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Keeping retireable workers is a big mistake

The compulsory retirement age in our company is 60. However, our Chief Executive Officer has extended the employment of some retirement-eligible managers for an additional three years. Isn’t this unfair to their second-in-command? What’s your take? — Good Hombre

It’s a fair question. It’s the same question that employees are quietly asking behind closed doors. Indeed, some companies continue to retain employees well past official retirement age. Sure, these workers are loyal and experienced. But so is that dusty old computer in the corner, which takes 10 minutes to boot and requires constant updates.

Keeping retirement-eligible employees may seem harmless or even noble in some cases. The truth is — it does more harm than good. Therefore, sticking with “tried and tested” veterans can stall your organization’s momentum. So, at what point does experience stop being an asset and start becoming a bottleneck?

REAL RISKS
Let’s break down the real risks behind this corporate habit.

One, career bottlenecks are killing ambition. Keeping senior employees long past retirement age is like parking a bus in the middle of a one-lane road — no one behind can move. Ambitious younger employees see no upward mobility.

They’re forced to wait for promotions, key projects, or leadership opportunities that may never come. What happens? They disengage or, worse, leave.

Two, high cost, low return. Older employees are often the highest-paid in the organization, with generous perks and skyrocketing healthcare expenses. Keeping them on — whether through extended contracts or “consultant” titles — may feel like a compromise, but the financial drain remains.

Even if you pay them less, the emotional cost of blocking young talent is just as damaging.

Three, innovation gets stuck in the past. How many times have you heard this phrase: “This is how we’ve always done it”? This often becomes a mantra for those who are “forever” workers. While experience is invaluable, clinging to legacy systems and outdated processes is a sure way to kill innovation.

Today’s businesses thrive on AI, automation, and digital-first strategies. If the retireable leaders don’t understand or resist these changes, your company won’t survive the next disruption.

Four, productivity declines with age. Age brings wisdom — but also fatigue, slower reflexes, and higher chances of burnout. Physical jobs become harder. Even desk jobs can suffer when mental sharpness begins to fade. Increased absenteeism due to health issues adds to the burden.

Do the math: Less output, more downtime, higher insurance premiums. Not exactly a winning formula.

Five, knowledge hoarding is real. One of the most common justifications for retaining older employees is their “irreplaceable expertise.” That’s only half the story. Many senior employees guard that expertise like a dragon guarding its treasure.

Unless there’s a structured mentorship system in place, that knowledge never gets passed on. The day they finally retire, the company loses decades of wisdom in one exit interview.

Six, generational tension hurts team culture. Different generations bring different work styles — and sometimes, those differences clash. Younger employees are often digital natives who thrive in collaborative, fast-paced environments.

Older workers may prefer hierarchy, predictability, and manual processes. When these preferences collide, it creates tension, slows teamwork, and poisons workplace culture.

Seven, succession planning gets delayed. Succession planning isn’t just an annual exercise. It’s about preparing tomorrow’s leaders today. But if today’s leaders never leave, the next generation never gets a shot.

When retirement-eligible managers overstay, it delays the process of grooming successors. And when these veterans finally go, there’s often no one ready or willing to take their place.

Eight, missing out on fresh talent. The workplace is evolving — and so is the workforce. Gen Z and Millennials are bringing fresh ideas, tech fluency, and new perspectives. But if your team is clogged with employees who refuse to exit gracefully, you’re leaving no room for this talent to flourish.

Imagine trying to update your smartphone apps while still using a Nokia 3210.

Nine, declining employee engagement. When younger workers see no career progression, their engagement drops like a rock. They’ll do the bare minimum, collect their paycheck, and scroll LinkedIn during work hours — on the company Wi-Fi, of course.

You’re not just slowing down innovation — you’re actively driving your brightest minds toward the exit door.

Ten, older workers burn out faster. Not all senior employees want to stay. Some just can’t afford to leave. They’re working out of fear, not fulfillment. And that leads to disengagement, cynicism, and burnout. A burnt-out employee, no matter how talented, isn’t leading anyone anywhere. They’re just coasting toward the inevitable.

THE BOTTOM LINE
Holding on to retirement-eligible workers may seem like an act of loyalty. But in today’s business climate, it’s more often a liability. It’s not about ageism or disrespecting decades of service. It’s about making room for new leadership, bold innovation, and sustainable growth.

