65-year continued employment discussions are gaining traction, but large corporations are reportedly selecting specific roles and personnel for reemployment after retirement. Notably, production and technical positions are often reemployed, while research and administrative roles are frequently excluded.
According to a report published on August 28 by the National Assembly Future Research Institute, in-depth interviews with HR personnel from large retail and manufacturing companies revealed that the approach to continued employment after retirement varies based on job roles and workforce demand.
In manufacturing firms, reemployment typically occurs on a one-year contract basis, primarily for technical positions. Production roles are often extended through labor-management agreements, while the need to utilize accumulated skills and experience is a significant factor for maintenance roles. Conversely, reemployment for research and general positions is nearly nonexistent.
In the retail sector, some on-site staff at stores are reemployed after retirement, but office staff at headquarters are largely excluded. This indicates that the decision to continue employment after retirement is not solely based on age but is influenced by the company's workforce needs and the specific characteristics of the employee's role.
This selective reemployment approach is corroborated by a survey conducted by the Korea Employers Federation. The federation found that among 500 companies with 30 or more employees that are either operating or considering a reemployment system, 80.4% reported that they selectively reemploy workers based on their qualifications and necessity. This figure rises to 94.8% among companies with over 1,000 employees.
Differences also emerged by job type. Among all companies, 59.8% indicated they reemploy both administrative and production staff, but in companies with over 1,000 employees, 50% reported they only reemploy production staff.
The most critical criteria for companies when deciding on reemployment are 'job performance and work results,' accounting for 59.5%. This is followed by 'scarcity of skills and the need for knowledge transfer' at 44.8%, and 'physical and mental health status affecting job performance' at 43.8%.
There are calls for discussions on retirement age extension to align with actual workforce management structures in companies. The National Assembly Future Research Institute analyzed that as older employees work longer, they tend to maintain relatively high wages, which can delay promotions and job transitions. This situation could lead to increased labor costs, promotion bottlenecks, and reduced capacity for new hires.
Particularly, South Korea's seniority-based wage system has been identified as a structural factor exacerbating these burdens. Rather than merely extending the legal retirement age while maintaining the existing structure where wages and ranks increase with tenure, it is suggested that adjustments be made to reflect actual job responsibilities and roles in the wage and personnel systems.
As a result, it has been proposed that large corporations should mandate employment guarantees until age 65 while allowing for various continued employment methods, including reemployment. In the short term, companies should utilize reemployment to maintain employment while adjusting wages and working conditions to align with changes in job responsibilities. In the long term, the seniority-based wage and promotion system should be shifted to a role-based framework.
Jung Hye-yoon, a research associate at the National Assembly Future Research Institute, emphasized, "Employment stability for older workers, youth entry into the labor market, and sustainable workforce management for companies must be considered in designing these systems. Large corporations should diversify continued employment methods alongside guaranteeing employment until age 65 and adjust wage and personnel systems, while also implementing employment and reemployment policies for middle-aged workers outside the retirement system."
According to a report published on August 28 by the National Assembly Future Research Institute, in-depth interviews with HR personnel from large retail and manufacturing companies revealed that the approach to continued employment after retirement varies based on job roles and workforce demand.
In manufacturing firms, reemployment typically occurs on a one-year contract basis, primarily for technical positions. Production roles are often extended through labor-management agreements, while the need to utilize accumulated skills and experience is a significant factor for maintenance roles. Conversely, reemployment for research and general positions is nearly nonexistent.
In the retail sector, some on-site staff at stores are reemployed after retirement, but office staff at headquarters are largely excluded. This indicates that the decision to continue employment after retirement is not solely based on age but is influenced by the company's workforce needs and the specific characteristics of the employee's role.
This selective reemployment approach is corroborated by a survey conducted by the Korea Employers Federation. The federation found that among 500 companies with 30 or more employees that are either operating or considering a reemployment system, 80.4% reported that they selectively reemploy workers based on their qualifications and necessity. This figure rises to 94.8% among companies with over 1,000 employees.
Differences also emerged by job type. Among all companies, 59.8% indicated they reemploy both administrative and production staff, but in companies with over 1,000 employees, 50% reported they only reemploy production staff.
The most critical criteria for companies when deciding on reemployment are 'job performance and work results,' accounting for 59.5%. This is followed by 'scarcity of skills and the need for knowledge transfer' at 44.8%, and 'physical and mental health status affecting job performance' at 43.8%.
There are calls for discussions on retirement age extension to align with actual workforce management structures in companies. The National Assembly Future Research Institute analyzed that as older employees work longer, they tend to maintain relatively high wages, which can delay promotions and job transitions. This situation could lead to increased labor costs, promotion bottlenecks, and reduced capacity for new hires.
Particularly, South Korea's seniority-based wage system has been identified as a structural factor exacerbating these burdens. Rather than merely extending the legal retirement age while maintaining the existing structure where wages and ranks increase with tenure, it is suggested that adjustments be made to reflect actual job responsibilities and roles in the wage and personnel systems.
As a result, it has been proposed that large corporations should mandate employment guarantees until age 65 while allowing for various continued employment methods, including reemployment. In the short term, companies should utilize reemployment to maintain employment while adjusting wages and working conditions to align with changes in job responsibilities. In the long term, the seniority-based wage and promotion system should be shifted to a role-based framework.
Jung Hye-yoon, a research associate at the National Assembly Future Research Institute, emphasized, "Employment stability for older workers, youth entry into the labor market, and sustainable workforce management for companies must be considered in designing these systems. Large corporations should diversify continued employment methods alongside guaranteeing employment until age 65 and adjust wage and personnel systems, while also implementing employment and reemployment policies for middle-aged workers outside the retirement system."
* This article has been translated by AI.
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