SMEs could be putting their futures at risk by failing to attract older workers, HR experts warned today.

The Chartered Institute for Personnel and Development (CIPD) says more employers should target older workers or miss out on opportunities presented by an increasingly age-diverse workforce.

In new research, the group found that 86 per cent of smaller businesses are sold on the contribution older workers were capable of making, yet six-in-10 admitted they had never recruited someone over the age of 65.

Default retirement ages were ended in 2011 to encourage people to work later in life if they wanted to, yet just five per cent of the workforce is over 65.

When asked about the advantages of hiring older people, SME bosses pointed to knowledge sharing, problem solving and improved customer service. Drawbacks included stereotyping and a lack of shared interests.

“Employers are currently missing a trick by not offering flexible working to all employees and by not adapting to the changing needs of a changing workforce,” said Dianah Worman, public policy advisor at the CIPD.

“Healthcare, provision for employees with caring responsibilities — these are just some of the many things SMEs need to be thinking about now to prepare for the future.”