Análisis de entidades internacionales con actividades similares a las del OSINFOR. OSINFOR

With the loss of the traditional methods of managing older workers, as well as the need to be prepared for the demographic shift, organisations have had to consider what kind of measures they can implement, in order to manage the impact of these changes and upheavals (Kirpal and Kühl, 2006; Leyhausen, 2009; Streb et al, 2009). Indeed, the literature argues that firms run the risk of falling into a demographic trap (Thun et al, 2007). Studies argue that, despite the fact that managers are aware of the problem of demographic change, they do not perceive it to be a matter of immediate urgency (Kirpal and Kühl, 2006; Müller-Camen et al, 2009; Thun et al, 2007). This is an argument that comes across widely through the disseminated work on demographic change; the majority of researchers suggest that firms are not doing enough, or even anything, to prepare themselves for the changes in the labour market demographics.

There are, however, two studies which point to some efforts being made by German companies to address the demographic shift. The aforementioned Commerzbank study Abschied vom Jugendwahn (Farewell to the Obsession with Youth) (2009) offers insights into how large and small firms react to the challenge of the demographic shift. The Commerzbank (2009) found that over eighty percent of firms were concentrating on offering more training options for younger workers, but only forty percent were tackling issues related to older workers. This study highlights that, in terms of measures to tackle demographic challenges, what was being done was mostly within the realm of knowledge management.

Despite concentrating solely on the car industry, some elements of the study by Streb et al (2009) are similar to those of this thesis. The research by Streb et al (2009) aimed to analyse how organisations understood, as well as practiced, the management of the ageing workforce. Additionally, as this thesis also does, Streb et al (2009) used qualitative research methods. The research by Streb et al (2009) is of value for being one of the very few studies to analyse demographic change at organisational level, as well as for some of the original insights that it offers into how the management of the ageing workforce is perceived by employers.

The research indicated that the concept of the ageing workforce was understood by managers to be underpinned by the notion of competitiveness. Streb et al (2009) found

that the German managers in their sample were largely unconcerned about the age of their workforce or how to organise the workplace in order to accommodate them. The explanation for this was that the cost of labour remained a chief concern and the push for competitiveness directly affected, and was, in turn, affected by, the age of the workforce.

The research found that, because older workers in Germany are expensive and difficult to dismiss, they were frequently relegated to doing jobs that did not create value, but were easy to perform. The researchers reported that there was “a contradictory relationship between managerial measures and efforts to achieve competitiveness and the factors and issues linked to age that could conflict with this goal, resulting in a vicious circle” (Streb et al, 2009: 21).

As already emphasised, research on ageing workforces examines a myriad of factors including age-related differences in attitudes and behaviour at work, health and performance, successful ageing and career paths. The next subsections will summarise organisational responses to demographic shifts.

2.3.1 Skills, Knowledge and Training

Knowledge transfer may be improved through wider organisational communication channels. Research conducted by Davenport et al (2002) on knowledge workers suggests that managers tend to embrace fads and trends when attempting to increase employee interaction. Whilst the attempt to nurture more social contact may improve overall satisfaction with the firm, Davenport et al (2002) did not find that it has any positive

effect on improving relations between workers. In their research, Streb et al (2009) found that sixty-eight percent of firms believed that there should be a more intensified transfer of knowledge between older and younger workers.

2.3.1.1 Knowledge Transfer

Research postulates that firms run the risk of a decline in knowledge transfer. One of the major reasons cited for a lack of exchange of information between older and younger members of organisations is a generational gap which exists in many companies. The demographic make-up of a firm may impact upon communication, in that people within organisations tend to communicate more with those who resemble themselves (Kanter, 1977; Pfeffer, 1983). Thus, older workers will be more likely to interact with other seniors and younger workers with their similar-aged colleagues.

Early research (for example, Dearborn and Simon, 1958; Katz and Kahn, 1966 and March and Simon, 1958) showed that frequent interaction between individuals leads to the development of a shared language or coding system. Consequently, the longer the individuals, who develop a shared pattern of communication, work together, the more likely it becomes for them to develop their own form of communication, from which other organisational members may be excluded (Zenger and Lawrence, 1989). Besides, employee attitudes and beliefs may be influenced by communication outside the company (Rhodes, 1983; Zenger and Lawrence, 1989); thus, a communication pattern

amongst workers with young families may develop as a result of a commonalty they share beyond the workplace. McCain et al (1983) identify that the exclusion of other groups within the firm, due to communication frequency based on factors such as age, may lead to power struggles and discontentment with the organisation. In terms of enhancing knowledge-sharing between old and young, the above research indicates that firms need to encourage better communication.

