Singapore: Tripartite Guidelines on Re-Employment of Older Employees Released For Public Consultation

Singapore's Minister for Manpower and Chairman of the Tripartite Committee on Employability of Older Workers are inviting public consultation on a new draft Tripartite Guidelines for Re-employment of Older Employees that is aimed at preparing businesses and employees for re-employment legislation come 2012. This is an updated expansion of the advisory issued in April 2008, incorporating feedback from both employers and unions.

Among other things, the draft guidelines provide practical advice on good re-employment practices, including:

• giving employers the flexibility to employ and retain older workers beyond the minimum statutory age of 62;
• offering practical solutions to help employers put in place the necessary systems and processes for re-employment, such as pre-retirement planning and re-employment consultation, job arrangements for re-employment, adjustments to wages and benefits, and the offer of employment assistance payment (EAP); and
• encouraging older workers who are adaptable and skilled to continue to work and contribute to the society.

The public may provide feedback and views on the draft guidelines via the Consultation Channel in the REACH portal by December 18, 2009. The tripartite partners expect to finalize and release the guidelines early next year.

Source: Ministry of Manpower Press Release (November 16, 2009)

Singapore: Survey Shows Many Boomers Want To Work Past Retirement Age

The "first ever" survey of baby boomers in Singapore finds that boomers want to remain active in their "golden years." According to the Ministry of Community Development and Sports, more than 70% of boomers (those aged 43 to 60) were in the workforce or looking for work, almost half wished to or expected to have to work as long as they could, and, among those who specified an age at which to retire from work, about 30% expected to do so at age 65 or older, beyond the current retirement age of 62.

With respect to continued work, 36% of boomers desired to work part time. In addition, the top three conditions that these boomers look for in post-retirement work were flexible work, similar income, and fewer hours of work. For university-educated boomers, a stimulating workplace and the chance to guide or mentor younger workers were more important attributes than income continuity and work hours.

Sources: Ministry of Community Development and Sports Press Release (January 9, 2009); Channel News Asia "Survey shows 3 in 10 expect to retire at age 65 or older" (January 9, 2009)

Singapore: Prime Minister Reenforces Need for Employers to Retain Older Workers

Addressing the AARP-Council for Third Age Conference "Reinventing Retirement Asia", Singapore Prime Minister Lee Hsien Loong has urged employers to let seniors work longer, focusing on legislation that will require employers to offer re-employment to workers for three more years (until 65), though not necessarily at the same job or pay. According to Lee, "[t]he best way for people to adjust to longer lifespans is to continue working for as long as they can, and to keep themselves occupied after formal retirement."

With respect to retirement age, Lee said that government has only limited abilities to change habits. Thus, even though Singapore's official retirement age is 62, only six out of every ten men are still working at 62, the rest having already retired earlier, while even fewer women work till 62, most having dropped out of the workforce much earlier to raise their families. Accordingly, Singapore is not legislating to further delay the retirement age, but to require employers to offer re-employment to workers at 62 for another three years until 65, though not necessarily in the same job or at the same pay. Other efforts may be more involved:

We can also do more to raise the employment rate of older women. It is often tough for women to continue working while raising a family, even if the husband carries his share of the household responsibilities. We can help by adopting more flexible work arrange¬ments, developing family-friendly workplace policies, and providing accessible and affordable childcare. We should also encourage older women to return to the workforce, through targeted outreach and retraining.

Source: Prime Minister's Office Speech (January 8, 2009)

Singapore: Tripartite Implementation Group Launches Re-employment Web Portal

Singapore's Tripartite Implementation Workgroup (TIWG) has launched a web portal to help employers and employees get started on re-employment before the reemployment legislation takes effect in 2012. The portal can be found at www.re-employment.sg and it is intended to serve as a one-stop information and resource center for employers and employees on re-employment.

Among other things, the portal includes case studies of companies that have successfully implemented re-employment, lists seminars and workshops on re-employment, and provides information on assistance programs for companies that may require additional resources to implement re-employment. The portal also lists the workforce age profiles of over 250 companies from sectors such as hotels and restaurants, manufacturing and wholesale and retail trade; these companies have voluntarily posted their workforce age profiles on the portal in support of age-friendly and fair employment practices.

Source: Ministry of Manpower News Release (August 13, 2008)

Singapore: Unions Track Employer Commitments to Rehiring Older Workers

The National Trades Union Congress (NTUC) has established a four-tier framework to let unionized employers understand where they are in getting on track with respect to when Singapore's reemployment legislation kicks in come 2012. According to the NTUC, 433 out of the 1000 unionised companies have committed, at varying levels, with a total of 3910 older workers having been re-employed.

