Can we retain staff over the age of 60 in Malaysia?

Despite the fact that there are benefits to increasing the retirement age, stakeholders and experts concur that it may not be feasible in Malaysia. Among the worries are the increased difficulty of finding employment for the younger generation and the government's financial repercussions.

In lieu of raising the retirement age over 60, Datuk Dr. Syed Hussain Syed Husman, head of the Malaysian Employers Federation, recommended allowing employees above 60  to continue working depending on mutual agreement with their employer.

Employing older workers may appear to be an inescapable financial burden for some companies. Still, there are various advantages that, if correctly handled, can give your company a competitive advantage.

This article looks into the advantages of employing older people and how to recruit and maintain this significant talent pool.

 

Advantages of employing an older workforce

Investing in your older employees and trying to suit their lifestyles and reduce their accident risk can be incredibly profitable for your company.

Here are a few instances in which this may be advantageous:

• Leadership - Older employees exemplify a level of professionalism and work ethic that enables them to effectively lead less-experienced employees and set an example that can increase the productivity of your entire team.
• Experience - Aging employees have a plethora of valuable experience, both in the real world and on the job, which can translate to a broad range of skills and competence in a specific capacity.
• Mentorship - Many older employees embrace the opportunity to mentor younger employees, especially if it allows them to contribute in ways that are not physically taxing. This mentoring can increase the loyalty of younger employees and reduce training expenses.

 

How to retain staff over the age of 60 

Yes, the retirement age is 60, and please ensure that you part ways with them amicably by sending them a note thanking them for their years of dedicated service to the company. Perform all appropriate termination procedures, including disconnecting the systems (email) and removing their names from the payroll upon their separation from employment. Plan a farewell party, present them with a gesture of appreciation, and snap numerous photographs.

Then, give them a one-week break and allow them to become bored at home. Then, contact them and state that you wish to make an offer of employment on a fixed-term basis. Tell them to come to see you, and when they do, tell them how much you enjoyed having them as an employee. Do not include provisions such as contract renewal. Subsequently, offer them a one-year contract, with terms and circumstances that differ from those of your regular employees.

The terms cannot equal or exceed those offered to regular employees. Consider this individual a new hire. Do not use their former employee number or ID card. Everything must be perishable. You must register them with EPF and SOCSO. For instance, if regular employees receive 14 days of sick leave, 8 days of sick leave should be extended to contract employees who are retirees. Every time the contract expires and you intend to renew, ensure at least a seven-day gap before the new contract begins, and never mention that it is a renewal; treat it as if it were a new deal.

 

Important Keynote

Ensure the employee has used all his leave before the contract expires. If a leave balance is being carried over to a new contract, you could make the individual a permanent employee. On the last day of the agreement, no debt must be owed to the contractor, whether monetary or otherwise.

 

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