Line managers need training on the business benefits of diversity, according to a new report from the Chartered Institute of Personnel and Development (CIPD).

The report, Driving Diversity Progress, states that organisations who do not take diversity seriously could face difficulties attracting the best candidates to fill vacancies, and risk damaging efforts to achieve their own business objectives.

It highlights a number of key issues such as:

* Organisations need older workers: Employers are starting to benefit from the rewards of having a workforce made up of different age groups. However, they need to start considering offering alternative flexible savings and think about making retirement more flexible to cater for those people want to work for longer. These arrangements may help organisations engage and retain staff.

* Training is key in order to tap into diverse talent pool: The majority of employers now train interviewers in diversity issues and monitor diversity. However, more can be done with only 29% of organisations advertising beyond traditional means to target under-represented groups.

* It makes sense to employ ex-offenders: Only 6% of employers who have knowingly employed ex-offenders have had a poor experience, however employment actually reduces re-offending by up to 50%. Employing ex-offenders will help businesses as they face the war for talent, with more than 85% of employers reporting difficulties in filling vacancies and suffering from skills shortages or problems of reduced business growth.

Dianah Worman, CIPD diversity adviser, said: "CIPD research shows the benefits a diverse mix of people can bring to an organisation. It is important to provide training for line managers in order to demonstrate the business case behind diversity because they can help make the change. Changing mindsets and developing good practices will help organisations retain knowledge and experience, widen the recruitment base, and could lead to more customers and greater profits."