Balancing Experience and Fairness: Should We Rehire Retired Employees as Consultants?

Dear all,

We have some really good veteran employees who have retired. Can we bring them back as consultants since they are experienced and knowledgeable? However, we need to consider if this would be fair to the new workforce.

Awaiting replies.

Thank you, Anshuman, for the input.

Would consultants' salaries be paid on a consolidated basis? Additionally, would they be paid on an hourly basis, and would they have regular work hours?

All suggestions are welcome.

Hi, we are also following the same policy. Those employees who retire from our company are rejoining us as consultants, and we are also hiring other retired candidates as consultants. We pay them monthly based on the number of visits they make. For example, if we hire a retired employee as a consultant who will be visiting our company 8 times per month, we pay them a fixed amount per month.

Regards, Vijayshree

It is a win-win situation for both the employee and the employer. Many companies are appointing retired personnel as consultants.

The first thing that needs to be questioned is: if the retired employee is so good and valuable, then why did the company not make efforts to develop somebody under them? Why have they become necessary after retirement? This shows a clear gap in succession planning. However, there are benefits to rehiring them since it can be done at a lower cost and would allow for the utilization of their experience with no strings attached. At least now, the new workforce can be trained by them so that there is no need to keep calling back people after their retirement perennially.

Kind regards,
Dayanand L. Guddin

Hi,

I agree with Dayanand. Every organization has to identify and plan for a successor. Also, if the company re-hires retired employees, what message does the company want to convey to its current employees and new hires?

Regards,
coolchini

I partly agree with Dayanand. What he has said is correct in one aspect. However, a company will only consider rehiring a retired employee if his/her expertise and experience are valuable and required. If we re-recruit a retired person, it does not have to be bad succession planning. Instead, it can be taken as a good usage of trained, experienced personnel whose experience and expertise can still be used to guide the new blood at a lower cost.

Regarding the message we send out to current employees/new hires, it could be that the company values its people and cares for them! Why look at everything negatively?

Regards,
Meena

Greetings, this is a practice that has been followed by industry giants for ages. It's not only limited to hiring them as consultants but also creating a knowledge base to ensure there is an exchange of information even if they are not available to be rehired.

As per Ravi Arora, head of Knowledge Management at Tata Steel, "Future plans for KM at Tata Steel include linking e-learning with the KM repository and KM communities, devising an intellectual capital index, networking with retired employees, employee skill development for better externalization of knowledge, and integration with customers' knowledge."

Implementing Outreach Programs will be a win-win for everyone. The challenge lies in moderating the benefits to keep the employees and ex-employees motivated in the long run.

Here's a news article published in The Hindu: http://www.hinduonnet.com/jobs/1006/...1650030400.htm

Wish you all the best!

Hi, my name is Vijay Gupta, and I work in a garment company. Earlier, the factory was running on a payroll system, but now the management has decided to switch to a piece-rate system. I would like to know if the Provident Fund (PF) is mandatory for employees working on a piece-rate production system.

It is good to consider them as consultants after retirement, but don't forget to deduct TDS under section 194J as per the Income Tax Act. If it exceeds Rs. 30,000 in a year, TDS will be deducted at a rate of 10%.

A company will only hire those retirees as consultants who have proved their worth either in their own field or in some other. As rightly said by the above replies, they are a huge knowledge bank and need acquiring and tapping. With job hopping a common trend, I would rather have a person who can give back, regardless of age.

Regards,
Col J H Mayne.

Dear all,

We have some really good veteran employees who have retired. Can we bring them back as consultants, considering their knowledge and experience? However, would this be fair to the new workforce? Awaiting replies.

It is beneficial to hire retired individuals as consultants, as they bring valuable experience and knowledge acquired over time. Will this be fair to the new workforce? Yes, it can greatly benefit them by providing access to the wisdom and expertise of seasoned professionals. In the current job market landscape, characterized by frequent job changes in pursuit of better opportunities, younger employees may lack the depth of experience that their senior counterparts possess.

One critical aspect often missing is the presence of strong role models for new employees to learn from. Throughout my extensive career, I have had the privilege of working under excellent mentors who have equipped me with the skills to navigate various challenges. Therefore, retired consultants can serve as valuable role models for the new workforce, guiding them towards achieving their objectives. This arrangement fosters a culture of knowledge-sharing for the retirees and knowledge-gaining for the fresh talent, ultimately benefiting the company through the blend of experience and new perspectives.

Regards,
Mohan Kumar