The attraction and retention of older workers presents opportunities Research Paper

The attraction and retention of older workers presents opportunities and problems for many employers. Critically evaluate the ma - Research Paper Example Based on literature findings, the present study highlights some of the most significant positive and negative implications for HRM. The main point that stands out in the minds of employers while employing older workforce is their contribution or performance. Considering the changing trends in businesses, competition, customer expectations etc, most organisations favour younger workforce that are more energetic and innovative. Other perspectives that point at choosing younger workers include lesser productivity from older workers and loss of knowledge due to higher turnover of older workers (Ashworth, 2008). The main HR challenges that haunt contemporary organisations, according to the CIPD report on Healthy Working Lives (2012) include sustainable employee motivation and commitment, employee turnover, knowledge retention, performance improvement and sustenance, and employee development. Engaging older workers in learning activities and skill development has been a challenge for manag ers (Gray & McGregor, 2003); however, it should also be noted that older workers’ immense experience makes them the knowledge bank that can be effectively used through appropriate practices (Ranzijn, 2004; Murray & Syed, 2005), and this positive attribute can be of great assistance in difficult situations that would otherwise be challenging for younger workforce. Employing older workforce presents critical implications to the HR function from diversity perspective. Of the many findings from their study on diversity programs employed by Fortune 500 companies, Ryan, Hawdon and Branick (2002) identified that most of the Forture 500 companies put significant efforts towards adopting diversity, which eventually fails or is not up to the expected standards, i.e, the number of aged workforce is proportionately low compared to other groups. This study suggests the need for enhancing diversity programs for older workers. This lag could be two-folded, one being company’s lack of interest in hiring older workforce and lack of interest from the older workforce to join jobs/companies that do not provide flexibility and ergonomics conducive to their working requirements. Yet, efforts to employ older workforce are being adopted by many organisations, which also provide various benefits and facilities for this group (Feinsod & Davenport, 2006). From cost/economic implications perspective, investment in older workers could be high in certain spheres but also low in others. For instance, Encel’s (1998) studies identified that older workers were more punctual and had less absenteeism besides their higher commitment, loyalty, knowledge, and ability to handle pressures. These aspects certainly provide greater advantage to managers in terms of cost reduction due to absenteeism and turnover. However, it is a general perception that older workers tend to require greater medical care and hence would incur higher expenses in terms of insurance and other compensatio n benefits; but, studies indicate that these costs also depend on other factors (Feinsod & Davenport, 2006). Based on their research, Guest and Shacklock’s (2005) viewpoint is that older workers