Factors Influencing the Increase of the Aging Population:
The first reason being the decrease in the fertility rates in the recent decades has caused a significant change in the global age structure. The decline in the birth rate is relatively higher in the developing countries than the developed nations. The second reason is the increase in life expectancies. The number of people over 60 years of age is expected to be one billion in 2020 and it is further expected to reach two billion by 2050 which is nearly 22% of the world population. This reason along with the decline in the birth rates has increased the share of the aged population.
Level of Risk Due to the Aging Workforce in the Developed & the Developing Economies:
The developed and the developing economies experiences challenges due to the aging of the workforce. Among the developed nations, Japan and Germany are expected to face shortage of labor supply in the near future due to the fall in birth rate. In the US, historically lower birth rates and increased life spans pose a threat to the US labor force. These factors are expected to cause a labor shortage in US in the near future. New Zealand and Sweden are other nations which are expected to face a labor supply shortage due to the aging workforce.
On the contrary, Australia experiences an advantage of higher adult employment rates. This trend indicates higher labor force participation rates, low unemployment and positive trends in the labor market. In Ireland, 35% of the labor force is under 25 years of age. This implies sustained labor supply at least until 2020.
The emerging markets such as India, China and Brazil are in the low, medium risk zone of the aging workforce population. This ensures a medium level of sustainability of the labor supply in these developing economies.Eg: finance.gov.ie.
Challenges: Aging Workforce:
There are various challenges due to the presence of the elderly employees in the organization. Also, there are problems caused as a result of aging workforce. The presence of aged workforce in an organization causes less productivity and fewer savings. Also, increased healthcare costs and increased pension benefit costs are incurred due to the aging workforce in an organization.
The increasing aging of the labor force can be of concern as it would affect the growth of the developing economies. The aging of the labor force causes labor shortage, increased healthcare needs and decreased public & private investments are some of the negative impacts of the aging workforce. Also, due to the retirement of the senior employees, the expertise, industry knowledge and the experience are absent in the organization. Eg: findarticles.com.
Strategies & Policies Implications to Retain the Aging Population: It is essential to retain the aging workforce in an organization in order to avoid the labor shortages and also to retain the knowledge and expertise of the employees. Strategies such as workforce development, altered workforce policies and practices can be implemented to retain the senior employees in an organization. The policies should be altered in order to manage the aged workforce like increasing the retirement age, altering the retirement incentives to meet the expectations of greater longevity, flexibility and old-age pension agreements.
Also, cultural and legal efforts should be taken to avoid age discrimination issues between the aged and the young workforce. Additionally, training can be provided to meet the labor shortage and to ensure professional development among the senior employees. Eg: bitcdiversity.org.uk
Age Discrimination
The rigorous employment laws guarding against age discrimination should be at the forefront when your HR personnel devise and implement any changes in the terms of work. Such developments must not be applied strictly to your older employees, as doing so can equate to a form of discrimination and can draw unwanted litigation. Any changes in job descriptions, policies or procedures must apply evenly to all your employees. Older personnel are protected under law by the Employee Retirement Income Security Act, the Age Discrimination in Employment Act and federal tax codes. Your HR professionals should first become well-versed in these and other employment laws before making changes to accommodate employees.
Health and Safety
Aging employees may naturally become more susceptible to more frequent doctor's visits or even time off because of illness. Your business' health plan can incur increased medical costs, which HR personnel will necessarily monitor. Your HR staff members can encourage budgeting for the rise in these costs and implement a contingency plan to cover work shifts, if necessary. Your human resources team might develop more in-depth wellness programs for your employees. Safety policies and procedures should be reviewed consistently to facilitate their expansion as your employees age.
Team Development
Your HR professionals can construct ways to disseminate the invaluable experience and knowledge amassed by older workers -- for example, developing a job sharing program in which both younger and older employees exchange work-related information. HR personnel can create a formal mentoring program as a means of transferring relevant business knowledge to younger employees. In this way, your business might avoid the vacuum created by the loss of senior people.
Succession Planning
When workers near retirement, your HR department must strive to find employees to fill the potential void. Your business may discover that it is more desirable to retain your mature workers for the years ahead. These employees represent value to your business by virtue of their experience and knowledge gained over their length of employment. HR staff members can revise job descriptions to counterbalance the skill sets of your senior workforce or devise flexible work programs
One of the most complex -- and potentially rewarding -- issues in which human resources professionals engage is working with an aging workforce. Mature workers may have projected for themselves an impending end to their careers; however, concerns brought on by an erratic economy and pension instability have forced many to extend their working years longer than anticipated. For HR personnel, aging employees engender challenges as well as offer new opportunities for your business.
b: Workplace diversity affects the development of interpersonal relationships, how supervisors and managers interact with staff and how employees relate to each other. It also affects human resources functions, such as record keeping, training, recruiting and requirements for HR staff expertise. In many ways, workplace diversity increases HR responsibilities and holds the department accountable for functions mandated by law.
