements and planned processes
Working party across all lines of business established to share resource and common issues
Delivery of the communications plan

9. Retirement Flexible Retirement Approach
No fixed Normal Retirement Age (NRA)
People reaching 60 can stay on, if they wish
People reaching 60 can still retire, if they wish
Default Retirement Procedure from age 65 and above
Use procedure once
People will choose when to retire
Career/Life planning/flexible retirement options

10. Avoiding age discrimination
Do not make assumptions about a person’s capability or potential based on their age or experience
Treat people equally and fairly, regardless of age, e.g. if someone aged 60 can no longer climb a pole, treat them the same way as a 40 year old in the same situation
Do not use age as a criteria, e.g for potential or talent selection
Be careful of language used. Don’t refer to someone’s age or experience e.g. in DPRs, job adverts
Remember -
If in doubt, substitute age for gender or race!

11. Positive
Younger people
Older People
Negative

12. Positive Younger people Older People Negative quick More mature
Easier to manage
Good attenders
loyal
bright
Younger people
Older People
Less engaged
More time off - hangovers
Less loyal
Not so PC literate
Less adaptable to change
immature
slower
Negative

13. Where to go for help Many materials available:
BT “Age of Change” web site ……
The Employers Forum on Age (EFA)
Age Positive
ACAS
The Age and Employment Network (TAEN)

14. Questions?

15. Achieving an Age Diverse Workforce
Caroline Waters
Director People & Policy, BT Group