Employee reward and benefits news
Singapore to tackle problems of an aging workforce
Employers and the Singapore government are teaming up to tackle the problem of employment and an aging population.
The tiny state, with a population of 4.3 million fears that if attitudes towards employing older people and retirement don’t change, the economy will suffer.
New consultation guidelines have been released for business and the government has signalled intent to introduce new labour laws supporting the re-employment of older people by 2012.
The problem is that by 2020, more than one in three Singapore residents will be at least 50 years old.
At the same time, as life expectancy improves someone retiring at 62 can expect to live for 20 years or more.
Improving opportunities for older workers
“We need to provide opportunities for workers to continue working beyond the age of 62. According to preliminary results from Ministry of Manpower’s comprehensive mid-year Labour Force Survey, the employment rate for older residents aged 55 to 64 in Singapore is 57.2%,” said Gan Kim Yong, Minister for Manpower.
“This is unchanged from 2008, despite the severe recession which saw the overall employment rate for those aged 25 to 64 fall from 77.0% in 2008 to 75.8% in 2009. In fact, the employment rate for older men has increased from 73.8% to 74.7%. We should press on to encourage employment of older workers, especially women.”
The minister wants to encourage older workers to stay active and remain at work to pay for a more comfortable retirement and to ease financial strains on the government and a reducing, younger workforce.
The MoM is also selling the scheme to business by pointing out that the retention of skills and experience will help them as well.
Challenge for HR departments
“For Singapore, continued employment of these workers means productive deployment of our limited manpower resources. It is a win-win-win outcome,” said the minister.
“The guidelines provide flexibility to both employers and workers in terms of job scope and terms of employment. This will help companies retain their experienced workers and allow them to continue working beyond the retirement age.
“One good practice is for employers and workers to engage each other early in the re-employment process. Under the draft guidelines, companies are encouraged to discuss possible re-employment options with employees a year before re-employment.”
These discussions should cover relevant training, as well as any adjustments in job role, wage and benefits, say the guidelines.
Older workers are also obligated to maintain skills and expertise and participate in discussions on their re-employment plans.
The guidelines are a challenge for Singapore HR departments, who have to embrace a new anti-ageist culture and put in to place processes keep older workers.
