Did you know that the retirement age for women in China is 55? There are many articles on the challenges of the ageing population in China, including pressures on the pension system. However, just because someone officially retires doesn’t mean they cannot continue working; in fact, many workers are at the peak of their careers at this stage.
Therefore, at Kinyu, we believe the pool of retired talent in China is massively overlooked and can bring a wealth of experience and flexibility to the table — particularly for The China Desk clients. In this article, we outline the benefits that you, as a foreign company with a China supply chain, can take advantage of.
China’s Boomer Generation?
China’s retirement age for men is 60, while women retire at 55 for office workers and 50 for blue-collar workers. So, people retiring today were typically born in the mid-1960s to early 1970s — a time coinciding with the Cultural Revolution. During this period, China’s birth rate was near its peak (7.2 in 1963 and 6.5 in 1968, according to World Bank data). As the Cultural Revolution ended in 1976, this generation would have benefited from education reforms and policies aimed at opening up the country, spearheaded by Deng Xiaoping in the 1980s.
This generation also avoided the one-child policy implemented in 1979, although this would later impact their family planning. Their time in the workplace coincided with the economic and manufacturing boom that China experienced in the 1990s and its accession to the WTO in 2001.
Therefore, they could be described as China’s boomer generation, in more ways than one! Here are the key benefits of engaging someone of this age for your China team:
- Cost Savings Through Social Insurance
One significant advantage of hiring retirees is the cost savings associated with social insurance contributions. Unlike younger employees, retirees and their employers are not required to contribute to social insurance, resulting in approximately 30% savings on labour costs. This financial benefit can significantly impact your bottom line, allowing for a more efficient allocation of resources.
- Flexibility and Understanding
Retirees often exhibit high levels of flexibility and a willingness to work in part-time roles or on a consultancy basis. They bring a mature perspective to the workplace and show understanding when the employment arrangement does not align perfectly. Additionally, their extensive industry experience enables them to provide valuable insights and mentorship to younger team members.
- Experience
For those in manufacturing, they will have contributed to building infrastructure in China that has enabled it to become a key country in global supply chains. Their first-hand experience and deep understanding of the industry will make them invaluable assets for any supply chain team.
Seasoned professionals possess a unique ability to challenge suppliers on quality and production plans. Their wealth of experience enables them to identify potential issues early on and implement effective solutions. By leveraging their expertise, companies can improve supplier relationships, enhance product quality, and streamline production processes.
- Nurturing Future Talent
To effectively harness the benefits of retirees, we recommend engaging them on a part-time basis and pairing them with a more junior team member. This approach facilitates knowledge transfer and skill development, ensuring continuity and sustainability within the supply chain team.
Unlocking Talent with The China Desk by Kinyu
Finding suitable retirees with the appropriate expertise can be challenging. However, The China Desk by Kinyu, specializing in supply chain and manufacturing functions, has curated a talent pool of experienced professionals. By leveraging our expertise, you can access top-tier talent tailored to your specific business needs.
If you want to know more about how The China Desk can benefit you, download a case study or book a call with us today!
