The aging workforce and human resource management: Challenges and recommendations

Abstract

Population aging constitutes one of the biggest trends of the 21stcentury. Considering the European Union (EU) reality, one can observe an annual increase of two million people over 60 years of age, predicting the International Labour Organization (ILO) that, in 2025, people over 55 years of age will represent 32% of the total European population. Regarding active population, the estimate is that between 2010 and 2030, there will be an increase in the EU of roughly 16% of the active population belonging to the age group from 55 to 64 years old, while all other groups will present a decreasing trend. Portugal is no exception to the trend, with prevision indicating that, in the year 2060, the proportion of elderly (over the age of 65) to young people (up to 14 years old) will be 307 to each 100 (INE, 2014). In one other perspective, the older workers, when unemployed, have greater difficulties in entering the labor market than younger workers. It can be said that population aging has reflected in all spheres of society, including what concerns the labor market, obliging a (re)think of Human Resources Management (HRM). This chapter, starting from the literature review, proposes to characterize the main changes originated by aging on the labor market. From that characterization, it is also proposed to discuss the main challenges for HRM, regarding management policies and practices.