End to Default Retirement Age
Sooner than expected the Government has decided to scrap the default retirement age (DRA) with effect from April 2011.
This news has been met with mainly negative reactions in the press. There are some that say it will worsen employment opportunities for the young and will mean that businesses are burdened with under-performing oldies!
At Black&WhiteHR we think that organizations that run robust, objective and cyclical performance management processes have nothing to fear. If Stanley (63) has been dragging his heels for the past 5 years in anticipation of retirement, then a performance-focused organization will now be able to offer him one of two choices: either pull up his socks or pack his bags. If he pulls up his socks, that’s all to the benefit of overall business performance. If he packs his bags he leaves a vacancy right now (rather than in two years’ time) that can be filled by an eager beaver (age immaterial).
If you don’t run effective performance management then the chances are that your people are not delivering to their full potential. Performance management – done well – enables you to nurture talent and it also enables you to identify and dismiss poor performers who are not committed to your business success.
Call us if you’d like help in the design and delivery of a performance management system that will increase your employees’ engagement and delivery and will decrease your employment management risk.
