The workforce in developed economies is getting older. The graying of the baby boomer generation, coupled with declining birthrates, will exacerbate the war for talent. Most businesses
understand what this means, but few are developing, let alone implementing, creative solutions to address the issue. Companies must adopt HR strategies that reflect the ageing of the working population or they will find themselves at a competitive disadvantage. They need to analyse their workforce demographics to identify areas that will be affected by waves of retirement and develop strategies to fill the gaps. We call this approach Smart Workforce Management.
Smart Workforce Management requires a regular review of HR strategies and programs. First, companies should identify potential skill deficits. Next, they should look at the kinds of programmes that mitigate the shortages—e.g., better compensation and healthcare packages—or the introduction of flexible work arrangements and a corporate culture that values older staff. The productivity of the 50-plus generation is key to gaining a competitive advantage in the future.