International Day of Older Persons: Reflecting on the Asian Ageing Phenomenon

International Day for Older Persons, celebrated in a few weeks on 1 October, offers the chance to reflect on the specifics of an increasingly Asian phenomenon – the impact of ageing on the population both generally and on the workforce specifically. It is estimated that, by 2030, Asia could be home to 60% of the world’s elderly population (those over the age of 65). This ageing population offers both challenges and opportunities for businesses and society to address. The cultural implications of an ageing population and specific market nuances should also be taken into consideration if we are to truly embrace diversity and ageing and equip our businesses to harness the contribution of the older generation.

Ageing Populations in Asia

Ageing is generally regarded as a significant problem for a lot of Asian countries. Indeed, commentators are predicting that a ‘demographic crisis’ is afoot in many developed East Asian countries. It would be reductive however to apply this insight uniformly across the region. Less economically developed nations like Philippines are seen to be within the ‘demographic window’ where a large portion of the population are of working age. If nurtured correctly this could lead to widespread economic growth across the country.

A demographic snapshot of our key markets is provided below to aid our exploration of ageing across Asia.

Opportunities: Tapping the Silver Pipeline

Faced with the inevitable ageing of the Asian population it is vital that both companies and governments recognise the opportunity of leveraging older people in the workforce. As life expectancy and medical advancements increase it is becoming more common for people to live fruitful (and therefore potentially productive) lives for up to 30 years post-traditional retirement age. Governments across Asia have begun to take this reality into consideration, and policies in Japan, Singapore and Hong Kong have brought increasing the retirement age into current debate.

The gap between the generations has arguably never been wider. Technological and working practices are evolving constantly and, while on the surface this may appear to pose a challenge to the older generation, at the same time these changes grant an increased opportunity to engage an older workforce. With flexible and virtual working now common place, as well as the rise of freelance contracting, engaging the older generation has never been easier. If unable to engage on a full-time basis, companies should consider bringing retired people back into the workforce for short term, flexi or part time work.  In Hong Kong for example, Retired Not Out work to connect retired professionals with flexible and engaging employment opportunities.

In a business environment that increasingly values diversity of thought, the perspectives that older employees can bring should not be overlooked.  Indeed, experienced and more seasoned insights – perspectives that may often be seen as traditional or conservative, can serve as an important counterbalance to the more idealistic or untested perspectives of today’s cohort of entrepreneurial, co-working millennials. The often-contradictory ideals of the older workforce should be harnessed and celebrated, bringing a perspective that a younger team may overlook. A recent event in Hong Kong encouraged collaboration between the generations and the exchange of ideas and information to help grow start-up businesses and fuel innovation. A mature perspective on radical innovation could make ideas more business-sound and profitable.

It is not only the startup or entrepreneurial fields that can benefit from engaging the older workforce. Traditional businesses should review their policies with a generational lens and ensure that they are creating an environment where all generations can flourish. Not only will this ensure that they get the best out of all employees (old and young), but it will also solidify an inclusive office environment where all employees can participate fully and feel comfortable bringing their whole selves to work.

Australian companies have taken the lead in promoting policies that appeal to the older generation, including grandparental leave for those who provide primary care to grandchildren, flexible arrangements to aid transition of roles or retirement entry and job share opportunities. We encourage Asian companies to learn from policies such as this and readdress their D&I strategy to include age-friendly angles. Our globally accredited 2010 research, Ageing: Impact on Companies in Asia, identified best practice initiatives that companies can adopt to ensure they create inclusive workplaces for older employees. These include:

• Conduct an age profile analysis
• Review policies and processes to ensure they are ‘age-neutral’
• Implement a targeted recruitment effort
• Promote an age-friendly culture
• Ensure a favourable working environment
• Consider job redesign
• Offer appropriate benefits and incentives
• Encourage employees to take charge of health and wellbeing
• Provide alternative working arrangements
• Help to remain on the job through stills development
• Facilitate the productive coexistence of a multigenerational workforce
• Engage older workers and give them a voice
• Manage the retirement process proactively
• Find a way to retain or transfer critical knowledge within the organisation

Cultural Implications 

While it is true that the presence of an ageing population affects each market differently, there are some common cultural themes that run true across the region, that do have an impact on the workforce and the ease with which people can continue to take part in the formal economy. In Confucianist societies for example, filial piety, or the duty the youth have to care for and provide for their elders, is integral to the family structure. And an obligation to one's parents is not exclusive to those of a Confucian background. Across Asia it is not uncommon for several generations of one family to live together and for the newly married couples to accept the grooms’ parents into their home (or indeed, move into the grooms’ parents' home). In line with the cultural view that children are an investment for the future, employees in Asia are expected to give a proportion of their salary to their parents. This places a particular burden on younger employees who, for a variety of reasons, struggle to establish monetary and lifestyle independence. The financial burden of caring for older relatives may go some way to explaining why many young Asian couples are delaying having children (thus the cycle repeats itself). Further, the logistical implications  of living in a small apartment in an overcrowded city like Hong Kong with multiple family members may be attributed to the low birth rates in the country presently – an issue that is a cause of fiscal concern for several markets in the region, including Japan, Hong Kong and Singapore. The rise of love hotels in Japan has been linked to tackling a similar issue.

It is also important to address the increased pressure and sense of responsibility women are faced with culturally in Asia, as traditional values often dictate that a wife should leave formal employment to care for her children and parents (or parents-in-law). It is vital that governments and private sector consider what support networks (childcare, flexible working hours etc.) are in place to actively encourage women to enter, re-enter or remain in the workforce.

Conclusion

In this ageing climate it is vital that companies do their best to engage with employees of all generations. Ensuring a robust D&I strategy that includes policy on ageing is essential, as is considering how to engage with employees in an innovative and flexible way that accounts for different life stages and situations. Today, far too few companies are taking this issue seriously – and when it comes to the corporate D&I agenda, a generational perspective is rarely to be found. Offering flexible or virtual office options are just as important for mothers returning to work as they are for older employees, furthermore understanding the cultural nuances and specific personal circumstances that employees find themselves in could help D&I teams to develop specific policies that work for their own teams. There is not a one-size-fits-all solution that will work. What we can be sure of however, is that employees will remain in the workforce for longer than ever before and it is up to businesses to ensure that they create a healthy, happy environment that fosters productivity across all generations. 

About the Author: Emily Moss, Manager, Marketing & Communications, Community Business