Mandatory Retirement of High-Performing Staff and Organizational Sustainability

Abstract

This study examined the consequences of mandatory retirement of high-performing staff on organizational sustainability and overall organizational success. A descriptive correlational research design was adopted to assess the effects of such policies on knowledge retention and innovation, employee morale and motivation, organizational performance, and long-term sustainability. Quantitative data were collected through an online questionnaire administered to 451 respondents from academia, religious institutions, government parastatals, and private organizations in Nigeria and internationally. Descriptive statistics and Pearson’s correlation analysis were used to evaluate the relationships between mandatory retirement and indicators of organizational sustainability and success. The findings revealed significant negative correlations between mandatory retirement and all dimensions assessed. Specifically, mandatory retirement undermined organizational knowledge retention (r = –0.656, p < 0.01), reduced innovation, weakened employee morale and motivation (r = –0.694, p < 0.01), and adversely affected productivity, profitability, and efficiency (r = –0.419, p < 0.01). It also negatively influenced long-term competitiveness and sustainability (r = –0.098, p < 0.05). The study recommended phased retirement programmes, robust knowledge management systems, and structured mentorship initiatives to safeguard institutional memory. Overall, the findings underscore the need for organizations to adopt flexible and experience-inclusive workforce policies to mitigate the adverse effects of mandatory retirement on performance and sustainable long-term growth.