Management Consulting

In Hong Kong, Aon conducted a pivotal study focusing on the challenges faced by employers in retaining older employees amid a significant talent crunch. The study revealed that 44 percent of employers recognized an increased need to retain older workers, particularly as the labor force shrank to its lowest level in a decade due to net emigration and ongoing COVID-19 restrictions. This situation prompted many organizations to reconsider their retirement policies, with 56 percent of employers contemplating raising the retirement age to preserve the valuable experience of their workforce. To address these niche issues, Aon recommended that organizations invest in tailored employee benefits that include flexible retirement options and financial wellbeing support. This approach not only demonstrates a commitment to valuing experienced talent but also aids in agile succession planning and the retention of key skills. The study highlighted that 34 percent of employers were already providing additional support related to retirement and financial wellbeing, while 17 percent offered ex gratia payments, such as cash bonuses or gifts, to retiring employees as a gesture of appreciation. The results of Aon's study underscored the importance of effective communication and the need for sufficient flexibility in retirement practices to optimize the engagement of older employees. By focusing on these areas, organizations can enhance workforce resilience and productivity, ultimately driving better outcomes in talent management and organizational objectives, such as increasing diversity and gender representation in leadership roles.