Employing Older Workforce - Research Paper Example

While organisations have the legal and moral obligation to employ people of all age groups, their efforts towards this task either go invisible or are ignored to some extent, because of certain implications this group of the workforce can have on certain HR practices and overall organizational outcomes. Based on literature findings, the present study highlights some of the most significant positive and negative implications for HRM. The main point that stands out in the minds of employers while employing older workforce is their contribution or performance. Considering the changing trends in businesses, competition, customer expectations etc, most organisations favour a younger workforce that is more energetic and innovative. Other perspectives that point at choosing younger workers include lesser productivity from older workers and loss of knowledge due to higher turnover of older workers (Ashworth, 2008).

The main HR challenges that haunt contemporary organisations, according to the CIPD report on Healthy Working Lives (2012) include sustainable employee motivation and commitment, employee turnover, knowledge retention, performance improvement and sustenance, and employee development. Engaging older workers in learning activities and skill development has been a challenge for managers (Gray & McGregor, 2003); however, it should also be noted that older workers’ immense experience makes them the knowledge bank that can be effectively used through appropriate practices (Ranzijn, 2004; Murray & Syed, 2005), and this positive attribute can be of great assistance in difficult situations that would otherwise be challenging for the younger workforce.

Employing an older workforce presents critical implications to the HR function from a diversity perspective. Of the many findings from their study on diversity programs employed by Fortune 500 companies, Ryan, Hawdon and Branick (2002) identified that most of the Fortune 500 companies put significant efforts towards adopting diversity, which eventually fails or is not up to the expected standards, i.e, the number of ageing workforces is proportionately low compared to other groups. This study suggests the need for enhancing diversity programs for older workers.

This lag could be two-folded, one being the company’s lack of interest in hiring an older workforce and lack of interest from the older workforce to join jobs/companies that do not provide flexibility and ergonomics conducive to their working requirements. Yet, efforts to employ an older workforce are being adopted by many organisations, which also provide various benefits and facilities for this group (Feinsod & Davenport, 2006). From a cost/economic implications perspective, investment in older workers could be high in certain spheres but also low in others.

For instance, Encel’s (1998) studies identified that older workers were more punctual and had less absenteeism besides their higher commitment, loyalty, knowledge, and ability to handle pressures. These aspects certainly provide a greater advantage to managers in terms of cost reduction due to absenteeism and turnover. However, it is a general perception that older workers tend to require greater medical care and hence would incur higher expenses in terms of insurance and other compensation benefits; but, studies indicate that these costs also depend on other factors (Feinsod & Davenport, 2006).

Based on their research, Guest and Shacklock’s (2005) viewpoint is that older workers incurred higher expenses to the organisation because of higher pay packages, early retirement, higher absenteeism and higher risk of work-related injuries. Recruitment and training costs of older workers are relatively lower than costs of absenteeism and injuries.
Other HRM practices that can significantly motivate ageing workers include workplace ergonomics and job redesign (Kooij et al., 2008), both requiring a strategic approach and therefore additional costs.

Literature indicates that employing an older workforce entices more ethical dilemmas for the HR function. For the HR practitioners, employing an older workforce presents the challenge of changing the negative attitudes and stereotypes attached to this group (Shacklock, 2005).  Most research and HRM practices indicate increasing levels of difficulty and complexity in ethical obligations towards the older workforce.  Further, others argue that HR decisions related to various HR functions such as recruitment, selection, training and career development, and retention strategies would require changes to accommodate the older workforce. Evidence indicates that older workers constantly strive to maintain their status quo, unlike younger workers that strive towards growth and work goals, which is probably what causes lesser productivity from older workers.   Older workers are less interested in career development due to other pressures like family and health, which is not the case with the younger workforce (Ng & Feldman, 2012). Considering these changes, Kanfer and Ackerman (2004) recommend that older workers should be given opportunities to work and grow in areas that are supportive of their physical and mental wellbeing.  Some of these spheres include training, coaching, mentoring, service-related job roles (Kanfer & Ackerman, 2004); however, such provisions might come under the purview of discrimination against specific workgroup

Implications for recruitment and training of ageing workforce present significant challenges to the HR function.  Hedge (2008) asserts that recruitment and retention of older workers require specific strategies that can create a conducive environment, structure, culture, policies and procedures; these specific strategies must also aim at promoting older workers’ performance, work attitudes and motivation besides physical and psychological well-being.  However, such activities might require greater costs, time and effort.  According to Spiezia (2002), spending greater time, effort and money on older workers is worthwhile because older workers tend to be more loyal than the younger workforce that has a higher turnover.