June 2011 - Will you still need me, when I’m 65?
The abolition of a default retirement age could be a major catalyst for change in the way Hampshire businesses are run, according to industry experts at the latest Wilkins Kennedy round table.
While most people today still aim to retire at 65 despite the scrapping of the default retirement age, delegates said the knock-on effects still presented challenges for businesses.
The public sector and SMEs were identified as those sectors most challenged by the change, although any business without a comprehensive grip on employee relations and performance management would urgently need to address their strategy.
The group, which included HR specialists and senior business advisors, concluded that the most immediate challenge would be holding what was branded ‘the discussion’ with longstanding employees reaching retirement, about their performance and their future with the company.
No longer will a gold carriage clock and a pat on the back work for all employees, it was claimed. Instead, the new legislation meant the best way for employers to deal with the potentially thorny issue of retirement was with calm, gradual and open discussion to establish a strategy to suit each party.
Industry’s generally poor performance management systems were set to become more of an issue for human resources departments that previously relied on the default retirement age to shed mature staff whose standards had slipped.
As a result of the new legislation, it was suggested older employees staying on longer would “bung-up” employment right across the board, leaving graduates and school-leavers with even fewer opportunities and middle management stuck on the career ladder. But other delegates said the new arrangements might actually create employment, with high earning senior staff boosting the economy by staying on and spending more.
Unanimous in the belief that the recession had thrown a further spanner in the works, the group highlighted that many of those approaching retirement age were likely to have suffered a fall in earnings over the last few years leaving them financially unable to retire even if they wanted to. This new financial environment was seen as only likely to increase with the advent of student loans and modern “Posh and Becks” spending habits.
Despite the general consensus that professional services would be largely unaffected, with the majority in the sector still expected to retire at 65, tellingly just under half of those present said they either wanted to or would have to work beyond that age themselves.
The benefits of taking a well-earned retirement were also brought to the table, with one delegate admitting his back-hand had improved no-end since he started working two days a week.
Attendees
Gareth Lewis, Director, Polymedia PR
Ian Talbot, Partner, Wilkins Kennedy
Samantha Batten, Consultant, WK Business Solutions (Wilkins Kennedy)
David Bickford, Partner, Penningtons Solicitors LLP
Mark Broad, Partner, Dutton Gregory Solicitors
Alistair Gray, HR and Administration Director, Blake Lapthorn
Stuart Seagrove, Solicitor, Eric Robinson
Holly Cudbill, Associate, Trethowans
Michael Bennett, Southampton Advice and Representation Centre
Tabytha Cunningham, Coffin Mew LLP
ENDS
For details of the next Round Table or to attend, contact Claire Peers on claire.peers@wilkinskennedy.com
