13th January 2011
CMI, the Chartered Management Institute, has welcomed the government's confirmation today that the Default Retirement Age will be phased out from April 2011 – and urged managers to ensure that their organisations have processes in place to maximise the benefits that can be derived from these significant changes.
Louise Brooker-Carey, Policy and Research Director, says: "For too long, age has been used by some managers as a substitute for performance management, which is unfair and discriminatory. We therefore welcome the phasing out of the DRA. With employers still reporting skills gaps in key areas, it's right to tackle any barriers that discourage talented, skilled employees from continuing to make a contribution."
However, research published by CMI in September 2010 shows that only 14 per cent of managers consider that their organisations are very well-prepared to cope with an ageing workforce, despite the fact that a third of the UK workforce will be aged over 50 by 2020. The research also shows that almost half of managers are not well-informed of their organisation's retirement policies. The latest change to the DRA, especially the speed at which it is to be introduced, is likely to further complicate this issue.
Brooker-Carey adds: "How well managers implement new retirement policies will be critical. They should be holding open discussions with team members about whether and how they want to continue to work. Thinking creatively about options like redefining job roles, or moving to flexible hours, can help retain experienced and skilled staff.
CMI has also highlighted the importance of training to support performance. Says Brooker-Carey: "Managers must be aware that if an employee's performance isn't matching expectations, this should not automatically be equated with an age issue. Managers must ensure that older workers are being supported with appropriate training just as much as younger staff."
Brooker-Carey concludes: "The removal of the DRA is a strong legislative move towards ending age discrimination. However, managers also need to help eliminate age discrimination in the workplace by engaging older workers in a discussion of how a productive working relationship can be achieved – a solution which should benefit everyone."
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