Review Article: 2021 Vol: 24 Issue: 6S
Teeraphat Kitjarak, Phetchabun Rajabhat University
Sirimas Muensai, Chaopraya University
The current research aims at examining policy formulation guidelines towards elderly employment in developing countries, through document analysis. Investigation of Thailand’s employment policies indicated that the government should promote voluntary employment among the elderly workers, without the private sectors’ force. The government should also support them to have rights, tax incentives, as well as organization royalty. The findings correspondingly display appropriate employment patterns: re-employment, extending retirement age, flexible employment, and informal labor employment. To formulate elderly’s compensation policy, the following dimensions must be taken into consideration: (1) suitability of the elders’ occupation, vacancy, and job characteristics, (2) employment traits, wage rate, benefits, welfare, and proper work conditions, (3) opportunity for getting a job, earning fit wage rates related to the job description, and (4) policy recommendations. Lastly, to create job opportunities for rural area elders, the policy should concentrate on consistency between the elders’ job and their community needs and context. Clubs and different occupation groups should be progressed to upskill the elders. More importantly, the policy better encourages career guidance oriented by state and private agencies, network associations, and self-employed individuals.
Policy Formulation, Elderly Employment, Guidelines of Elderly Employment
The term ‘ageing’ means becoming older at least 60 years of age. The United Nations (UN) defined ‘older workers’ as males and females aged over 60 years exceeding, since birth. The certain term is, however, vaguely stated by WHO (World Health Organization. 2002). An underlying reason is that worldwide countries label the term ‘ageing’ contrarily by ages, society and cultures, and functional markers (Thanakwang & Soonthorndhada, 2006). For example, some developed countries categorize those whose age exceeding 65 years as ‘elders’; the elders in some other countries are retired at 50, 60, or 65 years of their age (Haque, et al., 2017)
On September 25th, 2015, the UN assembled the Sustainable Development Goals (SDGs), which were certified by 193 nations, as a blueprint to developing all nations and Thailand moving toward 2030 (International Longevity Centre Brazil, 2015). In SDGs, 17 global goals contribute to
1. No poverty
2. Zero hungers
3. Good health and well-being
4. Quality education
5. Gender equality
6. Clean water and sanitation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry, innovation, and infrastructure
10. Reduce inequality
11. Sustainable cities and communities
12. Responsible consumption and production
13. Climate action
14. Life below water
15. Life on land
16. Peace and justice strong institutions
17. Partnership to achieve the goal
As well as supporting aging society within a country and internationals. The UN verbalized the ‘United Nations Principles for Older Persons’ for all super-aged nations as an action plan in International Labor Organization (ILO) conventions and recommendations. Older Worker Recommendation, 1980 (no. 162), proposed by ILO, identifies different measures in lessening employment difficulties on older workers’ performances, through the ten principles of the UN Global Compact and Guiding Principles on Business and Human Rights. Those are derived from four main aspects: human rights, labor, environment, and corruption. Ala-Mutka, et al., (2008) suggested that global goals should be employed as inputs. It will shelter all dimensions of sustainable development in which ageing people play a conditionally key part.
Objectives
The main objective of this research is to study policy formulation guidelines for ageing workers in developing countries.
Review Literature
In this part, guidelines of policy formulation determined for elderly workers in foreign countries are presented. The following messages briefly describe how each country takes vital actions in directing elderly employment. Eight example countries consist of Japan, South Korea, the United States of America, the United Kingdom, Singapore, Germany, Finland, and Canada.
1. Japan has the highest proportion of elderly citizens of any country in the world, and it is preparing to solve a sort of population trouble, conscientiously. The country experienced an economic recession with many drawbacks that led to elders’ unemployment. In 1971, the Middle-age and Elderly Employment Promotion Act has been revised several times until it was finally set in the Act for Stabilization of Employment of Older Persons. This reformation emphasizes an association between the government and contributors. Implementation of the revised Act has increased a retirement age extension, legally at 60 and 65. Not only the government sector, but the private sectors also permit labor transfer between companies, situated in Japan, in two platforms. The first platform is called ‘Shukko’, in which labor is temporarily transferred to another company, but still a member of the old firm; oppositely, ‘Tenseki’ is the other transferring system which the labor is completely transferred as a new member of another company. Consequently, the retirement rate of the elderly workers is extended in a new workplace, before getting retired from the former firm (Rupavijetra, Chompikul & Rupavijetra, 2016).
