Aging Workforces and Challenges to Human Resource Management in German Firms
The aim of this paper is to provide an overview of the main challenges imposed by demographic change on the human resource management (HRM) policies of German companies. Although many more aspects of business are affected by demographic change, such as changes in consumption or in savings and investment and therefore in capital costs, we concentrate on changes in personnel policies prompted by an aging workforce. We cover a wide range of HRM policies, starting with recruitment problems, moving on to training issues, wages and incentives, and end with problems concerning innovation and technological change.
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