HR in Europe – Managing demographics is critical challenge

The Boston Consulting Group (BCG) and the European Association for Personnel Management have conducted a survey on the future key challenges for Human Resource Management in Europe. 1,350 executives in 27 EU countries were interviewed on the most critical HR challenges in the future. According to the outcomes of the survey companies will face the following 5 critical HR challenges in the near future: Managing talent, managing demographics, becoming a learning organization, managing work-life balance, and managing change and cultural transformation.
Managing demographics, for example, was the top future HR issue in Germany, Austria, and Switzerland, where 250 executives participated. “Corporate executives in Europe generally agreed that they have a demographic problem and that they have not yet devised strategies to fully combat it,” says Rainer Strack, a BCG partner and managing director based in Dusseldorf. With the workforce in Western Europe becoming older, European companies must mitigate two different risks: the loss of capacity and knowledge as workers retire and the loss of productivity as the workforce ages. Other Diversity aspects, such as Managing Work-Life Balance and Managing Change and Cultural Transformation were also crucial since the boundaries between private and work life blur and companies will hire workers from around the globe and enter new markets with increasing speed. Overall the general assertion on Managing Diversity in Europe is quite positive as most interviewees consider it an important asset to stay competitive in a globalised world. You can download the executive summary here.