Linz, ENWHP, june 2006 Ageing workforce and age diversity management in France: Questions for enterprises and for public policy

Linz, ENWHP, june 2006 Ageing workforce a macro question –Increase of life expectancy, as in many countries –low fertility ratio (1.9), but better than in most developed countries –the dependance ratio (population of more than 60 / population ) increases from 0.4 in 2000 to 0.7 in 2040 –collective pension schemes financing cannot be met only by higher employers and employees contributions –later average retirement age is needed; especially in France where it is 58, due to important preretirement schemes for the last 30 years: « a single generation at work » model is not sustainable –workforce is then aging, due both to demographic trends and to later retirement after the 1993 and 2003 pension reforms –a growing concern: « to stay at work in good health conditions »

Linz, ENWHP, june 2006 Ageing workforce a micro question (1) A large diversity of situations among the sectors: –employment decrease and aging workforce in many manufacturing industries and in the banking sector –end of preretirement at 50 in the steel industry since 1990 –important hiring in the building sector since 2000 –a young workforce with high rotation in hypermarkets but the end of large recruitments since 2005 –many job creations in the care sectors –and in high tech start-ups….

Linz, ENWHP, june 2006 Aging workforce a micro question (2) A large diversity of situations between and within the enterprises: In the same company, –a plant with an elderly working population, others a younger, a nearly balanced and/or a double mode one –young and growing populations (such as technicians in the car industry) and ageing and declining populations (unskilled workers)

Linz, ENWHP, june 2006 Ageing workforce demography the average age is not a good indicator to make a diagnosis and a company action plan, it’s necessary to observe the « demography of the workforce » : some existing tools: –triangular charts (% younger workers, % old) for comparison between departments and professions, and for an historical view and forecast –age pyramids on several periods allow to observe the existence, or not, of exclusion processes, in hard working activities where it is difficult to grow in age

Linz, ENWHP, june 2006 Workforce diversity A large diversity of situations among territories: –higher unemployment rate in north and south –more labour shortages from west to German and Swiss borders –high unemployment rate for young « visible minorities » in suburbs… the need for specific territorial diagnosis and action plan

Linz, ENWHP, june 2006 Age diversity management Labour shortages will grow in the next years –with new retirements a year (compared to earlier) => an opportunity to fight discriminations by age, gender, national origin, skin color… Diversity management is a new stake for companies, part of their Corporate Social Responsability: –elderly workers’ experience is « a plus », –diversity is an opportunity for new ideas and better customer relationship…

Linz, ENWHP, june 2006 Ageing workforce, some micro initiatives Car companies evaluate the different manufacturing jobs from 1 to 5, according to physical and mental constraints. They try to reduce the number of hard jobs with each new model, and aim to get jobs which can be done by all, young and old, male or female, as much as possible To reduce stress and strain at work is a way both to attract young workers, to reduce turn-over, and to help all workers to stay at work in good health

Linz, ENWHP, june 2006 Ageing workforce, some micro initiatives (2) To develop part-time preretirement ; the steel industry stopped, by this means, full preretirement between 50 and 60; others experiment a 80% / 90% / 100% model: working time / pay / pension contributions A growing number of agreements in large companies to develop « anticipated management of jobs and competences » –in order to facilitate internal mobility between declining and developing activities, through vocational training, mid-career interviews –in order to maintain and develop the strategic skills and more initiatives in SMEs to manage skills transfer between generations of workers and of managers...

Linz, ENWHP, june 2006 A tripartite plan on senior workers’ employment An incentive public policy is needed. A national tripartite plan has been announced on June 6th with four main aspects: – a national campaign « experience is a plus », based on the Finnish model –new initiatives to improve working conditions at all age, with a strong involvement of ANACT network –to develop the recruitment of unemployed senior workers –and to improve the management of the ends of career…