Business is about staying competitive, not indulging nostalgia. Evolution requires turnover. If your organization can’t let go of yesterday’s heroes, you won’t create tomorrow’s legends. Leaders must face reality: Experience isn’t always the best teacher if it prevents the next generation from learning. Companies that grow are those that groom — and trust — their future leaders.

That can only happen if top management knows when to disengage with old workers.

 

Ask questions and receive Rey Elbo’s insights for free. E-mail elbonomics@gmail.com or DM him on Facebook, LinkedIn, X, or via https://reyelbo.com. Anonymity is guaranteed.

How the internet and its bots are sabotaging scientific research

STOCK PHOTO | Image by Kjpargeter from Freepik

There was a time, just a couple of decades ago, when researchers in psychology and health always had to engage with people face-to-face or use the telephone. The worst-case scenario was sending questionnaire packs out to postal addresses and waiting for handwritten replies.

So we either literally met our participants, or we had multiple corroborating points of evidence that indicated we were dealing with a real person who was, therefore, likely to be telling us the truth about themselves.

Since then, technology has done what it always does — create opportunities for us to cut costs, save time, and access wider pools of participants on the internet. But what most people have failed to fully realize is that internet research has brought along risks of data corruption or impersonation which could be deliberately aiming to put research projects in jeopardy.

What enthused scientists most about internet research was the new capability to access people who we might not normally be able to involve in research. For example, as more people could afford to go online, people who were poorer became able to participate, as were those from rural communities who might be many hours and multiple forms of transport away from our laboratories.

Technology then leapt ahead, in a very short period of time. The democratization of the internet opened it up to yet more and more people, and artificial intelligence grew in pervasiveness and technical capacity. So, where are we now?

As members of an international interest group looking at fraud in research (Fraud Analysis in Internet Research, or Fair), we’ve realized that it is now harder than ever to identify if someone is real. There are companies that scientists can pay to provide us with participants for internet research, and they in turn pay the participants.

While they do have checks and balances in place to reduce fraud, it’s probably impossible to eradicate it completely. Many people live in countries where the standard of living is low, but the internet is available. If they sign up to “work” for one of these companies, they can make a reasonable amount of money this way, possibly even more than they can in jobs involving hard labor and long hours in unsanitary or dangerous conditions.

In itself, this is not a problem. However, there will always be a temptation to maximize the number of studies they can participate in, and one way to do this is to pretend to be relevant to, and eligible for, a larger number of studies. Gaming the system is likely to be happening, and some of us have seen indirect evidence of this (people with extraordinarily high numbers of concurrent illnesses, for example).

It’s not feasible (or ethical) to insist on asking for medical records, so we rely on trust that a person with heart disease in one study is also eligible to take part in a cancer study because they also have cancer, in addition to anxiety, depression, blood disorders, or migraines and so on. Or all of these. Short of requiring medical records, there is no easy answer for how to exclude such people.

More insidiously, there will also be people who use other individuals to game the system, often against their will. We are only now starting to consider the possibility of this new form of slavery, the extent of which is largely unknown.

ENTER THE BOTS
Similarly, we are seeing the rise of bots who are pretending to be participants, answering questions in increasingly sophisticated ways. Multiple identities can be fabricated by a single coder who can then not only make a lot of money from studies, but also seriously undermine the science we are trying to do (very concerning where studies are open to political influence).

It’s getting much more difficult to spot artificial intelligence. There was a time when written interview questions, for example, could not be completed by AI, but they now can.

It’s literally only a matter of time before we will find ourselves conducting and recording online interviews with a visual representation of a living, breathing individual, who simply does not exist, for example through deepfake technology.

We are only a few years away from such a profound deception, if not months. The British TV series The Capture might seem far-fetched to some, with its portrayal of real-time fake TV news, but anyone who has seen where the state of the art now is with respect to AI can easily imagine us being just a short stretch away from its depictions of the “evils” of impersonation using perfect avatars scraped from real data. It is time to worry.

The only answer, for now, will be to simply conduct interviews face-to-face, in our offices or laboratories, with real people who we can look in the eye and shake the hand of. We will have travelled right back in time to the point a few decades ago mentioned earlier.

