Retail’s age concerns

A store staffed entirely of over 50s seems a dramatic experiment for any retailer. And yet this is what B&Q did in one of its stores back in 1989 in an attempt to give more opportunities to older workers and to find untapped talent on the shopfloor. Today, such a trial would be impossible because of age discrimination laws, but it was a resounding success. The store in Macclesfield, with 50 employees, experienced an 18% rise in profits, staff turnover was six times lower and there was a 39% decrease in absenteeism in comparison to other stores.

In response, the DIY retailer decided to scrap its retirement age policy that automatically retired employees when they reached 65.

Soon retailers will have to follow the model B&Q chose two decades ago, when the default retirement age of 65 is scrapped in October.

However, it will still be possible to retire employees lawfully at a set age provided the retirement age can be “objectively justified”. This means the retailer will need to show evidence – and not merely assert – that there is a sound business need for a chosen retirement age.

Jamie Hamnett, employment partner at law firm Addleshaw Goddard, says “objective justification” would be difficult for retailers to achieve with older shop employees. “There’s no great physical demand, like with firefighters, or the perfect eyesight required of airline pilots that would make introducing the retirement age a legitimate aim.”

However, he says it would be easier to justify a retirement age for senior employees as there is a legitimate need for succession planning for those at the helm of the business.

Hamnett believes removing the retirement age will not do businesses any harm, pointing to the fact retailers such as B&Q have actively benefited from it.

B&Q HR director Liz Bell says there are significant advantages to employing older staff. She says: “Older employees can pass on skills to younger employees, who perhaps don’t have the confidence to approach customers.”

What about the logistics of not having a retirement age? Bell doesn’t see this as a problem and says there is the option to performance manage employees that need it. She says if someone is unable to work full-time, or if a job is quite physical, there is the flexibility of enough jobs in retail to move people around.

In changing to a culture of not having a mandatory retirement age within a business, Bell says HR directors need to work closely with managers about any concerns. On a wider level, the new law requires close communication with colleagues throughout the business, adds Hamnett. This way, they will feel able to choose when to retire. As he says: “The worst thing would be that retirement becomes taboo.”