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 '3(43 5‘
³An old dog cannot be taught new tricks´, an adage quite common in today¶s times.
But the question here is how true it is in today¶s dynamic and fast evolving world. The bulk
of today¶s workforce has higher positions held by people who are around 60 years of age,
which effectively throws them into a high technological world with changing market
scenarios, greater interaction with employees of different generations, different working
environments and greater flexibility to adapt to these dynamic factors. Is it too much for older
employees to handle all of this? Is it Greek and Latin for them to accept and understand the
current world?

Many would say ³Yes´! , but the fact of the matter is contrary to popular belief and
supported by years of research that this notion can be debunked and older workers in reality
are actually a pool of assets that need to be maximized to the most if the organization intends
to tap into their skill pool and ensure a smooth transition across four generations under the
same roof.

Why this topic is important? Many developed countries like Japan are growing old. A
large portion of labour will reach retiring age with no one to replace them, labour force will
shrink in size, leading to increasing wage for a short period of time and then the GDP of the
country will start slowing down. The options available are ranging from easing immigration
to increasing retirement age. Easing immigration may lead to political backlash and political
unpopularity. This leaves us with only option of increasing retirement age or reemploying
retired employees. This means that we as workers have to work with senior citizens,
understanding senior workers¶ mindset and our misconceptions about them are essential.

Rapid advancement in technology means that workforce has to be trained very often
to keep them updated. Workforce will consist of both young and old employees.
Understanding the learning habits of older employees, methods that can be used are essential
in training older workforce. Rapid advancement in technology also means that physical
requirements in general to perform has reduced dramatically.

"‘%‘'  !6‘
Learning is acquiring new knowledge, behaviours, skills, values, preferences or
understanding, and may involve synthesizing different types of information. Learning may
occur as a result of habituation or classical conditioning, or as a result of more complex
activities such as play. Learning may occur consciously or without conscious awareness.
Learning may be formal or informal. Formal learning is learning that takes place within a
teacher-student relationship, such as in a school system. Informal learning occurs through the
experience of day-to-day situations (for example, one would learn to look ahead while
walking because of the danger inherent in not paying attention to where one is going). It is
learning from life, during a meal at table with parents, play, exploring, etc. Subject here is to
access whether old people can access new skills via formal educational setup. Learning may
be voluntary or involuntary. By voluntary we mean the individual because of his needs,

j
enrols into learning program. Whereas involuntary means that the individual is forced to
enrol in the learning program. Studying the know-how to teach a voluntarily enrolled elderly
person is much easier than an involuntarily enrolled regardless whether he is an elderly or
younger person. In case of involuntarily enrolment, the change lies in persuading the
individual that the learning process will help. Example: When an elderly person is asked to
compulsorily enrol in training program of the company, he should be explained about the
benefits of the training.‘

37‘3(‘%‘3(6‘
Old age consists of ages nearing or surpassing the average life span of human
beings, and thus the end of the human life cycle. Euphemisms and terms for old people
include seniors, senior citizens and the elderly. As occurs with almost any definable group of
humanity, some people will hold a prejudice against others ² in this case, against old people.
This is one form of !%8. The boundary between middle age and old age cannot be defined
exactly because it does not have the same meaning in all societies. People can be considered
old because of certain changes in their activities or social roles. Examples: people may be
considered old when they become grandparents, or when they begin to do less or different
work ² retirement.

In the United States of America, and the United Kingdom, the age of 65 was
traditionally considered the beginning of the senior years because, until recently, United
States and British people became eligible to retire at this age with full Social Security
benefits. In 2003, the age at which a US citizen became eligible for full Social Security
benefits began to increase gradually, and will continue to do so until it reaches 67 in
2027.Currently, it is 66.

%4"3%34‘%94%‘
According to Erik Erikson¶s "Eight Stages of Life" theory, the human personality is
developed in a series of eight stages that take place from the time of birth and continue on
throughout an individual¶s complete life. He characterises old age as a period of "Integrity vs.
Despair", during which a person focuses on reflecting back on their life. Those who are
unsuccessful during this phase will feel that their life has been wasted and will experience
many regrets. The individual will be left with feelings of bitterness and despair. Those who
feel proud of their accomplishments will feel a sense of integrity. Successfully completing
this phase means looking back with few regrets and a general feeling of satisfaction. These
individuals will attain wisdom, even when confronting death.

Age can be calculated as biological age or calendar age. Biological age is the age of
the human body, based on the wear and tear occurred during the life time. Example: A
worker working in an asbestos factory may have calendar age of 45, but because of the
working environment, his biological age may be 60.

†
,"%‘ (‘ '%‘

,"%‘ %‘

Older adults are unable or unwilling to Older workers may sometimes

learn new processes or skills take slightly longer to learn
certain tasks and may respond
better to training methods
suited to their needs.

