2011/10/01
By P. Selvarani
news@nst.com.my
"THAT'S a myth!" scoffs family economist Dr Jariah Masud, when posed the question whether raising the retirement age deprives the younger workforce from climbing up the corporate ladder sooner?
"Unless promotion is based on seniority alone, such fears are unfounded."
What should be questioned instead, said the senior research fellow of the Institute of Gerontology(IG) at Universiti Putra Malaysia, was whether the younger workers have the capability and experience to handle the job left vacant by their seniors.
"Younger workers may have the paper qualifications but that does not mean they have the experience, wisdom, skills or even aptitude for the job. Promotions are based on merit and often those who deserve the promotion will get it whether they are young or not," said the former professor of family economics and management at UPM.
Jariah said one just had to look at the many companies and corporations helmed by young chief executive officers to dispel this myth.
"They are young, yet they are leading corporations and no one has put the brakes on their climb up the corporate ladder," she said in response to fears that increasing the existing retirement age for private sector workers from 55 years to 60 would limit the promotion prospects of the younger workforce.
With the many new job opportunities created in the country, the young have numerous avenues to explore in the job market.
"They can even venture into different job markets abroad. Good workers will be accepted anywhere but only the mediocre ones will be waiting for the older boss to retire so they can take their place."
Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan said while the extended retirement age may, to a certain extent, delay career advancement for the younger workers in an organisation, the "loss" would only be for a few years, as the would-be-successor would also be working towards the same retirement age.
However, he was quick to point out that promotions were "not the right of every employee. You have to earn it".
Shamsuddin also rubbished claims by some quarters that the extension of the retirement age would deny young graduates job opportunities.
"A recent survey by the government revealed that more than one million jobs are available (in five main sectors, namely, manufacturing, plantation, agriculture, construction and production) but our job seekers are choosy."
Malaysian Trades Union Congress (MTUC) secretary-general Abdul Halim Mansur agreed, adding that there was a serious need to reduce our dependence on migrant workers.
"So many jobs are going a begging yet our young people shun them. Sadly, we are one of the countries with the largest number of migrant workers."
To encourage local job seekers, he said, the government should make jobs such as domestic work and security services more attractive.
Halim said that raising the retirement age would not affect the prospects of the young as retirees made up only between eight and 10 per cent of the total workforce.
Under the proposed Private Sector Retirement Age Act, the retirement age for private sector employees will be extended from 55 years to 60 years, with an option to extend it for another four years. The bill, which is being fine-tuned by a technical committee, which includes the MEF and the MTUC, is expected to be passed before year-end.
The retirement age for civil servants was raised from 56 to 58 in 2008. Since then, there has been a proposal from Cuepacs to extend it to 60 years.
At present, Malaysia is the only country in the region with such a young retirement age. The retirement age in Singapore is 62 years, Korea (65), Philippines (65), Thailand, Brunei and Indonesia (60).
While lauding the move to extend the retirement age, Jariah said there should not be a mandatory retirement age at all.
She believes it is unlawful to impose a mandatory retirement age as forcing a person to stop work because of his or her age was tantamount to "age discrimination".
As life expectancy had increased to 72 years for men and 76 years for women, Jariah said forcing people into early retirement at 55 or 60, meant that they would be forced to live in retirement for at least another 10 years.
Shamsuddin, however, said it would be unrealistic not to put a cap on the retirement age.
"Setting it at 60 is reasonable. And if they are still healthy and productive even after that age, they can be considered for employment, perhaps on a contract basis."
A study undertaken by IG among would-be retirees in 2006 revealed that the majority hoped to work until 65, with some even wanting to work until they are 70.
Retaining older workers, Jariah said, would also benefit employers as they could mentor new workers and impart their skills, knowledge and wisdom.
She said it is also a myth that older workers were perceived less favourably by employers.
"In a survey conducted in 2006, almost 80 per cent of older workers were perceived by human resources personnel as being capable, skilful, knowledgeable, calm, trustworthy and decisive.
"Only about 20 per cent cited negative traits such as disobedience, tendency to take sick leave often, difficulty in adapting to new situations and being inflexible. But then again, these traits may also apply to young workers."
NST Online: Latest
