9 March 2006 - Publication of DWP research report 325: survey of employers’ policies, practices and preferences relating to age
New research published today by the Department for Work and Pensions in conjunction with the Department of Trade and Industry explores the extent to which current employment policies and practices accord with equal opportunity with respect to age.
The report provides findings from a quantitative survey of around 2000 employers in Great Britain, and was designed as a baseline to evaluate the effects of the forthcoming Employment Equality (Age) Regulations 2006. It provides information on practices relating to equal opportunities, pay and benefits, retirement, recruitment, appraisal, training, promotion and redundancy as well as attitudes and awareness.
The main findings are:
- 72% of establishments had an Equal Opportunity policy and 56% had one which addressed age. Equal Opportunities training addressing age was only carried out in 19% of establishments.
- 5% of establishments had incremental pay scales with length of service increments extending over 5 years, and 15% had performance pay with no formal assessment process. These could be hazardous practices under the new legislation.
- 63% of establishments had a pension scheme and early retirement was provided for in 42% of establishments.
- 37% of establishments had a compulsory retirement age for at least some staff, and 57% had no compulsory retirement age.
- 6% of establishments should be affected by the introduction of the default retirement age of 65 (i.e. currently have a compulsory age below 65). If the default age were to be raised in the future, this would affect about one third of establishments.
- In recruitment, 6% of establishments used aged ranges in advertisements, recruiters were provided with age information in about half of cases and 49% of establishments had a maximum recruitment age.
- Performance appraisals were conducted in 68% of establishments, which could be an important safeguard against discrimination.
- Criteria for receipt of training included age (1%), time before retirement (8%), and potential length of service (8%).
- Promotion criteria included age (5%) and length of experience (70%).
- Compulsory redundancy criteria included age (12%), last in first out (28%) and length of service (40%). Voluntary redundancy criteria included age (5%) and length of service (11%).
- 66% of respondents were aware of the forthcoming legislation, with only 7% correctly stating the date of implementation.
- 30% of respondents had heard of the Age Positive campaign.
Notes to Editors
- The research was based on a representative sample survey of 2,087 employers in Great Britain with 5 or more employees. The sample was randomly drawn from the Inter-Departmental Business Register (IDBR), and was stratified by country, size and industry sector. Interviews were conducted over the telephone. The Department commissioned this research from the National Institute of Economic and Social Research in conjunction with the British Market Research Bureau.
- Research Report 325 – Survey of employers’ policies, practices and preferences is published on 9th March 2006. The report is available on the DWP website and hard copies can be obtained from Paul Noakes, Room 4-26, The Adelphi, 1-11 John Adam Street, London WC2N 6HT.
DWP Press office: 020 7238 0751
Out of hours: 07659 108883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk/asd/asd5/
Prepared by: Department for Work and Pensions Extending Working Life Division