Abolition of mandatory retirement ages inevitable despite todays government compromise

Responding to the governmentís compromise on the issue of a mandatory retirement age, which form the centrepiece of their new plans to tackle age discrimination, the Chartered Institute of Personnel and Development (CIPD) today warned that they had ducked the issue, and that employers should prepare for the inevitable abolition of mandatory retirement ages that will surely follow. The CIPD is the leading professional body for those involved in the management and development of people.

Dianah Worman, CIPD diversity adviser, said:
Although this decision has been dressed up as a clever compromise, in reality it simply delays the inevitable end of mandatory retirement ages. The five-year review contained within this government announcement suggests they know this themselves.

By ducking the issue, the government risks giving employers an excuse to delay action they need to start taking now if they are to attract and retain talent in a tight labour market. Age discrimination exacerbates skills shortages that risk undermining the UK economy.

Employers that have already tackled age discrimination within their organisations can demonstrate the business benefits. An ageing customer base and ongoing skills shortages at a time of near full employment are just two strong reasons for employers to ensure they employ people across the age range.

But there are still employers out there who use mandatory retirement ages as a cover for poor management. Effective management of people ensures that people who perform well are retained and people who do not are managed or removed. Mandatory retirement ages are a poor substitute for performance management.

If this voluntary approach fails, many people who want and need to work for longer will be deprived of this choice. It is time we all woke up and recognised that 65 is no longer old.