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Hello, everyone.

And welcome to the discussion on aging workforces.

I'm using a new medium to reach out to you

all. I'm using Prezi and tthe e ah, lecture is

divided into 3 15 minute presentations.

First, we'll talk a little bit about aging workforces.

Ah, and why?

Ah, it's an issue which concerns government, employers and other

stakeholders. So we'll talk a little bit about how demographics

are changing age demographics are changing around the world.

Ah, second, we'll talk a little bit about the public

policies behind this s o how have government Ah, and

other institutions responded to this.

And what pressures did they put on organizations to adopt

certain approaches to managing the age profile of their workplaces?

And then finally, we'll talk a little bit about the

HRM implications and five broad areas of HR policy which

are affected by aged workforces.

So just click on the 1st 1 of thes to

talk a little bit about aging workforces, eso, the aims

and objectives off the discussion today is first to understand

the reasons behind the demographic challenge.

So I'll talk talk through that a little bit.

Ah, in this presentation Ah, how different types of pension

systems. Ah, and employment regimes then govern the approach that

organizations might take the age implications for the main stakeholders.

Ah, in work government businesses and individual workers.

Ah, And then finally, some discussion about some of the

practical solutions toothy issue.

So if we start off with the first question is

toe, why is age diversity?

Ah, an important issue.

Ah, well, demographic age demographics are changing and they've been

changing for quite a long time.

Ah, this is partly due to the fact that families

are ah becoming smaller over time.

Ah, people are having fewer Children Ah, than they have

in the past.

But mostly it's about people living longer.

Ah, this is in many ways, a good news story.

It reflects the fact that people are living not only

longer lives and before, but healthier lives.

Ah, So whereas maybe about 30 40 years ago, the

process effect of working ah, in tow one sixties and

seventies Ah, was something that sense sounded to be quite

a dismal Ah um future for many people, for many

now, uh, who are in the kind of jobs that

where they might be able to ah, stay economically active

is a little bit more of a positive.

Um ah, prospect.

There have been many surveys which have been carried out

of older workers, which suggests that so long as some

adjustment can be made to their work, the kind of

work that they're doing their working hours, um, the activities

behind this than most people would be willing to consider

some delay.

Ah, in their retirement.

Of course, that's not the case with everybody.

You still have a lot of people who are in

very physically demanding difficult jobs and a lot of people

who are in work longer because they have to.

They don't have enough, ah, financial savings.

They don't have a good enough pension to retire, and

therefore they're compelled toe work longer.

They're also big issues when it comes to ah, the

impact on businesses, especially if the part of the population,

which is economically inactive ah, starts to starts to grow.

And, of course, if people are living longer, but retirement

ages stay where they are than, ah, you'll see a

gradual growth in the economically inactive, uh, part of the

population. This has very big implications for businesses in the

state in terms of, for example, the affordability and the

sustainability of pension systems, but also very big labor market

implications as well.

Ah, if more people are leaving work permanently, they than

employers might face, for example, skill shortages.

Ah, and labor shortages.

And you you are already seen Ah, in certain sectors

Ah, that impact Ah, organizations desperate to find people toe

work in their businesses because there just aren't enough that

people, uh, who are available for recruitment.

Ah, finally there some issues when it comes to intergenerational

fairness, trying to find a good equilibrium to balance the

interests of older workers and younger workers, both in terms

of a fair ah, retirement and pension system.

Ah, If people are retiring too early, then there might

be, Ah, young people might feel some pressure in some

burden in terms of how much they have to save

and how much they have to contribute to, ah, to

pension systems, but also in terms of intergenerational fairness, when

it comes toe work, if older workers air staying and

work longer.

Ah, what you don't want to see is a situation

in which they're crowding out young people and young people

don't have access to high quality, secure work which everybody

older, younger might want.

So what causes population changes will, of course, longer lives.

Ah, has a very big impact.

Ah, fertility has an impact as well.

Ah, there are also some social factors such as migration

Ah, and changes in family composition.

Ah, you could see in very big countries forget like

like in China.

Ah, quite big differences in age profiles different parts of

the country because young people are moving to where the

jobs are.

Ah and um And And this means that in some

areas, like, say, the Shengjun area, uh, or in export

processing zones ah, you'll see quite a young profile.

And it's also reflected in institutions like ah, access to

health care.

It's an education Ah, and so forth.

You also see migration on an international scale.

Ah, and people moving between countries, which then has a

very big impact on the age profile, uh, of the

countries where people leave and people are and countries where

people are going to.

