B&Q
Retirement
In 1989, B&Q introduced a policy to allow employees to continue working beyond the retirement age of 60 on a fixed two year contract, renewable every two years. This policy was updated in 1999 to allow employees to continue working without the need to renew a contract. The initial removal of the upper age limit was following a move to recruit older workers, and was after consultation with employees. The removal of the fixed term contract was also as a result of feedback obtained through the company's consultation process.
The policy offers flexibility over both the date and way employees retire.
The key elements of the policy are:
The company's flexible retirement policy allows it to retain valued older workers and has enabled B&Q to enjoy those benefits - higher productivity, reduced absenteeism, increased turnover and reduced shrinkage - identified in staffing 'experiments'. The policy is now well established and an integral feature of B&Q's employment policies. Flexible retirement is accepted and valued by employees.
B&Q faced two key problems in delivering their policy:
All policies will be reviewed to ensure they comply with age laws in 2006.
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Retirement
In 1989, B&Q introduced a policy to allow employees to continue working beyond the retirement age of 60 on a fixed two year contract, renewable every two years. This policy was updated in 1999 to allow employees to continue working without the need to renew a contract. The initial removal of the upper age limit was following a move to recruit older workers, and was after consultation with employees. The removal of the fixed term contract was also as a result of feedback obtained through the company's consultation process.
The policy offers flexibility over both the date and way employees retire.
The key elements of the policy are:
- There is no fixed retirement age;
- Phased or partial retirement is an option open to all employees as a right;
- Flexibility is applied to job roles; and
- Flexibility is applied to working arrangements.
The company's flexible retirement policy allows it to retain valued older workers and has enabled B&Q to enjoy those benefits - higher productivity, reduced absenteeism, increased turnover and reduced shrinkage - identified in staffing 'experiments'. The policy is now well established and an integral feature of B&Q's employment policies. Flexible retirement is accepted and valued by employees.
B&Q faced two key problems in delivering their policy:
- These include IR rules which restrict options to those who joined the pension scheme after 1989. (New IR rules will come into force in April 2006 which will remove these restrictions.)
- Concerns voiced by managers that it would be more difficult to manage any poor performance of older workers.
All policies will be reviewed to ensure they comply with age laws in 2006.
Click icon to download a printable version of the case study
download pdf