2.3.1.2 Ensuring Skill-sets

Enhanced training programmes are suggested to ensure a supply of skilled labour within organisations, as well as to manage the loss of skills and knowledge. Rainbird (2005) makes a distinction between training for the purpose of the firm and training for the needs of the employee. Understanding this distinction is important because it helps to envisage how, as the literature suggests, training can have a dual purpose in the management of demographic effects. Ongoing training will not only improve the ability of older workers to continue to be employable, but raises motivation levels; age may negatively affect participation in training but this can be counteracted by belief in self and benefits of training (Maurer and Rafuse, 2001).

2.3.1.3 Managing Training Needs of Older Workers

In order to link training with the other objectives of the firm – in the case of managing demographic change, to encourage a better integration between older and younger

workers – all employees should be encouraged to participate in training and clearly informed of the importance of ongoing training (Maurer and Rafuse, 2001). The literature agrees that training should be structured to suit the needs of different aged learners (Leisink and Greenwood, 2007; Morris and Venkatesh, 2000; Sterns, 2005). Younger workers, for example, need to be convinced of how the new technology will improve productivity or make a contribution to enhancing another part of the working experience (Morris and Venkatesh, 2000). Without a doubt, the literature points to a lack of training being offered to older workers (Maurer and Rafuse, 2001; Sterns and Miklos, 1995).

Sterns (1986) suggests five areas which should be taken into account when designing training programmes for older workers (see figure 2.4).

1. Motivation 2. Structure 3. Familiarity 4. Organisation 5. Time

Figure 2.4: Designing Training Programmes for Older Workers (Sterns, 1986)

Incorporating and creating incentive is important because older workers need to be motivated to participate in order to overcome any possible fear of failure or past bad experiences of learning (Leisink and Greenwood, 2007). Additionally, older employees

need to be persuaded that the new technology will be easy to use¹⁰ (Morris and Venkatesh, 2000).

The training should have a clear structure and Sterns (1986) suggested basing it on real job tasks, in order to underline the value of the training, as well as its applicability to real life. In their study of training in the steel sector, Leisink and Greenwood (2007) found that workers complained about training which they felt was unrelated to, or not useful for, their jobs. Familiarity should also be considered; elderly employees perform better when they have the opportunity to build on past abilities (Sterns, 1986). Furthermore, the retention of new skills by elderly workers can be enhanced if older workers are given the opportunity to practice these skills often; this is especially the case with IT (Sterns, 2005). Additionally, older people are more motivated by job tasks which allow for self-affirmation (Kanfer and Ackermann, 2004). According to Sterns (1986), older learners find it more difficult to organise materials effectively; thus, learning needs to be well structured. Training older workers in IT should take place in a location which is quiet, well lit and trainers should consider using larger font sizes (Morris and Venkatesh, 2000).

Finally, older workers learn more slowly than younger workers (Sterns and Doverspike,

10This is highlighted in a study by Sterns (2005) illustrating that older adults can be successfully trained to use new technology. The experiment reported by Sterns (2005) involved adults being taught to use personal digital assistants (PDAs); the difficulties involved in mastering this type of digital device are similar to problems encountered by individuals who do not possess basic IT skills, but need to use computers. Sterns (2005) found that the older adults who were most successful in mastering the PDAs were those who expressed an interest in learning to use the device.

1989), however, once training has been carried out, older workers can perform tasks with the same level of ability as their younger co-workers (Sterns, 1986).

2.3.2 Health and Employee Well-being

Although encouraging older workers to stay on in work and to remain healthy and productive is a key aim of organisational schemes to raise health and safety levels, promoting employee well-being is depicted within the literature as important for the company as a whole. Wilton (2011) highlights an ethical principle behind health and well-being; employers have a social and moral duty to secure the health and safety of the workforce and to look after the welfare of the workers. Yet, whilst the majority of employers suggest that their rationale for promoting well-being is based in social responsibility, Wilton (2011) suggests that it is the business case for the effective management of health and well-being at work which prevails. The business principle argues that, whilst safety at work reduces accidents and associated costs of absence, insurance claims and legal action, healthy workers are more productive, engaged and motivated at work (Wilton, 2011). Consequently, absenteeism may decline as a result.

Finally, promoting employee well-being is the sign of a good employer, which may positively affect recruitment and retention (Wilton, 2011).

A plethora of studies focus on the impact of occupational stress on the health and psychological well-being of employees and the repercussion for their employing organisations (see Dewe et al, 1993; Zapf et al, 1996; Sonnentag and Frese, 2003). As

figure 2.5 shows, employer schemes to manage employee stress become aligned to measures which generally impact upon the health and well-being of the workforce.

Stress reduction initiatives can be typically divided into primary, secondary and/or tertiary measures (Clarke and Cooper, 2000).

