The Changing Face of Today´s Workforce

As we move into the 21st century, one of the most noticeable changes we see is the declining average age of the workforce at large. This trend is not only taking place in the small to medium sized businesses but also in the larger corporate environments. The average age of the personnel that companies are hiring are well below that of just a few years ago. This problem is not limited to any specific industry or geo-location but in all economies it is leaving the 50 +/- year old age group at a huge disadvantage at the time when more and more governments are looking to raise the required age limit to collect retirement benefits.

As the economy troubles advance so does the need for companies and corporations to reduce overhead and staffing costs. This growing problem is not only affecting the leading industrialized countries but now is becoming an issue throughout the world and this seriously influences the hiring and employment practices in all industries. The employers look to recruit and employ younger personnel to reduce salary and benefit costs and to gain some experience within the changing technologies in their perspective industry. Thus the more experienced and older employees are made redundant and therefore no longer needed.

Using Bulgaria as an example of how this phenomenon is changing the workforce and the economy. Over the past several years, Bulgaria has seen a boom in new and international companies taking advantage of the experience and younger workforce selection possibilities. Numerous international companies have opened satellite companies strictly for outsourcing and reducing their overall costs for maintaining a competitive edge in the global market. While opening or acquiring companies in Bulgaria they hire personnel that are still within or recently graduated from the university system because of the lower salary requirements. As the face of the employable industry´s change the technical requirements change therefore leaving the present workforce at a disadvantage due to the lack of re-educational possibilities.

As far as the present workforce, most are somewhat older, have families and homes which in turn require the employee to expect a reasonable compensation for their experience and years of service. In most cases this would indicate a more dedicated and reliable workforce, but in today´s economy is a drawback for most companies. The shrewd employment practice of hiring younger (potentially healthier) personnel allows them to reduce salaries and other benefits that might be an issue later on. At the same time the older workforce that have worked towards any sort of retirement or long ranged benefits are left find other means to provide what they once did. In some industries re-educational or vocational services should be considered while permitting the newer and larger companies to conduct businesses.

Written by

Dennis Michael Gannon

Gannon & Gannon LTD.

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