Editorial | Hong Kong firms need to rethink mandatory retirement ages in today’s world
- Keeping on valuable workers longer can benefit both parties in a city that is grappling with talent shortage
In most offices across Hong Kong, companies have set mandatory retirement ages, pushing veteran employees out the door when they hit 60, or in some firms 65. As that corporate milestone approaches, it is often time for an uncomfortable conversation with an employee who feels they have fuel for many years left in the tank.
The rule and process can feel arbitrary, even discriminatory.
That alone should be enough reason for companies to reconsider the policy of putting employees out to pasture based solely on age.
A recent survey by the Hong Kong Chartered Governance Institute wisely suggests that companies with mandatory requirement ages rethink their policies and shift towards more flexibility in mutually agreed arrangements. When asked the appropriate age for employees’ retirement, the most common response was that employees should work as long as they are able to fulfil their duties.
Most said retirement should occur at 65 or later. The city has no statutory retirement age.
