Letting go of top honchos is no easy task for any company. But for companies faced with a situation where saturated honchos occupy ‘cosy’ spots at the top, this has to be done.
The question staring human resource managers in the face – how does one find ‘sensitive’ ways of asking top leaders to leave a firm, especially if their finest days are behind them?
Mohandas Pai, till recently the director of HR at Infosys, opines that boards must get CEOs and senior management to endorse contractual agreements and goal sheets. So, those not meeting these requirements can be “let off nicely”. On the other hand, companies too are obligated to plan careers and create opportunities at all levels, he adds.
But with life expectancy improving, people these days tend to live past the age of 80. Retirement at 50 would necessarily mean the executive needs a nest egg that hold ups for another 30 years or more, accounting for inflation over the three-decade long period. Milind Sarwate, the chief HR officer at Marico suggests companies should ensure top leadership achieves financial independence by a certain age, and wealth-creation through employee stock options (ESOPs) could help out, he says.
Click here to read more on same, in The Economic Times, including perspectives from Mahindra & Mahindra, McKinsey & Co, ICICI Bank and EMA Partners.