Older adults avoid new approaches or Older workers are likely to

new technologies respond well to innovation of
it:

â Relates to what they already

know.

â Allows for self paced

learning.

â Provides opportunities for

practice and support.

Older workers have failing memoriesΑ Contextual Intelligence is

stable or even slightly
‘ increases.

Not worthwhile investing in training Spending on training older

older workers. workers is very likely to be
recovered before the workers
‘ retire.

Older workers are less productive. â Older workers may be less

productive doing heavy
physical work.

â They generally make up

through experience and
forethought.

Older workers have track

record of responsibility and
dedication.

_
 Older workers are inflexible. May be more cautious, a trait
that can improve accuracy and
safety.

Older adults have impaired mental or â Short term memory may

intellectual capacity. start declining.

â Age tends to enhance the

abilities to perform activities
depending upon judgments,
decision making and GK.

Older workers are more likely to â An absolute sick leave day

suffer from illness and are more often
absent or late for work than younger
people.
increases with age.
â Older workers have lower
absenteeism and tend to be
more punctual than younger
workers.

" !%‘
â 3  4 !‘:3'‘'  !‘ (‘(398 Î ‘

Training and professional development are considered important in keeping older

workforce knowledge and skill up-to-date. Convincing older work force for training is
difficult task, as it is difficult to make them understand importance of training. Sometimes
they do not find it comfortable to be placed in same group with their younger counterpart as
their pace of learning is low then their younger counterpart.

Challenge for the trainer is to overcome this hurdle and to communicate business
need and its associated benefits

â 4" 33!4‘%%%‘

Some older adults are unfamiliar with high-tech jargon and equipment. Word
processors, computers, and electronic cash registers are often foreign objects to older adults,
especially those who have been out of the job market. While studies show that older adults
can master new high-tech skills, they often have fears about using unfamiliar equipment and
procedures

O
 ` 3  4 !‘3('‘73';:3'4‘3‘43 '<‘3‘; 37(!‘8 !8 Î

Convincing older work force to contribute in knowledge management portal is a

tedious task. A number of firms have focused on techniques to stem this haemorrhage of
corporate insight.

These can be grouped into two major categories:

â  37(!‘43 ‘techniques that help capture and retain tacit knowledge in

formats that are easy for employees to access.

â  37(!‘=4" !‘4" >%‘

That is designed to foster communication and dialogue among employees to transfer

knowledge that does not easily lend itself to capture and storage. To retain valuable
experiences, share lessons learned, expand the organization¶s knowledge base and improve
operational and product quality. For instance World Bank captures videos and audiotapes of
selected individuals and group involved in challenging projects. Using storytelling
techniques, the Bank seeks to uncover new knowledge from the practitioners in developing
countries.

Interviewees are encouraged to focus on telling stories, rather than providing general
observations, so that the material will be more interesting for the intended audiences. This
knowledge retention initiative uses subject matter experts to conduct interviews, as well as
screen and edit the videos and audiotapes, pushing relevant insights and content to audiences
through a variety of media. In concert with their well-conceived elicitation technique, the
World Bank¶s knowledge dissemination process also contributes to their success. Both audio
and videotaped interviews are posted to a Web site and burned onto CD-ROMs, any
documents referred to during the interview appearing as hot links in the final text. The Bank
also pushes these debriefings to a distribution list of targeted members, rather than simply
passively posting them on the Internet. For reinforcement, they also make interviewees
available for follow-up and mentoring.18 In addition to capturing knowledge, some leading
organizations have develop methods for facilitating the direct exchange of knowledge
between employees who are about to retire and peers who remain.

` 38‘3('‘(%‘7‘' ‘‘‘%37'‘94‘" ‘"'‘3 !'‘43 '9'%Î ‘

Training should be self-paced to permit all learners the opportunity to review the
materials at a comfortable pace. Trainer should understand older workforce needs and
patiently trained them according .Trainer should maintain a cohesive environment in the
group which will be beneficial for both older and younger employees.

°
 ` 38‘3('‘(%‘(3‘ 3‘%‘3'‘"'‘%‘4'‘%‘3 !'‘(%Α

Lower vision acuity in poor levels of illumination and a decreased capacity to focus
on close objects, known as presbyopia are common problems among older adults that can
make it difficult to read smaller type and distinguish text at low contrast levels. Older adults
are also highly susceptible to effects of glare, making it more difficult to work at a computer
screen for eight hours a day (Also, age-related hearing loss can cause difficulties at work
when involved with telecommunications. Often older adults begin to experience reduced
sensitivity to high-frequency tones and over-sensitivity to low frequencies. Furthermore,
speech perception can become less accurate.

