National Bank of Kenya in January received board endorsement for the
finalization of an early retirement offer to its permanent and pensionable
employees aged 35 years and above and have served the bank for a period of
at least 5 years.
The voluntary early retirement (VER) scheme
targeting 150 employees follows a similar one the bank implemented in 2014,
which saw 200 employees leave the bank under early retirement plan.
National Bank CEO Wilfred Musau said the early retirement plan seeks to align
the staff headcount with strategic needs of the bank.
The bank’s management has during the
transformation period been focusing on reinforcing the organization’s
Corporate Governance Structure and strengthening of both the Risk and Credit
functions.
The Board approval of the voluntary early retirement shows
their support and confidence in the bank’s management team. Board members
lauded the transformation and progressive agenda of the lender under Mr.
Musau’s leadership through the pillars of innovation, customer service,
sustainable business and corporate governance among others.
The VER plan offers a severance pay equivalent to one (1) month’s
salary for each completed year of service, however for applicants aged 50 years
and above, the severance pay will be at the rate of two (2) month’s salary for
each full year remaining to the retirement age of 60.
The bank will also offer to the successful applicants a one month
salary in lieu of notice, purchase of leave days earned but not taken up to the
last day of employment, and pension benefits in accordance with NBK Pension
Scheme and Retirement Benefits Authority rules.
In addition, successful applicants will continue to enjoy
their medical cover for the remainder of 2018 and
enjoy a discretionary loan rebate of 20% if their outstanding loans are cleared
within 6 months. They will also continue servicing staff loans in line with
staff facilities Policy.
“We believe the scheme is employee-friendly and is good for
the bank too, thus a win-win deal for both parties,” said Mr. Musau.
Mr. Musau further shared that the move will see National Bank
enjoying improved cost management benefits in the medium term.
The bank will also offer entrepreneurship and financial management trainings
to the successful applicants to empower them in future personal financial
planning.
No comments:
Post a Comment