CSR and the Silver Tsunami

The looming vision of the baby boom generation which has been rapidly moving into their fifties and beyond,  is something which has been be of great concern but has been rarely discussed in CSR circles.  While many have ready comprehension of the adverse environmental impacts of the 9 million and growing in the developing world; the potential implications of the aging populations in the developed world are less appreciated.  By some estimates, those over 65 in the U.S. will be up from 12.5% in 2000 to 16.6% by 2020, with similar impending situations in other countries including some  European nations, Australia, Japan, Canada, and Australia.

John Elkington, a pioneer who is always well ahead of the CSR curve, has taken on this issue in collaboration with Volans, Accenture, and the Doughty Center for Corporate Responsibility at Cranfield University. Together they have launched an exploration into the implications of aging relative to corporate responsibility and sustainability. As a starting point, they developed a concept paper entitled "The Second Half," which delves into the intergenerational implications of a sustainability model.   Their goal is to develop a proactive vision towards transitioning the current economic model into one which accommodates the actual human condition - which in this instance is characterized by a dramatic increase in the number of older individuals at a time when stresses on social programs are already causing concern.  Elkington likens this to the issue of developing adaptations for the disabled. For sustainability to actualize, it is imperative that we "tackle the most critical demographic challenge on the developed world the ageing trend which some now call the 'Silver Tsunami'," to quote Elkington.

Historically, corporate ways of dealing with aging workers was to either fire them or force them into early retirement. However, Elkington points to a forward looking project at BMW as reported by Christoph Loch, developed by Nikolaus Bauer, Peter Jürschick, and Helmut Mauermann.  These BMW managers decided to take a higher minded approach to the reality that they would have a decidedly older employee base by 2017. The experiment began by populating an assembly line with older workers which became known as "the pensioners" line.  Their goal was to beef up lagging productivity through accommodation rather than termination.  Accordingly, they found fixes such as adding magnifying lenses, adjustable tables, having workers wear comfortable shoes, and others amounting to around 70 changes altogether. Working through this idea of supporting rather than offloading older workers, the cost was minimal while improving productivity 7% in a year on par with younger workers.

The BMW case offers some experiential foundation to support the idea that older workers can be productive with the appropriate modifications. Other types of work are not as physically demanding as that of an assembly line, and corporations could benefit greatly from the experience and talents of the many not-yet-ready-to-graze older workers. Developing work teams which combine older with younger workers, with an aim towards creating good balance among team members is another feasible and low cost variation on a theme.  Since older workers often need a bit more sick time off, this could offset any gaps if the right mixes of compensation and application are put into place.  Companies might also bear in mind that while adapting to older workers, employers will also be dealing with an aging customer base.

The temporary staffing firm Adecco developed the Renaissance Program in the U. S., which is meant to recruit older workers for temporary positions. They have also developed a Demographic Fitness Index (DFX) for Europe.  The DFX is a new performance indicator which assesses whether or not companies are prepared for the aging workforce. Some components of the DFX include lifelong learning capabilities, health management, knowledge management and age diversity all of which enhance a company's ability to handle an older workforce. Adecco claims a high mark in the DFX can add as much as 20 percent to a firm's productivity.

Photo Credit: by pedrosimoes7