As mentioned above, vision and hearing loss are major determinants of product
exclusion among older adults. Generally speaking, ³software interfaces that place demands
on working memory and spatial abilities are optimal for older adults´. Consequently,
guidelines for software interface design can be derived from the age-related capability loss.
Namely, an interface should be designed with colors that are in high contrast to one another,
with larger font type, and larger spacing between lines. In addition, layouts should be clear
and concise, logical and informative. Information should be presented in an organized matter
with natural groupings. Headings and text should be consistent graphic styles with a clear
hierarchy of information; color coding can also be useful in communicating this to the user.

` 3 ! 3%%% 4" 3(' 893% 7 '4;%

Young bosses are often viewed with hostility and great resentment by their older
peers. This may stem from the view that they are too µwet behind the ears¶ to have the
experience required to make important decisions. It can often feel very demoralizing and
demeaning for an older member of staff to accept instructions and direction from someone
who may be half his/her age. This puts a lot of pressure on a younger boss to prove that
he/she has the capabilities to manage a myriad of doubting senior employees. In turn, the
relationship between employer and staff can become very distant if the young manager is
forced to crack the µvirtual whip¶ in order to stand his ground. In some instances, employees
become riled if they feel that a young manager has climbed to an esteemed position by using
ulterior motives to rise to prestige, perhaps by using contacts within the organization to gain a
position which should have gone to someone with more experience. This form of angst
produces an environment laden with hostility. It can seriously jeopardize the advancement
and progression of a company which spends more time back stabbing and less time working
together as a team.In order to make the sum parts become a whole, both sides need to form a
consensus for working together to create a united team focused on the same goals. At the end
of the day, everyone has to work together so there may as well be some camaraderie to make
the work day as enjoyable and rewarding as possible for everyone.

A young boss needs to exude a lot of respect for his older employees and needs to talk to
them in a manner which will complement their extra years. They also need to show that older
employees are valued for their experience and contributions towards the company.

ï
Assumptions always cause problems. A young boss may automatically assume that his older
employees are going to have prejudices against him. Likewise, younger bosses are not always
deemed inadequate and incapable. The best way to iron out any creases is to take some
valuable time out to bond with your team as soon as a management position has been
accepted.

Be patient with older employees who may need a little more time to adjust to having a
younger boss. It is likely that they have become accustomed to doing things a certain way and
may dig their heels in when it comes to accepting change. Young managers are definitely a
new phenomena for older employees who, in the midst of the recession are opting out of
retirement and staying in their jobs longer. It is during these unstable times that staff in their
senior years feel redundant, outdated and inferior. This is where tact, diplomacy and respect
are the essential skills that a young manager needs to master.

Changes are the norm for young people who welcome new development and the chance to
progress. However, when two opposing generations are forced to work as one, the two
differing viewpoints can be strongly oppositional. A young manager was raised in a
completely different educational environment to his older staff and has experienced life from
a whole new angle. Older employees were taught a different way to do things and have relied
on these practices for years. It is often difficult for someone old enough to be the boss¶s
father to be told that his way of doing things is not practical anymore. A typical example can
be observed when it comes to time management as older staff believe that punctuality is vital
and always arrived bright and early for the start of the day. They often work through lunch to
complete projects and stay behind late at night to keep ahead or on schedule. However, the
younger (laptop) generation will equally complete their schedule on the train, in bed, at a
café...anywhere, at a pace which fits in with their lifestyle.

This leads on to the internet age and older staff. Never has there been such a great divide
between the two generations as with the advancement of technology. A young boss will rely
on his PC to manage his time effectively. For example, he is more likely to send an email to a
potential client rather than meet in person.

The younger generation do have an advantage over their older counterparts when it comes to
mastering computer applications and web-based projects. In turn, this can make older
employees feel frustrated and outdated. Clearly there is a way that both sides can meld as one
and benefit each other. This can be achieved by capitalizing on each other¶s strengths and
weaknesses. For example, a younger boss could train an older employee not to shy away
from the world of technology and teach them how computers can cut time and make projects
much easier to complete. Older employees can share the benefit of their years by offering
advice and suggestions on future plans and ideas. As a result, when two great minds come
together, young bosses can introduce new methods and techniques for ompleting projects in
half the time and older employees can use the benefit of their knowledge to increase the
continued success of the company.

h
By taking the time to understand the viewpoint of older staff, working hours can be spent
more productively and a good bond between both the generations can yield positive results all
round!

'!%
` ‘‘'3‘83(‘

Apply walk the talk principle. Workers are not enthusiastic about training if their
supervisor is negative and sceptical about the information and communication an
organization provides concerning training possibilities. Many Companies are now hiring
retired CEO of the organisation to give training to older employees so that they can motivate
them.

