Most people are now retiring later in life, particularly given the current cost of living crisis. However, many employers will welcome the prospect of retaining these experienced employees. Although, the uncertainty around how long an employee is likely to stay can bring challenges to a business.
Thinking ahead
As an employer it is important to think ahead for succession planning purposes, which means talking to employees about their future. Discussing retirement can be difficult and if handled incorrectly can potentially lead to allegations of age discrimination. It could also lead to claims of constructive unfair dismissal if the employee resigns because of these conversations.
These discussions could be part of the formal appraisal process. There could be a conversation about aspirations for the future and any questions relating to short, medium, and long term can be discussed with all employees, regardless of their age. Employers will then avoid accusations that they are targeting only older employees and therefore it gives an employee the opportunity to raise this issue if they are thinking about retirement.
When an employee informs you that they are planning on retiring
Once an employee confirms that they are planning to retire, there could also be discussions about flexible working or phased retirement. Working flexibly or part-time can be an effective way for employees to ease into retirement. This also provides the business with a transfer of knowledge.
If you would like support regarding how to handle retirement conversations within your business, please contact us on 01483 362732 or info@guildford-hr.co.uk