Building workplaces in line with the ageing process

1. Building workplaces in line with the ageing process AGORA „Promoting lifelong learning for older workers“ Cedefop, Thessaloniki 12 October 2006 Bernd Dworschak Fraunhofer Institute for Industrial Engineering

2. After 2010, the supply of human resources diminishes. Even high immigration rates will not be able to counter this trend. Fuchs, Thon, 1999 Consequences of demographic change for companies Distinct ageing of workplacepopulations, with larger percentages of employees aged 50+ Demographic changes result inthe surplus of labour becominga widespread lack of manpower. The recruitment of younger workers becomes increasingly difficult Probability of qualificational and regional mismatches increases

3. Short-term action • An analysis of the age and workforce structure of firms and particular areas of work with the aim of identifying any disequilibrium in age distribution and the problems which this may engender. • Initiation of intergenerational collaboration and the introduction of tandem training enabling firms to ensure that the experience and know-how of retiring employees is transferred to their successors in good time. • Modified and extended recruitment and personnel development strategies designed to dig deep into the reserves available on the labour market – these strategies should also be aimed at ”new” target groups such as women or the older unemployed.

4. Approach: Analyse current age structure 40 2006 35 • Age-distribution: • Company • Organisational Units • Groups of employees 30 25 20 15 10 5 0 64 65 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 Example Age structure 2006

5. 40 35 30 25 20 15 10 5 0 64 65 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 Approach: Forecast Age structure of the future 2006 2016 • Variables: • Business development • Dismissals • Reduction of pensions • Run out of early retirement • Fluctuation of employees • Recruitment Example Age structure 2006 Scenario Age structure 2016

6. 40 35 More lost working days More people with restricted performance 30 25 Restricted deployment flexibility 20 Know-How gaps 15 10 5 0 64 65 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 Scenario: An increasing proportion of older workers may lead to ... 2006 2016 , if no measures are taken. Example Age structure 2006 Scenario Age structure 2016

7. Effective medium-term action • Enhancing and highlighting the attractiveness of working for the firm. Companies will only be able to entice and retain the best talent if they are perceived as an attractive option on the labour market by potential job applicants. • Counteracting prejudices about the job performance of older employees and exploiting the experience of older workers in innovative projects in order to avoid impasses. • Providing ageing employees with development perspectives in order to thwart entrenched expectations of early retirement, e.g. by developing ageing-appropriate, career management geared to each phase of working life and providing flexible routes into final retirement. • Establishing age-mixed teams which guarantee that knowledge and experience is transferred and the complementary strengths of younger and older workers are utilized.

8. Age distribution 50 45 40 Number of workers in % 35 30 25 20 15 Age-centred: 2010 10 5 Compressed: 2006 0 Younger than 25 Youth-centred: 2000 25 - 35 Balanced age structure 35 - 45 45 - 55 Age of workers 55 and older

9. Differentiated paths of occupational development New tasks Retirement/ End of career Changing tasks Occupational development: hierarchy, wage/salary, competences Alternative: Vertical career Alternative: Work-Life-Balance Changing tasks Sabbatical Further training Start of career Alternative: Horizontal career Occupational re-orientation, New tasks Family phase years 20 25 30 35 40 45 50 55 60 65 Age

10. 19 - 34 age group 35 - 49 age group 50 - 64 age group Levels of participation in continuing vocational training 40 36 36 35 29 31 33 30 31 29 25 25 27 23 24 Share in % 20 20 16 20 15 17 18 15 14 14 10 11 9 8 5 6 4 4 0 1979 1982 1985 1988 1991 1994 1997 2000 2003 Years 19 - 34 Jahre 35 - 49 Jahre 50 - 64 Jahre Source: BMBF, Berichtssystem Weiterbildung IX, 2005, S. 26

11. Long-term action • Boosting the status of skill careers alongside hierarchical careers; fostering people's ability to adapt and learn by switching personnel between tasks and positions. • Fostering lifelong competence development; activating 'middle-aged' and older employees by providing continuing training and opportunities for taking on new activities. • Re-designing or avoiding activities which can only be performed for a limited period of time; avoiding longer-term repetitive stresses and strains on employees and introducing measures which reduce or provide a break from arduous tasks. • Establishing balanced personnel and age structures in specific areas of work and throughout the company with the aim of avoiding waves of recruitments and retirements.

12. Repetetive work routines • Permanent concentration • Forced awkward postures • Night shifts • Physically-demanding work • Machine-paced work • Heat, noise, dust • Tight deadlines If workers are required to perform work under these conditions on a permanent basis, they will almost inevitably be confronted with health and performance problems as they grow older. Objective: Maintaining and promoting good health, motivation and qualification throughout people's working lives • Ergonomic workplace design • Fostering healthy work processes • Job enrichment by changing type, content, methods • of work, or mixing tasks • Reducing time pressure • Introducing flexible working-time models • Limiting deployment times Areas of action Objectives of ageing-appropriate job design Source: ISO

13. Individual differences in the development of work performance with increasing age Factors influencing performance: - Private lifestyles - Socialisation, education/training - Self-perception, perceptions of others - Previous activities (stresses, training) - Performance demands at work - Stimulus to learn provided by work Individual Cognitive and physical performance differences Age

14. A future demand for companies – a long-term personnel policy for all age groups Aim: Accompanying and developing careers from the beginning to the end of working life. Phase III Re-positioningE.g. Monitor exit; enable change of tasks; phased retirement Phase II Retaining and developing E.g. Interesting, varied work tasks; call for and foster individual competence development; agree individual development plans Phase I Finding E.g. recruit and integrate

15. Health, performance Productivity Motivation Flexibility Transfer of knowledge and experience Qualification, skills Knowledge Innovation Attractiveness of companies Demand: to re-think personal and organisational development concepts for older workers Aims of the company Demands to personnel polices e.g. avoid lop-sided work tasks e.g. new development opportunities for older workers e.g. support lifelong development of competences e.g. age-mixed teams, avoid know-how gaps e.g. new recruiting strategies (e.g. for women)

16. www.demotrans.de Further information available Booklet free of charge: Buck, H.; Kistler, E.; Mendius, H. G.: Demographic change in the world of work. Opportunities for an innovative approach to work – a German point of view. Stuttgart, 2002. Events Information Results Contacts Contact Persons: Bernd Dworschak, Fraunhofer IAO Hartmut Buck, Alexander Schletz Phone: ++49 711 970 2042 E-mail: bernd.dworschak@iao.fhg.de The project is funded by the Federal Ministry of Education and Research (BMBF) Number of Funding: 01HH9901/0