` ‘44%%<‘3‘ 7‘(%‘ (‘%!!%3 %‘3'‘'8';%Α

Workers learn most by doing, but still they need direct and accessible support and
advice when they experience a problem. As older age force has enormous experience which
can be valuable insight for further training process.

` 3 %‘"‘3('‘73';'%Α

Older workers have a lot of experience and are proud if people ask their advice and
keep them involved.

Use a positive approach:

When older workers are less motivated to take part in training, approach them in a
positive way. Start from the present capabilities of the workers, the things they are good at
and suggest how they can improve themselves, instead of pointing out that they are failing.

`
33;‘:3'‘%94:4‘'  !‘ (%‘3 ‘"‘73';‘:33'5 ‘

Not each problem can be solved by a training activity and not each training activity is
the right answer to each problem. Supervisors need to detect the training needs correctly and
be aware that workers learn in different ways.

This are few simple strategy which can used be implemented to train ageing
workforce and help them to overcome their hurdles‘

c

07‘%'!%‘898 (‘<‘(::' ‘3'! %3 ‘'‘%‘:337%Α

99%‘ '%‘ 3%95‘ 3 ‘3:‘! !‘893% ‘

389 ‘<4;!'3 (‘

The hospital in Uppsala is both a university hospital and the county hospital for
Uppsala County. It is split into 10 divisions and 16 clinics. In 1995, approximately 8,000
employees worked at the hospital including around 800 physicians, 5,600 other healthcare
professionals and 1,600 other employees.

The average age of the employees is high. In 1995 it was 41.3 years and will be 55 in
2010. This age composition has created problems. Older physicians and healthcare
professionals do not have the same levels of tolerance for working long shifts, late nights or
early mornings, and being on-call. By focusing on the integration of ageing employees, the
Uppsala University Hospital aims to increase preparedness for future changes in
management, organisation and work routines. At the same time, the hospital wants to
contribute to a good working environment and the development of employees who are 45
years of age or older.

389 ‘ %‘

Drawn from an employee questionnaire and employee interviews, seven areas for
improvement were identified:‘

1. '  !‘ (‘(43 5 Mentoring was suggested in order to make good use of the
knowledge among older individuals, by pairing younger staff with a mentor for an
extended period of time. Educational development also provides a break and prevents
burnout.

2. 3'; !‘ '3 8 5 The increase in pace of work, stressful working

environment, general situation of uncertainty and increased individual competition
lead to more conflicts, both within each individual professional group and between
various groups of professionals. There is not enough time for communication, which
is necessary for employee cooperation.

3. 3';‘ (‘73';‘"3'%5 Older staff found it difficult to relax after late evening shifts
and had difficulties sleeping. The work schedule plays an important role since it is
impossible to get enough rest between the shifts. Consequently, many older staff
expressed the wish for shorter work hours and an earlier retirement age.

4. 4" !‘3'! %3 5 Staff training and education on a continuous basis are
beneficial for the survival and development of the entire organisation. This is
accomplished by each manager making a 10-year plan for education and training, by
setting out individual educational plans for all of his/her staff based on the needs of
the organisation, and by providing time for education and training development in the
work schedule.

cc
 5. 0=<‘73';‘"3'%‘ (‘''8 ‘! : Flexibility is desired with respect to work
hours and retirement age in order to enable optimum utilisation of individual
capacities. This could be achieved through a trial period with a six-hour workday and
flexible retirement age.

6. "4'5 Investments in healthy living included time for health and exercise in the
regular work schedule as well as the offer of various health and exercise alternatives,
and the provision of individual support.

7. 3';94‘!'39%5 Workplace groups can create an environment where employees

learn to handle conflicts and change, and how to participate in implementing changes.
First these groups function with the aid of facilitators, after which they become µself-
operating¶ and develop into voluntary interest groups, e.g. scheduling groups, physical
space groups, organisation groups, work environment groups, etc.

438‘

In two years, the mean age of employees at the University Hospital has increased by
three years to 44.3 in 1997 and the following aspects were successfully implemented.

` 3  (‘(43 5 Workplace groups have been formed in order to work on an

education programme for staff aged 45 and over. The programme includes personal
input opportunities as well as opportunities for communication between various
professional groups.

` (43 ‘ ‘4'‘%4 4%5 Care seminars, twice per semester, have begun. There is
a tentative plan with the Care Institute to begin five or 10-point courses in care
science methodology.

('%"95 Discussions have begun regarding the principles and forms of a long-term
change in management culture, attitudes towards management, organisational structure and
hierarchies. It is hoped that this will create a path towards change among management, that
maintains knowledge and satisfies the demands for continuity and renewal.