Under the NTUC's framework, a company can be categorized at on of four levels of commitment to reemployment:

• Level 1 refers to companies that are already reemploying older workers, but on an ad-hoc basis.
• Level 2 refers to companies that are already reemploying older workers and have a reemployment clause in their agreements with unions.
• Level 3 refers to companies that have a formalized HR policy on re-employment.
• Level 4 refers to companies that are pro-actively seeking out new initiatives to ensure that their re-employment efforts are sustainable and scalable.

Of the 433 companies committed to reemployment policies, 15% have in place a formalized HR policy, and the NTUC is working to encourage the other 85% to follow suit, so as to increase the proportion of companies at Levels 3 and 4.

Source: NTUC Press Release (May 13, 2008)

Singapore: Working Group Issues Advisory on Reemployment of Older Workers

Singapore's Tripartite Implementation Workgroup (TIWG) has released a Tripartite Advisory on the "Re-employment of Older Workers" to help companies adopt re-employment early, ahead of its legislation by 2012. The Singapore government is committed to enact re-employment legislation by then to enable more people to continue working beyond the current statutory retirement age of 62--initially, up to 65 and, later, up to 67.

The TIWG has drafted an Advisory that identifies good practices in areas such as pre-retirement planning and re-employment consultation, job arrangements upon re-employment and re-employment contract durations. The TIWG is soliciting feedback from companies implementing the Advisory.

Chairman of the TIWG and SNEF Council member Mr Alexander Melchers said, "Re-employment is a new concept for many employers. The advisory is meant to assist them, by offering practical suggestions to implement re-employment in their company."

In addition,

Mr Melchers added, "For re-employment to work, companies need to start reviewing and implementing changes to their HR systems and policies, including performance management and wage structures. Companies should do this as soon as possible, because this is not a process that can be accomplished overnight." He also said the re-employment of older workers was another way to tackle the increasing problem of a lack of skilled labour in Singapore

Sources: Ministry of Manpower Press Release (April 23, 2008); Today Online "For those over 62, the shape that re-employment deal could take: (April 24, 2008)

Singapore: Progress Reported on Enhanced Employability of Aging Population

Singapore's Ministerial Committee on Ageing (MCA) has released a report card on the work accomplished by the Singapore Government on ageing issues, including enhanced employability, one of the four previously-endorsed strategic thrusts. According to MCA, good progress has been made all fronts and further initiatives will be pursued in 2008.

With respect to employability, the report card shows that the employment rate of older residents aged 55 to 64 rose by 2.5% points over the year to 56.2% in June 2007, as a result of a buoyant economy and initiatives implemented. Following the May 2007 release of the final report of the Tripartite Committee on Employability of Older Workers, "more will be done to positively shape the mindsets of employers and employees towards employing older workers and to facilitate the re-design of jobs to make them more suited for older workers."

Source: Ministerial Committee on Ageing Media Release No. 03/2008 (January 15, 2008)

Singapore: Prime Minister Proposes Mandating Reemployment of Older Workers

In his National Day Rally speech, Singapore Prime Minister Lee Hsien Loong announced that he will be seeking legislation to require the reemployment of older workers. In addressing the best way for the government to help older workers to stay employed and work longer, the Prime Minister rejected calls for raising the retirement age of 62, since that would discourage employers from hiring older workers.

Accordingly, he called for legislation for reemployment to continue working beyond 62 ad being more flexible for both employers and employees. While a worker would not necessarily get the same job or the same pay, employers must make an offer, taking into account worker’s performance, health and preferences, and company’s needs.

As proposed, the law would take effect from 2012. It would require employers to offer reemployment to workers reaching retirement age, i.e. 62. As a first step, this would go up to 65 age and later would be pushed up to 67. In addition, the government will offer financial incentives for older people to work, and for employers to hire them.

Source: Singapore Government Media Release (August 19, 2007)

Other Sources: Channel NewsAsia "Firms facing Re-employment Act can stay cost-competitive" (August 23, 2007); Bernama.com "Singapore To Make Re-employment Of Older Workers Mandatory" (August 20, 2007)

Singapore: Tripartite Committee on Older Workers Releases Final Report

Singapore's Tripartite Committee on Employability of Older Worker has issued its final report, with an extensive package of recommendations to enhance the employability of older workers which have been accepted by the Government. These include introducing legislative changes within five years to facilitate opportunities for older workers to continue working beyond the age of 62, expanding the employment opportunities of older women and enhancing their employability, a higher Workfare Income Supplement payout to low income workers above the age of 55, and expanding the promotion of fair employment practices.

