Age Diversity in HRM: Challenges and Benefits in the Modern Workplace

This essay delves into the critical aspects of Human Resource Management (HRM) concerning age diversity within the workplace. It acknowledges the evolving societal landscape and the necessity for organizations to embrace an age-diverse workforce to mirror the community's demands and maintain a competitive edge. The essay meticulously examines the benefits and challenges associated with employing qualified elderly workers, including issues such as age discrimination, increased disability levels, and healthcare costs. It highlights the increasing trend of an aging workforce and explores how organizations can navigate these changes by adopting effective HR practices. The discussion covers the dynamics of a multi-generational workforce, the importance of addressing potential intergenerational conflicts, and the need for managers to adapt their communication styles to accommodate different generations. Furthermore, the essay emphasizes the importance of training and development programs and the necessity for organizations to establish policies to prevent discrimination and resolve conflicts efficiently, ensuring equal opportunities for all employees. It also touches on the benefits of an engaged workforce, including reduced healthcare costs and increased productivity, and stresses the importance of retaining the expertise of older employees while recognizing the value they bring to the organization. The essay concludes by emphasizing the need for companies to offer competitive packages that cater to the different values and needs of employees across different generations, thereby fostering a harmonious and productive work environment.

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Introduction
In the changing environment scenario and as per the demands of the changing
community, the organizations need to employ an age diverse workforce who enables the
organization to reflect the demands and desires of the present society. In order to maintain a
competitive edge in the legal profession and for the clients for whom the organization represents.
There are various considerable benefits and challenges in utilizing the qualified elderly workers
in the workforce. The managers of the organization face a huge challenge having a diverse
workforce in the organization. Age diversity in the organization implies acceptance of all age
groups in the workforce. The upper management of the organization needs to put together a task
force which would help to identify the trend s and solutions that are required in the organization
to make the merger successful in the organization. The employees of the organization faces
various problems and issues as the workforce is age diversified. The issues that can be faced by
the organization includes the age discrimination, increased levels of disability, various health
care cost are described in the essay. According to the Government Accountability Office report,
the number of aged workers that is above the age of 55 is projected to increase in the next 20
years (Bayl‐Smith and Griffin 2014).. The essay identifies the human resource management
challenges and potential benefits of the organization that an age diverse workforce creates. It
describes the HR practices that may be adopted in order to manage the age diverse workforce. It
describes the ways in which the organization can meet the needs of the multigenerational
employees.

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Discussion
According to Boehm and Dwertmann (2015), the multi-generational workforce in the
organization can create various diverse challenges, benefits and rewards for the organization.
Having an age diverse and having five generations working side and side in the workforce of an
organization is a common phenomenon. Having age diversified workforce in an organization
helps to bring its own perspective in the organization, however, it was mentioned by Boehm and
Kunze (2015), it is influences by various factors which includes communication and other
leadership styles in the workforce of an organization. It also includes the techniques and methods
used by the employer and the human resource managers to mange and handle the arising
conflicts .and meet the expectation of the diversified age group employees. The age differences
in the workforce can present various positive opportunities for the development at every end of
the spectrum. The employees entering within the organization needs to posses’ great level of
drive, experience, talent and ambition which further helps the organization to bring innovation
and new ways of doing the work in the workplace of an organization (Grzybowski 2015). The
aged or the elderly employees in the organization are more experienced and they can leverage
their highly extensive knowledge base and they have a broad perspective which helps to assist
and understand the cost and risks that are associated with the new ideas and creativity in the
organization.
As per WHITE (2016), the Australian retirement age will rise to 67 years by the year
2023. The change implies that the managers of the Australian organizations needs to find new
and innovative ways to ensure that the right employees must be fit in the workplace between the
baby boomer generation to generation Z. many of the places in Australia including Melbourne is

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already grappling with the changing age diversity in the workplace. By the year 2023, many of
the older Australians will be left with no choice than to put off the retirement. The current age
pension eligibility age are 65.5 will tend to rise by six months in every two years, which will
reach to 67 years. The new policy in the Australian workplaces would see up to five generations
working side by side in one business organization. This implies that the work place of the
organization will co-exist with diversified age group employees having different skills sets,
values, talent, attitude and experience in the workplace. According to Wightman and Danziger
(2014), the employees who are born up the year 1945 are highly characterized with stability,
loyalty and are considered to be hard working in nature. The baby boomers are considered to be
highly collaborative and have a grateful nature towards their job. The generation X that is born
between the year 1965-1976 as considered to be more individualistic and they are more flexible.
The generation Y born between the year 1977 and 1995 are considered to be more
entrepreneurial and they are highly innovative in nature. Generation Z are born after 1996 are
always seeking for enjoyment and have a personal branding their work (Kendig 2017). Having
younger generation in the workforce presents a different mindset towards work and has different
attitude and values. They usually have a shorter attention span because they have constant
connectivity. They are empowered and have an anxious nature and are determined towards their
work. In order to co-exist with diversified age group people in the organization, the human
resource manager needs to provide training and development programs which will help the
organization to result in a great team. However, according to Kunze and Boehm (2013), it is
admitted that the new recruits needs to be properly tested, interviewed and selected for the
success of any organization. In contrast, Kendig (2017), suggested that the new young

