July 2009:
UK companies lose talent thanks to mandatory retirement laws
The controversial question of mandatory retirement age has raised its head again in British business thanks to a new report stating that many companies consider the enforced retirement of employees when they reach 65 leads to a loss of valuable talent.
Recent research undertaken by The Age and Employment Network (TAEN) and the Employers Forum on Age has shown that 64% of employers that enforce the compulsory retirement age believe it can lead to a loss of talent, skills and knowledge in the workplace.
In fact, three quarters of companies that had taken steps to remove the imposed retirement age consider it a positive move that has resulted in improved reputation and better retention of valued skills.
TAEN chief executive Chris Ball commented, “The survey shows that the arguments against repeal of the DRA [default retirement age] do not correspond with reality. Most employers, even those with mandatory retirement ages, say it is of no help in dealing with under-performing employees.” He then went on to elaborate that this was the major justification offered when the national default retirement age was originally introduced.
Further research by Mercer also showed that older employees were more likely to take part in flexible benefit schemes than younger members of the workforce.