In addition, the Committee will continue its work for another five years. It will work towards raising the employment rate for residents aged 55 to 64 to the medium-term target of 65% (from the current 53.7%). The Committee will also work closely with the Ministerial Committee on Ageing to tackle the issues of an ageing population in a holistic manner.

The Committee's final report includes an Executive Summary and organizes its recommendations into four key strategic thrusts:

• Expand employment opportunities for older workers
• Enhance the cost competitiveness of older workers
• Raise skills and value of older workers
• Shape positive perceptions towards older workers

Source: Ministry of Manpower News Release (May 17, 2007)

Additional Sources: Channel NewsAsia "NTUC urges bosses not to wait for laws on employing older workers" (May 17, 2007)

Survey: Few Employers Are Taking Action to Recruit and Retain Older Workers; Manpower Offers Up Recommendations

According to a survey conducted for Manpower Inc. of more than 28,000 employers across 25 countries and territories, only 14% of employers worldwide have strategies in place to recruit older workers and only 21% have implemented retention strategies to keep them participating in the workforce.

The published results of the survey-- Older Worker Recruiting & Retention Survey--break down recruitment and retention by country and industry. Among different countries, employers in Japan and Singapore were far ahead of their international counterparts with 83% and 53% of employers surveyed, respectively, working proactively to retain their older employees; at the other extreme, in Italy and Spain, only 6% of employers had such strategies in place.

"Many employers have not yet recognized the need to forecast the percentage of their workforce that is set to retire in the next five to 10 years and planned ahead to stem the potential loss of productivity and intellectual capital that will occur when those people walk out the door," said Jeffrey A. Joerres, Chairman and CEO of Manpower Inc. "A surprisingly large number of organizations are still viewing upcoming retirements as cost- savings opportunities, but this is a dangerous and shortsighted view, as older adults will be relied upon as one of the most important sources of talent for the future workforce."

Simultaneously with the survey results, Manpower issued a white paper--"The New Agenda for an Older Workforce"--which explores the increasing reality of the global aging workforce, the resulting gaps in workforce supply, and the demand that this is creating. Among other things, the white paper proposes strategies that companies can adopt to circumvent these talent challenges; recommendations on how employers can help older employees extend their careers should they choose to do so; and suggestions for the role that governments can play to help solve the older worker conundrum.

Source: Manpower Inc. News Release (April 23, 2007)

Global Aging and Retirement: AARP Releases Country Surveys of Opinon Leaders

In conjunction with a conference on "Reinventing Retirement Asia: Enhancing The Opportunities of Aging" held in Tokyo March 15-16, AARP released a survey of opinion leaders in Asia and Oceania, which reveals that most believe their countries are ill prepared to deal with the challenges of an aging population. Although the survey report covers several aspects of aging and society, two core focuses were on older workers and retirement.

AARP's report--"Aging in Asia and Oceania: AARP Multinational Survey of Opinion Leaders 2006"--was prepared by Princeton Survey Research Associates International thrugh a survey of opinion leaders in the United States and in seven countries in Asia and Oceania. The survey was designed to increase AARP’s knowledge of aging issues and attitudes in key Asian markets and to compare attitudes and policies towards aging in the US to attitudes and policies in Asian and Oceanian societies.

According to the overall summary, opinion leaders vary as to the age at which a worker becomes an "older" worker:

Averaging 60 years of age among all opinion leaders interviewed, the average age at which opinion leaders would consider someone an older worker varies somewhat from country to country, ranging from a high of age 66 in Japan to a low of age 55 in Australia. Half of opinion leaders say that the transition to becoming an older worker occurs some time between the ages of 60 and 69.

Other key findings show that opinion leaders perceive older workers as wise, respected, and productive, but that "businesses do not see older people as a
potential source of productive labor and employers are not well prepared for a future workforce comprised of more older workers." Opinion leaders also say that it is a responsibility to society to address older worker issues, older workers should be accommodated, the mid-60's is an appropriate time to retire, and that there should not be mandatory retirement.

In addition to the full report, AARP has issued specific country reports for the United States and for these Asian or Oceanian countries:

• Australia
• China
• India
• Japan
• New Zealand
• Singapore
• South Korea

Source: AARP News Release (March 14, 2007)

Singapore: Older Men Making Greater Gains than Older Women

Singapore has set a record high proportion of the older population in the labour force and in employment. Key findings of an occasional paper on "A Statistical Profile of Older Workers" from the Ministry of Manpower's Research and Statistics Department show that both the participation and employment rates of older males in Singapore compare favourably to countries in the region and beyond and that while older females have also made significant gains, their participation and employment rates are still relatively lower than in many developed countries.

