Lotte Mart`s `senior employees`

The self-employed have no retirement. The self-employed farmer, who holds one of the oldest jobs in human history, gets weaker and produces less he or she grows old. But it is no big deal if aged farmers are happy with less production and less spending. If they really need more output, they can work more. Today, however, many white-collar workers are fearful of life after retirement. It would be ideal if they could work more years for lower pay.

According to the Korea Labor Institute, the productivity of workers aged 55 or older is 80 percent more than that of workers aged 34 or younger, and the former group is paid three times more than the latter. The more experience one has, the better work is. This implies that pay grows faster than productivity. Unless this inconsistency is resolved, employers are tempted to fire older employees. Postponing retirement is even harder. The salary peak system, which guarantees employment in return for a lower salary after a certain age, was devised to solve such a problem. Only a few Korean financial and state-owned companies have introduced the system, which can take root only if both employers and employees make large concessions.

Working at a non-profit organization after retirement is one alternative but this applies to those without financial difficulty. The problem is those who need to make money after retirement given that the life expectancy is reaching 100 years. They are those who lack sufficient pension and have a gap of a few years between retirement and the start of their pension payments.

Lotte Mart, a major discount chain in Korea, plans to hire around 1,000 people aged 56 to 60. They will belong to the "senior employees group" until age 60, serving as an "online picker," or someone who selects goods ordered online and delivers them, or a cashier. When they turn 61, they will be “silver employees” in guiding customers, locating goods, and providing administrative assistance. They can work until 70. Lotte will start recruitment at 95 stores from Feb. 1. Hopefully, this type of corporate culture that cares for the elderly can spread to other companies.

Editorial Writer Heo Seung-ho(tigera@donga.com)