8 %‘5‘''‘83<‘ (‘! !‘893% ‘

389 ‘<4;!'3 (‘

Siemens AS is one of Norway¶s leading electro-mechanical company and employs

about 3,000 people at 26 sites throughout the country. About one third of the employees are
engineers or engineering scientists, and 84% of the workforce is male. Siemens AS was
established in Norway in 1898 and is a subsidiary company of the German concern, Siemens
AG.

Towards the end of the 1980s the company became concerned about the ageing of its
workforce. There was hardly any internal mobility. Some parts of the firm were in a steady
market situation and employees tended to stagnate. The company wanted more mobility and
development of employees, particularly among managerial staff. As a result, the company
c4
implemented a new career system in 1987. In order to advance, professionals did not need to
take administrative responsibility. Siemens introduced the system of µConstructive
Management Mobility¶.

389 ‘ %‘

The two main programmes initiated by Siemens AS were:

` 3 %'4‘, !8 ‘,3< : The department of Management Development

and Training initiated and implemented several actions, including the development of
a training programme for µConstructive Management Mobility¶. This programme was
established following advice from organisational psychologists and employee input.
Mainly leaders in the 55-64 age group enrolled in the programme. It consists of three
two-day meetings over a period of eight months, with a mixture of plenary sessions,
group work and individual work. Between the first and second meeting, a four-hour
dialogue with an organisational psychologist takes place, focusing on individual
interests, options and resources. Between the second and third meeting there is an
exchange with the personnel director on alternative job opportunities in the company.
Each programme has 12 to 15 participants who belong to one of four small groups, so
called coaching groups, throughout the process. The members of each group are
recruited from different divisions of the company.

` 
‘?‘ 3'‘%3'4: In 1993 a similar programme for non-managerial staff

was introduced: µTIPTOP - Senior Resource¶. It consists of two seminars lasting two
days each, and three seminars lasting one day each. There are about three weeks
between each seminar and the whole programme takes four months. Non-managerial
staff with more than 10 years of experience is invited. Each programme has 12 to 15
participants and focuses on practical challenges at work and the working situation. Its
aim is to improve competence and to give encouragement. This programme is not
intended to increase mobility.

` 4‘3' 3 ‘'34%%: In 1996, a programme for all employees, irrespective

of age, was started. This is a one and a half-day seminar for all employees, and is part
of the effort to create a learning organisation and to develop readiness for change.

438‘

One year after completing the Constructive Management Mobility programme, two
thirds of the participants experienced a major change in their job, i.e. they had new tasks or
changed job. In some cases they moved to another division of the company. About 10%
found a new job outside the company and only 3% took early retirement.

Participants report they have taken more responsibility for their own development,
have increased their competence, and have become more open to change. The company
considers participants to have improved their ability to work in teams, which they see as
important for meeting future challenges.

cj
 Should Companies take retired employees?

Mandatory retirement age for most countries is 65 years old. Most people under this
age group are still physically capable and can still work for few more years. For the
unprivileged retirees, they want to extend their work life beyond 65 simply because they
cannot afford to retire. This is probably why some companies are learning to adjust to the
idea of re-hiring retired employees. They may not be physically strong or skilled in
computers, but hiring them have some advantages as well. Below are some benefits of hiring
retired employees.

1. Older employees according to studies are less likely to be absent and have a more
positive outlook towards their jobs. They usually take their functions seriously since they
know the difficulties of finding a job for seniors.

2. It is cheaper to hire retired employees. They are less demanding in terms of salary
offers and they are most likely to accept lower wages. Most retirees value their remaining
time in this world and they are more concerned serving their customers and maintaining good
rapport with co-workers« income is no longer on top of their list.

3. Based on customer surveys, ³retired´ employees are friendlier to clients. Old

employees recognize the importance of giving a smile to their customers since they know that
the lifeblood of every business is their clients. They also value the survival of their company
and taking care of their clients is far simpler than looking for a new job.

4. Some say that you cannot teach old dogs new tricks. But this is not the case when
re-hiring retired employees. Retired individuals seeking work will exert all efforts to learn
new things once they are hired for the job. Old employees are also emotionally stable as such
they are more focused on their jobs and are more reliable.

5. Hiring retired employees will also benefit the government since they will continue
to pay their taxes and social security premiums.

Employers used to think that senior employees are considered burden to the company.
This led to the establishment of discriminative hiring policies against older individuals. This
practice should be stopped and companies should encourage old applicants to join their
organization. Age should not be the sole consideration when hiring an employee but other
factors must be considered like experience, education, skills, attitudes, etc.