Specifically, the participation rate among resident males aged 60 to 64 rose from 49% in 1996 to 63% in 2006, while among females in the same age group, the rate rose from 15% to 26%. For men, that is significantly higher than participation rates in Hong Kong (45%), Taiwan (47%), Germany (41%), Netherlands (31%), France (19%), the United Kingdom (56%) and the United States (59%).

Among other findings, older workers were more likely to be self-employed (26%) than the younger cohort (12%), older workers have a lower incidence of switching jobs, and full-time older workers tend to work longer hours compared to those younger.

Source: Ministry of Manpower Press Release (February 22, 2007)

Singapore: Study Shows Employers Prefer To Train Younger Employees

According to an article in Today by Lee U-Wen, a recent study by the Ministry of Manpower (MOM) shows that older workers are being looked over in training opportunities, with companies, instead, prefering to train their younger, more nimble workers.

"This is ... due to the higher opportunity cost or the narrower time horizon of reaping the benefits out of the training programme," said the report, the most extensive study since MOM first tracked training participation back in 2000 and involved some 2,400 people.

Singapore Human Resource Institute executive director David Ang, one of several HR experts interviewed, suggests that companies should give priority to the rank-and-file workers, especially those caught in the web of structural unemployment; the older they get, the less their opportunity for training, but they need the skills more than anyone else so as not to remain stagnant.

Source: Today "Older workers overlooked" (January 12, 2007)

Singapore: Age-Friendly Employment Practices Guide Issued

The Singapore Workforce Development Agency has issued an Age-Friendly Employment Practices Guide to encourage employers to adopt human resource practices that can help them better tap on the strengths of older workers. Targeted at employers, CEOs, managers and human resource practitioners, the guide provides examples of best practices and case studies that should help in better leveraging the skills and experience of older workers through the adoption of age-friendly HR practices.

The guide provides practical tips and case studies in 6 key areas:

• Recruitment;
• Remuneration and Benefits;
• Job Redesign and Automation;
• New Work Arrangements;
• Re-employment Policy; and
• Managing Career Transitions.

Source: Singapore Workforce Development Agency Press Release (June 26, 2006)

Singapore: Singaporeans Ready and Willing To Work Past 62

The findings of a retirement study, released at a forum organised by the Institute of Policy Studies, revealed that 41% of Singaporeans polled want the Government to increase the retirement age. Presenting a Singapore-focused look at HSBC's "Future of Retirement" survey, Dr Sarah Harper, director of the United Kingdom's Oxford Institute of Ageing, which conducted the survey, was quoted by Singapore Today as saying: "The message that is coming out of Singaporean people and the Singaporean employer is that we value older workers and we want to work longer."

The Institute has made available Dr. Harper's PowerPoint presentation.

Source: "Singaporeans want later retirement age: Survey" (June 16, 2006)

Singapore: Tripartite Alliance for Fair Employment Practices.Established

Following the recommendations of the Tripartite Committee on Employability of Older Workers, the Singapore government has formed a Tripartite Alliance for Fair Employment Practices (TAFEP) to shift mindsets among employers, employees and the general public towards fair and responsible employment practices for all workers.

Co-chaired by Mr Bob Tan, Vice President, Singapore National Employers Federation (SNEF) / Council Member, Singapore Business Federation (SBF), and Mdm Halimah Yacob, Assistant Secretary-General, National Trades Union Congress (NTUC), the Alliance held its first meeting on May 22 and adopted a plan of action. Among other things, it intends to formulate guidelines for fair employment practices towards workers of all ages, genders, races and religion, and initiate a fair employment movement through national and sectoral programmes to facilitate broad and effective adoption of fair employment practices.

Source: Ministry of Manpower Press Release (May 29, 2006)

Singapore: Survey Shows Over-50's More Committed Workers

An article by Grace Chong in The Business Times reports that recent survey data shows that employes 50 or older show greater commitment and alignment to their companies than their younger colleagues and feel they are better equipped in terms of resources. The findings--derived from Watson Wyatt Worldwide's WorkSingapore study covering about 8,000 employees working in 13 industries--also show that companies with older, and hence more committed, workers see a better financial performance: "Businesses with highly committed workers had an average shareholder return of 23%, while companies with low commitment levels from staff generated returns of only 7%."

Source: "Companies with older workers perform better: study" The Business Times (April 1, 2006)

Singapore: Companies Commit to Reemploy Retired Workers

Dominique Loh reports for Channel NewsAsia that Singapore's labour movement has signed on 23 companies that have committed to re-employ workers after they retire at 62. In addition, as part of the $30 million effort that the Tripartite Committee on Employability of Older Workers and the Singapore Workforce Development Agency have called the ADVANTAGE! Scheme, the National Trades Union Congress (NTUC) is getting more companies to adjust their work environments, so they can also accommodate older workers.