With this comes a loss of one of the great things about the internet: it is a wonderful platform for democratizing participation in research for people who might otherwise not have a voice, such as those who cannot travel because of a physical disability, and so on. It is dismaying to think that every fraudster is essentially stealing the voice of a real person who we genuinely want in our studies. And indeed, between 20% to 100% of survey responses have been found as fraudulent in previous research.

We must be suspicious going forward, when our natural propensity as amenable people who try to serve humanity with the work we do, is to be trusting and open. This is the real tragedy of the situation we find ourselves in, over and above that of the corruption of data that feed into our studies.

It also has ethical implications that we urgently need to consider. We do not, however, seem to have any choice but to “hope for the best but assume the worst.” We must build systems around our research, which are fundamentally only in place in order to detect and remove false participation of one type or another.

The sad fact is that we are potentially going backwards by decades to rule out a relatively small proportion of false responses. Every “firewall” we erect around our studies is going to reduce fraud (although probably not entirely eliminate it), but at the cost of reducing the breadth of participation that we desperately want to see.

THE CONVERSATION VIA REUTERS CONNECT

 

Mark Forshaw is a professor of Health Psychology at Edge Hill University. Jekaterina Schneider is a research fellow of Sport Psychology at the University of the West of England.

How PSEi member stocks performed — July 31, 2025

Here’s a quick glance at how PSEi stocks fared on Thursday, July 31, 2025.


Infrastructure spending expected to accelerate after election pause

CONSTRUCTION WORKERS continue work on the Skyway project at the corner of Quirino Avenue and Osmeña Highway in Manila. — PHILIPPPINE STAR/RYAN BALDEMOR

INFRASTRUCTURE spending is expected to pick up in the third quarter after a pause during the run-up to the May elections, the Department of Finance (DoF) said.

“We expect that to pick up in the third quarter,” Finance Undersecretary and Chief Economist Domini S. Velasquez said on the sidelines of an event on Thursday.

The Department of Budget and Management (DBM) reported that spending on infrastructure and other capital outlays declined 9.2% to P123.8 billion in May.

In the first five months, spending fell 0.6% to P417.5 billion.

“The lower outturn was mainly attributed to the lagged effects of the election-related prohibition on public spending that in turn affected the disbursement performance of the Department of Public Works and Highways (DPWH) for its road infrastructure programs,” the DBM said in its disbursement report.

The Commission on Elections’ 45-day ban on public works spending started on March 28 and ended with the May 12 elections.

Budget Secretary Amenah F. Pangandaman has said that disbursements are expected to pick up in late May.

Meanwhile, Nigel Paul C. Villarete, senior adviser on public-private partnerships at the technical advisory group Libra Konsult, Inc., said a spending slowdown due to adverse weather is a “regular occurrence” and accounted for each year.

The government weather service, known as PAGASA, is forecasting up to 16 cyclones between August and December.

“However, we should not look at these negatively as these are regular and expected outcomes of our electoral processes and the occurrence thereof were already included and incorporated in the program and project planning of the various agencies of our government,” Mr. Villarete said via Viber.

The government has set a target for public infrastructure spending of 5%-6% of gross domestic product.

According to the Budget of Expenditures and Sources of Financing, the government is hoping to spend P1.54 trillion on infrastructure in 2025. — Aubrey Rose A. Inosante

Exporters left in the dark after Marcos silence on 19% tariff

PRESIDENT FERDINAND MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

By Justine Irish D. Tabile, Reporter

EXPORTERS said President Ferdinand R. Marcos, Jr. did not outline a government plan to deal with increased US tariffs in his fourth State of the Nation Address (SONA).

Foreign Buyers Association of the Philippines (FOBAP) President Robert M. Young said that exporters had been expecting the SONA to signal relief measures after US President Donald J. Trump announced a 19% tariff on Philippine goods, two percentage points higher than the initial rate announced in April.

“The whole thing to us is still opaque. When I say opaque, there’s no clarity,” he said in a phone interview, noting that government officials are giving off mixed signals regarding the conclusion of the reciprocal trade agreement.

“That’s why we expected him to say some comforting words,” he added.

He said exporters were hoping for forms of assistance that will “lessen their selling price.”

