Management of an Ageing Workforce: How Employers Can Deal with Related Challenges

Germany's population, and consequently its workforce is ageing. Fewer young people will enter the workforce and employers will be pressed to draw from an expanding pool of older people. As a consequence the working age population is projected to decline significantly; while the numbers of organisations depended on them will rise. At the same time, baby boomers are moving towards retirement and can not be replaced by middle-aged or younger workers. Facing impending talent shortages and a substantial loss of knowledge and experience, companies might have little choice but to implement new employment strategies. Regardless of specific industry conditions and circumstances the paper covers selected peripheral issues like attitudes and retirement intentions of older workers and the myths and stereotypes about them from a German perspective. It provides an overview of the German labour market, specifically the situation of older people, and how public policy has been responding to improve related conditions. Finally, minor and major interventions are presented to adapt human resource methods, work arrangements, and framework conditions. The paper is aimed to assist those who have the authority and responsibility to react, helping them to recognise what implications the ageing workforce will have on their business and showing them appropriate possibilities of how to adapt their organisations to the changing workforce demographics.