'Double-edged sword': HR leaders warn against Re-employment Act

Member of Parliament Jessica Tan says employers need to do more to manage multi-generational workforce

'Double-edged sword': HR leaders warn against Re-employment Act

Singapore’s Retirement and Re-employment Act, which was brought in to protect older workers from being dismissed, could backfire and cause unconscious bias, according to one MP. 

Member of Parliament Jessica Tan told Parliament that focus group discussions with HR professionals had found that the law is “a double-edged sword” that has resulted in employers having an unconscious bias when it comes to recruiting older workers.

“As a company considers hiring someone who is senior and has little runway to retirement, [the employer] may see it as a risk to hire a person if he or she turns out not to be a good fit for the role, because the company will then be required to offer re-employment for the person when he or she reaches retirement age,” Tan said.

Read more: Concerns of a multi-generational workforce revealed

Tan's speech came after the results of a survey conducted by the People’s Action Party Seniors Group, an advocacy group for elders, which revealed the difficulties of working in a multi-generational workforce. It highlighted the difference between generational mindsets, values and working styles.

While 94% of survey respondents championed the advantages of working alongside older generations, 78% also cited challenges faced while working with their older colleagues.

Tan offered recommendations to address the problems affecting older workers. One dealt with structural change and how workers may learn and organise work, and the second examined ways to better support a multi-generational workforce.

Read more: Hybrid work: How to engage a multi-generational workforce

“Society must see ageing as a boon, not a bane,” said Gan Slow Huang, minister of state for manpower.” The government will provide support to help workers have longer careers, but it cannot do so alone. We need a strong ecosystem of employers, unions, training institutions and, most of all, employees young and old, to play a part to enable Singaporeans to harness the benefits of longevity.”

Gan said that there is some flexibility to adjust the re-employment terms so that businesses can provide opportunities for senior workers and while remaining competitive. For instance, if an employer is unable to find a position for a senior worker to be re-employed, the worker may be given an Employment Assistance Payment in lieu of re-employment. 

Gan said that seniors should be open to job-role changes and picking up new skills to keep up with technological advances and new ways of working after Tan suggested allowing workers to spend a few months learning work-related skills every few years, something Tan believes would make learning systemic for all workers.

“Senior workers who are changing careers may face structural, emotional, and physical challenges when learning new skills, so support for them should address these potential issues and let them have a positive learning experience,” Tan said.

Gan also implored employers to design jobs to make tasks and workplace environments friendlier for older workers. For example, the company may provide flexible work arrangements and practise fair employment.

Gan said the Tripartite Alliance for Fair and Progressive Practices was an information source to find out more about how to build age-friendly workplaces.

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