 4‘3:‘"‘>3‘ ‘! !‘43 38% ‘

‘
Since the 1970s early exit from work has become a major challenge in modern
welfare states. Governments, employers, and unions alike once thought of early retirement as
a peaceful solution to the economic problems of mass unemployment and industrial
restructuring. Today governments and international organizations advocate the postponement
of retirement and an increase in activity among older workers. If you go back and look at
concerns of the 1960s, there are all these horrendous book titles like m
‘ 
‘ .

c†
The primary source of concern in intellectual circles about population then was, and in some
places continues to be, the population explosion. The West's overreaction to this concern has
now left it with just the opposite problem. It's like having a diet in which at first you eat too
much salt, then you don't eat enough. Either way, the result could be fatal. In the case of
Europe and Japan, we really see countries that had always been powerful but had always been
young, and now demography dictates that they will become old and not very powerful.
They're having a hard time getting used to that fact.

Thanks to the post World War II baby boom, healthier and longer-living seniors are
reaching retirement age in unprecedented numbers all over the developed world. Rock-
bottom birthrates in those same countries mean there are far fewer young workers to take
their place. The potential consequences for industrialized economies are now clear: shrinking
work forces, soaring health costs and collapsing pension systems. Nihon University
demographer Naohiro Ogawa is not exaggerating much when he says: "Old people are
Japan's only growing asset." In Japan, where the number of people between 15 and 64 is
expected to decline by an average of 740,000 a year for the next decade, big-name
corporations like Canon and Mitsubishi have already started rehiring their own retirees, as the
pool of young job applicants shrinks.As the world's most rapidly aging society, Japan is an
extreme case. But the trends are the same all over the developed world.

The Japanese senior citizens who founded Jeeba knew they were making history when
they coined their company motto: "Of the elderly, by the elderly and for the elderly." By the
time the 25 founders met one another in the mid-1990s, at a series of business-networking
events hosted by the government of southern Saga prefecture, many companies were making
products å the elderly, the fastest-growing demographic market in Japan. But those goods
were not made by the elderly. All the Jeeba founders were older than 60 and believed they
had a special insight into the needs of older consumers. In 1997, they launched Jeeba (the
name means "old man and old woman") to build senior-friendly bathtubs, toilets and
hammock lifts to help the infirm into wheelchairs. They do not hire young people, and the
oldest of their workers is 75. Annual sales are only $272,000, but senior director Kazuhiro
Noda, 67, expects revenues to start growing soon, as the company is putting more money and
resources into sales development. He also believes copycats are sure to follow. Says Noda:
"There will be a lot more companies like ours."

America's relative period of youth, or lack of aging over the next 50 years, is the by-
product of a growing population . It is the lack of aging that makes the United States "the
island of tranquility in a turbulent demographic sea." But this doesn't mean the country will
not have huge demographic issues to deal with. No other developed country will see as large
a percentage increase in the elder population as the United States, because their baby boom
was larger than anybody else's. Yet US will continue to have lots and lots of young people to
support them. Eventually population growth has to slow down, whether it's the population
growth we have through higher rates of fertility or the population growth that results from
immigration. At some point it will be necessary for our population to stabilize, and when a
population stabilizes, as life expectancy increases you get more aging.

c_
 Meanwhile, the donor countries that provide America's immigrants will eventually
run out of surplus youth. Immigration from Mexico, for example, will probably slow down to
a trickle by the 2020s. Mexico is on its way to becoming an older population than the United
States, and this is true of all Latin America. So the major sources of immigration are aging
very rapidly. We have to assume that someday the immigration will slow down, and when
that happens, we'll age more rapidly. In the United States, a full third of recently retired
seniors now go on to pursue a second career, reports a new study by according to a survey by
AARP, the top U.S. lobbying and advocacy group for senior citizens, half of working-age
Americans now expect to work into their 70s, whether by financial necessity or by lifestyle
choice. The surprising news to many younger workers dreaming of a life beyond the rat race
is that most seniors are happy to be working. In America, two thirds of the Putnam
Investments and "working retired" say they return to the job because they want to, not
because they have to. In the United States, hospitals struggling with staff shortages are
extending the careers of older nurses by making their work easier with things like mobile "lift
teams" for handling patients, or hydraulic hospital beds that cut the strain of too much
stooping. This erosion of one of the cornerstones of the good life--relaxed golden years--has
not gone unremarked. In the last year Belgium, Italy and France have all been hit with
massive protests against pension reforms that would, among other things, have risen the
retirement age. In Germany, political resistance has forced the new government of Chancellor
Angela Merkel to go slow on efforts to rise the official retirement age from 65 to 67; the plan
now is to increase it by one month a year between 2008 and 2032.

When we talk about work as a matter of lifestyle choice, then the traditional idea of
"retirement" as the ultimate reward for a working life loses much of its meaning. If anything,
it's surprising that we didn't challenge the popular association of old age and idleness much
earlier. After all, the roots of the modern concept of retirement go all the way back to the era
of Germany's "Iron Chancellor" Otto von Bismarck, who founded the first welfare state in the
1880s. At that time, the average worker toiled in a factory and lived to be 50. Retirement, for
those few lucky enough to reach it, was conceived as a small recompense for physical and
mental exhaustion. Happily, few of us today associate work with that kind of bodily strain.
Instead, it's often a way for older people to stay active and integrated in a rewarding social
network. That's the positive side to working longer and retiring later. We may also no longer
have a choice.

