Retirement and Knowledge Retention: How Honda manages ëSoft Retirement Exitsí

By Tricia Dicks: CEO - HDA

Few people now work until their official retirement date as set out in their contract of employment.

Some people are leaving early on a requested basis. Some may be in redundant jobs and want to take this opportunity to pursue their other interests; others may leave because of sickness etc. Redeployment into another role, even where the opportunity exists is not always attractive. These people are frequently keen to start the next phase of their lives, and have no wish to work for an employer again, even where they have been very happy with their current employer.

With people taking the advantage, where available, to leave earlier than their normal retirement date, what does the wise employer do? Whilst keen to make savings by letting the person go, there can be a reluctance to let all that knowledge go.

Some organisations have a structured count-down to leaving and will allow the person to reduce the number of days per week they work until their leaving date. The advantage is that both employer and employee get time to become accustomed to being parted and the departing employee is still available for consultation when needed.

HDAís Client, Honda, based in Slough, is a fine example of keeping people motivated to work well and help with a transfer of their knowledge to those who will then become responsible for their work. Honda have a number of initiatives to help ease their people into retirement, and keep them motivated to ensure a transfer of knowledge over the last months. The initiative starts with a phased rundown of a steadily reducing week, an HDA retirement programme, a series of events to mark their time with Honda, including a very successful ëThis is your life with Hondaí event. This is professionally prepared and colleagues and family are consulted to make it a very personal tribute.

There is an exit interview which captures the key issues from the whole rundown process.

Another approach that has worked well is job share for the last few months, or the departing employee mentors the employee or employees who will take over the responsibilities.

The employer needs to ensure they have a happy and motivated employee as they head towards retirement. The company has a lot to gain if it can get at all that accumulated knowledge. It allows customers and internal practices to be smoothly transferred with minimum disruption and loss of business.

Many thanks to Clare Anscombe (Honda HR) in assisting with this article