Recently, a close associate of mine send me an article on a recruitment platform that specialises in hiring senior citizen workers. I applaud them for doing so as I noticed these are the group that is currently left out in the employment world, especially in this digital era. Why?
The ageing workforce
Before writing this article, I did my research on how the industry defines an ageing workforce. I was surprised as they referred to the ageing workforce as those who have reached the age of 40 years and above. Somehow, it sounds to me that the 40s are a bit too young to be clustered under the ageing workforce.
On the other hand, Professor Juhani E IImarinen from the Finnish Institute of Occupational Health illustrates this in a better light. An ageing worker is defined as a worker who are in the workforce for at least 15 to 64 years. Generally, it’s the work ability that defined the feasibility of the ageing workers as some work requires physical strength.
Anyway, in Malaysia, there are about 45.2 per cent of aged workers between 55 to 64 and are currently employed. This is lower than other high-income countries according to World Bank’s report. This low employment rate is probably due to the low retirement age in Malaysia.
A few years ago, I was scouted by a recruiter for a senior position with a well-known MNC. Unfortunately, the MNC rejected me as a candidate as they found out that I was in my mid-40s then. It’s deplorable as they practice silent discrimination even as they specified inclusiveness and equal hiring opportunity policies.
Should an organisation perceive these aged workers as liabilities especially when we are heading towards digitalisation? Can this bucket of aged workers still be employable? Will they be perceived as an issue to the working society, or should they be retired from the employment world?
The perception
There are still companies who are inclined to hire these aged workers but equally, there are many who felt otherwise. The fact that age discrimination even started in the mid-40s and above can be alarming for those who are not in the physical work condition.
I believe some organisations may have a valid concern as some may perceive
- hiring aged workers can be more costly due to productivity or some hidden costs
- aged workers require more sick days of leave
- they are not technology savvy
- They are less adaptive, rigid with their assigned task, or even less inclined to roll up their sleeves
- They came along with a fixed mindset
On the hand, some may view aged workers as benefiting the organisation as they
- require less training and have more exposure to business sense
- understand business ethics in greater depth
- maximise their work hours, more productive
- maturity towards work thus minimises any unforeseen intervention
- are more accountable hence, minimal issues on escalation or tardiness
Spotting the flaws
In the later part of my career, I took up a lower position as I worked for self-fulfilment and not so much on career growth. As I joined the organisation, the first thing I noticed was the breakdown in the organisation structure. Initially, I was hesitant to tell my immediate boss but later I found the opportunity to share my thoughts with him in a subtle manner. He acknowledges it, however, due to some internal bureaucracy, he was unable to change the structure effectively thus, it resulted in incoherence amongst the team as most of them were already embedded with a silo mindset.
For those who are in the workforce for more than two or three decades, without realising it, their brains are trained to look at things from different perspectives. It is probably the accumulative and extensive knowledge and experiences that they gain over the years.
A few months ago, I signed up my girl with her previous martial instructor. He was once a gig instructor providing classes to different centres. Today, he has transformed, he no longer operates by himself individually. He became digital. He now revolutionises it to become a program and collaborated with different centres and other independent martial instructors. He now uses technology to drive his program digitally.
I am impressed to see he has transformed. I was introduced to his young energetic partner in his 20s that helped him to establish his new business model. They are young digital catalysts helping small businesses to digitalise. We both had a good conversation as we both advocated the same thing, which is being digital.
While I am impressed with this young group of digital catalysts, however, being a business processes practitioner, I immediately noticed some flaws in their interface and platform.
It’s strange as we can immediately spot any flaws or discrepancies in a process at a glance. Perhaps, it could be aged workers had accumulated experience in managing issues, thus making them more a problem-solving strategists. The fact that we cannot deny this group of aged workers has cumulative tacit knowledge they gained over the years.
Is the ageing workforce employable?
Without a doubt! I have seen and experienced some organisations do hire aged and retired workers. Late last year, I had my booster vaccination at a nearby clinic.