2. Rate of ageing population in South Korea has rapidly increased. The Organization for Economic Co-operation and Development (OECD) expects that one-third of Korean citizens will reach 65 years of age in 2050. Numerous acts are then set for ageing society and the retirement age. Wage peak system (WPS) is, for instance, fixed to cut senior workers’ salary during several years before retirement, which makes employment more stable. Approval of allocating any quotas in hiring 55 years exceeding elders that South Korean firms perform is a kind of obliging voluntary project. Department of Employment and Ministry of Labor of South Korea also support elders’ employment. Developing non-governmental organizations is one of the Acts that provide Public Employment Service (PES) and health care. Retirement rates of the elderly employees working with private agencies are during the age of 55-57 years, which agrees with the National Pension System (NPS). Besides the elderly workers are motivated to work continuously and earn a salary when getting retired. In the long-term goal, the NPS appears stable for global labor groups. Likewise, a group of self-employed elders gains much attention from the government since it tends to give an alternative market path for the elders. These merchants are educated, financially supported, and systematically enhanced (Denhardt, 2000).
3. The United States of America becomes one of the primary world countries that forbid aged discrimination, outlined by the USA in the Age Discrimination in Employment Act (ADEA). The USA has established the Senior Community Service Employment Program (SCSEP) in providing part-time community service training positions to low-income persons age 55 and older. The Workforce Investment Act of 1998 assists elderly workers in job recruitment, financial support for training, and career preparation. It also offers assistance to unemployed individuals who are jobless due to importing market scramble or relocation threats of production (Zaidi, Gasior, Zolyomi, Schmidt, Rodrigues & Marin, 2017).
4. The United Kingdom is going through a big change in population structure: the proportion of working-age persons is smaller than ageing persons. The government thus legislated the Acts to protect elderly workers’ rights such as Employment Protection Law (EPL) and Employment Equality Law of 2006 and these are replaced later by The Employment Equality Act of 2010 and 2015. The government distributed guidelines for sustaining the elderly workers in the document entitled ‘A new vision for older workers: retain, retrain, recruit’, under its elderly policy. Furthermore, the government gives its priority to create service training in developing the elders’ knowledge and special skills on their career and driving those to run their private businesses. Lifelong learning plans are well-promoted. With cooperation among state government, trade unions, and employers, education service and CompuServe information service have been held in order to inform practical ways in developing careers and in enriching lifelong learning skills (Downing & Thackrey, 1971).
a. As well, the British government has assisted the shared elderly workers whose age over 50 years, financially and non-financially. Examples of the help include offering weekly expenses, giving vital advice about the job opportunity, preparing resumes, and planning job seeking and application. Private sectors also help to persuade the elders to run their own businesses. Loans are particularly for those who propose investment plans, or even those whose plans are rejected from financial institutions.
5. Similar to England, one-five of Singapore’s population will exceed the age of 65 in the later nine years. In 2010, the country, therefore, organizes the Senior Citizens' Executive Committee (EC) to preparing and seeking solutions for ageing citizens. One of the critical activities is to sustain employment and finance. Tax allowance is offered to any organizations and enterprises hiring elderly workers, either temporarily and flexibly. It retains the elderly workers to enlarge the retirement age in a few shortage professions. Physicians, nurses, and academicians perhaps get retired at 60 years, but recently the retirement age is expanded to 65. Additionally, various companies based in Singapore design new job descriptions and career training services for the elders, follow the Human Resources policy, as well as advance the system aiming at subserving and retaining the elderly workers.