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professionals in the organization are not so bothered or concerned about the work conditions and
salary structure.
It is stated by Lyons and Kuron (2014), that the Australian companies requires high
amount of flexibility in the organization in order to manage their multi generational workforce.
However, it calls for change in the span of generations. It advocates a positive ageing in the
workplace of the Australian companies, it should set up various mentoring structures and ensures
that the staff members of the organization transition to retirement and they are to be granted with
much flexibility. However, according to Short and Harris (2014), having a multigenerational
workforce in the organization can give rise of intergenerational conflicts. Therefore to avoid the
conflicts the managers of the organization should instill a lifelong learning attitude among the
staff and employees of the organization. They also need to be highly sensitive to the potential
intergenerational conflicts. The generation Z is highly empowered, they are more agile and are
adaptive with the advanced technology, and they possess the skills which are central to the
today’s workplace. This implies that they have the potential skills to be promoted at a faster rate
as compared with the other generations in the organization (Kendig 2017). It is certain that the
organization is more likely to have a sense of conflict, a sense of being overlooked or ignored by
the older generation. The managers of the organization need to learn to communicate and deliver
the messages in an enhanced ways and in a better way possible. They need to work with the
younger generation by the language which is convenient for them.
According to Wightman and Danziger (2014), the managers of the organization have a
unique challenge is dealing with the age diversity in the workplace. Even though there are many
law and legislations in the workplace about maintaining equality there are huge gaps present in
the organizations between the legislative laws and the actual occurrence in the workplace. Other

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challenges for the managers in the workplace with age diversity are the ability of the elder
employees to learn and adapt to the advancing new technologies in the organization. The
managers of the organization need to implement various programs in the workplace to train them
about the uses of the new technologies. Wesolowski (2014) says that ageism, misinformation
and other stereotypes about the older employees persist in the almost every organizational
workplace. This is an increasing challenge for the managers of the organization. It has been
identified that the employees above the age of 55 faces discrimination in the workplace. Studies
have revealed that having elderly employees in the organization have various positive
perceptions characteristics which involves experience, work habits, attitudes of the employees,
they are committed towards quality and seem to have even temperedness. Studies have also
revealed some of the negative qualities perceived by the management of the organization that
includes narrow mindedness, unwillingness, resistance to adapt to change and inability to use
latest technology, also they have certain physical limitation and they lack ambition. Additionally,
according to Short and Harris (2014), the elderly employees cite higher wages, increased cost of
health insurance and have other disabilities. It is expensive for the organization to train the elder
employees in the organization about the new technologies. This is an obstacle for the human
resource department for hiring and retaining the older employees. Some have the perception that
the older workers of the organization lack sufficient knowledge about the new ways of
performing the job and required skills for doing the particular work. Moreover, the older workers
of the organization are show low willingness to relocate and travel to the newer job locations
(Boehm and Dwertmann 2015).
According to Klar (2013), many employers have the perception that the older employees
are more likely to enter the early retirement rather than working beyond their retirement age.

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With the advancements of medicine and healthcare, many older employees in the organization
are capable enough to continue with their work as effectively as the younger generations in the
workforce. According to Lyons and Kuron (2014), it has been found that 60% of the elderly
employees wanted to carry o there work after the retirement age due to financial reasons. Major
benefits also exist upon the management’s engagement with the elderly workers of the
organization. It has been documented that an engaged workforce in the organization requires less
healthcare, less sick days and have longer tenure, they carry a positive attitude and provide better
work quality. There is a new perception about the elder employees in the workforce that is the
age cohort is more productive and resourceful population (Short and Harris 2014). The benefits
of an aging workforce include having a better disability management, encouragement of a
healthier workforce and the retention of the expertise. Having a large age diversified employees
in the workforce benefits the company. According to Wightman and Danziger (2014), the older
employees might share their knowledge and experience with the younger generations employees.
The management of the organization can match the employee’s age group with the customer’s
age group; this will enable the company to deliver a better service to the customers. This
correlation leads to increased customer satisfaction. There are various competitive benefits which
are important for the company’s recruitment package. The employees of the workforce cater to
different packages for the older employees as they carry different values from the employees of
different generation.
According to Kunze, Boehm and Bruch (2013), every organization has their own
practices is preventing the discrimination, issues and conflicts in their facilities. However, these
policies are needed to be followed thoroughly. The human resource management must take
measures to implement policies to end discrimination at the workplace and they must handle the

