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Italy's ageing workforce: Improving HRM practices can prevent skills shortages

Development and Learning in Organizations

ISSN: 1477-7282

Article publication date: 20 April 2012

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Abstract

Purpose

This paper aims to examine the reasons for low labour force participation rates among older workers in Italy and discuss how changing human resource management practices can improve the situation.

Design/methodology/approach

The paper analyzes Italian population trends and age‐specific workforce participation rates, considering variations by industry, gender and management level. It looks at common age stereotypes and the effects of implementing human resource management policies designed for a younger workforce. It outlines initiatives undertaken by leading companies such as ENI, IBM and BMW to manage an ageing workforce.

Findings

Since 1950, the proportion of the Italian population over retirement age has more than doubled. Birth rates are low and life expectancy is going up. Unless participation rates increase, Italy's labour force is likely to be 40 per cent smaller in 2050 than it was in 1995. With more people retiring and fewer potentially active workforce entrants, Italy can anticipate chronic labour shortages and a widening skills gap. How can the country increase the number of active workers available to support an older population? And how can new human resource management approaches help companies to better manage an ageing workforce?

Practical implications

The paper provides examples describing the human resource management approaches that can help to prevent skill shortages and loss of knowledge as older workers retire.

Social implications

The paper draws attention to social and cultural factors contributing to age discrimination and the effects of negative stereotypes on older workers' motivation and on their access to training and development opportunities.

Originality/value

This paper highlights the importance of training as a way to overcome negative age stereotypes, using older workers as a valuable resource able to pass on knowledge, skills and company history to those just starting out on their careers.

Keywords

Citation

(2012), "Italy's ageing workforce: Improving HRM practices can prevent skills shortages", Development and Learning in Organizations, Vol. 26 No. 3, pp. 22-24. https://doi.org/10.1108/14777281211225785

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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