Article Are your workplace policies ready for a changing world?

The way we live is changing and the world of work is evolving alongside it. As people live longer, they have greater opportunity to embrace a more ‘multi-staged life’. This could mean a variety of outcomes, from taking career breaks or retraining for a career change, to working flexibly around caring responsibilities. Having policies in your workplace that accommodate these life changes is key to making sure your organisation is fit for the future. It could also help you attract and retain the talent you need.

Every business is different, and your specific industry or sector could influence which policies are appropriate, but broader social trends could have an influence too. Here are some considerations that could shape your workplace practices in line with a changing world.

Flexibility is fundamental as family dynamics and retirement paths change

As our lives change, your employees might want more flexibility compared to traditional working patterns. During what we call ‘the second 50’ (meaning life after age 50), older professionals might want a phased path to retirement rather than a ‘hard stop’. Our research of 900 UK workers found that only 27% expect a sudden transition from work to retirement – opening up the possibility for longer, more varied working lives.¹

Part-time working patterns or job shares could attract talented, experienced professionals from the ‘sandwich generation’ who might be caring for children and elderly parents. Flexible working policies could also help to make your organisation more inclusive towards people with disabilities, or those unable to work full time for other reasons.

Research by the Chartered Institute of Personnel and Development (CIPD) found that an estimated four million UK employees have changed careers because of a lack of flexibility at work.² The research says offering flexible working is key to retaining employees and fostering inclusive workplaces.

We recognise that flexible working might not be an option for every industry. However, there could be other ways your organisation can adopt forward-thinking workplace policies, as we’ll cover throughout.

Progressive parental leave policies could help to tackle the gender pension gap

Employees with growing families might welcome progressive parental leave policies when assessing a future employer. The gender pension gap is currently 35%, meaning women’s private pension wealth is 35% lower than that of men.³ A contributor to this gap is the fact women still take more time out of the workplace to care for children. You might consider whether your existing leave policy allows the opportunity for all new parents or guardians to take more time off. This could help families to share the load of parenting and balance out any potential pauses in pension contributions.

Society is changing to embrace many different definitions of what family is. Double check the wording of your policies to make sure they’re inclusive of different family dynamics. While only a small factor, this could help your employees feel seen and represented.

Developing skills for a longer, portfolio career

Professionals in their ‘second 50’ might worry that their skills are outdated in a modern workplace. Upskilling could help them feel more competitive and confident at work. If you’re in a labour-intensive industry, this could be learning new techniques or operating new machinery. If you’re an office-based business, an important part of this could be digital education to keep pace with fast-changing technology such as artificial intelligence (AI). As new technologies become more ingrained, it’s important your security policies are up to date, and your employees are equipped to deal with the changes.

Cybersecurity training could empower your employees to become more aware of cyber threats and help prevent data breaches. You could also introduce or refine policies on social media and AI. For example, is it acceptable for your employees to use AI tools in their daily job roles? What checks and balances are in place to maintain quality and security?

By rewarding independent learning and integrating training into daily routines, you can create a company culture of continuous learning. This could help engagement as your employees advance their careers in a supportive organisation. Having more highly-skilled people on the team is also likely to benefit your business. You could encourage employees to advance their knowledge through:

• Workshops, seminars, talks from colleagues as well as external experts
• Secondment or shadowing in other departments or teams
• Membership of professional bodies
• Short courses, formal qualifications or on-the-job training
• Mentoring or business networking
• Fast-track leadership development schemes

An important note is that depending on your industry, the reality might be that some of your employees might not be able to carry out some types of work in their later years. For some businesses, one aspect of helping your employees upskill might actually be to support them in moving into another industry.

Financial wellbeing support essential for longer lives

Longer, multi-stage lives mean potentially more time working, earning, and saving for the future. For others, the goal might be to stop working as early as possible. Either option likely means your employees’ pensions and savings need to last much longer than they’ve done historically. You can make a positive impact in supporting pension saving, and in helping employees to think about their future and make good financial decisions.

Policies here could include considering making higher employer contributions, implementing salary sacrifice, or pension contribution matching as an incentive to save. You could even consider offering free or subsidised advice on pension savings from external experts. 

Poor employee financial wellbeing can have a detrimental and costly impact on absenteeism and productivity in the workplace. Our research found that nearly a quarter of both part-time and full-time employees reported a decline in their work productivity over the past two years due to financial worries – costing UK employers an estimated £6.6 billion a year.⁴ Absenteeism relating to financial stress cost a further estimated £3.7 billion a year.⁴

By implementing workplace policies and support, you could help employees to address their money worries and build financial resilience. This in turn could improve their overall wellbeing and workplace productivity, and potentially reduce any related financial impact on your business.

Adaptable policies for a resilient workplace

Making sure your workplace policies are adaptable and forward-looking is crucial as society and employees’ expectations evolve. By fostering an environment that not only responds to these changes but anticipates them, you can create a resilient, inclusive and dynamic workplace.

Learn more about how you can support your employees with financial wellbeing on our Employer Insights Hub. You can also read our report ‘The Second 50: Navigating a multi-stage life’.