Age profiling - Mature @ EU

Spring 2002
THE ESSENTIAL GUIDE TO
AGE PROFILING
1
2
3
4
What shape success
Can you spot the possible implications if your
business has one or more of these age profiles
See the back page for the answers!

Age profiling
The essential tool for HR professionals
The HR world is renowned for its use of jargon. One of the
latest buzzwords is ‘age profiling’. But what does it mean and
can it actually help steer your business
Age profiling is an efficient technique to map the
age of a group of people, typically a workforce or
customer base. And whilst a blanket profile of your
business will tell you little except that you employ
people of different ages, targeted age profiling can
be a very useful tool.
Used effectively, age profiling can help you evaluate
arange of personnel issues including performance,
employee satisfaction, recruitment and retention
levels. It can help identify risks and opportunities
amongst key groups or business functions and most
importantly allow you to plan for future needs.
It is an technique that is increasingly being used by
smart employers to measure business performance.
GSK
“A simple statistical analysis of some raw
HR data underlined how frequently even
HR teams, tend to make assumptions about
employees. In one part of the company,
there seemed to be a dip post 39.We
thought we knew why. However, further
analysis – cross-referring age to other
factors – quickly showed those assumptions
to be wrong.This small piece of work has
resulted in GSK reviewing (and in some
instances revising) HR systems and policy.
We have already scheduled further discrete
projects in key business areas, where we
anticipate age profiling will provide very
useful current and projected trend data.”
Ian Brown
UK Diversity Director, GSK
Age profiling categories
EFA recommends the following categories may
be helpful for age profiling as they marry with
Government statistics and with bands that are
used by many UK employers.
16-24; 25-34; 35-44; 45-54; 55-64 etc
This latest version of the famous EFA ‘wave chart’
illustrates the enormous changes that are taking
place in the shape and balance of UK demographics.
It is these dramatic changes – mirrored across the
whole of Europe – that are now driving national
and employment policy review.
UK Population Projections
Thousands
5000
4500
4000
3500
3000
2500
2002
15-24 25-34 35-44 45-54 55-64
Source: ONS 2002
2006
2015
Age
2020
2025

Co-operative Bank
A robust system was developed to produce accurate statistical data which is shared
bankwide on a six monthly basis with all Executive and Senior Managers.The Co-op Bank’s
profile is regularly measured against national and regional trends and results published
annually. In 2001 data on age was included for the first time in the bank’s annual report and
showed that the bank was reflecting demographic trends with 32% of the workforce being
aged over 40. However, further analysis did identify considerable differences in the age profile
from one business unit to another. For instance the age profile in smile, (the Bank’s internet
banking service) was much younger with over 85% of it’s staff under the age of 35 compared
to the Bank average of 49% Smile were concerned that candidates were de-selecting
themselves believing “Internet Banking” was for the younger person.They therefore included
the statement “We welcome applications from all ages” to change this belief.This has now
had the positive result of a 5% improvement.
Viv O’Connell, Human Resources Relationship Manager, Co-operative Bank
Risk analysis
The age profiling of particular teams will quickly
identify potential risks, either current gaps or future
loss of personnel, and knowledge. Age profiling will
help you to look ahead and to effectively anticipate
skill needs and demand, as well as supporting
succession planning. It will also help you predict
future costs – e.g. pensions.
A comparison of the current working age
population with the projected population in 2020
clearly highlights the age cohorts that will either
shrink or grow in 20 years.
UK Working Age Population 2002
compared to 2020
Thousands
5000
4500
4000
3500
3000
2500
15-19
20-24
Source: ONS 2002
25-29
30-34
35-39
2002 2020
Age
40-44
45-49
50-54
55-59
60-65
An age profile can help explain a department or
team’s turnover (in general an older profile will be
more static than a younger). It may also account
for differences in performance – there can be a
correlation between the age-mix and productivity
or outcomes such as sales. By looking at selected
age profiles you can easily spot any problems that
might lie ahead.
Avoiding unnecessary skills loss
Many organisations still put themselves at risk
by not age profiling prior to a redundancy or
voluntary severance programme. Age profiling
combined with a skills gap analysis can help you
avoid the unnecessary loss of experience and
knowledge that can sometimes leave an
organisation operationally challenged.
John Menzies
We were conscious that a number of key
executives were nearing retirement age,
and an age profiling exercise confirmed
that 25% of our most senior executives
are due to retire within the next five
years.The age profiling exercise has
therefore been helpful in terms of
reviewing our succession planning and
retention practices.
We now want to age profile the entire
workforce as we feel that this will have
wider links with other diversity and HR
issues. Equity has to be the watchword.
Jim Warnock, Director of Group
Personnel, John Menzies plc

