The Role of Human Resource Management in Employee Retirement Preparedness in Selected Private Schools in Nairobi County

Abstract

At the end of an employee’s active working life, a formal disengagement from employment is expected, normally referred to as retirement. On the one hand, retirement is one of the most financially significant decisions a person makes during their lifetime, as it typically marks the end of employment earnings and the commencement of the drawdown of retirement reserves accumulated over an employee’s career. On the other hand, retirement has valuable nonfinancial benefits such as relief from the strain of working and the opportunity to spend more time with family or participate in leisure activities. For one to enjoy this period, retirement preparedness is key. Retirement preparedness results from retirement planning, which should start when an employee enters employment. The well-being of retirees, therefore, mirrors to a large extent the employee’s level of retirement preparedness during their time of employment. This study sought to understand the role of human resource management in employee retirement preparedness in selected private schools in Nairobi County. Its purpose is to enrich human resource management as a practice for handling and preparing employees for retirement. The study adopted a descriptive research design. The study indicated that career development strategies, job characteristics model, retirement policies and employee separation process were significant predictor variables of employee retirement preparedness in the selected private schools in Nairobi County.