An age-old question for contractors

With the gap between job creation and the number of graduates able to fill those vacancies forever widening, contractors in the over-50s age category will be key to the UK’s future economic prosperity. As Employment Minister, Damian Hinds said, the group offers ‘decades of valuable knowledge and experience’ that will drive growth.  

Yet research continues to reveal that ageism is rife in the workplace and that employers are guilty of conscious or unconscious biases against age. What does this mean for contractors who enter their sixth decade and beyond?

Creativity in contracting

Protecting workers, including contractors, from unfair discriminatory practices, whether related to race, sexuality, disability, religion or age, has long been a focal point of government policy. All these come under the umbrella of the Equality Act 2012, which covers both direct and indirect age discrimination as well as presenting cases that could be deemed ‘objectively justified’.     

Yet despite the legislation and the work of many employers to get their workplaces in order, data continues to paint a far from positive picture. A recent survey by the job board, Total Jobs revealed that while only 16% of 25-34 year olds felt that age was a disadvantage when applying for a job, the number soared dramatically to 82% for those in the 55-64 bracket.

Andy Briggs, Aviva CEO, in his first interview since taking on the job of business champion for older workers, told The Times that over-50s were five times more likely to get called to interview if they didn’t disclose their age (it is not a legal requirement in the UK to include age on CVs or mention it during interviews). Briggs was also quick to dispel the myth that creativity and innovation somehow vanish the older one gets.

Demand for skilled contractors

Where does this leave the contracting community? The demand for technical skills is far outstripping supply, which has further been exacerbated post-Brexit by the forecast drop in the number of working migrants. This has left greater holes that will need to be plugged by local, homegrown talent and therefore it will be unwise for employers to overlook contractors with many years’ experience, given the severe shortages.

As a case study, engineering would be high up the list. The industry has had to grapple with chronic talent shortages post 2008 recession and will increasingly have to depend on contractors who have the client and onsite skills needed to complete projects on time and to budget. One area where demand is expected to be buoyant is in the regional maintenance and improvement of roads and highways, which are in line to receive a significant investment boost when chancellor Philip Hammond delivers his Autumn Statement on 23 November.

Despite the privileged position that contractors enjoy, it is nonetheless important to upskill and keep abreast of any technologies or software, to boost employability during fiercely competitive times. Unlike permanent employees, contractors cannot count on employers to provide training and career counselling, so investing in their own personal and professional development is a priority. This could be in the form of regular industry-specific training courses or self-study (usually tax deductible for limited company contractors). Building a network on social media channels such as LinkedIn is also crucial to securing contracting assignments.

Changing landscape for older workers

Figures released by the Office for National Statistics (ONS) in 2016 revealed that nearly 10 million workers are aged 50 or over, which equates to just under a third (31%) of the workforce. Over a quarter of men aged 65-70 are in paid employment and for women the figure is 18% – with both numbers rising rapidly. From 2026 the state pension age will start climbing to 67 and subsequently link to life expectancy.

This shift in demographics – people living longer and retiring later – is however being recognised. There are now over 20 building societies that have extended their age limits on mortgage lending age to 85. Halifax bank has also increased its limit from 75 to 80. Companies such as UnLtd and the government’s New Enterprise Allowance scheme provide support to those looking to get their social entrepreneurial ventures off the ground.  

Although ageism is a very real scourge to the economy, costing it billions, the 14 million or so job vacancies projected over the next decade bode well, particularly for those contracting. The candidate-led market characterised by acute skills gaps means that opportunities for vastly experienced contractors should still abound for years to come.

10 Comments

  • John Broom says:

    I am a well experienced self employed Project Engineer with lots to offer, you try getting a placement at my age of 67, its a nightmare and I get ignored by young people that have no clue what i can offer, it makes me mad because I am fit and want to continue work

  • Steve Chown says:

    Maybe Young recruiters and young engineering managers need to learn that that a successful conclusion does not come from endless meetings and spreadsheets, but from sound engineering solutions.
    Maybe you need to have a few years under your belt before this is realised.
    Also the vast and broad experience that can be on offer from a mature contractor is sometime seen as an unwelcome challenge, rather than a useful resource.
    Engineering has not opened the door to using part time mature designer talent.

  • The Q says:

    As anyone who has worked in industry knows, there is no substitute for real-world experience. Experience/knowledge that often takes decades to acquire, both all that is good, and all that is not (and the pain you endure learning the latter 🙁 🙂 ) .

    I have total respect for the “old hand” generations that came before mine, and I hope they continue to work until the desire to do so is gone or physical infirmity takes them. In the case of the latter, the tech they are a part of is itself helping them overcome the latter.

    Similarly I am grateful to the old hand contractors who helped me when I first went freelance 26 yrs ago as a callow 23 yr old with a mere 2 years industry experience under my belt.

    To both : live long and prosper.

  • mark williams says:

    Lesson -never teach the young anything and don’t pass on knowledge -keep your skills and hold them to ransom

  • Gerard Hurrell says:

    The recruitment problem is the fault of HR/procurement/recruitment people. Almost by definition they know little or nothing af the kind of jobs that they are recruiting for. They naturally tend to be timid, even fragile, people themselves and therefore seek to recruit jobsworth timeservers who wont upset things by trying to do a good job.

  • Tony Curtis says:

    Severe shortages? Haha. I often read these articles online and they are so hopelessly wrong, regurgitating propaganda from the mainstream media. There are pretty much no skills shortages in IT. After 15 years of big corporations being allowed to import third world Labour and half of Europe descending on us, the market is utterly saturated. Companies no longer need expensive contractors when they have an endless supply of very cheap permies available courtesy of HMG.

    Really, it amazes me. It’s like politicians, media etc live in an utterly different world to us. We could all be out of work and they’d still be blabbering on about needing more Indians.

    If there are these continued and chronic shortages why are most IT contractors earning the same in nominal figures as ten years ago (or less)? Doesn’t add up one little bit.

  • Gerard Hurrell says:

    In my experience. Tony Curtis is completely correct. I suspect some people are making some money (may luxury vacations) out of this phoney recruitment acivity.

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