Employment Laws
The U.S. Equal Employment Opportunity Commission publishes notices that employers must post in conspicuous areas throughout the workplace, such as employee break rooms. The posters provide employees with information about their civil rights and federal laws that afford equal opportunity for employment, regardless of disability, genetics, national origin, race, religion, sex or veteran status. HR must conduct periodic walk-throughs to ensure that the company's posters are intact and up-to-date.
Recruiting
Workplace diversity goals can require modifications to recruitment strategy or outreach to identify a diverse pool of qualified applicants. For example, recruiting from historically black colleges and universities may yield diverse candidates as will joining the Organization of Women Architects and Design Professionals to gain access to qualified women in a predominately male profession. In addition, posting requirements such as "equal opportunity employer" are HR functions that encourage diverse applicants to submit their resumes for consideration.
Training
Organizations look to HR staff to recommend diversity trainers or to supply in-house diversity training resources. HR functions include contracting with diversity consultants or experts or evaluating training modules that are suitable for the workforce. In addition, HR is involved in determining whether to make diversity training mandatory if the state law doesn't require such training. The decision to mandate workplace diversity training is a strategic function of HR because it involves an assessment of the workplace climate and whether supervisors and managers would benefit from mandatory training or if informal activities are sufficient to support the company's workplace diversity philosophy.
Record Keeping
Companies that do business with the federal government must comply with Executive Order 11246 requirements if they employ over 50 employees and sell more than $50,000 in goods or services to the government. The order requires that employers develop written affirmative action plans. HR staff members are responsible for developing affirmative action programs, which include record keeping obligations for applicant logs, adverse impact analyses and workforce utilization calculations to support the company's outreach efforts to achieve workplace diversity.
Workforce Management
Diversity can help companies gain a competitive edge in global markets and when targeting business segments that require input from diverse perspectives. HR expertise is useful in evaluating where diverse candidates can be placed in the organization so they can make the most valuable contributions. For example, an organization concerned with developing state-of-the-art technology solutions might assign tech-savvy workers from Generation X or the Millennial generation to these projects, instead of a long-term worker from the Silent generation who relies on processing work using conventional methods.
c: The increasing use of computers to do routine tasks has shifted the kinds of skills needed for employees. Such qualities as physical strength & mastery of a particular piece of machinery are no longer important for many jobs. More employees are looking for mathematical, verbal and interpersonal skills. Often, when organizations are looking for technical skills, they are looking for skills related to computers & use of Internet. When employees lack advanced literacy & thinking skills, they may be unable to perform their jobs competently & will experience difficulty adjusting to changes in the workplace. Today employees must be able to handle a variety of responsibilities, interact with customers and think creatively.
Unless Organisations Address This Issue, They Will Always Fall Short Of Less-Skilled Employees.
Healthy Economic Growth Means Increased Business Operations, Which In Turn Translates Into New Jobs. Employers Will Only Have To Make More In Depth Searches For Potential Employees. These Searches Can Throw Up Countless Prospects. Nevertheless, They Could Prove Incompetent, As Most Of Them Often Lack Basic Skills. Simply Stated , Basic Skills Deficiencies Create A Huge Human Resource Problem. Yet Organisations Continue To Consider The Skills Gap At The Higher End As An Imminent Threat. The Basics
These Deficiencies, If Left Unaddressed Can Pose A Bigger Hazard To Business Operations Than A Paucity Of High-Tech Skills. Rightly Rechristened As Life-Skills, They Help Create A Set Of Elementary Literacies Within A Person Making It Easier To Build Higher Levels Of Proficiencies. Individuals Deprived Of Basic-Skills Have Compromised Futures Especially In The Corporate World.
Given This Situation The Proposal To Makes Mathematics Optional For High-School Students Spells Doom For:
Individuals Who Will Find It Difficult To Survive Even In Low-Skilled Jobs
Employers Who Will Have To Reallocate Their Training Budgets To Make Way For More Remedial Training
Basic Skills Are Defined As "Functional Workplace Literacies That Include The Ability To Read Instructions, Write Reports And/Or Do Arithmetic At A Level Adequate To Perform Workplace Tests."
Most Employees, Even In The Best Of Organisations, Lack Basic Science And Maths Skills. The Situation Is No Different In The Employment Arena Where Skills Deficiency Creates An Acute Shortage Or Low-Skilled Employees.
