An Assessment of the Effects of Retirement Age on Organizational Productivity: A Case of Kenya Power Company, Kenya

Retirement age has been a critical subject in organizations today especially in relation to organizations productivity. Retirement age of public servants and parastatal employees in Kenya has been extended to 60 years which has raised questions on its significance on labour productivity in public institutions. The purpose of the study was to assess the contemporary factors characterizing extension of the retirement age on organizational performance in Kenya Power Company. Specific objectives of the study were: to determine employee productivity with extended contract on performance at Kenya Power, to identify the social factors that contributed to the extension of the retirement age of employees at Kenya Power, to analyze the existence of succession plan of employees at Kenya Power and to determine the economic impact of extension of the retirement age of employees at Kenya Power. A descriptive research design was applied in conducting the study. The research adopted a qualitative and quantitative approach in which data was collected via use of questionnaires from a selected sample of staff of Kenya Power. The target population of the study was the middle level managers in KP in Central Rift region charged with the supervisory activities in all the departments. The target population was 140 managers from which a sample of 58 respondents was then selected using simple random sampling technique. A Questionnaire was then used in data collection. The study established that extension of the retirement age has much effect on employee productivity hence the general organizational performance. Succession planning in organizations enabled the planning for replacement of staff upon retirement. This also ensured that productivity was not affected due to retirement or ageing staff. Both health and social factors contributed a lot in determining the retirement age of employees with health carrying the highest weight as a determinant factor.