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News Release from: Age Positive Team | Subject: Flexible Retirement and Retirement booklet
Edited by the Buildingtalk Editorial
Team on 11 February 2008
Losing skilled and experienced workers
New booklet on how your business can benefit from flexible retirement and become more age positive.
Retirement age.. who needs one?
This article was originally published on Buildingtalk on 26 Feb 2008 at 8.00am (UK)
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Losing skilled and experienced workers can be an expensive business, no matter how big or small your business.
By forcing people to retire at a set age could have a detrimental effect on your bottom line.
According to the Chartered Institute for Personnel and Development, replacing an employee lost in this way can cost as much as GBP8,200.
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But as well as being costly, fixing a retirement age can also mean an unnecessary loss of skills and know-how vital to your business.
Employers should be taking a more flexible approach to retirement - so business doesn't lose key workers, and individuals can have a say in when they retire.
With many sectors experiencing a skills shortage, ignoring older employees or making them retire when they don't want to is likely to impact on the smooth running of your business.
Since 1997, the number of people choosing to work past state pension age - currently 65 for men and 60 for women - has risen by more than one million which is valuable pool of skills and experience that your business can tap into.
The demand for people aged 50 and over is also increasing at a faster rate than for young people.
This is reflected in the highest older worker employment rate for 20 years rising from 64.7% in 1997 to 71.6% in 2007.
Research also shows that older people want the choice of when to retire - whether that's for financial reasons or just because they enjoy working.
So don't discount implementing flexible working or flexible retirement options because you think they are too difficult or costly.
There are some challenges, but the benefits in terms of retention of skills, reduced recruitment costs and the filling of vacancies by opening up a wider pool of recruits, bring valuable results.
One company clearly enjoying the benefits of flexible retirement is Age Positive Employer Champion, Yorkshire Water.
The company allows workers to choose between pension income, salary, working hours and actual retirement date.
More than 25% of its workers are aged 50 or over and its flexible retirement package enables many staff to continue to work for longer.
Richard Neville, Head of Employee Relations at Yorkshire Water, said: "We want to give colleagues a better opportunity to manage their working lives and to plan the transition from work to retirement".
""We hope that this will result in colleagues over 50 feeling positive about working longer - we value and need their experience, expertise and enthusiasm.
"The scheme is cost-neutral to the company and our pension scheme, so does not adversely impact on customers or shareholders, but delivers significant business benefits to the company including the opportunity to retain knowledge and skills, a smoother succession and transition planning and a motivated and engaged workforce".
Yorkshire Water, like many other UK businesses has realised, needs to tackle age discrimination now to reap the rewards in the future.
The Employment Equality (Age) Regulations 2006 require businesses to:.
* look at existing retirement policies and practices and consider if they require change.
* consider whether flexible retirement options would be beneficial to the business and staff.
* check pension schemes and policies, practices and routines are compliant with the legislation.
Remember, there is no official retirement age in the UK - the age legislation introduced a default age of 65, but this is not mandatory.
If you require more information about the age legislation and how your business can benefit from flexible retirement and become more age positive, please visit the website.
A specific booklet offering practical guidance and case studies - "Flexible Retirement and Retirement" - is available for download from the publications page of the website.
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