Shionogi & Co., Ltd. is expected to introduce a system that effectively abolishes the retirement age, re-employing employees through age 65 while maintaining their salary levels. Internal and external free-agent systems will also be introduced, alongside efforts to reform operations using AI.
Shionogi & Co., Ltd. is considering and is expected to introduce a system that effectively abolishes the retirement age. The company plans to raise the retirement age to 65 and establish a system allowing employees to continue working as regular employees if they wish to do so and have the necessary capabilities. No upper age limit is expected to be set, and the achievement of job targets is expected to serve as the evaluation criterion for continued employment. This represents a shift away from the current retirement age of 60 and is premised on maintaining salary levels upon re-employment. Internal and external free-agent systems will also be introduced, enabling cross-functional assignments and dual employment that makes use of employees’ expertise.
At the same time, Sony, Hitachi, Ltd. and Teijin have indicated plans to introduce free-agent systems, as developments at other companies. This could expand employees’ options and increase flexibility in the labor market. Public data on the employment of older people shows that the proportion of companies setting the retirement age at 65 or older is rising, while the number of companies abolishing retirement-age systems is also increasing.
The review of retirement-age systems is being viewed as a move to ease rigidity in the labor market. Examples such as the YKK Group’s abolition of its retirement age in 2019 have prompted consideration of maintaining salary levels independently of age and shifting to job-based employment. Against the backdrop of increasing substitution of work by AI, the view is emerging that a fundamental redesign of personnel systems will become an increasingly important requirement of corporate strategy.