Impacts on Human Resource practices:3
Labor and skilled labor shortage:3
Managing an aging workforce:5
Fair employment practices and recruitment policies:5
Training, development and job’s design:6
Flexible working practices and outsourcing7
Changing attitudes within organizations7
Word count:2,087 words
Managing the Aging Workforce today is one of the important topics for the world’s organizations. The increasing average life expectancy of populations does not only affect economic, social systems of countries and communities, but also has a strong impact onthe business activities of enterprises.The demographic changes rapidly will not only hitcountries such as United State, the Western European countries, Australia, or Japan, but also the upcoming countries as China, Singapore or Hong Kong. There are more than two million Australians aged 65 and over, and the number will double in the next 40 years. In Hong Kong, 11 percent of the population is 65 or older and this will increase to 25 percent in less than 30 years. Japan, with 20 percent of its population aged 65 years or over, has become the world’s most aged society, and this, combined with its extremely low birth rate means its population is projected to shrink by 20 percent over the next 50 years. Europe too faces similar demographic problems. By 2020 more than one in three adults will be at least 60 years old. (Raymond, 2010). How do organizations anticipate their workforces and even jurisdictions may change due to a potential increase in employee retirement? Therefore, the purpose of this report is to discuss the impacts that an aging workforce could have on Human Resource (HR) practices. Further, as a member of the HR Team, the report also would approach issues to ensure organization’s productivity and effectiveness is not compromised.
Impacts on Human Resource practices:
Labor and skilled labor shortage:
Recently we have heard the phrase “Aging Workforce”, so what is aging workforce? According to IPMA – HR (International Public Management Association for Human Resources), the aging workforce points to the baby boom generation that generally defined as individuals born between 1946 and 1964, will typically become eligible for retirement and begin to retire in higher numbers over the next few years. As a result of this, the entering workforce will not be able to fill the vacancies causing a labor shortage. In addition, many of the baby boomers working in organizations today have leadership or specialized positions. Hence, the loss of aging labor force with work experiences, valuable knowledge will have a negative impact on businesses and organizations. Even worse case for organizations when the baby boom generations retire is the loss of institutional knowledge, especially about mission critical procedures and processes, only compounds the aging workforce issue further. Even when the organizations supervise employees eligible to retire, it can still be difficult to predict when the employee actually retires. Demographic changes with low birth rate, leading to the baby boom generations is getting older and more baby boomers are likely to retire in the next three or five years. The loss of significant number of employees through retirement would likely a major impact, especially for small business or employees are already stretched beyond their regular roles. Image a situation when a business loses 20 percent of its labor force in a short time. While the business plans strategy to attract new talent to fill the vacancies, current employees undertake additional tasks and responsibilities to close gaps and maintain operations. So, whether the efficiency and productivity of business is maintained and ensured? In addition, the average time to fill a vacancy depends on many factors such as how important position is, specialized and management skills required. About one...