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Singapore’s population is ageing. Fast. And so is its workforce.
At present, 53.7% of Singaporeans aged 55-64 are working; this group will make up at least 55% of the total workforce by 2015. Add just another five years and the situation really begins to show itself.
With over 25% of its population above the age of 65 years old, Singapore in 2020 will, like many other developed countries around the world, boast a distended greying population.
The tug-of-war is a result of two forces moving in opposite directions. On the one hand, the baby boom generation of the 1950s and 60s are now moving into retirement age. Many have built up substantial nest eggs and will be seeking to slow down early wherever possible. At the same time however, subsequent generations have not kept up with that explosive birthrate. Indeed, Singapore’s birthrate has fallen well below average in the last few decades. This has left a significant imbalance in the current workforce, with the number of new entrants insufficient to replace those retiring at the other end.
The phenomenon brings up new challenges for employers throughout the economy. They will have to look at all workers – young and old – with a new view to long-term retention. Organisations that look particularly at their mature workers, and carefully adapt their employee value propositions to their wants and needs, will see the most immediate success.
Coca-Cola’s local bottling partner is one such employer. It has put in place a clear process for keeping its older workers on for as long as they are keen to continue.
K Thiveanathan, Human Capital Director, Coca-Cola Singapore Bottlers, says each case of a retiring employee is individually reviewed, so HR can explore role-options beyond retirement. “A supervisor is required to have a discussion with retiring employees at least 12 months prior to their expected end-date,” he says. “This is with the view to seeking career options beyond retirement.”
Role considerations should not be limited to the employee’s current department. Rather, all available and fitting roles should be on the table – even previously un-thought of jobs or projects should be considered. Employers are the ones facing the shrinking workforce, so it’s up to HR to really get creative about its retention of existing staff.
Staff don’t just need to be on the books however; they also need to be engaged with the task they have been assigned. One strategy companies are finding useful is to leverage on the expertise and extensive experience mature workers often boast. By specifically including them in mentoring and leadership programmes, retirement-age workers are often re-energised and keen to continue with the employer.
The intangibles that older employees bring to the workforce certainly also need mention. OCBC Bank says older workers “have with them a wealth of experience accumulated over many years. It is accompanied by qualities such as commitment, patience and resilience.”
All this may be true, but employers are not yet fully on board. According to Singapore’s Ministry of Manpower, only 65% of organisations with a set retirement age (most often 65 years) are offering retiring staff the option of reemployment. New tripartite guidelines suggest healthy and high-performing workers be offered cash payments in lieu of re-employment but what will really turn things around are new laws coming into play soon.
From 2012, employers will be asked to make re-employment offers to all workers aged 62 and over. The new job won’t necessarily be the same one, or have the same salary, but any older workers who want to continue working should have the opportunity to do so.
And many are likely to take the option. Singapore’s workforce is shaping to be an older, more experienced one. It will be populated with employees who can and will want to stay on the job into their late 60s and beyond. HR practitioners should certainly take note.