So what's happening in terms of the profile off the

the demographic profile of the world?

Ah, well in ah Africa and Asia.

You see a very sharp incline in the number of

people. Ah, in these to contact continents.

Ah, Asia is a somewhat of a kill your situation

which will get onto a moment in a moment.

But Europe, North America Ah, and other parts of ah,

the western sphere, you see?

Ah, fairly study population.

Ah, and this exacerbates.

Ah, the ah changes in age composition because you don't

have as many young people Ah, entering the workforce toe

offset those who are going into retirement.

What's happening in Asia will, of course, that's a reflection

of, ah population change in China and the impact of

wth e one child policy on ah population numbers.

And even though ah, the one child policy has been

relaxed Ah, the impact of that relax ation isn't going

to they send in some time.

The implication, therefore, is that although China is a younger

ah age profile than Europe and ah, North America Ah,

it's it's aging at a much faster rate.

Ah, and it's coming to the period in which, uh,

something some measures will need to be taken.

Ah, much quicker than thin in, um in the American

North America and ah and Europe.

Ah, so you can also see some changes in age

profile in terms of short term changes such as, Ah,

the ah, the increase in fertility after World War Two.

Ah, what we call the baby boom generation reflects the

fact that a lot of, ah, there was an increase

in ah in birth rates in the 19 fifties.

In the 19 seventies and 19 eighties, this had a

positive economic impact because you had more people who were

entering ah, the workforce and were able to set sustained

a smaller ah, um ah, age demographic got population.

Now, of course, the baby boom generation are entering retirement

and you have a relatively smaller part of the population

which needs to sustain Ah ah, that group.

Sometimes we talk about this in terms of dependency ratios

in other words, the proportion of the economically inactive population

relative to the economically active part of the population.

Usually, we just define ah, the economically act tive ah,

population as between the ages of 15 and 65.

Although both sides can be adjusted a little bit based

on the education system of the country, the retirement age

and so forth.

And of course, there's some fluidity.

Um, both sends not everybody.

Even in a country where you have a mandatory retirement

age of, say, 65 you won't necessarily have everybody retiring

at exactly that age.

Ah, Now what you see here in this ah, in

this table this comes from the World Bank is that

there's a wide range of, um, dependency ratios around the

world. You have some countries like, say, Ethiopia that have

very high dependency ratios, but they reflect the fact that

it has, ah, very young population.

Families are still ah, relatively large.

So, um, the economically active part of population needs to,

um provide for a large number of Children.

But then you also have countries like, say, Japan, where

the youth population is relatively small.

But you have a lot of older people Ah, who

are in retirement.

Ah, who the economically active part of the population then

needs to provide for Ah, a lot of the other

countries are somewhere in between.

Of the United States, the u K ah, all European

countries are older populations.

Ah, and then you have some countries in which ah,

the economically active part of population is growing.

Ah, because families air getting smaller.

Most countries go through something that we call the demographic

window. This is the period in which countries move away

from the Ethiopian situation in which you've got ah, very

large young population.

Ah, and the economically active part of the population is

starting to grow.

Ah, so there's more people in the workforce than before.

Ah, eventually the country comes to a tipping point and

it starts to resemble something that's more similar to Japan.

In other words, ah, those who are in retirement are

starting to grow.

That period in between is known as the demographic window.

It's that period of time in which businesses, government unions,

other stakeholders can start to prepare Ah, for an aging

population. Ah, it's often called a once in a lifetime

opportunity because barring some catastrophic ah currents in the country

ah population the the the older population will continue to

grow Ah, to offend infinity.

Ah, And without some changes in public policies such as

retirement ages, so too will the economically inactive ah, part

of the population.

Ah, when did countries go through?

Ah, that demographic window Well for Europe in North America.

It happened before they realized that there was a demographic

issue. Ah, as well Talk about in the next section.

Ah, in Western Europe, up until the turn of the

millennium Ah, government and employers had an early retirement culture.

North America, Not so much.

Ah, you have relatively higher.

Ah, retirement ages and pension ages, but still Ah, it's

an aging.

It's an aging population.

And the implications, therefore, is that for a country going

through, ah, the demographic window.

It's that once in a lifetime period in which the

country can learn from the experiences of countries like Ah,

the United States and European countries to adopt ah HR

practices to prepare, prepare for aging workforces in the next

section will talk a little bit about that.

The public policy implications of, um, er of preparing for

those changes in age demographics

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