Some companies say hiring older workers hinge on several factors like work attitude, past performances and the medical and physical well-being of these workers. But NTUC's Secretary-General Lim Boon Heng noted there are other challenges ahead. He said the labour problem for Singapore was even more acute when it comes to women, because they leave the workforce when they start a family to raise children. And as women grow older, the percentage of those who remain in the workforce also drops significantly, and bearing in mind most women also live longer than men. Mr Lim said one way to combat this problem was finding part-time jobs that women can fulfil in the workforce.

Source: " 23 companies pledge to re-employ older workers" Channelnewsasia.com (February 7, 2006)

Singapore: ADVANTAGE! Scheme Introduced to Provide Incentives for Employers to Hire Older Workers

Singapore's Tripartite Committee on Employability of Older Workers has released its interim report with a range of recommendations to enhance the employability of older workers. The key recommendations are to introduce the "ADVANTAGE! Scheme," consider legislation for the re-employment of workers beyond the statutory retirement age of 62 and set up a Tripartite Alliance for Fair Employment Practices.

Under ADVANTAGE!, up to $300,000 may be given per company to motivate and enable employers to recruit older workers and to re-employ them beyond age 62 through:

1. Job Redesign, such as to defray the cost of equipment, machinery or process review that raise productivity and help older workers.
2. Training, such as to equip older workers with new skills, enhance their existing skills, or to help them adjust to new work arrangements;
3. Retention Incentive, which can go up to $1,200 per newly hired mature worker aged 40 and above with secondary school education and below over a period of 12 months, or $1,800 over 18 months.

Other recommendations include:

• expanding employment opportunities for older workers;
• enhancing cost competitiveness of older workers;
• raising skills and value of older workers;
• shaping positive perceptions towards older workers

Source: Press Release Ministry of Manpower (Janaury 26, 2006)

Singapore: Low Wage Workforce Bonuses Help Older Workers

Farah Abdul Rahim, writing for Channel NewsAsia, reports that older, low-wage workers have given a thumbs-up to the billion dollar workfare assistance proposal unveiled by the Ministerial Committee on Low-wage Workers aims to give this group of workers the leg up, with a one-off bonus and more training. While the cleaning industry was the first industry to reap the benefits of the Job Re-Creation Programme, which saw workers receive training and a new image to help boost their wages, the program's scope and depth were being extended so that low-wage workers can climb up the career ladder easily to become supervisors, better their career prospects and more importantly, bring home more pay. "The aim is to expand the programme to nearly all sectors, including building and maintenance, and new growth areas like tourism."

Source: "Older, low-wage workers welcome workfare package" Channel NewsAsia (January 12, 2006)

Singapore: More Help for Older Workers

According to an article by Jasmine Yin, Singapore's Committee on Ageing Issues (CAI)--co-chaired by Senior Minister of State for Health Dr Balaji Sadasivan and Parliamentary Secretary for Health and Community Development, Youth and Sports Dr Mohamad Maliki Osman--is looking into enhancing financial security of the elderly and improving employability of older workers. In addition, a tripartite committee comprising the Ministry of Manpower, the Singapore National Employers Federation and the National Trades Union Congress has also been formed to examine the employability issues of older workers.

According to a speech to Parliament from Acting Minister for Community Development, Youth and Sports Dr Vivian Balakrishnan, "we need to review the retirement age policy, identify employment opportunities for the elderly, promote elder-friendly work and HR practices." Job creation for older Singaporeans is one of the CAI's priority areas. One possible solution to alleviate such employment woes is to establish an informal industry for older Singaporeans. "We will be piloting a community platform where the elderly and homemakers can make a living selling their own products, like cakes, handicrafts or services," he added. Other ways to help the older worker include promoting an "elder-friendly workplace" and "enlightened" human resource practices, and even providing micro-credit for such informal industry businesses.

Source: "More help for older S'poreans" TODAYonline (March 11, 2005)

Singapore: Needs To Tap Ageing Working Population

"Singapore companies and industries have to come to grips with two demographic realities. First, the proportion of young workers to the total working population is dwindling. Second, older workers will make up an increasingly larger segment of the total job market in years to come." Soh Tiang Keng suggests that the government must continue to raise the retiremeent age, that employers need to identify jobs or look for alternative possibilities for older workers, including offering jobs with low fixed salary but higher flexible payout depending on sales and performance, and employees must scale down their expectations and be prepared to be retrained to fit into new types of jobs.

Source: "Mature workers: The vital force" Today Online (February 18, 2005)