The inevitability of an increase in the pension age could lull us into a feeling of false security.

Increase the age when we retire and we might feel that the problem of an ageing society is solved. Far from it. As the Minister for Social Security makes quite clear in his proposition to the States, a higher retirement age won’t be enough in itself.

Doing nothing would, of course, result in the Island’s social security fund running out of money in the next 20 years or so, and no one would accept that we can allow that to happen. But increasing the retirement age and raising contributions is the relatively simple bit. Changing people’s attitude to old age and older employees is another matter altogether.

The fact that this will be difficult stems from the belief that prevails in the Island (and elsewhere) that old age is a problem rather than an opportunity. We have to cope with all these ‘oldies’ being a strain on the working population, rather than welcome the fact that there’s a huge pool of underutilised talent and experience available to help grow the economy.

As the Minister says in his proposition to the States: ‘I am firmly of the view that we are not doing enough to draw on the experience, skills and knowledge of older people. Raising the pension age means that more people will continue working and making a significant contribution to Jersey’s economy. To realise this potential we need to be considering initiatives that encourage and allow older workers to play their full part in the labour market.’

The fact that this is not being done already is perhaps an indictment on those local businessmen who fail to plan for the future. It’s difficult to get some of them to even train their younger employees without making their life even more difficult by suggesting that they should be doing something similar with those who are close to retirement. Many are simply too busy trying to meet the day to day needs of running a business, although a few seem to have plenty of time to criticize the States at every turn.

But perhaps I shouldn’t get on that particular hobbyhorse.
However, the more reasonable members of the business community will understand that blaming the States for all of the Island’s ills isn’t sufficient, and that there are significant problems in the economy that they themselves could do something about.

They may, of course, believe that it’s not up to them to tackle the underutilisation of elderly workers or even the training of younger employees. But virtually everyone acknowledges that a skilled workforce is of the utmost importance to Jersey’s economy, yet some do little or nothing about it. Even in an economic crisis when the States are forced to step in and offer financial help to employers willing to take on unemployed school-leavers, it’s a bit like pulling teeth.

Perhaps those employers don’t see it as their role to help and prefer to leave the problem to the States. In which case their complaints about the States interfering in business too much, rings a little hollow. After all, some business leaders and even some States members, believe that all the States has to do is create the right environment for business to flourish, and we can leave the businessmen to get on with it. If only.

So having failed miserably to avoid that particular hobbyhorse, you will appreciate that I am a little sceptical about some parts of Jersey’s business community. I readily acknowledge that there are very many fine businesses in the Island doing an extremely good job and competing on a global scale. But some aren’t, and while increased competition will no doubt eventually ensure that all businesses ‘up their game’, we’ve still got a long way to go.

Certainly we can’t rely on the private sector alone to plan for an ageing population. They have to be guided and incentivised (or bribed) to do the right thing.
That’s despite the fact that, as the Minister said in his report to the States, ‘working longer is key to our continued economic success’.

‘With the forecast reduction in the number of people of working age, the potential contribution of older workers is essential,’he said.

‘Without their fuller participation in the labour market, there may well be a call for more inward migration to fill the available vacancies, which, in turn, could put increased pressure on the Island’s infrastructure.’

Similar warnings have been issued before without much appreciable impact.
The Minister says that government must provide a supportive environment where older members of the community are keen to work longer, and employers recognise the contribution they can make to retain and recruit older workers.

There are indeed plenty of ways to encourage people to work longer, but few of them will work without support from employers.

More flexible work practices, including part-time working and job sharing, could make a significant difference, not only to older employees but to all staff. I know it’s more complicated than just employing 18 to 65 year olds 40 hours a week, but improving the utilisation of scarce human resources in a tiny, crowded island must be the ultimate aim.
A stronger focus on education and training for older workers would also keep more of them usefully employed, although there are very few employers who currently re-train older workers. It might be too late at 60 for a complete career change (although in some cases, it might not be), but a short period of re-training of someone who has a lot of existing skills and experience, would result in a more productive workforce. Employees who have spent all their working life on the shop floor might even make a good manager, although that would be taking flexibility too far for some more traditional managers.

But however we tackle an ageing society, the key is flexibility. The States shouldn’t be too prescriptive, but then they shouldn’t have to be too prescriptive.
To avoid new laws and more red tape, we need the support of all employers who recognise that we’re all in this together.

Peter Body is the editor of Business Brief magazine