@BusinessDaily

Firms opt for less contentious early retirement plans

9 months ago, 7 Mar 16:27

By: Constant Munda

Employers are increasingly opting for voluntary early retirement schemes over layoffs to avoid potential costly litigations and protect their corporate image in a slowing economy. Voluntary early retirement usually comes with a more attractive cash package, benefits and dignity than dismissals, human resources experts say. Federation of Kenya Employers executive director Jacqueline Mugo says the voluntary plans are less contentious and more cost-effective. “Employers prefer to handle separation as amicably as possible within the confines of the law and organisational financial muscle,” Ms Mugo said. She said the age of employee and years of service largely inform the size of package a staff gets when exiting employment. A number of Nairobi bourse listed firms including Britam #ticker:BRIT, National Bank of Kenya #ticker:NBK, KCB Group #ticker:KCB and Standard Group #ticker:SGL are some of the firms that have announced voluntary retirement plans in recent years. The need to reduce staff and freeze in hiring has been brought about by the sluggish economy due to poor weather and prolonged electioneering period, which reduced last year’s forecast growth to a five- year low. Last year saw business output and new orders contract, forcing the firms to shed jobs as political instability exerted a heavy toll on the economy, said private sector activity report released in October by Stanbic Bank #ticker:SCBK. Political uncertainty was compounded by a severe drought in the first quarter, hurting Kenya’s dominant agro sector. The Institute of Human Resource Management (IHRM) reckon that voluntary plans are shifting the meaning of retirement with younger workers exiting firms. “When you are asking any employee who’s willing to take early retirement and they are 24, 25, 26, 30 years old, are we changing the definition of retirement?” Ms Wainaina posed.
Read More


Category: business opinion news

Suggested

3 hours ago, 09:18
@BusinessDaily - By: Brian Ngugi
Kenya Power pays Sh14.6bn to diesel electricity firms

Payments mainly attributed to poor weather that affected hydro power generation as well as increases in international oil prices. ...

Category: business lifestyle news
3 minutes
@AfricaNews - By: Content Provided ...
Egypt to promote intra-African trade: Sisi | Africanews

Egypt, which seeks to be a model of economic reform, hosted a high-level business forum on Saturday and Sunday in the Red Sea resort of Sharm el-Sheikh that will be followed by an intra-African trade ...

Category: africa africa_business business news topnews
2 hours ago, 09:49
@BusinessDaily - By: Afp
Google+. The end.

The Google+ social network will close in April -- four months earlier than planned. ...

Category: business markets news
1 hours ago, 11:12
@BusinessDaily - By: Constant Munda
CBK launches new Kenyan currency

The new currency coins will circulate alongside existing ones. ...

Category: business news
1 hours ago, 10:31
@BusinessDaily - By: The Conversation
Nairobi's forced evictions Why the city has a problem

Forceful evictions, whether legal or illegal, are typical in the city’s slum areas. ...

Category: business news
2 hours ago, 10:10
@BusinessDaily - By: Victor Juma
Ndegwa family puts empire on new path with asset sales

Planned merger of NIC Group with CBA is one of five disposals and mergers that have been either proposed or completed by the Ndegwas in the past four years ...

Category: business news

@BusinessDaily

Firms opt for less contentious early retirement plans

9 months ago, 7 Mar 16:27

By: Constant Munda
Employers are increasingly opting for voluntary early retirement schemes over layoffs to avoid potential costly litigations and protect their corporate image in a slowing economy. Voluntary early retirement usually comes with a more attractive cash package, benefits and dignity than dismissals, human resources experts say. Federation of Kenya Employers executive director Jacqueline Mugo says the voluntary plans are less contentious and more cost-effective. “Employers prefer to handle separation as amicably as possible within the confines of the law and organisational financial muscle,” Ms Mugo said. She said the age of employee and years of service largely inform the size of package a staff gets when exiting employment. A number of Nairobi bourse listed firms including Britam #ticker:BRIT, National Bank of Kenya #ticker:NBK, KCB Group #ticker:KCB and Standard Group #ticker:SGL are some of the firms that have announced voluntary retirement plans in recent years. The need to reduce staff and freeze in hiring has been brought about by the sluggish economy due to poor weather and prolonged electioneering period, which reduced last year’s forecast growth to a five- year low. Last year saw business output and new orders contract, forcing the firms to shed jobs as political instability exerted a heavy toll on the economy, said private sector activity report released in October by Stanbic Bank #ticker:SCBK. Political uncertainty was compounded by a severe drought in the first quarter, hurting Kenya’s dominant agro sector. The Institute of Human Resource Management (IHRM) reckon that voluntary plans are shifting the meaning of retirement with younger workers exiting firms. “When you are asking any employee who’s willing to take early retirement and they are 24, 25, 26, 30 years old, are we changing the definition of retirement?” Ms Wainaina posed.
Read More

Category: business opinion news

Suggested

3 hours ago, 09:18
@BusinessDaily - By: Brian Ngugi
Kenya Power pays Sh14.6bn to diesel electricity firms

Payments mainly attributed to poor weather that affected hydro power generation as well as increases in international oil prices. ...

Category: business lifestyle news
3 minutes
@AfricaNews - By: Content Provided ...
Egypt to promote intra-African trade: Sisi | Africanews

Egypt, which seeks to be a model of economic reform, hosted a high-level business forum on Saturday and Sunday in the Red Sea resort of Sharm el-Sheikh that will be followed by an intra-African trade ...

Category: africa africa_business business news topnews
2 hours ago, 09:49
@BusinessDaily - By: Afp
Google+. The end.

The Google+ social network will close in April -- four months earlier than planned. ...

Category: business markets news
1 hours ago, 11:12
@BusinessDaily - By: Constant Munda
CBK launches new Kenyan currency

The new currency coins will circulate alongside existing ones. ...

Category: business news
1 hours ago, 10:31
@BusinessDaily - By: The Conversation
Nairobi's forced evictions Why the city has a problem

Forceful evictions, whether legal or illegal, are typical in the city’s slum areas. ...

Category: business news
2 hours ago, 10:10
@BusinessDaily - By: Victor Juma
Ndegwa family puts empire on new path with asset sales

Planned merger of NIC Group with CBA is one of five disposals and mergers that have been either proposed or completed by the Ndegwas in the past four years ...

Category: business news
Our App