The Philippines and the US recently concluded talks on reciprocal tariffs, which are due to take effect on Aug. 1. The Philippine rate gives it little or no advantage over regional competitors like Indonesia (19%) or Vietnam (20%).

He expressed fears that the tariff will render Philippine goods unattractive, with consumers “instead picking commodities from Vietnam, Bangladesh, and Indonesia, among others,” he added.

He said there is some leeway to cushion the blow against exporters, such as tax reductions or holidays and subsidized customs and port fees.

“Right now, the sentiment is that nobody is pushing for this kind of remedy,” he added, noting the absence of “assurance from the government that we are here to assist you in any way.”

He said clear direction from the government will not only provide comfort to exporters but also to buyers.

“When they hear these kinds of comforting words, their trust level will also increase, which will be good for us, as that will push them to somehow continue (dealing with us),” he added.

BCDA approves new BSP complex in Clark

BASES CONVERSION AND DEVELOPMENT AUTHORITY (BCDA)

THE Bases Conversion and Development Authority (BCDA) said it approved the development of the New Bangko Sentral ng Pilipinas (BSP) Security Complex in New Clark City.

In a statement, the BCDA said the move to Clark from the current security complex site in East Avenue, Quezon City is intended to decongest Metro Manila.

The new 31.3-hectare BSP Security Complex in New Clark City will “accelerate countryside development, stimulate job creation, and strengthen our institutions for generations to come,” BCDA President and Chief Executive Officer Joshua M. Bingcang said.

The detailed design phase is scheduled to conclude by August, while the procurement process to appoint a general contractor is expected in December.

“The facility will ensure uninterrupted BSP operations during disruptions such as natural disasters,” the BCDA said.

“The long-term lease agreement with BCDA, effective for 50 years and renewable for another 25, provides a stable base for BSP’s operations outside Metro Manila,” it added.

It expects the construction of the new BSP facility to generate demand for housing and services when it starts operations.

“This movement of skilled workers and their families will invigorate the local economy, generating new demand for housing, retail, transport and public services in Tarlac and nearby provinces,” Mr. Bingcang said.

The BCDA has broken ground on an 900-unit affordable housing project in New Clark City. Further units will be offered after the first phase.

“The BSP Complex is being designed for Leadership in Energy and Environmental Design (LEED) certification, ensuring world class standards in energy efficiency, climate resilience, and environmental performance,” the BCDA said. — Justine Irish D. Tabile

VAT filing deadline extended for foreign digital providers

STOCK PHOTO | Image by andrespradagarcia from Pixabay

THE Bureau of Internal Revenue (BIR) said it extended the deadline for filing value-added tax (VAT) returns for non-resident digital service providers to Aug. 5.

In a Revenue Memorandum Circular on Thursday, the extension applies to VAT returns and payments for the second quarter.

The original deadline had been July 25 but was later moved to July 31 in the wake of widespread flooding in many parts of the country last week.

“If the extended due dates fall on a holiday or non-working day, the filing of the VAT returns and payment of VAT due thereon shall be made on the next working day,” it said.

The government imposed a 12% VAT on digital services consumed in the Philippines on June 1. President Ferdinand R. Marcos, Jr. signed the digital services VAT law in October.

The Department of Finance (DoF) has said that the government will generate P102.12 billion in revenue from the VAT between 2025 and 2028. — Aubrey Rose A. Inosante

P5-B Lemery, Batangas logistics hub completed

SINISIANPORTANDINDUSTRIALPARK.COM

THE P5-billion Sinisian Lemery Batangas Port & Industrial Park (SLBPIP) has been completed and will start commercial operations this Friday, the park’s CEO said.

“We are now fully operating and actively serving our locators,” SLBPIP’s Ferdinand Co said in a statement.

The facility’s three components are a port, a cement silo, and a fuel depot.

“Development of the park began after the pandemic and was fast-tracked last year. Strategically located in Sinisian, Lemery, the hub offers convenient access for trade and logistics,” Mr. Co said.

“The port can accommodate both international and domestic vessels with a maximum size of 50,000 deadweight tons,” SLBPIP said.

“As a hub for import, export, and transshipment, SLBPIP also features bulk storage facilities for cement, oil, chemicals, and other petroleum products, as well as warehouses for storing bulk cargo,” it added.