Upon registration, I was ushered to the doctor’s room for the doctor to perform my blood pressure. The doctor explained to me the potential effect of the vaccination and at that moment, I thought the doctor would be performing the vaccination. Instead, a humble-aged lady nurse came to the doctor’s room and directed me to the next room. She started to speak to me in blended well-spoken English and Bahasa Malaysia. At that instance, it never occurred to me that she will be the one performing the vaccination. She does it and it was done professionally within the defined standard operating procedures.
After the vaccination, she directed me to sit outside for 15 minutes for observation. While I sat outside, she somehow caught my attention as she continued to work on some administrative tasks after cleaning and disinfecting the area. She kept herself busy without any supervision.
I suppose she was hired by the clinic on a short-term basis, especially in times of demand when the country is going through the vaccination campaign.
Is hiring aged workers beneficial in the digital era?
So, how beneficial is it for an organisation to hire an ageing workforce in this digital era?
Ageing population. Malaysia is anticipating an increased ageing population to 6 million by 2040 according to the Department of Statistics Malaysia (DOSM). It was only 2 million aged 65 years and above in 2017 then. The life expectancy of Malaysians is at 76.31 years in 2020, an increment of 0.25 per cent from 2010. Malaysia’s retirement age stands at 60 at this point of writing, while other countries’ retirement ages varied between 55 and 67 being the highest.
Singapore for instance recently started to increase their retirement age from 62 to 63 and created a re-employment program for those aged 67 to 68 to support older Singaporean who wish to continue working.
But for organisations that hinder hiring aged workers in their 40s, should they start recognising aged workers and exploring them with more meaningful tasks? A task that is relevant to their age?
The digital business. As businesses are evolving, many of them are struggling to digitally transform. Many perceive that digitalisation is all about adopting smart technologies and platforms however many organisations failed to transform as they failed to recognise the need for change.
Based on Jabil’s report on their largest barrier to digital transformation, 90 per cent of their respondents shared that they experienced employee pushback, lack of expertise to lead digital initiatives, the organisation structure, the digital strategy, and limited budget.
Given the fact that the top few barriers are more human-centric challenges, perhaps the aged workers will be the best bet to help to navigate and address these barriers. They can probably be engaged to provide consultation, coaching, or mentoring organisations to determine a viable solution or overcome human-centric challenges.
The gig economy
A few months ago, I read an article from Channel News Asia (CNA) about how a bank in Singapore did a pilot on their gig employment program. In the program, they conducted an internal poll with their employees. 8 out of 10 respondents are willing to take up flexible work after retirement. It was a meaningful program as it benefited both the bank and their aged, retired employees
Recently, I was approached by a potential client who is keen to start a gig platform for one of their business units. This client is known to value their older employees. Instead of retiring their workforce completely, they started to build a gig platform for these group of workers to take up ad hoc task which is required by the business unit. Moreover, they can be engaged and hired on a contractual basis when there is a demand from these experienced workers. These aged, retired workers will perhaps deliver and performed better as they will appreciate the flexibility.
Aged workers – retired or rehired?
I have many peers including leaders, and ex-colleagues who are in this bucket, and many of them felt the challenges to change jobs. While some managed to secure a better role elsewhere but many felt trapped in their current role as they faced limited opportunities.
I do admit many are looking forward to retirement, but some felt otherwise. Most of them needed a break but not on long-haul. They are keen to return to the workforce as contingent workers if health permits. Their work objectives have changed, they no longer looking into career enhancement, instead, they looked for work flexibility and self-fulfilling work. Of course, some may still need some financial income to pay their bills.
Hiring and re-hiring retired or aged workers will encourage and benefit the need to fill an employment gap or immediate demand. The purpose and outlook of these aged and retired workers have changed. They want to be relieved from the rat race, they are now more at ease providing advisory roles, or even coaching and mentoring to organisations from different perspectives.
At the end of the day, the gig employment strategy should be an option for organisations to explore re-hiring and engaging these aged and retired workers. This is a probable solution to deter age-based discrimination in the workforce.
