Future demographic change in the UK - Essay Example

Download file to see previous pages... This paper explores the benefits associated with the demographic change to businesses in the UK. Wealth The older population is wealthier than present and former generations of retirees. Previous studies show that the increasing number of this population results to high rates of home ownership, investment and savings. This has positive impacts on the economy in general and the businesses enjoy increased stability (Davidson and Fielden, 2004:26). In addition to, there has been an increased grown in share prices and in the worth of superannuation. This provides increased disposable incomes that contribute positively to overall spending and investments (Hobbs, 2008:384). Older people have also been observed to make sound decisions while investing their money and this leads t increased economic growth and a better performing stock market. Work The UK is a difficult situation as the most populous age group is on the verge of retirement, wealthier and even healthier than other generations. The government has come up with policies to tap into the strength of this population to boost economic growth and allow their positive participation in the business sector. The current government policy is aimed at discouraging the trend of early retirement. This will lead to a stabilized tax revenue and productivity in companies (Davidson and Fielden, 2004:26). Most workers opting for early retirement find it difficult to fund a comfortable life for the remaining part of their life. This explains why the government and companies are coming up with incentives to make the older generation work for longer. Retaining or hiring mature age workers has numerous advantages to an entity. Allowing older people to work longer gives them the chance to share their vast experience and knowledge for the benefit of the business (Davidson and Fielden, 2004:26). Older people have a higher work experience and have been experienced a number of economic changes that have taken place over the years. They can be instrumental in advising the company on how to deal with economic downturns crisis and any other challenges facing the company. However, for a long time older people have been undervalued and are deemed fit for the elderly homes instead of the current business environment. Companies in the modern times prefer hiring employees from the younger generation so as to give the company a positive public image. Additionally, the younger generation is techno savvy and owing to the increased use of modern technology, this is the appropriate work force to retain (Great Britain: Parliament: House of Lords: Science and Technology Committee, 2005:67). However, with this demographic change, companies will have to have hire mature workers. Contrary to popular belief, mature workers belonged to the baby boomer generation that was highly educated and competitive. The older workers can quickly adjust to the use of the cutting edge technology being adopted by companies in the modern world. Age advocacy groups have constantly asserted that early retirement is wastage of experiences, skills and knowledge that are much needed in the current business environment (Great Britain: Parliament: House of Lords: Science and Technology Committee, 2005:67). Most companies argue that older people have declined physical capabilities. However, it has been found that age does not lead ...Download file to see next pagesRead More