6. Germany ranks the top country presenting explicit policies of extending retirement age and elderly employment. Currently, the retirement age of the country’s citizens is at 65.7 years, which is consistent with the growth of ageing people and low birth rates. The age of 17 million German people is approximately 65, out of 82 million in total. Due to advanced medication in Germany, mortality rates minimizes and the average of its citizens’ life span extends longer. Germany core policies used to manage the ageing society are as follows: revision of workforce regulations, the retirement age of senior and private officials, promoting seniors’ awareness towards necessity and profits of working after retirement, diminishment of early retirement, and enhancing manpower substitution with disabled persons to get life welfare as equal as normal individuals. In an aspect of financial policy, the government axes part-time elderly workers’ subvention in activating them to work full-time and to return to the common employment system (Zaidi & Stanton, 2015).
7. Finland, one of the fastest ageing populations worldwide, the government has started several training projects requested by the elderly workers: career professions, handicrafts, carpentry, cuisines, etc. The training provides the elders’ job opportunities, since those just quit their jobs, seeking new jobs, or even change the job. Concerning the maximizing rate of baby boomers, all different sectors suffer a shortage of laborers. The Finland government then legislated the law to delay the laborers’ retirement age, ranging from 62-68 years according to certain careers. Since 2008, Finland has approved the new labor law stating the retirement age of laborers to be extended to 68 years in some professions. The extension of the retirement age has not been, yet, eased the labor shortage. This is evident from several alien workers in medication, patient cares, agriculture, and hospitality industry professions. They can work with no age limits. Among ageing countries worldwide, Finland ranks the very top country which allows its workers to retire at the age of 68. It literally reflects that handling Finland's population and labor is tough work. Since the Finland government deducts early retirement’s welfare, it grounds a vital impact on renewing and expanding the workers’ age. Majority of retiring senior workers slow down their decision, and take time to reconsider in consort with to compare pros and cons of between continue working in another five years and early retirement. The government then cuts off some financial aids and social welfares (Boudiny, 2013).
8. Canada's population is in the midst of a fundamental shift. Among thirty-five million Canadians, there are an estimated five million of them that age remarkably 65 years. A group of exceeding 60 years-old people quickly bursts throughout the country. The tendency of Canadians’ population growth is satisfactory as to the increasing rates of ageing citizens meets the government’s expectation. Though the Canadian government has principally planned to get rid of labor shortage in the fields of hospitality, agriculture, and food manufacturing. To cope with these circumstances, the government has maximized the retirement age in accompany with authorizing foreign workers employment. For high-skilled vocations, the Canadian government has determined a sort of arranged employment, under the title ‘Federal Skilled Worker’ to reimburse the high-aged workers of the country. Directions of expanding the elders’ retirement age begin at the center to local areas. Most elderly workers, living in the city, tend to convey positive attitudes. (Nykiforuk et al., 2021).
In a nutshell, the above-developed countries are found to formulate the policies which prepare the country to move toward ageing society. Their policies commonly concern elderly employment, generating sustainable employment, elderly workers’ welfare system, and relevant laws. These can endorse their elderly individual's suitable employment, zero labor shortage, and bring the best out of elderly workers.
Regarding the research objective, documentary analysis was based. Documents from public and private sectors, research articles, and related textbooks were gathered to analyze and interpret the guidelines of policy formulation concerning ageing workers in developing countries. Data contributed to three aspects for scrutinizing: employment patterns drawn from international sides, notions of Thailand employment, and recommendations on employment forms, which are suitable for developing countries.
Investigation on the developed countries’ employment traits has been accomplished. Applying those to developing countries, identically Thailand, notions of policy formulation in employing the elderly workers are reported in different aspects as follows:
In an aspect of elderly employment, the Thai government should encourage voluntary employment without the private sectors’ force. In case that the government allows labor force in all any firms or enterprises, negative feedback will be thrown because of the public’s viewpoints and high cost of capital. Labor shortage should be resolved according to the market system, rather than the compulsory acts.
Considering the notion of supportive policy, elderly employment can reduce obstacles and prepare the country for the upcoming ageing period. It enables private sectors to adjust themselves differently. Thus, holding strongly on the compulsory acts can ruin a few businesses, and people will withstand it.
Hence, the Thai government should support other parts of the elderly employment such as offering tax benefits, raising the loyalty towards organizations extending the working life span, funding any relevant expenses of the extension, including engendering new job opportunities.
