The corporate sector in Asia has so far been slow to respond to the challenge of the ageing population, according to a new research report entitled, Ageing: Impact on Companies in Asia by Community Business. The report calls for companies to take steps to create inclusive workplaces for older employees.
This research is an initiative of the Diversity & Inclusion in Asia Network (DIAN), a group of companies committed to progressing the discussion of diversity in Asia and driving the adoption of best practice policies and practices in the workplace. Julia Wolage, DIAN Member and Vice President and Head of Human Resources at American Express in Singapore explained, “To address the needs of the ageing workforce we need to start initiatives now that will mature and become embedded in an organisations culture in the future.”
The new research highlights that Japan, Hong Kong and Singapore—with the highest median ages, longest life expectancy rates and lowest fertility rates in the region—are already facing the immediate challenges of the ageing population in terms of declining populations and talent shortages. Significantly, whilst the demographic phenomenon has long been recognised by governments around the world, the corporate sector has been slow to respond.
Kate Vernon, author of the research and Head of Research & Marketing and Head of Diversity & Inclusion at Community Business expects the impact on business to be huge in the way companies operate and the markets they serve. She added that, “…our research has shown that few companies have formalised strategies that take into account the ageing of the population—either in terms of their customer base or employee base. Older employees represent an increasingly significant component of the workforce and companies should be looking to introduce policies and programmes that reflect this.”
The research explores some of the work-related issues, including the prevalence of age discrimination against older workers in Asia and why today, the majority of employers still prefer to recruit younger workers. Vernon explained, “Various factors influence markets to discriminate against older workers and age discriminatory practices, particularly in terms of human resource policies and processes that reveal a bias against older employees, are potentially limiting business performance and preventing older employees from contributing fully.“
With reference to experience and best practice from around the world, the research recommends a set of fourteen initiatives companies in Asia can introduce to create age diverse workplaces that encourage and enable older employees to stay in the workplace and contribute to the growth of the company for longer. These range from conducting an age profile analysis and reviewing policies and processes to ensure they are age neutral, through to steps to ensure an age-friendly culture, offering alternative working arrangements and introducing more flexible retirement policies.
Older employees with their wealth of experience and expertise, represent a valuable resource that companies can ill afford to waste. The report concludes that if companies are to be well positioned for the future—harnessing the best talent and meeting the needs of the changing marketplace, they need to rethink their attitudes towards employing older workers and make the necessary adjustments to facilitate their continued contribution in the workplace.
Paul Arkwright
Publisher
