When I talk with managers during my workshops I often hear ‘X has switched off but as they have less than 2 yrs before retirement it is not worth the hassle and upset of getting them to improve their performance’. To my mind this approach never has been a strong management solution. It gives the workforce a clear demonstration that in certain circumstances you can ‘get away’ with doing very little, to say nothing of irritating good performing staff who find themselves making up for a slacker who continues to bank the same salary as them. Basically, this approach could lose you the respect of your team.
But things have now changed. Retirement no longer offers the manager an easy solution to difficult or poor performing staff as new legislation means that statutory retirement will not exist beyond 6th April 2011. This is the last date that an employer can provide an employee with the minimum 6 mths notice of retirement.
So what now are the options left to you as an employer?
You can included a fixed retirement date in your Contract of Employment BUT you need to be able justify the selected age. Selecting 60 and 65 just because this is when the state pension starts paying out will not suffice. Doing this would leave you open to possible action under the Age Discrimination legislation introduced in 2006. An example where a fixed contractual age for retirement would be deemed allowable is the fire service retiring active firemen in their 50s due to the physicality of the work.
So what is the new procedure for staff to retire? Simply, an employee resigns when they wish to retire. And be warned the CIPD estimate that 41% of staff will select to remain in employment beyond the traditional retirement ages of 60 and 65.
So in the future the only way in which an employee can leave employment will be:
- sickness, capability or death
- redundancy
- resignation
- dismissal for conduct, capability or performance
This means that effective performance management is even more crucial. All managers need to start conversations with questionable staff NOW otherwise they may remain with you for many years to come! And if you doubt your own, or your staff’s, ability to undertake these conversations get in contact with me here today and become skilled and confident to undertake even the most difficult staffing issue.
Tags: Retirement