THE IMPACT OF VOLUNTARY RETIREMENT SYSTEM ON YOUTH EMPLOYMENT OF COMPANIES: A COMPARATIVE STUDY OF OLD WORKFORCE AND YOUTH WORKFORCE

Abstract

The aim of this paper is to compare the elder workforce efficiency by ascertained tasks with youth workforce. Voluntary retirement system is cross companies setting through, which elderly employee has chance to quit the job with golden hand shake, replacement income or with other incentives on other hand companies can create other jobs with less salary or wages by inducting young employees. This paper also envisages the hypothesis that elderly employment has significant effect on youth employment. The second hypothesis is the youth employment is better substitute than elderly employment. The third hypothesis is to analyze the effective retirement age of older workers and for induction of youth employee.This study also highlights that how companies can incorporate these changes and achieve the tasks better than before in this connection it would be easy to know about participation rate of older workers and youth workers. The sample size or empirical evidences would be taken from100 private companies based on different location of Pakistan. The target for the sample would be based on age (above 50 & below 30), position (Low level & Middle level Management), salary (older and New employees) and retention period (maximum time retention rate). For detailed survey structured interview will be conducted with dual segments one for older workers and one for youth workers, mostly close ended and likert scale questions would be used to ask partially for extent of any factor. For analysis, Probit estimation test of Regression will be used for knowing the company efficiency through older and youth, wald test for knowing the significance, Robustness test, pearson correlation and crosstab tests will be used through SPSS 20, on need basis E-views can be used for further assessment. This paper will help us to know how voluntary retirement system is effective for companies and how strategic human resource decisions are useful for companies.