According To A Survey Over 38 Percent Job Applicants Lacked The Necessary Reading, Writing And Maths Skills Required For The Jobs They Sought.
A Case In Sight :
Considering Most Processes Are Automated, One Would Think That Building A Washing Machine Is A No-Brainer. However, If The Sheet Of Steel Used In Manufacturing Is Too Thin Or Too Wide, It Reduces The Life Span Of The Product. As Cut-Throat International Competition Makes Customer Retention The Biggest Challenge, Losing Customers Because Of Poorly Manufacturing Products Is The Beginning Of A Downhill Drive. Therefore, With An Aim To Manufacture The Best Of Machines Whirlpool Has Hired Some Of The Best Hands, Or So It Appears!
At Their Factories, Employees Responsible For Assembling Machines Need To Use Some Amount Of Algebra To Ensure That The Sheets Meet Exact Specifications. A Random Survey However Revealed That Most Employees Lacked Basic Maths Skills. The Company Luckily Responded In Time Spending Substantial Amount On Basic-Skills Training Or Remedial Training. Whirlpool Has Nearly 40 Percent Of Its Staff Busy Training At Any Given Time. The Huge Percentage Reflects The Lack Of Basic Skills Over A Large Population. Not Only Is The Lack Of Basic Skills Common, But It Also Is A Universal Phenomenon.
Else Where And The Same Problem!
When A Metal Stamping Company Established Shop, Their Vice-President Erick Ajax Was Surprised To Discover That His Recruiters Were Having More Trouble Hiring Workers With High-School Maths Proficiency. His Company Is Still Short Of Employees Who Can Communicate Well And Handle Basic Trigonometry Skills That Do Not Require College Education. Infact, As Ajax Remarks, "We Need To Focus On The 70 Percent Of Students Who Will Not Have A Degree".
Bridging The Gap
The Lack Of Basic Skills Is Not A Region Or Nation Specific Problem. Even If It Were, Hiring Employees From Outside The Region Or Nation Would Address The Problem. However, Basic Skills Deficiency Is Globally Prevalent, Making It A Critical Issue. Education Experts Believe That This Problem Is Best Tackled Beginning At The Grassroots Or In Highschools And Vocational Institutes. It Would Also Require Businesses And The Government To Collaborate. As Part Of Such An Endeavour Microsoft Launched A Public-Private Alliance Comprising Local Businesses, Training Centres And Political Representatives. With The Objective Of Creating A Comprehensive Workforce Development Strategy, The Initiative Succeeded In Addressing The Needs Of Lower-Skilled Employees.
A Recent Economic Report Revealed That The Real Earnings Of Lower-Level Employees Exceed The Gains Made By Those With Bachelors' Degrees. This Means That Even As High-School Graduates Fall Into The 'Less-Skilled' Category, They Fair Much Better In Terms Of Employment Than Those With High-Tech Skills Or College Degrees. Another Interpretation Of The Report Is That The Supply Of College Graduates Surpasses The Demand Of Employers And That Of High-School Graduates Falls Way Short Of Employers' Needs For Them. Therefore, Contradictory To What 'Futurists' Predict, The Real Skills Shortage Would Not Be At The Higher-End Of The Spectrum But At The Basic Skills Level.
Silver Lining
In Addition To A Commitment To Holistic Employee Training, Organisations Must Treat Basic Skills Development As Integral To Economic Progress. As Part Of That Effort An Organisation Can:
Focus Heavily On Remedial Training:
Jobs That Earlier Required Little Training, Now Demand Familiarity With Basic Technology. Consequently, Employers Find It More Difficult To Find Suitable People. Remedial Training In Literacy And Maths Skills Can Help Combat The Problem. Hence, It Is A Must For Employees Testing Low In Basic Skills.
With A Corporate Objective Of Keeping Pipelines Filled By Raising Basic Skills Levels And A Social Objective Of Supporting Education, Organisations Can Sponsor Education Programmes At Local Schools And Vocational Institutes.
American employers are fortunate that the workforce is one of the finest in the world in terms of the literacy rate. However, there are millions of Americans who are not functionally literate (i.e., they cannot read, write, or think well enough to meet challenging job requirements). Several studies indicate that 65 percent of the American workforce currently reads below a ninth-grade level, while at least 70 percent of workplace reading materials are written for ninth-grade to college levels (Smith, 1995).
Job Analysis can be used in training/"needs assessment" to identify or develop:
training content
assessment tests to measure effectiveness of training
equipment to be used in delivering the training
methods of training (i.e. small group, computer-based, video, classroom...)