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disputes and conflicts in the workplace quickly and in the most efficient manner. They must take
steps to ensure that no employees in the organization feel discriminated in their workplace while
every employee in the organization needs to adhere to the policies of the organization (Short and
Harris 2014). It is the responsibility of the management to implement policies and adhere to the
anti discrimination laws. It must ensure that equal opportunities are provides to all the existing
employees in the organization. It has been reported that ageing comes with increase in diseases
and co morbidities, which represents higher costs in the health care department of the company
and their insurance companies. However, according to Boehm and Kunze (2015), it has been
analyzed that although there are legislation in the workplace regarding the equality, there is a real
gap between the law and the actual scenario of the organization. Further, the managers of the
organization need to monitor their policies and practices in the organization on a regular basis to
ensure that all issues and conflicts are resolved and whether the employees required further
training and education which will be cognizant of their actions. It has been analyzed that
discrimination is not a straightforward problem; it is in fact that only the practices and policies of
the organization are not sufficient to reduce to inequality in the diversified workplace
(Grzybowski 2015). Therefore, the companies need to change their policies and practices until
they achieve a satisfactory outcome. Moreover, according to Kunze, Boehm and Bruch (2013),
since the aged employees lack skills to use advanced technology, the managers of the
organization needs to set programs to train the employee to utilize new electronics and advanced
technology in the workforce. However the training must be provided to all the employees
including the younger generation to avoid all forms of discrimination (Wightman and Danziger
2014). The management must include an incentivized program that provides every employee
with certification and increase in the pay. The managers of the organization need to provide them

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with job the job training to acquaint themselves with the new software and equipments. They
need to understand the vast differences in the generation gap in the workplace and work together
to promote their strengths in a strategic and productive manner. They can also cope with the
differences by implementing a clear policy in the workplace and ensuring that the policy is
distributed to all the employees in the workplace. According to Kendig (2017), the policy must
include the procedure for filing a complaint on the grounds of discrimination. The companies
need to set policies in workplace to eliminate discrimination. Programs must be provided to keep
the ageing employees updated about the technical changes.
According to Lyons and Kuron (2014), the five generations working side by side in the
organization, makes it vital for the management to create an inclusive culture to meet the varying
needs of every group and employees. Every generation in the workplace has a distinct set of
values, behavior and attitudes in the workplace. The multi generational workforce requires
flexible leadership in the workplace along with strict policies and programs. The managers and
leaders of the organization must familiarize themselves with the perspectives, varying needs and
attitudes and the influences of every existing generation in the workplace (Grzybowski 2015).
The managers of the organization must consider the motivation and recognition preferences of
each generation and provide them accordingly. The older generation is highly motivated by
monetary benefits and prefers being respected. This generation consumers prefer milestone
recognition and need flexibility in the schedules and promotions. The baby boomer generation
also prefers monetary rewards and befits with peer recognition and a flexible retirement
planning. However, according to Short and Harris (2014), they prefer recognition from the peers
and acknowledgement of their inputs. The generation X values additions bonuses and stock
along with their monetary benefits as well as flexibility. This generation prefers to work

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independently and they highly believe in career progression based on the competence, rank, age
and seniority in the workplace. They prefer recognition from the senior executives, gift cards and
others. The generation Y needs to have stock options as a monetary reward and they values
feedback from the senior executives as non monetary rewards. They prefer to be recognized from
the senior management and prefer regular, informal communication in the organization. The
generation Z is more interested in the social rewards and recognition (Boehm and Dwertmann
2015). They prefer mentorship and prefer constant feedback rather than monetary benefits. This
generation is highly motivated by meaningful work with adequate responsibility in the
organization. They are often curious about their contribution towards the organization, and their
role in the organization as a big picture. Therefore the management of the organization needs to
provide them with enough opportunity and appraise them about the contribution in the
organization. They are highly passionate about the existing projects. They are the most tech
savvy among the generations, they are multi taskers (Field 2015). Therefore the management of
the organization must provide them with experiential rewards and badges. This generation
expects the workplace to be highly flexible and diversity in the organization. They need regular
and in-person public appraisal. They welcome other benefits including online training facility
and other certification programs.
Conclusion
Therefore from the above analysis, it can be concluded that the multigenerational
workforce in the organization can create various challenges and benefits for the management in
the organization. It has been identified that there is an increasing trend of having age diversified
workplace in the organization. It implies that all generation and diversified age group employees
will co-exist in the organization. There will be around five generation working side by side in the

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organization. It has been researched that having diversified workplaces in the organization might
result in various conflicts and issues among the different age groups in the organization. It has
been argued that the older generation employees have a different mindset, attitude and behavior
in the organization than the younger generation employees. Moreover, they lack sufficient skills
to operate using various techniques of advanced technology and new electronics. Therefore, the
managers of the organization need to provide them with additional training and development
opportunities in the organization to help them develop the skills for performing the particular
work in the organization. However, it has been argued that the older generation possesses wider
experience and knowledge as compared to the younger generation. Additionally having a
cooperative and harmonious atmosphere in the organization can result positive behavior among
the co-workers in the organization. The older generation can share their knowledge and
experience with the younger generation. The management and human resource department of the
organization must implement various policies and practices which have been discussed in the
essay. They need to provide sufficient attention to ensure that there are no discrimination in the
workplace and the polices of the organization are adhered to. The management of the
organization must ensure that they are provided with equal opportunities to all the employees in
the organization. Further, the management needs to provide the benefits to the multi generation
employees according to their needs and preferences which have been described in the essay.

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