Companies Should Level Up Training To Sustain Mature Workers’ Employment

• Employers cite training as their top choice in keeping mature workers employed.
• However, implementing flexible work arrangements is currently the top practice done by companies.
• Though flexible work arrangements are important, ensuring mature workers are provided training is also key for companies to sustain competitiveness, and ensure mature workers’ employability.

The National Trades Union Congress (NTUC) and Tsao Foundation found that employers regard implementing training plans as the most effective way to ensure employability of mature workers and to extend their career runway. This was a key insight surfaced in a recent collaborative research study, titled ‘Population Ageing and Slowing Workforce Growth ^', commissioned by both organisations.

According to the Ministry of Manpower, 27 per cent of today’s resident labour force are workers aged 55 years old and above¹ . By some estimates, for every worker exiting the workforce, there will only be 0.7 local workers entering in 2030 ². This means the ageing of the local workforce is set to accelerate. At the same time, business models, technologies and processes are changing rapidly.

With the ageing workforce, possibly shrinking resident labour pool and lower training participation of mature workers, companies may struggle to stay competitive and sustainable.

In the survey conducted by NTUC and Tsao Foundation from July to August 2023 encompassing 601 C-suite level executives, hiring managers, and HR managers across 16 industries, 25 per cent³ of employers identified training as the most effective human resource strategy, making it their top choice. This is followed by flexible work arrangements (17 per cent) and health and wellness support (14 per cent) (Refer to Annex A, Chart 1).

A Gap Between Perceived and Practised Strategies Poses A Threat To Both Mature Workers And Employers

While implementing a training plan is regarded by employers as the most effective way to ensure the employability of mature workers, it is not the top practice adopted by companies. In the same survey, when asked about the measures currently practised in their organisations (with the option to select multiple responses), a majority of employers chose flexible work arrangements (selected by 48 per cent of respondents), while training plans ranked 6th (selected by 28 per cent of respondents) (Refer to Annex A, Chart 2).

This discrepancy between perceived and practised strategies presents a threat to both mature workers and employers; and underscores the need to bridge the gap between recognising the importance of training and its practical application. While flexible work arrangements are important and widely adopted, addressing the disparity in implementing training plans can contribute to a more comprehensive strategy to ensure sustained employment for mature workers.

For companies to sustain competitiveness, they must ensure every worker, regardless of age, possesses the necessary knowledge and skills for the job — more so for mature workers. For workers to have a reasonable and realistic prospect of working longer, they must have the skills needed by the company. Otherwise, the job-skill mismatch will lead to lose-lose outcomes for both sides.

Recommendations

Thus, NTUC and Tsao Foundation recommend enhancing awareness campaigns and outreach programmes to the community, targeting both employers and employees. The goal is to educate employers and the public about the value and capabilities of mature employees.

There also has to be sufficient and comprehensive content in training programmes, to mitigate a mismatch in training programmes and companies’ needs and expectations. This includes reviewing existing training curriculums, ensuring that training providers and employers have an agreement on the level of expertise required for certain roles, and conducting regular reviews to stay updated on changing expectations and demands.

NTUC also urges companies to press on with implementing flexible work arrangements and job redesign to accommodate the diverse needs and experiences of mature workers. To support these efforts, companies are urged to leverage the comprehensive assistance provided by NTUC's Training & Placement Ecosystem, along with various Government grant programs, to subsidise both consultancy and implementation costs.


Five-Year MOU between NTUC and Tsao Foundation

NTUC Assistant Secretary-General and Strategy Director Patrick Tay and Tsao Foundation Chief Operating Officer Bita Seow signed a five-year Memorandum Of Understanding (MOU) today at a symposium for mature workers held at NTUC Centre. It was witnessed by NTUC Secretary-General Ng Chee Meng and Tsao Foundation Deputy Chief Executive Officer Dr Paul Ong.

The symposium, titled ‘Silver Talent: Strategies for Empowering and Retaining Mature Workers’, aimed to provide a platform for a diverse group of industry experts and stakeholders to share insights and strategies on how organisations can better support and leverage the skills and knowledge of mature workers.

The MOU aims to delve deeper into the issues faced by mature workers and see the two organisations collaborate on two key areas:

        a. Two research studies to enhance mature workers' employability and improve the understanding of mature workers’ value to employers
         b. Two sandbox projects to showcase best practices or innovative ideas related to mature workers

NTUC Secretary-General Ng Chee Meng said, “We hope to build on the insights we gathered from our Every Worker Matters Conversations. This has allowed us to understand the concerns and aspirations of our mature workers better. Together with Tsao Foundation, we want to create a future where every mature worker feels valued at work. To our mature workers, you are a valuable resource, and we want businesses to tap on your knowledge and experience. By doing so, we can bridge the workforce gap and mutually gain from the valuable experience that you bring to companies."

Tsao Foundation Chairperson Dr Mary Ann Tsao said, “Increasing longevity and the 100-year life is a reality brought by hard earned societal progress, and with falling fertility rate and fewer younger people, it behooves Singapore to rise to the challenge and for all stakeholders - employers, workers and policy makers - to innovate new approaches so all can benefit from the extra decades of life.”



¹Source: Ministry of Manpower, "Labour Force in Singapore 2023". Pg 6, Para 2.8 https://stats.mom.gov.sg/iMAS_PdfLibrary/mrsd_2023LabourForce.pdf
²Source: Kok Ping Soon, “Reimagining Productive Longevity,” Ethos, Issue 20 (2019): 6. Pg 10. https://file.go.gov.sg/ethos-issue-20.pdf
³Source: NTUC and Tsao Foundation Survey of C-suite level executives, hiring and HR managers across 16 industries (July-August 2023), N=601