Image Source : AI Generated

Revamping Senior Employee Benefits: Japan’s Brokerage Firms Take the Lead

As Japan’s workforce ages, securities firms are leading the way by boosting pay and perks for employees aged 60 and above. These initiatives aim to retain invaluable expertise and address critical labor shortages while fostering a culture of inclusivity and growth.

Summary

• Leading Japanese securities firms, including Daiwa Securities Group and Nomura Holdings, are increasing salaries and benefits for employees aged 60 and above to retain their expertise in a rapidly ageing society.
• Daiwa Securities raised senior employee pay by 15% over the last two years, while Nomura Holdings extended benefits such as paid sick leave to match those of younger employees.
• Organizations recognize the critical role of senior employees in navigating challenges like labor shortages and retaining institutional knowledge.
• A report by the Keidanren business lobby advises aligning remuneration with performance and responsibilities to keep older employees motivated.
• Japan’s labour shortage is projected to worsen, making the retention and redeployment of senior employees essential for business sustainability.

In Japan’s rapidly ageing society, the expertise and experience of retirement-age employees are becoming invaluable assets. Recognizing this, leading securities firms such as Daiwa Securities Group and Nomura Holdings have implemented significant pay hikes and enhanced benefits for their older workforce. These measures not only address the country’s acute labor shortage but also reflect a broader societal shift towards valuing the contributions of senior employees.

Why Retaining Older Employees Matters

Demographic Challenges

Japan’s population is ageing faster than any other developed country, with nearly 30% of its citizens aged 65 or older. This demographic trend, coupled with a declining fertility rate, has led to a shrinking workforce. Companies face mounting pressure to address this labor shortage creatively, and retaining older employees has emerged as a viable solution.

Why the UK needs older people trained in tech to answer the skills gap

Institutional Knowledge

Older employees bring a wealth of experience that is often irreplaceable. At Nomura Holdings, the ability of senior employees to provide insights based on past experiences, such as navigating high-interest-rate environments, is seen as a critical asset. These insights are particularly valuable for training younger employees and guiding strategic decisions.

Economic Implications

Redeploying senior employees not only helps mitigate labor shortages but also contributes to economic growth. According to Nobuhiro Maeda, a senior analyst at the NLI Research Institute, companies that fail to effectively utilize older talent risk stagnation or decline.

Measures Taken by Leading Firms

Daiwa Securities Group

Daiwa has increased the average pay for employees aged 60 and above by 15% over the past two years. This significant pay hike demonstrates the company’s commitment to valuing senior talent and addressing labor market challenges.

Nomura Holdings

Nomura has introduced several benefits for its older workforce, including extending paid sick leave and aligning these benefits with those offered to younger employees. The firm emphasizes the importance of a diverse workforce and acknowledges the unique skill sets that older employees bring to the table.

The 9 Essential Elements of a Thriving Workplace Culture That Attracts and Retains Top Talent

Recommendations for Broader Adoption

Align Pay with Performance

The Keidanren business lobby advises setting remuneration in line with performance and job responsibilities rather than age. This approach ensures that older employees remain motivated and feel valued for their contributions.

Flexible Work Arrangements

Flexible schedules and roles tailored to the strengths of older employees can further enhance their productivity. Part-time roles, mentorship positions, and project-based work are some examples.

Training and Upskilling

Providing opportunities for older employees to learn new skills or update existing ones can make them even more valuable. For instance, training in digital technologies or emerging financial tools can enable senior employees to stay competitive.

Health and Wellness Support

Offering comprehensive health benefits, wellness programs, and ergonomic workplace adjustments can help older employees maintain productivity and job satisfaction.

The Road Ahead

Japan’s ageing workforce presents both challenges and opportunities. Companies that proactively adapt to this demographic shift by valuing and retaining older employees will be better positioned to thrive in the long term. As labor shortages intensify, strategies that leverage the unique skills and experiences of senior workers will become essential for business sustainability and growth.

Conclusion

The initiatives by Daiwa Securities and Nomura Holdings to boost pay and perks for retirement-age staff are commendable steps towards addressing Japan’s labour crisis. By setting an example, these firms highlight the untapped potential of older employees. For Japan’s economy to continue growing amidst demographic challenges, businesses must embrace a culture that values experience, promotes inclusivity, and adapts to the needs of an ageing workforce.

Disclaimer: This article is for informational purposes only. While efforts are made to ensure accuracy, readers should verify information and seek professional advice as needed.