Figure 2.5: Employee Well-being Measures (adapted from Clarke and Cooper, 2000 and Wilton, 2011)

Clarke and Cooper (2000) posit that, although primary initiatives have a greater impact on the overall health of the organisation, secondary and tertiary measures are most likely to be implemented by managers because they are faster and cheaper. Whilst this might call into question the effectiveness of secondary and tertiary measures, research by

Walters et al (2005) indicates that measures set up in consultation with workers to promote health and well-being tend to have the greater instances of success.

2.3.2.1 Older Workers’ Health Requirements

Practices to promote health and well-being amongst older workers may still require special attention (Bound et al, 1998). Aside from focusing on preventing and tackling stress, the literature highlights the importance of managing the physical health of older employees, focusing on, inter alia, musculoskeletal disorders (Griffiths, 1999; Griffiths, 2000).

Streb et al (2009) find that the main instruments developed to cope with the demographic shift linked health initiatives with measures to make employees more committed to the organisation and to their job. The changing nature of work has lead to a decrease in physically demanding work, especially in traditional sectors, as well as the obsolescence of some jobs (Park, 1994). Some firms may not offer organisation-wide health initiatives because these may not be viewed a cost-effective in times when enterprises are trying to save money (Thiehoff, 1998). However, the demographic change literature suggests that companies should support their employees in the management of their health.

2.3.2.2 Flexible Working

Dychtwald et al (2004) suggested that organisations should offer more flexible working options for older employees. This is especially of note because flexible working tends to be targeted at female workers (Dychtwald et al, 2004) and part-time work in Germany tends to be the domain of women¹¹. Moreover, companies need to rethink how to recruit older workers (Dychtwald et al, 2004). Streb et al (2008) argue that globalisation has opened up the recruitment market and made it even more difficult for firms to get the best people. As Davenport et al (2002) argue, young people want work to be interesting.

2.3.3 Mixed-age Firms

Having a mixed-age organisation means being a more attractive employer; therefore, older workers must become better integrated into the organisation, in order for them to receive their full potential in terms of innovative ability and productivity (Wolff et al, 2001). In-company events, including projects and social gathering may strengthen bonds between old and young within the organisation (Sepehri, 2002).

11 The conservative-corporatist capitalist model of Germany (Esping-Anderson, 1990) has been critiqued for the way in which it has shaped working practices, especially for women (Bosch and Kalina, 2008;

Gottfried, 1999). German society remains underpinned by the male breadwinner model, with females expected to leave the world of work when they become mothers, only to return when their children are older and, then, to take up part-time, lower paid jobs (Cousins, 1999; Gottfried, 1999; Yeandle, 1999).

Even though females make up less than forty percent of the German workforce as a whole, almost sixty-five percent of all low paid workers are women (Solow, 2008). Low paid work amongst women began to rise after the Hartz Commission reform, Hartz II implemented the mini-job (geringfügige Beschäftigung).

The geringfügige Beschäftigung limits an employee’s income to a maximum of four hundred Euros per month; however, the bonus effect of this mini-job is that there is neither tax nor social insurance to be paid (Winkel, 2004). For women with family responsibilities, mini-jobs are the most suitable types of work because these are tax exempt (Solow, 2008) and allow mothers to return home in time for the end of school¹¹ (Yeandle, 1999).

Morris and Venkatesh (2000) emphasize the importance of opinion leaders in the workplace and how they may be utilized by managers to cultivate a change in the organisational mindset. This is particularly important when it comes to the introduction of new ways of working, which may be initially opposed by the older members of the firm.

2.3.3.1 Team-working

Mixed-age work teams have been suggested as a tool to manage the effects of demographic shift, especially a better relationship between demographic groups and knowledge transfer (Braedel et al, 2002). There is no evidence to suggest that older employees are less able to work well in teams than younger workers (Braedel et al, 2002). As far as empirical evidence to support the effectiveness of age diverse teams is concerned, there are a dearth of studies which emphasise that mixed-age teams are the most effectual way of increasing performance and employing older workers productively.

Moreover, as Leonard and Levine (2003) posit, too much diversity within a team can damage communication channels and group cohesion. Nevertheless, teams which contain a mix of male and female workers, have better attendance records (Leonard and Levine, 2003); this finding is interesting in terms of the importance of employing more women in the workplace as a means of protecting against skills shortages.

2.3.3.2 Positive Attributes of Older Workers

Other papers related to age differences within firms focus on demonstrating the value and importance of looking after older workers, pointing to the benefits that they bring to their organisations in terms of work ethic, leadership skills, loyalty, knowledge and experience (Thun et al, 2007). This, it is suggested, should be communicated through the workplace.

Dychtwald et al (2004) perceived a connection between meeting the changing needs of employees and creating a better relationship between the different demographic groups of workers and exhorted companies to design an organisational culture which values age and experience.

This section has described the responses taken by organisations; the next section considers why there is diversity in the choice of methods employed.