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The table indicates that the the percentage of population in the various countries show
a trend of ageing ie many major economies like Japan and USA are in the danger of being
classified as an aged country.

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Older employees in an organization are a goldmine of resources. Their exit from the
industry is a huge loss in terms of the experience lost and the knowledge that they hold, about
the working of the industry and dealing with the customers. Especially in jobs where a high
degree of specialized skills, business intelligence and dealing with customers is required, the
loss is collateral.

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Older employees are generally more committed and loyal to their employers as
compared to the fresh from college employees. Their degree of commitment comes from their
tenure that they have spent at the workplace, and lower availability of lucrative job options.
Stability always counted, and it weighed in more than just an exponential career growth path.
With the younger generation of employees coming into the industry as the older ones make
way for them, the industries are going to face huge costs in terms of retaining talent. Its not
only the norm of this generation of employees to jump from one workplace to the other, but
has also left troubled industries grappling to find a solution to this impediment, which
disallows any sort of knowledge retention in the future.

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According to a survey done by Cisco, the skilled labor force in the U.S. is going to
decrease by 40% in the coming 3 years. This will result in huge gap, as 40% of the current

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workforce will retire or move out of jobs being performed actively. The shortage in the area
of technological jobs is predominantly because the students are preferring more orthodox
careers in law or medicine and want to have secure jobs as far as possible. Even their parents
dissuade them from taking up these jobs knowing very well the sensitivity of these jobs to
market forces and recessions.

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This is the bone of contention between developed and developing economies.

Countries like the U.S. and Japan have a huge chunk of their population, between 55-60 years
old. These employees have rich knowledge of the businesses, how they work, the processes,
legacy systems and especially invaluable experience in how to deal with customers. These
factors are very difficult to replace and are not like technical skills which can picked by the
drop of a hat. So this leads to the prospect of off shoring critical work, core competencies and
knowledge intensive work to vendors in low cost areas like India. But with the recent
government interventions in the U.S. on reducing the cap on HI1-B visas, there¶s likely to be
a gaping hole in the areas mentioned above.

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Retaining workers beyond retirement age requires shifting working arrangements to

suit lifestyle changes. Innovative organizations offer flexible work programs to employees as
part of their retirement programs. Short term projects, customized work schedules, attractive
work assignments and compensation packages are all aimed to attract and maintain the
mature workforce. Consider benefits of interest to older workers, such as long-term care
insurance, health and wellness programs, comprehensive medical coverage, and part time
employment. Some organizations have created outplacement agencies. For example, in 2003,
P&G and Eli Lilly founded ³YourEncore,´ an employment agency specializing in matching
retired and older scientists and engineers to a list of jobs in fields throughout the world. Other
companies have engaged former employees as contractors for short periods of time.

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Leaders and managers need to reassess workforce job descriptions and work missions
within an organization to broaden succession planning and establish effective knowledge
sharing between older mentors and younger workers. There is a need to create and maintain
communication mechanisms for intergenerational information transfer such as workshops to
train mentors and to build focus groups for younger employees. Organizations can also create
retiree networks that enable and promote intergenerational exchange.

Cisco recently launched its µExperienced Influencers Employee Resource Group

(ERG)¶, targeting the Baby Boom generation and beyond - which represents an estimated
25% of its total workforce. The objectives go beyond just making Cisco an employer of

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choice for older workers - it¶s about engaging employees throughout their career and into
retirement and recognising the strategic importance of having a group that can help the
company become a trusted business partner for older consumers. The Experienced
Influencers ERG has executive sponsorship at the highest levels, a clear set of business
related goals and is open to employees across the globe. Members have the opportunity to
influence workplace practices and benefits, network with Cisco alumni, mentor with more
junior employees and create a more collaborative, multigenerational workforce.

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To enable older workers to continue to be productive in the workplace it may be

necessary to consider redesigning some aspects of the job or rethink certain processes.
However any job redesign should make economic sense and yield benefits to the company,
for example, in terms of higher productivity or lower staff turnover, or it should benefit
employees from all generations. Some companies have shown that simple changes or a new
creative approach can improve efficiency and lead to improved output.

US truck manufacturer International Trucks has retrofitted its facilities so that they are
less physically demanding on their employees. Recognizing that a large percentage of its
skilled assembly line workers were approaching retirement ages, it redesigned its
manufacturing plant to make work less strenuous. The company also designed a system
which flipped the trucks upside-down on the assembly line, so that workers do not have to
crawl under the trucks to assemble parts.

