Benefits and Challenges of Having an Elder Workforce for Business Organisations

Human Resource
Management

Contents
1. INTRODUCTION.......................................................................................................................1
2. CONTEXT...................................................................................................................................1
3. BUSINESS CASE.......................................................................................................................1
3.1 Benefits of having an elder workforce...................................................................................1
3.2 Challenges of having an elder workforce..............................................................................3
4. RECOMMENDATIONS.............................................................................................................4
5. REFERENCES............................................................................................................................7

1. INTRODUCTION
As a result of increasing health care facilities and decrease in death rates and birth rates, life
expectancy of people living in United Kingdom has increased that has led to an ageing
population and a shift in the age demographics inclined towards elder generation. In the
following report, an attempt is being made to determine and evaluate the benefits and challenges
associated with having an elder workforce for business organisations. The report also aims to
provide some recommendations that can assist business managers in managing and developing
an elder workforce.
2. CONTEXT
An increase in the healthcare facilities has led to an increased life expectancy resulting into
an ageing population. Number of people aged above 65 years in United Kingdom is expected to
witness a growth of approximately 40% in the coming 20 years (The state of ageing, 2019).
Since the birth rates are relatively low in comparison with the increased life-expectancy and
ageing population demographics, a lack of supply in younger generation to replace the elder
workforce is evident. One of the most recent trends influencing the labour market in United
Kingdom is the increasing participation of elder people and it has made imperative for business
managers to develop effective strategies to hire and maintain an elder workforce (Labour supply
and ageing workforce, 2015). Employing elder workforce has become a necessity considering
the changes in age demographics and the labour market demand and supply.
3. BUSINESS CASE
Taking into consideration the changing age demographics and the anticipated rise of an
aged-population in the coming years, it has become essential for business managers to engage
into strategic workforce planning. Benefits and challenges of maintaining an elder workforce for
business organisations are being assessed as follows:
3.1 Benefits of having an elder workforce
Employing and retaining elder people in the workforce has many benefits for any business
organisation which are being evaluated as follows:
High rate of retention: Maintaining an elder workforce has a very significant impact and
influence on the retention rate of a business organisation. With the help of retaining elder people
in workforce, a company is able to substantially improve its employee retention rate which has
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