Compensation
Job Analysis can be used in compensation to identify or determine:
skill levels
compensable job factors
work environment (e.g., hazards; attention; physical effort)
responsibilities (e.g., fiscal; supervisory)
required level of education (indirectly related to salary level)
Performance Review
Job Analysis can be used in performance review to identify or develop:
goals and objectives
performance standards
evaluation criteria
length of probationary periods
duties to be evaluated
Job Analysis should collect information on the following areas:
Duties and Tasks The basic unit of a job is the performance of specific tasks and duties. Information to be collected about these items may include: frequency, duration, effort, skill, complexity, equipment, standards, etc.
Environment This may have a significant impact on the physical requirements to be able to perform a job. The work environment may include unpleasant conditions such as offensive odors and temperature extremes. There may also be definite risks to the incumbent such as noxious fumes, radioactive substances, hostile and aggressive people, and dangerous explosives.
Tools and Equipment Some duties and tasks are performed using specific equipment and tools. Equipment may include protective clothing. These items need to be specified in a Job Analysis.
Relationships Supervision given and received. Relationships with internal or external people.
Requirements The knowledges, skills, and abilities required to perform the job. While an incumbent may have higher KSA's than those required for the job, a Job Analysis typically only states the minimum requirements to perform the job.
Ans: Training
Training is essentially a short term learning experience. Individuals attend a training course that has learning outcomes that will be tested during the training event. Example: Appraisal skills training
Example outcome: By the end of the event attendees will be able to identify an individuals learning style by observation of behaviour. Outcome tested by: Role plays, case studies, quizzes and discussions.
Development
Development is often a longer term approach whereby an individual acquires new knowledge, skills and experience. The end point may not be clear and development may involve mentoring, coaching, self reflection and 360 degree feedback amongst other tools.Development can be directed by a line manager, mentor or succession plan and equally it can be devolved to the individual to direct themselves. It can include formal development, involving a qualification.
Development can involve many different types of learning experiences, such as:
Secondment
Mentoring
Coaching
Project work
Being thrown in the deep end
Distance learning
E-learning
Shadowing
How much budget have you wasted on training that didn’t result in ROI? I’m a sales trainer and coach and see failed training programs every day. If you are spending your training dollars on training that strengthens employees’ skills while allowing them to grow personally and professionally—then you are in the very successful minority. There is a big difference between training and development. If you (and your HR team) don’t know the difference between these terms, you are spending money providing training to executives and managers who already have the skills and knowledge they need. This training will not move the needle for your company. What you need is to develop existing skills to their maximum potential.
Training = Teaching New Skills
Development = Perfecting Existing Skills
Training is the acquisition of knowledge, skills and competencies as a result of teaching. Development teaches how to become more productive and effective at work and at the company. In other words, training provides the skill and development maximizes it. When you invest money in developing your employees, you are helping them use their existing skills and your company resources to perform better. The best development programs give employees the opportunity to discover things that they would have never discovered in their day-to-day work.As you strengthen individuals, the team as a whole also becomes stronger. As the team gets stronger, the organization becomes more successful. Your people are the most important asset in your organization. They were hired for their skills and knowledge, and it is time to think about developing their skills to their maximum potential to propel your organization’s growth.
A salary range is a part of a structured pay system in which pay is based on the educational and experiential requirements for a given job. The range includes a minimum pay level and a maximum pay level for a given job, and an employee's actual pay falls somewhere with that range.
Consistency
A salary range gives companies a system to pay employees consistently for the work they do in a given position. The range usually allows for differences in education, experience or performance. However, employees in the same type of job know they earn pay that is relatively similar to colleagues. This helps eliminate internal conflict and anger from employees who may feel slighted in companies that don't have constant salary ranges.
Flexibility
The benefit of having a range rather than a single, set pay is flexibility. As noted, you can pay slightly more or less for an employee based on his level of education, experience or performance. This gives companies an opportunity to offer a little more money to get an employee with a stronger background. In the same way, it allows them to potentially save on labor costs when hiring employees with limited backgrounds.
Budgeting
The ability to more effectively budget for labor costs is another advantage with a scheduled salary range. Human resources can analyze the number of jobs at each pay grade and get a reasonable estimate of total labor costs by job, department and organization. This makes it easier for leaders to assess current labor relative to need and to project future needs for certain jobs. Labor is usually one of the most expensive components of operating a business.
Competitive Analysis
Along with promoting internal equity and consistency, a structured salary range gives companies a better ability to compare with competing organizations. HR professionals can visit competitor websites or gather other resources to compare salary ranges. This is much more possible than trying to analyze pay when it is customized for each individual job or employee. If a company finds its pay range is below competitors, it can increase the minimum and maximum to attract better talent.
