Employers agree mandatory retirement leads to loss of talent

David Woods, 08 July 2009

Almost two thirds of HR managers of organisations that have a mandatory retirement age of 65 think this can lead to a loss of valuable knowledge and talent.

According to a report from The Age and Employment Network (TAEN) and the Employers Forum on Age, three quarters of HR respondents who have removed mandatory retirement believe it has helped them maintain valuable skills as well as a good customer-facing image and reputation.

The research comes a little more than a week before the British High Court will reconsider the legal challenge to compulsory retirement referred back to it by the European Court of Justice.

The High Court hearing of the case brought by Age Concern and Help the Aged will begin on Thursday 16 July 2009. It calls on the British Court to consider the need for a National Default Retirement Age (NDRA).

But according to TAEN, the benefits of having mandatory retirement have been ‘exaggerated' and organisations that have dispensed with the rule are reaping the benefits.

Chris Ball, TAEN chief executive, said: "Most employers, even those with mandatory retirement ages, say it is of no help in dealing with under-performing employees. Yet this was a major reason for the national default retirement age when the regulations were introduced.

"Similarly, while organisations with mandatory retirement ages say it helps their succession planning, those that have got rid of mandatory retirement say they get on fine without it."