Impact of Aging Population in the Workforce

Impact of Aging Population in the Workforce

Introduction

The most common type of strategy that the business leaders apply in their organization is to improve the talent. With the help of the human resource department and the manager, there is a great possibility to achieve this dream. From the point of view of the business leaders, if the organization enables to secure the human capital, they can definitely acquire the competitive advantage against their competitors. Other than that, if the people are suitable for the nature of the business and managed to apply their skills on the procedure or in collaborating with the technical innovation, the continuous development can be achieved. For over the years, the value of the business leaders on the importance of their human capital never ceases. In fact, the continuous consultation on the labor market and professionals to increase the performance and competency of the workforce are suggested. However, same as the medicine that ill people buy in the pharmacy, the people they acquire for almost twenty years or more have to retire. And this implication of the aged employees creates a great impact in the entire workforce.

Challenges in the Workforce

Aside from the hindrances of the minimum level of competency and knowledge among the members of the workforce, another complicated issue that is in the center of the attention is the advancement of their age. Most of the reliable individuals based their expertise on their years of experience. Because of the different challenges that they endure and resolved for the past years, the respect and reputation is on them. But everyone cannot escape the additional age and according to the labor law, aged individuals should retire (Robson, 2001).

In the Philippines, the ideal age for a person retirement is 60. From that time, the benefits that he funded from his past services will be given back to him. Most of the successful organizations valued the importance of the seniors for they believe that their experience in handling the department is an advantage. But same as the concept of accounting, there is depreciation of human capital. The health care factor is the most influential factor that is on the workforce environment in the United States. Based on the different views of labor market, the aging population affects the nature of the skills and services in their work settings. The intensified requirement on their nature of work and the most common result is their failure to satisfy the increasing competitiveness on their profession.

Problems among Aged People

Seemingly, the most problem among the advanced member of workforce can be seen on their health. They sometimes notice their slow movement and back problems. In the area where there is a need of an intense approach for their job requirement, the aged people often felt different complications that lead to illness such as diabetes and/or heart ailments (CHWS, 2006). These health problems affect the performance of their work and it is very complicated when it reached to the point where there is no one available to take the responsibility. This area of processes will suffer from abandonment and might trigger to the losses of the organization. Another problem that might exist is the lack of knowledge of the aged people on the new technologies.

These changes within the workforce are delivered to the awareness of the organizational leaders wherein they must do a strategy to prevent the deterioration of their process and prevent too many losses (Davidson, Lepeak, & Newman, 2007).

Strategic Solution

An ideal human management is the application of the Japanese Management Technique. Basically, this strategy is only popular among the organizations in Japan but it was identified as an effective strategy for the human management. Clearly, this is different among the managerial styles that are popular in the West culture (Tippu, 2006). The focus of the management technique is to nurture the competency of an individual right before he hired. Meaning, the organization is looking for the promising individuals in the universities then after the graduation; they hire that individual and enhance his ability. If the organization used this type of managerial approach or gained too much luck in finding the right people, any business leader will not let the good fortune pass. As an approach of the leaders to the aging people in their workforce, they often hire them as a board member or shareholders, wherein their expertise in leading stays within the organization.

Conclusion

Every organization is concern in establishing a good employer-employee relationship. Through that relationship, the business leaders can suggest on the need for training and development and in return, the workforce can perform well according to their leaders’ expectancy. But because of the advancement in age, the new employees face a great challenge wherein they must equal the expertise of their senior members.

References:

CHWS, 2006. The Impact of the Aging Population on the Health Workforce in the United States [Online] Available at: http://www.albany.edu/news/pdf_files/impact_of_aging_full.pdf [Accessed 10 March 2010].

Davidson, G., Lepeak, S., and Newman, E., 2007. The Impact of the Aging Workforce on Public Sector Organizations and Mission, International Public Management Association for Human Resources [Online] Available at: http://www.ipma-hr.org/pdf/AgingWorkforce.pdf [Accessed 10 March 2010].

Robson, 2001. Aging Populations and the Workforce – Challenges for Employers, British-North American Committee [Online] Available at: http://www.cdhowe.org/pdf/BNAC_Aging_Populations.pdf [Accessed 10 March 2010].

Tippu, S., 2006. Time to Learn Japanese Management Techniques [Online] Available at: http://www.nihongobashi.com/about_us/announcements/iTWire.pdf [Accessed 10 March 2010].

 

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