Many willing to work beyond 62, but will there be jobs?;
Though some firms are keen on hiring older workers, obstacles remain

INSIGHT

Aaron Low

GETTING people to work longer is just one part of the equation to prepare for the ageing workforce.

Ensuring there are jobs available to them and employers willing to hire them is the other.

And going by surveys, employees are more willing to work than companies are willing to hire them, although unionists say this is slowly changing.

A Straits Times survey of 636 people on the Central Provident Fund scheme showed that many realise they have to work beyond the official retirement age.

Two thirds of those polled said they were willing to work beyond 62.

Of these, one-third are willing to work up to age 65, another third up to age 70 and the remaining third into their 70s.

Labour chief Lim Swee Say says the survey results were 'most encouraging'.

He notes that employers have been responding to the call to employ older workers especially in the past 11/2 years, citing the example of the unionised companies.

Last year, 2,000 workers, upon reaching 62, were re-employed by unionised firms, and the figures are expected to double by the year end, says Mr Lim, who is also Minister in the Prime Minister's Office.

To get more companies on board, the Government is employing a carrot-and-stick approach.

The carrot is a financial scheme called Advantage which provides up to $400,000 in grants to help firms hire, retain and re-employ workers beyond the retirement age.

And the Government will also pass a law by 2012 that requires firms to offer re-employment to older workers.

'We hope that by the time legislation comes into effect by 2012, workers and management at large would have already understood what re-employment is all about, with many of them already practising re-employment on the ground,' Mr Lim tells Insight.
 
There are many companies already ahead of the curve when it comes to hiring older workers.

A survey of 2,900 private sector firms last year by the Manpower Ministry showed that companies do see value in older workers. Of those surveyed, 97 per cent said they have on their payroll workers in their 40s.
 
But this figure dropped as workers got older - 89 per cent of employers had workers who were in their 50s, and only about half had workers in their 60s and above.

One example of an enlightened employer is oil and marine company Franklin Offshore.

The Singapore company prefers to retain its older workers, who may earn between $3,000 and $5,000, rather than hire younger foreign workers at half their wages.

Its chief executive officer Angie Tang says these older workers helped build up the company with their loyalty.
'That deserves something,' says Ms Tang, 50.

About a fifth of her 232 workforce are aged 50 and above.

Beyond rewarding older workers for their loyalty, companies also see these workers as real assets.

Ms Ho Kim Bee, human resources manager for Bon-Food, which operates the Burger King outlets, says older workers are assets as they are a dependable source of labour.

Its fast-food business relies on people to serve customers and keep the outlets clean, so it is critical to have a regular workforce, she explains.

'But many youngsters will call at the last minute to say they can't make it for work, but uncles and aunties will always show up,' said Ms Ho, 47.

The company this year introduced a policy to retain workers on a contract basis once they hit 62.

But even if the employer's heart is willing, the business may not lend itself to hiring large numbers of older workers.
 
Industries that require hard labour, quick feet and stamina - attributes generally found in younger people - may be less favourable towards older workers.

In the catering business, for example, older workers might find it hard to keep up with the demanding nature of the job, says Mr Tony Seow, 40, who owns food caterer Purple Sage.

'The staff are expected to be holding trays while attending to customers' queries about the food,' he says. 'I'm not sure whether older folk can handle multi-tasking well.'

The response from employers is encouraging, but it is early days yet, says Ms Cham Hui Fong, the National Trades Union Congress' industrial relations director.

'Many roadblocks, like unwillingness to bear higher costs and some biased attitudes remain, but many firms I've met are growing more aware.'

aaronl@sph.com.sg