should it companies make retirment age to 40

8/6/2019 Should IT Companies Make Retirment Age to 40

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Presentation on

Should IT companies change the retirement age

to 40?

Presented to

Prof. Kingshuk Bhadury

Presented By:

Group 02


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Team MembersTeam Members

yy AchintyaAchintya ChintanChintan (B(B--2)2)yy AnandAnand PijdurkarPijdurkar (B(B--10)10)

yy BrijeshBrijesh kumarkumar Singh (BSingh (B--17)17)

yy DollyDolly SahaSaha (B(B--24)24)

yy KiranKiran Das (BDas (B--33)33)

yy KundanKundan NewareNeware (B(B--39)39)

yy NitinNitin RawatRawat (B(B--41)41)

yy SorajSoraj TiwariTiwari (B(B--46)46)

yy PradipPradip Singh (BSingh (B--52)52)

yy TusharTushar NamaNama (B(B--56)56)

yy PriyankaPriyanka KumariKumari (B(B--63)63)


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Companies surveyedCompanies surveyed

y IBMy Tata Technologiesy Wiproy Cybagey Accenturey Infosysy Cognizanty L&T Infotechy Capgemini

Sample size:

Size of the sample surveyed is 120


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1. What do you think should be the retirement age of employees1. What do you think should be the retirement age of employees

in IT companies?in IT companies?

Retirement

age

40 years 50 years 55 years 60 years

Responses 5 8 47 60

0

20

40

60

80

40 years 50 years 55 years 60 years

Retirement age

NoofResponses

Qualitative Interpretation: From the above graph we get to know that

employees prefer to retire at the age of 55 to 60 years.


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2. As far as IT companies are concerned which one gets2. As far as IT companies are concerned which one gets

more preference?more preference?

ExperiencedEmployees

Freshers

70 50

58%

42%

Numberofresponses

Experiencedemployees

Freshers

Qualitative Interpretation: The majority of the respondents have opinion that

companies give more preference to experienced employees.


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3. What benefit the company willget, if the retirement age is3. What benefit the company willget, if the retirement age is

changed to 40?changed to 40?

Profitability Flexibility Innovation Efficiency

35 20 45 20

0

10

20

30

40

50

Profitability Flexibility Innovation Efficiency

Employer Benefits

Responses

Qualitative Interpretation: The majority of the respondents think that the

company will be more innovative, if the retirement age is reduced.


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4. Which benefit Employees willget if the retirement age is4. Which benefit Employees willget if the retirement age is

changed to 40?changed to 40?

Spend Life

with familyLifeExpectancy

Increases

AttractivePackages

Start a new

venture

28 20 12 60

0

20

40

6080

Spend Timewith Family LifeExpectancyIncreases

Attractivepackages Start a newventure

Responses

Responses

Qualitative Interpretation: The majority of the respondents feel that employees

will be benefited most by starting a new venture after retirement.


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5. What will be the Negative effect on IT employees with5. What will be the Negative effect on IT employees with

change in retirement age to 40?change in retirement age to 40?

Financial crisis Old ageUnemployment Change in life style

68 32 20

56%27%

7%

Negative Effects

Financial crisis

Old ageUnemployment

Change in Life style

Qualitative Interpretation: The majority is very high and the respondents feel that

employees will most affected by the financial crisis after retirement age is brought

down.


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6. What is the scope for IT employees after early retirement?6. What is the scope for IT employees after early retirement?

Teaching Consultant

jobs

Business Investment

30 45 25 20

25%

37%

21%

17%

Areas ofwork

Teaching

Consultant Jobs

Business

Investments

Qualitative Interpretation: Its very clear from the above Graph, that majority of

employees would like to switch to consultant jobs post early retirement. The 2nd best

option chosen by them is the Teaching line. Which is again one of the preferred and

popular field of work after retirement


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7. Which, amongst the below mentioned factors affect7. Which, amongst the below mentioned factors affect

retirement decision?retirement decision?

Social security Health status Greater

Wealth

Spouses

employmentstatus

20 30 54 16

17%

25%

45%

13%

Factors

Social Security

Health Status

Greater Wealth

Spouse'semployement status

Qualitative Interpretation: The factor which affects retirement decision the most is

the Wealth of the employees. The greater the wealth, the more are the chances oftaking early retirement.


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8. With the change in technology, is there a need for the8. With the change in technology, is there a need for the

change in retirement age?change in retirement age?

Need for change No change80 40

67%

33%

Responses

Need for change

No change

Qualitati e I ter retati : InI sect r e l ees feel t at Tec nology

c anges eryoften and ence t e retire ent age s ould e reduced to elcome

fres andyoungminds.


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9. With the change in the retirement age, how the HR9. With the change in the retirement age, how the HR

department should deal with compensation plans?department should deal with compensation plans?

Increase Decrease No change

80 20 20

80

20

20

Increase

Decrease

NoChange

0 20 40 60 80 100

Pay scale

Responses

Qualitative Interpretation:Almost 70% of the respondents feel that pay scale must

be increased, ifIT companies reduce the retirement age to 40.


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10. What employees should do, if they have to retire at early10. What employees should do, if they have to retire at early

age?age?

Calculate

financials

Cover

expenses

Find

healthcare

Consider

Taxes

30 30 20 40

25%

25%

17%

33%

Tasks to do

Calculate financials

Cover expenses

Find healthcare

Consider Taxes

Qualitative Interpretation: If we look at the graph carefully, almost all the options

have got preference but the most important amongst them which respondents thinkthat employees should focus on is Tax consideration.


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11. What do you think your salary should be, if you have to retire at11. What do you think your salary should be, if you have to retire at

the age of 40?the age of 40?

1lack/month 1 to 3

lakh/month

3 to 6

lakh/month

6 to10

lakh/month

4 30 44 40

3%

26%

37%

34%

Salary Expectation

1 Lakh

1 to3lakh

3 to 6 lakh

6 to 10 lakh

Qualitative Interpretation: Every employee wants to be financially safe and sound at

the age of retirement. When the age of retirement is made to 40 definitely, they expecta salary which fulfills their retirement needs.


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LimitationsLimitations

y Its not at all easy toget inside an IT company unless you

have reference.

y Very few of the IT company Employees carried visiting cards.

y They thought that we are here to sale a product and they ran

away from us.

y Transportation problem

y Couple of holidays and Ayodhya issue court verdict in the

midst of survey.

y

Companies located at very far places.


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Observations and FindingsObservations and Findingsy

A lot of workload in IT companies.y Employees work in different rotational shifts, to provide 24/7

support to their clients.

y IT companies come up with a very good salary package.

y There is always continuous chain of innovations and newtechnologies in IT sector.

y There is an upcoming trend in the market that employees

earn as much as they can when they are young and retire at

an early age.

y IT employees not yet ready to experiment with the age of

retirement.

y IT companies do have early retirement options in the

organizations.


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Suggestions and RecommendationsSuggestions and Recommendations

y

Retirement at early age is not yet so popular in India.y Moreover employees are not receptive to such change.

y Employees must plan themselves if they have to take an early

retirement decision. They must have a checkon their

financials.

y Reduction in retirement age also helps companies to increase

profits, Innovations, Efficiency in production etc.

y Early retirement decision paves the way for new

opportunities like consultant jobs, teaching profession, New

venture, Investments etc

y Employees were more offensive towards reduction of the

retirement age to 40. They rather wanted it to be lowered to

55 or 50 at he max.


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should it companies make retirment age to 40

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