According to employment policy concepts of the foreign countries, patterns of elderly employment in Thailand can be featured as follows:
Re-employment is one of several forms that older laborers are called back to work formally, for example, the 55 years-old workers return to work after their retirement. They can get wages and welfares, as agreed in the contract. If those elderly workers are able to earn retirement pension, they will receive financial aids from the Social Security Fund and also new employment salary. The labors whose age does not exceed 60 years can re-apply the Found, but the duration of savings will be restarted. The contract will be newly made through the one-year contract and used as an instrument to assess the elders’ working performance. Principles of re-employment are, however, quantified by employers.
Retirement age extension allows elderly workers to continue their job. The enterprises or companies may determine a set of conditions to choose retiring labor who will get working span extended. This certain form of employment disables the elders to collect no interests from the Social Security Fund, due to holding insured status. Rates of payment and social welfares are probably not promoted. No pension is offered. Besides, this certain extension may be accompanied by transferred labors: for instance, transferring from the jobs demanding tons of labor to the job requiring minor laborers.
Another type of employment found is flexible employment, which discriminates employees from their firms or employers. This pattern engages in hiring informal workers, or simply self-employed individuals. Some of them take an individual piece of work, that needs competent workers. This type of employment can cut several formal laborers and public welfare off. It is special, yet it can control the work quality, outside the enterprises.
Elderly employment regardless of previous experiences is the other type found. The recent type enables self-employed persons, or informal workers to fully work. Considerations then fall on workers’ essential abilities that matter to the job. It is pointless to the enterprises in establishing training projects for the elderly workers, or else they may launch a training service to surge another simple skill for the new laborers.
Determining the policy on elders’ rate of payment, wages paid should be accorded to the following four points: (1) elderly workers getting appropriate career features, vacancy, and job descriptions, (2) gaining employment guidelines, rate of wages, benefits, welfares, and working conditions that fit the elders, (3) realizing older workers’ opportunity in getting a job and suitable payment regarding their job descriptions, and (4) giving policy recommendations to elderly employment.
Elderly working performance should be engaged in policy formulation, aiming at producing rural area elders’ job opportunities. Group participation should be geared up since it helps gathering and designing the database of all elders in districts and villages. Subdistrict Administrative organizations should trail multiple forms of employment that go consistently with the needs of the locality. Significant factors that increase rural area employment compose of: career orientations offered by state and private agencies, network extension, and working in the provincial council, private organizations, and Provincial Administrative Organization, an association between the government and private sectors in job creation, self-employed workers support, and organizing the PAO map to strengthen the elders’ working abilities.
Investigating established elderly employment policies among the developed countries above shows that attention and suitable policy regulations play noteworthy factors in preparing and bettering the countries from all super-aged community forms. This is what individual developing countries are facing lately. Regulating appropriate policies to older workers’ capabilities is thought-provoking. In Thailand, elderly employment systems are found vaguely. However, integration among all relative sectors, including employers and employees, should be realized. Industry and service sectors should formulate concrete principles, that are proper to the elderly workers, particularly payments, welfares, and working performance patterns. More supportively, the agriculture industry should employ the elder workers consecutively. This encourages sort of elderly workers to be occupied and earn incomes. Social capital as a fundamental resource should be also highlighted, in purpose that the elders can earn their own keep
1. Social capital resources should be considered as the determination of proper actions toward the elderly workers. The capital and the elderly workers’ abilities should be developed at a time. Results will further be applied for improving and regulating the policies which meet the ageing people’s ability. This can fully draw their effective capacity in work.
2. Policy formulation should sustain the elderly workers’ lives in terms of education, financial support, and savings, as well as legislative amendments.
3. Activities and health promotion should be elaborated in formulating the policies for older employees. It will help them adjust and be ready for various relevant departments.
4. Elderly’s knowledge and capability, as the basic social capital, should be employed productively. It will enhance and develop the elderly’s social engagement.
5. The findings should be implemented as guidelines for further studying areas and as determining elementary regulations for hiring the elderly in both state and private agencies. It can also include self-employed elders.
The researcher would like to express special thanks of gratitude to Phetchabun Rajabhat University that supported the research fund granted in the year 2019 as well as the Naresuan University Regional Ethics Committee that has been performed a research accreditation.