It is more than five years since the default retirement age of 65 years was removed (October 2011). The number of older people in the workplace is set to rise significantly over the next 20 years. Theoretically employers can set a specific retirement age, but this has to be objectively justified as what the law terms as ‘a proportionate means of achieving a legitimate aim’, and this can be difficult for employers to do.
So, if you have an employee approaching retirement age or who has reached retirement age, how can you ask them about their retirement plans without finding yourself embroiled in an age discrimination or harassment case?
Tread carefully and with respect
You can ask someone about their retirement plans but tread carefully and have a legitimate reason for asking, for example succession planning for the organisation. You should approach with sensitivity and respect. Don’t start making jokes about going on a cruise, using references to age or talking about Generation X and Y etc. As innocent as your intentions may be, these can cause offence and be used as evidence of age discrimination in a case against an employer.
Retirement is a huge step for anyone to take, you should recognise each person is different and will approach retirement with different perspectives. One person may be over joyed and full of retirement plans, whereas someone else may be approaching retirement with trepidation, perhaps they have financial concerns or concerns about how they are going to cope generally with being retired.
Don’t assume that because an employee is of a certain age they are planning to retire, or if their performance isn’t an issue you shouldn’t assume that as they got older it will become one.
‘No’ ends the conversation
If you have asked an employee about whether they have retirement plans and they have replied ‘no’, this should be the end of the conversation. If you keep pressing you are moving into discrimination and harassment territory, and it can be viewed as a pressuring tactic.
If you or the employees line manager is displeased with an employee’s response and then goes on to treat the employee differently, this again could be the basis for a suit against the employer.
Are you and your managers up-to-date on age discrimination? Perhaps it is time for some training.
Approaches you could take
If you have regular communication with your employees through appraisals and one-to-one meetings, then keeping track of an employee’s plans and aspirations, including retirement, should be easier to keep track of. Discussing and documenting developmental needs and career development plans should be something you do throughout an employee’s life cycle.
It is bad practice to only begin documenting a person’s performance when there is a problem. If you have just asked someone about their retirement plans and then begin documenting performance issues, when previously their performance has been good or without any problems being raised, you could find yourself facing a discrimination case.
If there are performance issues these should be addressed as with any other employee. Establish the reason for the performance issue and agree with the employee what development and training would help them to meet expectations, then set a reasonable time scale for improvement.
Another approach you could take to bringing up retirement, is to hold a meeting with all employees to highlight retirement options and opportunities. Discuss the company benefits related to retirement and time off options. Perhaps you offer phased retirement where employees have the option to gradually retire and let go of work and colleagues. This isn’t such a big and final leap to make, compared to going straight in to full retirement. Make sure that the company benefits to retirement are always easily accessible for your employees to seek out for themselves.
Having regular and open communication with your workforce, will enable you and your employees to be aware of expectations of their performance, and of future-plans of both the organisation and the individual. By keeping everyone informed about retirement options and opportunities available to them, employees will feel well informed and will be more encouraged to discuss their plans with you and their line manager.
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