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 <.
The paper examines how the mandatory retirement of high-performing employees negatively affects organizational sustainability. Using data from 451 respondents across various sectors, the study found that forcing highly skilled and experienced staff to retire leads to significant loss of institutional knowledge, reduced innovation, lower employee morale, and declines in productivity, profitability, and efficiency. It also slightly weakens long-term competitiveness. The authors argue that while retirement policies aim to create opportunities for younger employees, they often harm organizational performance when not well managed. They recommend phased retirement, strong knowledge-transfer systems, mentorship programs, and flexible work arrangements to help organizations retain critical expertise and remain sustainable.
