Managing the Aging Workforce (PDF)

Inhaltsangabe:Introduction:
In politics as well as in media and in social linguistic usage ¿aging society¿ is a meaningful term. Since many years sociological scientists are warning against the impact of the demographic change. This social problem confronts among others governments, municipalities, welfare services and especially the economy. On current trends in the middle of the century 39.5% of the German population will be older than 60 (UN population division 2008). People live a longer and healthier life and also birthrates significantly declined over the past 20 years. Even migration in developed countries like Germany can only slow down the aging process. Subsequently, there will be a reduction of the supply of labor and a dramatic change in the age- related composition of the workforce.
Businesses worldwide in developed countries are facing the challenge to manage the aging skilled workforce. Executives find out that their companies will encounter a wave of retirements in the next decade as the ¿baby boomers¿ of the post World- War II era reach retirement age. Simultaneously, the younger workforce has different expectations and work values than the older generation. Beside these trends businesses face losing significant numbers of experienced employees by retirement and with them lots of skills and qualification potential disappear. Thus, a substantial loss of knowledge will take place, if nothing will be done against it. In order to maintain competitiveness a ¿war of talents¿ will affect businesses worldwide. The battle for so called high potentials shows dramatically the consequence of the fact, that a skilled workforce will be the scantiest resource for a successful business.
1.1, Motivation and objectives:
Our aging society takes effect on all areas of life - on political, social and economical areas. Hence, the aging of the population affects the aging of employees in the companies. In spite of this knowledge, published many years ago, the personnel policy of most companies still orientates towards younger people as a potential workforce. Older employees often are discarded when they reach a certain age. A study conducted by Bertelsmann Stiftung found out that in 2002 about 10% employees of an age between 55 and 64 were unemployed. While innovation and competitiveness are related to the younger generation the older ones have to face prejudices against themselves. Decisions of personnel managers affecting older employees come along [...]