A corporate governance expert, Mrs Florence Hope-Wudu, has attributed the increasing trend of post-retirement employment in Ghana to poor succession planning in organisations.
Mrs Hope-Wudu, Managing Consultant at Purple Almond Consulting Services, in an interview with ADR Daily, criticised the practice, saying it does not augur well for good corporate governance.
Post-retirement employment, in which retired officials are granted employment extension or contracts, is increasingly becoming a source of conflict in organisations both in the private and public sectors.
As a result, many officials who have attained more than the retirement age of 60years, can be found in active service on contract.
The practice is rampant in the public service, creating disputes and competition among management members of organisations.
Although section 71(2) of the Civil Service Act 1993 (PNDCL 327) makes provision for such appointments beyond the retirement age, analysts believe that provision is being abused.
According to Mrs Hope-Wudu, the practice brings to the fore the question of what proper succession plan is made for the role and skills of a retiring officer.
“Much as retirees may possess the skills and experience, let’s not be oblivious of the tendency to breed ‘key man risk’ which is high particularly for retirees with those key skills that companies may be looking for.
Succession planning, she explained, has been a key frontier in corporate governance and a means of ensuring that the younger generation is appropriately groomed to take up responsibilities.
This can only happen when they are given the opportunities to harness their skills and build on their experiences.
“What if the worst was to happen to retired employees. Wouldn’t the gap be filled? she quizzed.
“With this same thinking, I believe the younger ones should be engaged to play the roles, and with the appropriate guidance, they can deliver,” she stressed.
In addition, she said this issue of succession planning closely aligns with diversity particularly for age. Diversity in age simply promotes the inclusion of the “young but experienced” people in decision making. When these issues are closely attended to, I believe that organisations would effectively prepare their employees to fill the gap when predecessors retire.
Article199 (1) of the Constitution stipulates that “A public officer shall, except as otherwise provided in this Constitution, retire from the public service on attaining the age of sixty years.”
Section – 71 (1) of the Civil Service Act 1993 (PNDCL 327) states that “A person holding a Civil Service post shall in accordance with article 199 of the Constitution retire from the Service on reaching the age of sixty years.
(2) Subsection (1) does not prevent the appointment of a person who is more than sixty years of age on a limited engagement for two years at a time not exceeding five years in total.
By Edmund Mingle/adrdaily.com