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UK managers are “woefully unprepared” to deal with an ageing workforce, new research has found.

Just 14 per cent of UK managers consider their organisation well prepared to cope with demographic changes that mean a third of UK workers will be aged over 50 by 2020.

This is the main finding of a survey of more than 1,000 organisations published today by the CIPD and Chartered Management Institute (CMI).

More than a third of respondents (34 per cent) taking part in the Managing an Ageing Workforce survey claim there is a complete absence of board-level recognition of ageing workforce issues, even though the majority (93 per cent) see value in retaining the knowledge and experience of older workers.

In six months’ time, the default retirement age will start to be phased out, further swelling the ranks of older people in work.

Only 11 per cent of respondents suggested older workers cost their organisation more money. The report argues that the lack of board-level recognition means front-line managers do not receive adequate training or support for managing older workers.

It also said that almost half of managers are not well informed of their organisation’s retirement policies (43 per cent) and there is a perception that it is hard for younger employees to manage older people (59 per cent).

There was also a widespread view that age discrimination still exists, with 40 per cent having experienced it at some stage in their careers.

According to the report, the failure of UK business leaders to adapt to an ageing workforce is putting the future success of their businesses at risk.

Dianah Worman, the CIPD’s diversity adviser, said: “In difficult economic times businesses are not galvanising the talent and skills available to help them perform more competitively.

“Employers will need to keep on their toes to respond appropriately to the phasing out of the DRA next year, which will have widespread implications.

“We know from this latest research that managers aren’t being supported or trained appropriately in the management of older workers, for example, but it is also apparent that the needs and preferences of older workers have to be better addressed.”

The CIPD and CMI are calling on those at senior level to take the issue more seriously and making several recommendations which they believe would enable organisations to manage ageing workforces more effectively.

These include ensuring that the entire senior team is aware of how an ageing workforce affects the available talent pool and clarifying the organisation’s approach towards recruitment and the changing legal landscape.

Organisations should also review training and development opportunities for line managers, to ensure they are up to date with changes to retirement policies and are given training to help them handle age-related issues in an appropriate manner and get the best from older staff.