Effective Use of KPIs in Retirement Process

Retirement of employees is a common phenomenon in organizations and the idea is to make the task of HR wing easier. However, humans cannot be treated as mere 'brained-objects' and done away with, once they cross a certain age-limit. Suitable arrangements have to be in place to ensure that this phenomenon is completed as a successful pre-planned job, by moving on the guidelines decided beforehand.

KPIs are the tool to be used to ensure that all the documentation is done in a timely and transparent manner. Yet another requirement that calls for designing of such a process is to ensure that an enough competent and capable work-force is available to take charge of the operations and lead organization where it intends to go.

KPIs that can be of help to monitor the 'retirement Process' include Retirement Planning estimate, Organizational Workforce Distribution, Retirement Procedures and Plans and Replacement Management. Retirement planning estimate can be taken care of with parameters like percentage of senior executives near retirement age, percentage of management grade employees near retirement age, percentage of voluntary retirement in a year. Organizational Workforce Distribution can be achieved with indicators like percentage of permanent employees, percentage of part-time employees, percentage of disabled employees etc. Retirement procedures and plans can be structured of by utilizing measures like number of retirement claims reported, percentage of retirement cases completed in time, number of new retirement schemes and plans launched. Lastly, Replacement Management can be attained by indicators like percentage of positions filled by internal sources, percentage of positions filled with external sources, number of train ing

sessions held for new joiners and percentage increase in expenditure on training of new joiners.

Different procedures are to be structured for retirement occurring at different levels in the organization. This poses a major hindrance as it increases the complications of the task. Retirement when occurs at the top level is another challenge; owing to the responsibility the employee holding that position is entrusted with. Maintaining the database, which can ask for significant amount of calculations and computations, can be a tiring job. Further, deciding for the policies would involve finalizing on the supports and funds to be provided by the organization to the retiring employee can be cumbersome process. In addition, the retirement age has to be set according to the nature of tasks involved. For instance, if physical labor forms a major chunk of the job, this point needs to be considered and reflected in the value set for retiring. Add to this the dynamicity of the external environment to be incorporated in the organizational rules formulated.

Employees are to be provided with their dues as part of the segregation process. This involves a lot of paper work. Honest and economical completion of this documentation is the area where KPIs come to assist the authorities. In other words, formulation of policies and plans to make sure that the organization takes care of its employees during this process of 'retirement' is aided by KPIs.

To sum it all, KPIs in retirement process work to ensure flawless formulation and following of policies. This goes into making the segregation of the employees an un-bumpy ride, which otherwise sets a series of claims from the side of employee and justifications from the business house.