Tech Mahindra has lowered the age of retirement from 58 years to 55 years. The administration made this decision indicating that they do not want older employees who resisted adapting to the changes made in the company- TOI reports.
But this policy applies only to employees who have worked for less than seven years in the company. The policy has no impact for now, and its senior employees will not be hit. The impact comes only if one of the younger employees of today chooses to stay for a long time in the company.
Though its not an exceptional example of early retirement to make changes in policy. According to TOI report, previously Cognizant Technology Solutions has offered a voluntary retirement scheme to over 400 employees in 2017. Verizon and IBM also announced early retirement schemes for employees.
Unmesh Pawar, partner, head – people, performance & culture in KPMG India, said the disruptions owing to tectonic shifts in technology are changing how organisations are looking at their talent operating models. “Performance processes have been reinvented to factor in skills of the future, recognise and reward talent that displays change agility to respond to the market needs,”
Across the tech industry, the dramatic technology changes are compelling companies to find ways to show older employees, and less agile employees the door.