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In addition to offering all employees access to a standard e-learning module that looks
at generations in the workplace, Goldman Sachs has developed its own training, entitled
³Four Generations Under One Roof´. Based heavily on economic research, the course
highlights changing demographics and articulates the business case for extending the talent
pool to include all ages. Participants explore the typical traits of the various generations, the
key motivators for each group and how best to manage people from multiple generations in
the workplace. The course is designed for all employees and the content has been adapted
specifically for Asia. Recognizing the dangers of stereotyping on a global scale, participants
consider how significant events in different geographies are likely to influence the
generations in different ways. The outlook and values of those who have experienced
Communist rule and the Cultural Revolution in China, for example, are likely to be very
different to those who have experienced the freedom of the 60s and 70s in Europe. Goldman
Sachs says the training is well received and many participants discover that what they learn
about different generations is helpful and applicable to not just their professional but also
their personal lives.

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One may not want to leap from a permanent position behind a desk to a permanent
slouch on a lawn chair-literally overnight. Thanks to an emerging trend called phased

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retirement,‘one might be able to choose a middle path that allows reduced work hours, more
flextime and maybe even collecting retirement benefits -- all in exchange for a substantially
smaller paycheck.

IBM‘launched a $2 million program that will pay for tuition, licensing and interim
salaries for employees who want a‘-
‘to new careers as math and science teachers.‘

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Is your organization ³age-friendly?´ Retired workers join organizations that do more

than apply ³age-friendly´ strategies at a job fair. ³Age friendly´ cultures do not happen
magically. The process needs to be instilled throughout a company¶s culture - from factory
floors to executive suites. Hiring and maintaining a bank of experienced workers requires a
culture that is age-diverse. If a company places experience and ability above age, the
organization will become multi-generational.

Interviewers and recruiters need to be trained to assess skills, education and

experience without allowing age to get in the way. Many older people accept jobs because of
recruiters¶ age neutral attitudes. They set the tone for the organization to attract older job
candidates.

Sanyo Electric Co. has opted to offer a re-hiring programme for up to 5 years beyond
the designated retiring age for those desiring to be rehired. The re-hiring programme is
applicable to all non managerial workers. Those aged between 60 and 65 can choose a
suitable work schedule, changing from full time to part-time, for example to 4-days a week or
6-hours a day. On reaching 55, employees should notify the company whether they wish to
extend the retirement age when they become 60. An employee opting for rehire will receive a
reduced salary for the period between age 56 and 60,which will be about 70-75% of his
salary at age 55, in exchange for the opportunity to work for a longer employment tenure.

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In all the statistics and suggestions given above, we should give a moment and ask
ourselves ³why did the population in the U.S. ballooned the way it did to cause such a
scenario today?´

Apart from cold facts of the after affects of World War II and the baby boomer era,
the population has always been dwindling. Birth rates are on the decline and people are living
longer. There is a reason for this trend which goes far beyond migration patterns, high life
expectancies and demographic patterns.

It¶s about the mindset. The culture, the people of the country have got themselves
into. It¶s about individualism. It¶s about the µI¶ and not the ³We´. Increasingly the people in
the U.S. and other developed economies, especially the western world, are getting more
obsessed about professional growth than anything else. The greenback probably dictates and
occupies more space in an individual¶s life than his kith and kin. Having a family, is looked

4

upon as a burden, as an opportunity cost to a successful life, a cost that should be minimized
and not as an asset that is priceless. Job requirements, frequent travelling and peer pressure of
social status, has resulted in delayed marriages, broken marriages and the long forgotten
concept of conceiving. There is no time in this rush hour to nurture a third soul. The
government of the U.S. never paid heed to this problem as it was the very force that factored
it. Now, since the problem is head on, and industry is on a collision course, its time the
government wakes up.

The U.S. can start providing financial incentives for all those people to bear 2
children, just like the Chinese did though for an opposite cause, for a child less though. It
could provide subsidies to those families and help them raise the child and reduce their
financial burden if any. On a stricter note it could also punish people or have punitive laws
established for those who stray away. A greater awareness for a family to be nurtured too can
be spread among the masses, for the greater good.

All these steps are measures that require great conviction from the side of the
government and a paradigm shift in the lifestyle and mindset of the people, which might take
years to yield results but would definitely be a first step in the right direction. If the U.S and
other nations of the world facing this impediment want to come out fighting, they better
strategize now else they might stumble later.

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1. http://www.pbs.org/wgbh/nova/worldbalance/voic-hewi.html

2. http://www.newsweek.com/2006/01/29/the-new-old-age.html

3. http://www.communitybusiness.org/images/cb/publications/2010/Ageing.pdf

4. http://en.wikipedia.org/wiki/Old_age

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