“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.
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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.