HM Land Registry
“Age seemed to be the one diversity issue that all managers could relate to”, said, John
Nicholson when he joined HMLR in 2000. “We decided to age profile across the whole
business and then carry out a further analysis by job band. Age profiling was unexpectedly
useful in that it has helped forge the link in with other issues, and support the holistic
approach to diversity we are striving to achieve. For instance, we felt we should try and
attract more younger workers and women returners and age profiling suggested we
should not only review our ethnic minority policies but also revisit how we promoted
flexible working and child care provision.”
John Nicholson, Head of Diversity HMLR
“Age profiling can provide a focussed snapshot
of your workforce and is a useful additional
method of measuring business performance.”
Recruitment and retention
Age profiling is one of the most powerful tools
you can use to measure the effectiveness of
recruitment policies and to establish whether
you are an employer of choice.
By profiling the applicant pool, interview pool, and
successfully appointed personnel you can learn much
about your recruitment process. By then measuring
the age profile of those exiting the business, say at
3 months, 6 months and a year, further evidence
can be gathered about the effectiveness of your
recruitment and induction system.
But different businesses have – and are happy with
– different rates of turnover. For you it may not be
a question of recruitment, but of retention. Once
again age profiling will help you better understand
the current picture and provide useful indictors on
how best to retain, rather than recruit staff.
In fact, the age profiling of personnel exiting the
organisation correlated against their reasons for
leaving may well provide clear indications of
frustrations within certain age categories.Your
business may be losing high fliers, managers of the
future, or key personnel.
Employee satisfaction
A number of organisations now include age as
a factor in employee surveys. Analysing the results
by age may provide you with evidence of varying
satisfaction levels within different age groups of
staff. Added to analysis of exit information, this
data could also provide evidence of how well
you are meeting your employees’ expectations.
EFA consider it essential to cross refer age statistics
with other diversity statistics, such as gender, race,
disability, etc.
Work-life balance and family
friendly policies
Many organisations have initiated policies that
address work-life balance issues. Often these are
focussed around the needs of a particular group
of workers – such as women with young children.
However, analysis of your employees by age, may
well highlight that growing numbers may have
elder-care, rather than child-care needs.
Age profiling – a lever for change
Age profiling provides you with a sophisticated
technique that will deliver internal evidence to
support a change of policy or to encourage
better practice.

Cross referencing
EFA encourages employers to cross refer age
profiles with other diversity statistics such as
gender, race, disability etc.
Regional demographics show considerable
variation, so it is always worthwhile crosschecking
your local business profile with
regional or local statistics.
The chart below compares Greater London
with the South West.The differing profiles
are immediately apparent.
Projected female labour force 2006
Thousands
500
400
300
200
260
195
400
210
495
310
16-24 25-34 35-44 45-59
Age
Greater London South West
480
395
Age profiling and the law
It is uncertain whether the future age
discrimination legislation, due to be enacted by
2006, will force employers to age profile. Many
commentators predict that the legislation may
require statistical monitoring of staff by age.
Employers who regularly age profile their staff as
part of their HR and diversity monitoring systems,
will certainly be better placed, should they have to
‘justify’ any action in a tribunal.
The FIVE ‘E’s of age profiling:
Efficient
helps Evaluate
is Effective and
provides Evidence
In fact it is Essential
New Bullet tbc
Source: ONS 2002
“Age profiling provides alternative ways of
looking at your people – while it can’t provide
a cure, it can confirm a diagnosis!”
Age profiling – a practical guide
DO’S
Do focus in on key teams, departments
or business units
Do cross refer age to other diversity/HR issues
Do measure your profile against that of your
customers to identify opportunities
Do check your profile against that of your region
or locality
Do look at applicants or those leaving
the business
Do compare your profile against future needs
Do remember when making comparisons that
demographics vary significantly across the UK
DON’TS
Don’t just look at the whole business
Don’t just measure by age
Don’t just monitor employees
Don’t forget to keep records, you may need
evidence in the future
Don’t just monitor existing staff
Don’t just look at the picture now
Don’t underestimate the projected shift in the
UK population over the next 20 years

Answers to our age profiling quiz
1 Beware – an age profile like this might have serious implications for internal communication
and intergenerational understanding. Why doesn’t anyone in their 30’s want to work for you
2 How will your business cope in the future You are losing too many people,
you won’t be able to replace them – look at the changing UK demographics.
3 Watch out most of your workforce is concentrated between the ages of 29 and 45.
How wide a range of experience, lifestyles and ideas are you getting
4 Can you really afford such a large loss of talent in such a short period
You might need to rethink your retirement policies.
Astral House
1268 London Road
London
SW16 4ER
Tel: 020 8765 7597
Fax: 020 8765 7374
efa@ace.org.uk
www.efa.org.uk
‘The Employers Forum on Age (EFA) is the first ever employer-led initiative to promote the business
benefits on an age diverse workforce.The EFA is the leading authority on age issues in the workplace and
offers expert advice and support to employers on managing the skills and age-mix of their organisations.’
Age diverse employers are smart employers who have nothing to fear from legislation

Job
Track
Date 16.04.02
3
Job No 529
Job title
EFA Age Profiling Factsheet
File title
529v04_EFA_AgePro.Factsheet.qxd
Product code XX
Account Manager Matt Eley
Designer Neil
Artworker Tim Eng
Proof size 100%
Account Manager
Designer
Artworker
Print details
Number of colours
Number of pages 6
Special finishings X