Is it true that businesses like to fire older workers to reduce payroll and avoid 'demands'?

If older workers are doing a good job, have high productivity, and are suitable for the position… then there is no reason to fire them. Because businesses always need stability, development, and business efficiency.

Mr. Tran Lam, founder of Julyhouse and Macaland (standing), working with company employees - Photo: NVCC

"Laying off older workers because of high salaries, stagnation, many illnesses, many demands... On the contrary, recruiting young workers because of low salaries, enthusiasm, docility, and agility." That is an opinion expressed by Tuoi Tre Online readers, from the story of the difficulty in finding a new job after a long period of unemployment that the newspaper recently published.

In fact, are businesses proactively laying off older workers for these reasons?

Why fire someone who is doing well?

Sharing with Tuoi Tre Online , Julyhouse and Macaland founder Tran Lam said this issue must be viewed from both sides.

If older workers are doing a good job, are productive, and are suitable for the position, there is no reason to fire them. Businesses always need stability, development, and business efficiency.

"On the contrary, if the work is ineffective, that person will certainly be targeted soon. Of course, this is not a story or problem only for older workers, because if they are not productive, young people will also be fired," said Mr. Lam.

Mr. Dao Tan Dien, CEO of Bona Export Joint Stock Company, also shares the same view that workers and employees should only be fired when and only when that person is not suitable for the position, job or has low work performance.

According to Mr. Dien, having to lay off workers, especially older workers who have been with the company for a long time, is a difficult decision. This directly affects the culture, corporate ethics, and the psychology of other workers.

In the event that it is necessary to consider dismissing an older employee, there should be a clear process. Steps such as announcing the restructuring plan and issuing new (specific and clear) competency criteria should be taken.

It is necessary to propose a new position, a new salary that is suitable for the company's capabilities and the employee's ability. The final step, if the person does not agree, is to terminate the labor agreement.

Mr. Tran Manh Chi, Deputy General Director of Dong Tay Property Company (front row in the middle) with Dong Tay Property Company's staff - Photo: NVCC

Is hiring young people because they are easy to teach, agile and low paid?

Mr. Tran Manh Chi, Deputy General Director of Dong Tay Property Company, also shared the view that employees should not be fired due to age if they work effectively.

Mr. Chi believes that the real estate industry that he is working in is more specific. Changes and elimination of personnel occur continuously. It is true that young personnel are more enthusiastic and sensitive. In return, older workers with more experience will be more courageous and will not give up easily when facing difficulties.

"In the real estate sector in particular, young people are proactively grasping trends, knowing how to apply technology, and taking advantage of social developments to develop their careers," said Mr. Chi.

Young workers are considered agile, enthusiastic, have good ability to apply technology and know how to take advantage of the development of social networks - Photo: CONG TRIEU

Giang, a reader of Tuoi Tre Online , believes that the biggest mistake of small and medium enterprises is poor human resource management. A person with seniority will be full of experience. They can do the work of 3-4 young people combined.

On the other hand, older workers are always calm, meticulous, and have higher quality work handover.

"But businesses like to use young staff at low cost to optimize profits. In the long run, there is a risk of not being able to win big contracts, not being able to improve the quality of services and products, gradually losing customers and dying out. Everyone will reach middle age at some point. No matter how old you are or what position you hold, as long as you are diligent and study to improve your skills, you will not have to worry about unemployment," said reader Giang.

Fair and effective in performance-based salary evaluation

Mr. Tran Lam, founder of Julyhouse and Macaland, also said that in his company, there is no such thing as salary payment based on age or seniority. There are allowances based on each position and responsibility, but they come with higher demands and greater responsibilities.

"Everything is based on the amount of work and labor efficiency, so there is no such thing as doing less and getting more. Of course, those who work more and achieve good business results will have high salaries. Ensuring fairness and efficiency," said Mr. Lam.

Source: https://tuoitre.vn/co-that-doanh-nghiep-thich-sa-thai-lao-dong-lon-tuoi-de-giam-quy-luong-tranh-yeu-sach-20250215151430813.htm