Meanwhile, a group company, Lemery Cement Silo Tank Corp., operates storage facilities for cement, oil, chemicals, and petroleum products and warehouses for bulk cargo.

With a capacity of 2 million tons of cement and slag a year, Lemery Cement supplies Portland cement, blended Portland cement, and granulated ground blast furnace slag.

“We specialize in delivering high-quality cement and slag, ensuring durability and strength for all your construction needs,” Mr. Co said.

Another group company, Lemery Oil Terminal Corp., operates the fuel depot, which will serve independent oil and fuel importers. — Justine Irish D. Tabile

Gov’t scientists develop ASF rapid test kits

REUTERS

THE Department of Science and Technology (DoST) said it collaborated in the development of technologies that will speed up the detection of African Swine Fever (ASF) in hog farms.

The Industrial Technology Development Institute, an arm of the DoST, developed a rapid DNA extraction kit known as TUSLOB and a real-time detection kit known as VIPtec that will speed up Polymerase Chain Reaction (PCR) testing on samples.

TUSLOB can also be used to detect other animal diseases and is optimized for point-of-care testing, according to the DoST’s Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD) said in a statement.

VIPtec, meanwhile, is optimized for use with portable PCR machines, making it suitable for on-site diagnosis of ASF.

The test kits were developed under the Virology and Vaccine Research Program funded by DoST and overseen by PCAARRD.

The DoST also announced the first domestically developed Mobile Biocontainment Laboratory by BioAssets Corp.

The laboratory is designed to support rapid response to potential outbreaks and improve disease surveillance at the point of need, PCAARRD said. — Kyle Aristophere T. Atienza

Telcos say Konektadong Pinoy bill should be returned to Congress

THE Philippine Chamber of Telecommunications Operators (PCTO) again cautioned President Ferdinand R. Marcos, Jr. against signing the Konektadong Pinoy bill, warning that it could cause the Philippines to breach its treaty obligations.

It added that the proposed law could cause the government to violate the terms of franchises held by incumbent telecommunications operators.

“If a law has some flaws, an IRR (implementing rules and regulations) really cannot cure what flaw that law has in its entirety. We ask again if it is possible for the President to consider our plea that it be sent back, redrafted to include our inputs,” Smart Communications, Inc. Head of Regulatory Affairs and PCTO Vice-President Roy D. Ibay told Money Talks with Cathy Yang on One News on Thursday.

During the program, Information and Communications Technology (ICT) Secretary Henry Rhoel R. Aguda said his department remains confident that the measure will be signed into law.

“It has been a very busy two weeks for the President. But… we are just waiting for the official announcement to proceed with the next activities,” he said.

The Senate and House of Representatives ratified on June 9 the bicameral conference committee report on the Konektadong Pinoy bill.

The PCTO has said that while it supports the measure’s objective of expanding internet access, it warned that the version passed by the bicameral conference committee could create national vulnerabilities and weaken regulatory oversight.

“Aside from national security concerns, we feel that it introduces a lot of unfair rules,” Mr. Ibay said, noting that one section of the measure talks about technology and neutrality while favoring the presence of satellite providers.

“In (the Konektadong Pinoy bill) it says that the satellite providers do not even have to register and just file their agreements with the DICT and do not even have to coordinate as regards to spectrum,” he said.

This provision violates the International Treaty on Radio Regulations, Mr. Ibay said, noting that the Philippines adheres to the International Telecommunication Union (ITU), which governs frequency use.

“The ITU provides that any satellite should do local coordination with the regulator. But in this law, it is absent, it does not provide that,” Mr. Ibay said.

In June, the PCTO sought a review of the Konektadong Pinoy bill, warning that some provisions could undermine regulatory oversight and pose risks to national security and fair competition.

Mr. Ibay said that the transitory provision of the Konektadong Pinoy bill provides that duly enfranchised players will retain all their rights and privileges except those concerning data transmission.

“They removed our rights and privileges over whatever inherent provisions that’s contained in our franchise… This bill now governs data transmission. That is unconstitutional because a franchise is already considered a property right. Removing this, this inherent, granted, and already enjoyed privilege of franchise holders will now be rendered ineffective under the new Konektadong Pinoy bill,” he said. — Ashley Erika O. Jose

Marcos orders support measures for exporters

BW FILE PHOTO

THE Department of Trade and Industry (DTI) said President Ferdinand R. Marcos, Jr. has ordered it to undertake measures to support exporters.

