Risk management and considerations for an aging workforce - how can they work together?
Let's take an example: in the US today, a third of the working-age population are aged 50 or over. Twenty years ago only a fifth were in this age bracket. Moreover, in 2030, once the majority of the 'Baby Boom' generation has gone into retirement, more than 30 percent of the population will be aged 50 or over, which means that these demographic shifts are long-term. As it stands, lots of companies have not yet felt the effects of this demographic change, as it is still the case that many older employees take their retirement before reaching 65 years of age. However, increasing life expectancy and decreasing pension levels may mean that more of the older employees will have to work for longer in the future. We can see this trend happening already. Companies will not only be facing the question of how to replace the 'baby-boomers' who will be going into retirement in a few years’ time, but they will also have to adjust to the demands of an older workforce.
What can companies do to adjust to their workforce aging?
They need a sustainable strategy. To do this, however, companies must have a vision of how the demographics of their workforce might look in five or ten years. As many baby boomers will be reaching the age of retirement in the next few years, the central question now is how we pass down the older generation's know-how for the benefit of the younger generation. There are some measures that can be easily put in place to meet the needs of an aging workforce, such as adapting the workstation facilities and providing, for example, ergonomic chairs, height-adjustable desks or larger computer screens. There are also some issues that are not so easy to resolve in the short term. For example, what does the optimal combination of ages for a team look like: mixed or homogenous? Would it be possible in the future for younger employees to take on most of the night shifts? Would it be possible for older employees to change to a less physically demanding position within the company? Work processes may have to be restructured from scratch. Life-long learning is gaining in importance, but that means on the other hand that there have to be development opportunities for employees of all ages.
Do older people want more flexible working hours so they can enjoy more free time?
As one gets older the time factor certainly becomes ever more valuable, and many older employees would be willing to accept a smaller income if it meant being able to spend more time with their family or friends. In many cases, however, the reason for wanting more flexibility is in order to look after a relative in need of long-term care. In the USA in 2012, for example, of the 15 million people who were caring for a relative suffering from dementia (and not receiving remuneration), only a quarter were themselves at retirement age. Flexible working hours, or the granting of long-term care leave, could help towards considerably alleviating this double burden.