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G7 Countries Respond to an Aging Workforce

Depending on how it affects you, the aging of the world’s workforces can be a challenge or an opportunity or both. And one of the biggest of these is the need to redefine both employees’ and employers’ notions about how and when a career evolves and transitions to retirement.

This AARP study by Towers Perrin explores how the world’s leading economies known as the Group of Seven (G7) – Canada, France, Germany, Italy, Japan, the United Kingdom and the United States – are responding to the declining proportion of younger workers and projected shortages of skills in key areas as older workers approach retirement.

Worth Noting:

• Around the world, people today are continuing to retire at about the same ages as they did in 1970. On average, G7 workers expect to retire from their primary occupations at age 60.5 and retire completely at 65.3.
• The level of labor force participation beyond age 65 is highest in Japan at 20% now and 35% in 1970, followed by the U.S. at 15% now and 16% then, and Canada at 8% now and 15% then; the lowest level is found in France at 2% now and 12% then.
• Labor markets in the world’s most highly developed economies seem certain to favor sellers of talent (employees) more than buyers (employers) for the foreseeable future.

Observations From Abroad:

• “The key issue is to identify and address the training and skill upgrading needs of this [large 50+] population and help them to manage change.” — Daniela Cannata, Strategic Resources Manager, Poste Italiane, Rome, Italy
• “It’s more of a risk to do nothing because of the potential to lose vital knowledge and skills.” — Massimo Cioffi, Organisation and Personnel Director, Enel, Rome, Italy
• “The key is to treat older employees as individuals, not as an age group, and to recognize their individual strengths and individual needs.” — Kiyoshi Wada, Human Resources, AEON, Chiba-shi, Japan
• “Mature workers in senior management or senior professional positions are likely to be still energetic and motivated. Others that have reached their limits in terms of growth and competence but still have to face 10 years of work or more can be much more difficult to engage, but the company must make an effort and find ways to do it.” — Luca Masellis, Recruitment, Organizational Development and Internal Communication, Anonima Petroli Italiana, Rome, Italy

What Workers Find Helpful:

An AARP/Towers Perrin 2007 random online survey of 8,200 employees of mid and large-sized companies learned that workers consider these workplace policies helpful:

Ability to work part-time	49%
More flexible work schedules	48%
Ability to work from home	36%
Retention bonus	28%
Ability to take sabbatical	25%
Credits to pension benefits for delayed retirement	25%
Ability to collect a partial pension while working	25%
Ability to work for your employer as contractor after retirement	24%
Opportunity for training & skill development	19%
Opportunity to act as mentor	17%

Background

Conducted for AARP in early 2007 by Towers Perrin, a global professional services firm, the study utilized information drawn from previously published research, insights from local experts, new employee research and interviews with selected employers. Further information may be obtained by contacting Matthew Suntag of AARP International Affairs at 202-434-3727 or Catherine Shaw of AARP Knowledge Management at 202-434-6379.