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ISBM – Another important retirement issue is one of lost knowledge. What happens when retirees leave the office, taking years of experience and knowhow right along with them

International Business

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CASE STUDY (20 Marks)

 

Another important retirement issue is one of lost knowledge. What happens when retirees leave the office, taking years of experience and know-how right along with them? Businesses lose all of that knowledge, but according to American Express, it doesn\’t have to be that way. Through a pilot program, AMEX created a workforce transformation group that would allow retiring participants to gradually give up some of their day-to-day responsibilities. In return, the employees would spend some of this time mentoring and teaching classes to successors. This resulted in a phased retirement, allowing employees to leave gradually and enjoy more time while still enjoying a portion of their previous salary and regular benefits. This also meant that some employees stayed a year or more past the traditional retirement age. AMEX believes this program is a success, allowing senior employees to enjoy their last years of work in a reduced capacity, as well as educating the existing workforce for future success. Consultant David De Long agrees, citing this program as an example of how job handoffs should work.

 

Q1. What are the issues involved with the retirement of the employees?

 

Q2. In your opinion how the smooth handing over of responsibilities can take place?

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