Making Retired Employees Consultants: Is It Fair?

dear all,
we have some really good veteran employees . They retires. Now can we bring them back as consultants .as they are good and knowledgable.
But will this be fair to new workforce?
Awaiting replies

thank you anshuman for the input.
But on keeping consultants would their salary be paid on a consolidated basis. Also would they be paid on an hourly basis. Also would they have regulars work hours.
All suggestions are welcome

Hi,
We are also following the same policy. Those employees who retire from our company are rejoining us as consultant even we are taking other retired candidate as consultant.
we are paying them monthly as per the number of visits. for example we hire a retired employee as consultant who is going to visit our company 8 times per month and we are paying him/her fixed amount per month.
Regards
Vijayshree

It is win-win situation for both the employee & employer. Many companies are appointing retired personnel as consultants.

Hi,
First thing needs to be questioned is if the retired employee is so good and valuable, then why did not the company make efforts to develop some body under them?.
Why they have become necessary after retirment? This shows a clear gap of succession planning.
However there are benefits of this re- hiring since they can be done at a less cost and would make use of their experience with no strings attached.
At least now the new wok force be trained by them so that you need not have to keep on calling back people after their retirement perennially.
Kind regards
Dayanand L Guddin

Hi,
I agree with Dayanand. Every organisation has to identify and plan for successor. Also if the Co re-hire the retired employees, what's the message the co wants to convey to its current employees / new hires.
Regds,
coolchini

Hi,
I partly agree with Dayanand. What he has said is correct in one aspect. However a Company will only consider re hiring a retired employee only if his/her expertise and experience is valuable and required. If we re recruit a retired person it does not have to be bad succession planning instead can me taken as good usage of trained experienced personnel whose experience and expertise can still be used to guide the new blood at lower cost.
As regards the message we send out to current employees / new hires could be that the Company values its people and cares for them!!! Why look at everything negatively.
Regards
Meena

Greetings,

This is a practise which is followed by the industry giants since ages. Its not only limited to hiring them as consultant , but creating a Knowledgebase to ensure there is a exchange of information even if they are not available to be re-hired.

As per Ravi Arora, head of Knowledge Management at Tata Steel, "Future plans for KM at Tata Steel include linking e-learning with the KM repository and KM communities, devising an intellectual capital index, networking with retired employees, employee skill development for better externalization of knowledge, and integration with customer's knowledge".

Implementing Outreach Programs will be win win for everyone. The challenge lies in moderating the benefits to keep the employees and ex-employees motivated in the long run.

Here's a news published on Hindu The Hindu : Opportunities / Miscellaneous : Firms see advantage in rehiring laid off staff

Wish you all the best !

hi, my name is vijay gupta, I'm working in garment company. earlier factory is running on pay roll but now management has decided to run the factory on piece rate. so i woul like to know the pf is mandatory on piece rate production.

It is good to consider them as consultant after retirement but don't forget to deduct TDS under section 194 J as per Income Tax Act. if it exceeds Rs. 30000/- in a year TDS will be deducted @ 10%