With the changes to the Default Retirment Age (DRA), is there going to be a greater emphasis on performance management, and reviewing ongoing capability?



Retirement (2).jpgRemoval of the DRA began on 6 April 2011, with transitional arrangements covering compulsory retirements until 1 October 2011.

The DRA change means that to retire an employee, you will need to demonstrate just cause and follow due procedure. At the moment, retirement is listed in the Employment Rights Act as one of the potentially fair reasons for an employer to dismiss an employee

The DRA has long been a valued stake in the ground for employers, as it has been a focus for performance issues and succession planning. It has allowed poorly performing employees to retire gracefully and enabled open discussion for succession planning in an orderly fashion. That's about to change.

Performance management initiatives should include:
  1. Alignment of every employee's objectives to those of the business
  2. Provides the means to set development plans, track and record progress
  3. Provides a record of capability for all employees, thereby supporting a common and consistent set of guidelines and principles that apply across all employee ages of the business.
  4. Allows you to demonstrate just cause and follow due procedure


It would be interesting to hear what steps have you already taken?