Recognizing the sizable challenge of having an aging workforce with an average of mid-fifties at one of its plants in South Africa, Nissan took steps to replenish its workforce. Young relatives of the retirees were recruited to assure continuity of family incomes, older relatives served as their mentors before retiring, and financial planning and small- to medium-size business consultants were provided to all retirees. As a result company rejuvenation stimulated community development.
Innovation
Management at the Nissan plant in Rosslyn, near Pretoria, in South Africa deliberated with the head office in Japan and the union before offering lucrative retrenchment packages, which the majority of the older workforce took. This cleared the way to begin hiring younger workers to replenish its workforce. Then the younger relatives of those employees from the rural areas who took the package were invited to apply for the vacant positions. In many cases, the older relatives served as their mentors before retiring.
Management also arranged for financial planning and small- to medium-size business consultants for the retirees. Working with the consultants, retirees established a brick-making operation, a coffin-maker, a laundry, a sandblasting business, a sandstone-carving enterprise and a vegetable processing/drying factory. Each outgoing worker completed an orientation-training program.
Impact
With the help of consultants, Nissan set up six small- and medium-sized businesses for the benefit of 180 outgoing workers. Today, all of these businesses are still financially viable. According to the interviewee, seven other organizations are evaluating this incubation model for economic development to empower those communities to which their workforces belong.
Inspiration
Nissan’s management team at this plant intended to follow the adage, “Own your vision, rather than advocate your vision.” In other words, in order to remain a viable business, they knew they had to take the rejuvenation of their workforce into their own hands, as well as take steps to ensure a smooth transition for retirees into the community.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
