DEMOGRAPHIC TRENDS IN

HUMAN RESOURCE
MANAGEMENT

Done by
Neeraj
Pavithra
Nithya
 Demographic trend
 The term demographic trends relate to changes in
a population's age, gender, geographical location,
marital status, educational attainment, employment
status, household income, race, religion, and health.
 Demographic Societal and workforce trends
 Workforce diversity Ageing population & ageing
workforce Educated and knowledge workforce/women
workforce/Changing family structures/global
workforce/contingent workforce & workforce flexibility
 HRM Function
 Demographic changes have already had a major impact
on HR departments around the world.
 Labour forces have become increasingly diverse, and this
has forced organisations to make considerable changes to
the way in which they approach people management.
 Demographics are constantly changing, and in some parts
of the world they are doing so at a rapid pace, presenting
even greater challenges for HR professionals as they look
to hire, train, manage and retain an entirely new
generation of workers.
 In fact, there may soon be no such thing as the average
worker, and workplaces could become so hugely diverse in
terms of gender, age and culture that the strategies used
by the HR departments of today may in time become
completely redundant.
 Demographic change is the main reason organizations
need to adapt their practices in order to respond to
increasing diversity within labor markets.
 In addition, the constantly changing demographic
profile of the broader population means that
organizations need to develop strategies that will
meet the needs and desires of the country’s citizens.
 Important demographic trends will take place in the
workforce over the next 10-15 years.
 Demographic trends in HR
 Ageing populations
 Ageing populations are apparent throughout the developed world as
people live longer, healthier lives, and they are going to have huge
implications for HR organisations in the future.
 As the EIU and SHRM Foundation point out, some European governments
have responded to increased longevity by raising pensionable ages in
the hope of keeping people in work for longer and therefore reducing
the strain on their state pensions systems.
 This means there is likely to be a much greater concentration of older
people within the workforces of the future, and it will require a real
rethink about how HR departments manage everything from recruitment
and training to occupational health and employee benefits.
 It may also increase the potential for intergenerational conflicts in the
workplace, where older employees are seen to be blocking the path to
progression for their younger colleagues. HR managers will need to find
ways to diffuse these tensions and create environments in which workers
of all ages can collaborate effectively.
 Generation Y
 While some populations are ageing others are moving in
the opposite direction, with developing countries in
particular facing the challenges that come with an
increasingly youthful labour force. The Asia-Pacific region,
for example, is home to 60 per cent of the world's 15 to
24-year-olds.
 Younger workers bring their own HR-related challenges.
Generation Y - or the millennials as they are sometimes
known - have very high expectations of their employers,
are focused more on the immediate future than the long-
term and are keen to strike a positive work-life balance.
 Attracting and retaining these young, often restless
workers will be a major challenge for HR departments in
the years ahead. Organisations will need to provide the
kind of opportunities for training and progression that
millennials crave, otherwise staff turnover could soar.
 Globalised Work Force

 Globalisation means employable populations are moving more freely

than ever around the world, which is leading to increased cultural
diversity and reduced cultural homogeneity within national workforces.
 This will undoubtedly create challenges in terms of equality and
inclusion, and will force HR professionals to become much more
culturally aware so that they are equipped to manage employees from
a growing number of countries, faiths and ethnic groups.
 Migration has also had an impact on the size and composition of talent
pools, so recruitment practices are likely to be affected, too. Indeed,
educational attainment is rising in developing countries, which means
more graduates from these countries entering the global workforce.
 Not only will HR departments have to become familiar with the
complexities of global education, where qualification and skill levels
can vary from country to country, but they will also need to make sure
their recruitment practices are as fair and as inclusive as possible.
 Surge in female employment
 In the ten years between 2010 and 2020, some 865
million more women will have entered the economic
mainstream, resulting in a boom in female employment.
 This boom will primarily occur within developing nations,
where female involvement in education is on the rise and
equality between the genders is beginning to emerge
 As a result, HR departments that have for years dealt
mainly with male employees may have to modify many of
their existing practices, policies and programmes to cater
for women and to create parity and harmony between
male and female employees.
 With many women juggling careers with children and
other caring responsibilities, they may choose to work
part-time or flexibly, which may have a knock-on effect
on how businesses operate on a daily basis.
 Large numbers of Millennial/Generation Y
workers entering the labor market
 The millenials are the largest generation.
 Issues of key concern to Millennials include high rates of
unemployment and underemployment, the rising cost of
education, a growing income, and the ability to move
ahead in their careers.
 Organizations will need to find ways to attract, retain
and develop their Millennial employees to thrive as this
generation will dominate the society and the global
workforce for many years to come.
 Other demographic trends

 Large numbers of Baby Boomers leaving the

workforce.
 Higher rates of immigration and an increase in the
number of foreign-born workers
 An increase in chronic health conditions among
employees
 Better training for manager
 Better employee diversity education programmes
 More customised benefit pacakages to employees
 Conclusion

 It is clear that these demographic trends are going

to require new ways of thinking by HR departments
globally, who will need to update their practices to
meet the challenges that will arise.
 One thing is for certain, the role of the HR
department is set to transform dramatically, and
professionals working within this industry will need
to be one step ahead of the emerging trends.