Trade Secretary Ma. Cristina A. Roque said the support activities include providing targeted market intelligence, facilitating business matching, and organizing international trade missions.

“Amid global challenges like geopolitics and supply chain issues, Filipino businesses continue to find ways to grow and compete. Their strength helps boost our export performance,” Ms. Roque said in a statement on Thursday.

Citing the Philippine Statistics Authority, the DTI said merchandise exports in June grew 26.1% to $7.02 billion, led by mineral products, machinery and transport equipment, gold, manufactured goods, and coconut oil.

The US remained the Philippines’ top export destination accounting for $1.21 billion or 17.3% of the total. Other top markets were Hong Kong and Japan.

Export Marketing Bureau Director Bianca Pearl R. Sykimte attributed the strong export performance in the US market to the “accelerated deliveries by exporters in anticipation of potential tariff adjustments.”

“While this contributed to the June surge, it also underscores the importance of diversifying our export markets,” she said.

“We are actively working to support sectors that are heavily reliant on the US by opening new trade avenues and strengthening our presence in emerging and strategic markets,” she added. — Justine Irish D. Tabile

ODA portfolio rises 6% to nearly $40B in 2024

The South Commuter Railway is part of the 147-km North-South Commuter Railway network. — BW FILE PHOTO

THE active official development assistance (ODA) portfolio rose 6% to $39.6 billion in 2024, the Department of Economy, Planning, and Development (DEPDev) said.

In its ODA Portfolio Review Report, the DEPDev said ODA consists of 426 loans and grants, with infrastructure development driving the bulk of new commitments.

Overall, 111 loans supported 93 programs and projects of the government, it said.

“New loan commitments on infrastructure drove the increase, with nine of the 17 fresh loans worth $8.2 billion supporting the Marcos Administration’s Infrastructure Flagship Projects (IFPs),” it said.

Aside from the new loans, the portfolio includes 76 ongoing loans ($23.32 billion), 17 closed loans ($5.70 billion) and one cancelled loan ($4.48 billion).

Economy Undersecretary Joseph J. Capuno said the closed loans were mostly related to pandemic response and social protections while the cancelled one was for the Bureau of Customs Modernization Project.

“This is the highest total ODA amount recorded in a decade,” Mr. Capuno said at a briefing.

Some 62.7% of the portfolio involved transport and connectivity infrastructure.

The Japanese government remains the top development partner, with $13.23 billion in active commitments across 82 loans and grants.

It was followed by the Asian Development Bank ($11.05 billion), the World Bank ($8.64 billion), other sources ($2.96 billion), the Asian Infrastructure Investment Bank ($2.38 billion), and South Korea ($1.34 billion).

Among the recently completed projects were Phase III of the Arterial Road Bypass in Bulacan and the Panguil Bay Bridge in Lanao del Norte.

Mr. Capuno noted several recurring issues causing project implementation delays, including budget and fund flow problems, which affected 29 projects.

“Among the major concerns here include non-inclusion of some proposed projects in the 2024 GAA (General Appropriations Act), or their reclassification to unprogrammed allocations,” he said.

Site conditions and availability issues affected 26 projects. The issues include delays in land acquisition, right-of-way, and unresolved expropriation cases.

Procurement-related challenges affected 25 projects, including bid preparation delays, failed bids, and weak planning.

However, 43 projects were identified as “at-risk,” most of them being implemented by the Department of Public Works and Highways (DPWH) and the Department of Transportation (DoTr).

These include the Cebu Bus Rapid Transit Project, the Support to Parcelization of Lands for Individual Titling (SPLIT) Project, the Philippine Seismic Risk Reduction and Resilience Project and the Metro Manila Subway Project Phase I.

Mr. Capuno said ODA will continue to serve as the primary source of financing for government projects, even as the country gradually transitions to upper middle-income (UMIC) status.

“As we move toward UMIC classification, there is a grace period during which we can still access concessional loans from our development partners,” Mr. Capuno said, adding that the government will increasingly explore public-private partnerships. — Aubrey Rose A. Inosante