19th September 2010
Financial planning and forecasting is difficult enough without the regulators adding to uncertainty. I am referring of course to the abolition of the default retirement age (DRA) which adds yet another layer of uncertainty to HR planning and integrated financial plans. Presently companies are able to say with some certainty what numbers of the workforce will retire or can be retired in a future years because the decision is prescribed by age. Whatever your view on the social desirability of the new legislation, with the abolition of the DRA companies will not be able to ‘force’ retirement and will be faced with employees left in position for an indeterminate length of time. Of course this has material implications for the recruitment end of the food chain as well, possibly denying companies the fresh talent that they need to sustain innovation and growth. In one of this week’s features, Delia Goldring, FSN writer and Visiting Professor in HRM at Middlesex University explains the unforeseen consequences for both employer and employee of this new piece of social engineering.