Developing a Strategic Approach for Managing an Ageing Workforce

As is the case in many developed countries around the world, Australia is experiencing the ageing of its population. The increasing number of older workers in Australia and many other industrialised nations presents an unprecedented challenge for employers, the economy, and for individual workers. The human resource management (HRM) challenges related to attracting and retaining older workers have received the attention of researchers, policy-makers and managers. However, many employers have been slow to respond to these challenges and research has suggested that national policy in Australia has not fully addressed the needs of an ageing workforce nor encouraged the retention of older workers. The focus of our research is at the organizational level. Drawing on the assumption of value-in-diversity, we propose that the ageing workforce should be managed at the organizational level as part of strategic HRM. We conducted semi-structured interviews with managers in 16 large organizations in Australia to identify policies and practices relevant to the ageing workforce. We also conducted semi-structured interviews with 11 subject-matter experts, to identify macro policy issues, organizational issues and individual issues related to the ageing workforce. Our thematic analysis identified a range of issues and strategies that have implications for organizational decision makers and individual workers, with regard to the needs of the ageing workforce. Although some Australian corporations have been leaders in developing diversity programs, there is much progress yet to be made with regard to a strategic approach to managing the ageing workforce. Consistent with previous research in the field of strategic HRM, we suggest that the roles and responsibilities adopted by all managers (executives, line managers and HR managers) will be important influences on the way in which the ageing workforce is managed. A major implication of this research is that HR professionals can play an important role in strategic and cultural changes in organizations, with regard to the ageing workforce.