The Impact of Early Mandatory Retirement on Organisational Productivity in the ICT Sector
DOI:
https://doi.org/10.51137/wrp.ijarbm.731Keywords:
Early Mandatory Retirement; ICT Sector; Training and Succession Planning; Skills and Knowledge; Productivity; Service Delivery; Ageing WorkforceAbstract
Early retirement presents challenges for Information and Communication Technology sector in South Africa. The premature departure of experienced professionals threatens organisational productivity, skills retention, and service delivery. This study focuses on early mandatory retirement within the South African ICT context, particularly workforce capability, knowledge preservation, and operational performance. To achieve this ambition, the research used a quantitative design, utilising a cross-sectional survey distributed to employees of one agency South African public departments. The study drew from a population of 3,400 ICT government employees, with 109 responses obtained through simple random sampling. Data were collected using a structured interviewer-administered questionnaire based on five-point Likert scale. SPSS was used for analysis, incorporating exploratory factor analysis to ensure validity and reliability (including Cronbach’s alpha), as well as Pearson correlation and multiple regression techniques. The findings indicate Early Mandatory Retirement (EMR) is significantly associated with Training and Succession Planning (r = 0.595), Skills and Knowledge (r = 0.408), and Service Delivery (r = 0.347). Regression analysis shows EMR and Training and Succession Planning jointly account for 19.3% of the variance in Skills and Knowledge. A strong correlation is observed between Productivity and Service Delivery (r = 0.704), highlighting the effect of workforce capability on organisational outcomes. These figures affirm EMR is an act of administration and an influence on workforce sustainability. study provides backing for the association between early retirement and ICT sector performance, with recommendations for policymakers, HR practitioners, and leaders to address potential downturns through succession planning, mentoring, and knowledge transfer projects.
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