Challenges of Demographic Change and Workplace Diversity

FOUNDATION OF HUMAN
RESOURCE
MANAGEMENT
Contents

1
Introduction................................................................................................................................1
Issue............................................................................................................................................1
Three challenges.........................................................................................................................1
Five HR practices and policies to address these challenges......................................................2
Conclusion..................................................................................................................................3
References..................................................................................................................................3

2
Introduction
Since companies these days are crossing borders to reach to another part of the world. At the
same time companies are also hiring staffs from different cultural backgrounds. This is
creating issues related to workplace diversity (Riccucci, 2018). Another major problem with
this is the fact that the demographic condition of the world is changing and this change is
creating new kinds of challenges for the HRM. This report will discuss the three challenges
caused by the demographic changes and workplace diversity and also the policies that can be
made by the HRM to reduce this problem.
Issue
In most parts of the world, demographics are changing especially when it comes to the age. It
is usually termed to be as he aging society. Since companies require new ideas to be coming
in the organisation they want labourers that are young and have a very different kind of
approach to their work. In this time companies cannot rely heavily on their old employees at
the same time companies are also compelled to make proper retirement plans for them. In
some parts of the world, aging society has created in scarcity of employees (Chuang, 2013).
The best example of it is construction industry where this scarcity is at the top as this industry
requires young labourers. Due to this, companies are extending the retirement age of their
employees but it is not an effective approach. At the same time there is also increase in the
workplace diversity as people from different parts of the world are working with each other.
At the same time, there is an increase in the numbers of women employees in different
industry. This has created challenges related to management of workplace diversity.
Three challenges
Many researchers believe that in the coming time the issue of demographic change and
workplace diversity will become one of the biggest threats to the companies (Guillaume, et
al. 2017). Among the various challenges posed to different companies three biggest
challenges that confront the organisations due to demographic change and workplace
diversity are:
 Managing the balance: An organisation requires both young and old employees. This
is because the young employees have the new ideas while the old employees have
experience. It is the blend of ideas and the experience of understanding the situation
that gives success to any firm. Since the major part of the population is ageing hence