Key Issues

The issue in the case mainly focuses on aging workforce.

In this modern world where business is profit driven and they try to cut cost as much as possible. One of
the ways is to replace old workers with new young worker. As older workers have stayed in the
company for longer period of time their salaries are high and as for new fresh graduates their starting
salary is low and works more productive than the old age. As in the case study it states that with the old
workers salaries the company can hire two new graduates which will yield more productive result than
the old workers. Not only that the young generations are more adaptable to change, flexible and also
more acceptable to change. But on the other hand, the old workers have good work ethics where they
will show up on time, less likely to quit and moreover they have work experience. However, AARP states
that modern business require potential and smart workers rather than worker with wisdom and
experience. Younger generations tend to work more hours as they don’t have family, compared to that
old worker leave office on time as they have to spend time on their family.

Causes of problem

Less cost of labors while hiring young generations

As already stated, business wants to earn profit as much as they can so in order to cut cost, they hire
young generation for cheaper salaries and the company can train them as they want. Not only that
when age is rising the medical and insurance also increase and more an employee stays in a company
more expensive his pension plans become so with that company try to cut cost by replacing the old
employee.

Ability and Age

It is believed that ability come with age, where when one becomes old the productivity decreases.
Younger generation have more ability to change.

Technological change

In this modern time technology are changing time to time, with that the workers have to adapt to those
changes and they have to change with technology.

Stereotype

By just looking at few old workers and past knowledge, people think that old generation can’t adapt to
change, is not much productive as young generation and takes more sick leaves days. But there no
enough evidence to prove that most of the old employees can not adapt to change.

Age prejudice

People can preconcept that old people can’t work as productive and work hard like younger people.

Demographic Needs.

Tremendous rise in Baby Boomers

With the technology there has been a gap how older generation use to get education and how now
younger generations can get information at faster pace and can learn so much new stuffs. For instance
Arham Om Talsania from India have mastered the computer programming at the age of Six.

With the advancement of technology the generations have a gap of how fast a younger generation can
learn. Before old generations use

Solutions

1. Exit Strategy
Advantages
 The company could employ phased retirement strategy for the older employees. The
employees who are approaching their retirement age could gradually reduce their
working hours and eventually retire.
 Help workers save money for the retirement.

Disadvantages
 Will have difficult lifestyle transition.
 Retirement savings have to last longer if not you cant fit in the society.

2. Flexibility

Advantage

 If the company provides flexible working hours for the older employees it can help them
with retention and job satisfaction.
 Since the older employees prioritize family so, if the company allows them to choose
their working hour, they might be willing to take less salary.
 Stronger staff motivation.
 Reduce stress, fatigue, apathy and other productivity killers.

Disadvantage

 Working less than normal hours will be advantage for employers but it may affect on employer’s
punctuality as well as their outcome won’t be good.
 Telecommuting and working from home is more flexible but this would not be more effective
than how we work in the workplace.

3. Position that fits their skill

 Advantage
 Age may reduce certain skills but it broadens other traits. If the company evaluates their
skills and find the right position for them than it may eventually help the company grow.
 Increase employee motivation and job satisfaction.

Disadvantage

 People without any work skill will result in poor quality work.
 High cost or expenditure : for employee training though it is to improve the skills and new
knowledge for employers but it will cost high expenses in it like travelling cost, training facilities,
equipment, refreshments etc.

4. Multigenerational workforce

Advantage
 Making employees from different generation work together and share their knowledge.
For instance, older employees have more experience so they will have more information
on smooth functioning of the work where they can help younger generation in the
workplace on how to do. On the other hand, the older employees can learn about the
new technologies and method from the younger generations.
 It promotes the sharing of best practices and different perspectives.

Disadvantage

 Negative stereotypes: behaviors like laziness, entitled, tech obsessed, overeager etc. will
come to the mind of many old workers when they think of millennials and younger
generations are well aware of the stereotypical ideas they are up against. Where older
ones will have difficult in training young ones as they stubbornly set in their ways.

 Communication style: younger workers tend to use abbreviations, informal language

and colloquialisms whereas older ones tend to use informal language and bookish.