Birth rates are falling, life expectancy is rising: In Germany, the aging population due to demographic change impacts not only society and politics but also the labor market and team structures in many companies.
While the average age of employees is increasing, there is a simultaneous shortage of skilled and unskilled workers. Young employees are essential not only for their professional skills but also for their ability to bring innovation and diversity to teams. It’s a problem that acts like a vicious cycle – but one that can be addressed with concrete demographic management strategies.
In 2022, the average age of socially insured employees in Germany was approximately 42.4 years. This represents a significant increase compared to previous years; 10 years earlier, it was 38.8 years.
This trend is expected to continue as the number of people of working age (20-66 years) is predicted to decline by about 4 to 6 million by 2035.
Sources: https://www.statistik-bw.de/Service/Veroeff/Monatshefte/20231204; https://www.destatis.de/DE/Themen/Arbeit/Arbeitsmarkt/Erwerbstaetigkeit/_inhalt.html
Modern HR management can no longer afford to ignore demographic change. Younger employees bring new ideas and digital competencies into companies and ensure their long-term competitiveness. They also contribute significantly to stabilizing social security systems by increasing the number of contributors and maintaining a balance between employees and retirees.
Addressing demographic change in companies does not mean systematically excluding older employees. On the contrary, experienced professionals bring valuable skills, knowledge, and problem-solving expertise. They contribute significantly to stability and continuity in organizations. However, an age-diverse workforce is becoming increasingly important, as employees of different ages offer varied perspectives and experiences. This diversity can be crucial for the innovation and problem-solving capabilities of modern companies.
The challenge is clear: Germany is facing a skills shortage, and young job seekers are hard to find in the current labor market.
At the same time, older workers often find it challenging to secure new jobs, particularly in a market where demographic-focused HR management prioritizes young talent. Yet older employees are no less valuable to companies. The key is thoughtful HR management that recognizes the value of every age group and addresses long-term needs effectively. Age-diverse teams can form the foundation of a future-proof, stable, and innovative corporate culture.
To tackle the effects of demographic change, companies need a clear strategy. The focus should not only be on rejuvenating the workforce but on a holistic approach that integrates and promotes all age groups. The following measures can help companies address demographic change effectively:
HR management that counters demographic change recognizes the value of all age groups. International workers can not only fill gaps but also bring cultural diversity to companies, boosting innovation further.
Demographic change necessitates measures that cannot be implemented overnight. Companies must plan ahead to initiate both training and professional development programs and systematically support young and long-standing employees. A thoughtful strategy combines the integration of experienced staff with the targeted promotion and recruitment of young talent—both nationally and internationally.
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