appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Martin Choi

Hong Kong companies that have a mandatory retirement age should rethink their policies and offer more flexibility for mutually agreed arrangements, according to a Hong Kong Chartered Governance Institute (HKCGI) survey.
Such flexibility can allow a company to manage the process to provide both productive employment and sustainability-related benefits to the organisation itself, according to the report released on Tuesday.
Hong Kong has no official retirement age, but most companies require staff to call it a day between 60 and 65 years of age.
“Instead of an automatic retirement at a particular age, the process should be structured, open and transparent to evaluate an employee’s contributions and, where appropriate, post-retirement retention based on merits and mutual agreement,” David Simmonds, president of the HKCGI, said in the report.
The number of senior citizens in Hong Kong will almost double to 2.74 million in 2046, compared with 1.45 million in 2021, excluding foreign domestic helpers, according to projections from the Census and Statistics Department in August. Seniors will make up more than a third of Hong Kong’s population, with the proportion of elderly people predicted to increase to 36 per cent from 20.5 per cent during the same time frame.
“Senior staff retention will become more common in strategic business implementation as the world’s population ages,” said Simmonds, who is also the chief strategy, sustainability and governance officer at CLP Holdings.
Governments and organisations must increasingly consider leveraging the ageing population to boost productivity and narrow employment gaps as the population ages, according to the HKCGI.
“From a governance standpoint, organisations need to carefully balance the valuable contributions of senior staff members with the new perspectives of younger employees as part of succession planning,” Simmonds said.
The organisation’s survey of 1,293 respondents showed that a majority, or 82 per cent, support maintaining the current model that allows parties to determine retirement age through contracts, emphasising flexibility and self-determination in retirement decisions.
A recurring theme across comments was the need to protect employees from arbitrary or discriminatory retirement practices.


Respondents to the survey included professionals engaged in governance, finance, legal, technology, management, and other functions within their organisations.
Roughly half, or 53 per cent, of the respondents worked at non-listed companies, while the remainder worked at businesses containing one or more listed companies.
When asked about the appropriate age for an organisation to consider employees’ retirement, the most common answer, chosen by 36 per cent of respondents, was that employees should work as long as they are able to fulfil their duties. Combined with another 21 per cent who chose age 65, a majority of respondents (57 per cent), believe retirement should occur at age 65 or later.
Companies should develop suitable policies and procedures to encourage open and honest communication with seniors approaching retirement age and should work out transparent best practices, the report said.
Retaining experienced benefits companies for a host of reasons, said Anthony Neoh, 77, senior counsel of Hong Kong Bar and co-chair of the Asian Academy of International Law.
“Experience is the repository of expertise,” he said. “Responding to changing conditions requires experience, and the next generation needs to be trained up through well thought-out succession plans.”
With more than 75 years of history, the HKCGI has more than 10,000 members, including graduates and students, with significant representations within listed companies and other cross-industry governance functions.


China has scrapped two-thirds of its planned coal power plants abroad: report

Hong Kong lacks a climate narrative to unify its efforts

China breaks ground on the world’s first supercritical CO2 and molten salt energy plant

Why China is weighing into the debate on how to respond to shrinking coastlines

Business of climate change

Hong Kong companies should rethink forced retirement as population ages, survey says

Commuters walk between the Central and Hong Kong MTR stations in the Central district of Hong Kong on February 20, 2024. Photo: May Tse

Many Hongkongers must work past retirement age as they face US$300,000 shortfalls in their average pension savings: Schroders survey

There is at least a positive side to the problem for Hongkongers, because it is partly because they have the longest life expectancy worldwide. Photo: Jelly Tse

Climate change: Budget, stakeholder engagement are ‘main challenges for Hong Kong firms’

‘The availability of dedicated budgets for emissions reduction, energy efficiency, and low-carbon research and development emerged as the most critical determinants for achieving net-zero targets,’ says BEC chief. Photo: Shutterstock

More work ahead to help retirees in Hong Kong with meagre nest eggs

Hong Kong MPF: investors who switched to US stocks miss out on rally as fund rakes in HK$14,000 per member in best performance since 2017

Not everyone will be happy about the rally. A lot of members shifted the allocation of their assets at the wrong time. Photo: Sam Tsang

Business

Banking & Finance

An open, transparent process to decide on retention can benefit both employees and employers, according to HKCGI report


With the number of senior citizens in Hong Kong set to double by 2046, an open, transparent process to decide on retention can benefit both employees and employers, according to a Hong Kong Chartered Governance Institute report.


Wealth management

Hong Kong companies should rethink forced retirement as population ages, survey says

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}An open, transparent process to decide on retention can benefit both employees and employers, according to HKCGI report

An open, transparent process to decide on retention can benefit both employees and employers, according to HKCGI report