Attrition and Compensation Management
Many studies have found that there is a direct causal linkage between the levels of compensation that a firm pays and the rate of attrition that it has. Attrition can be voluntary and involuntary, where the former is the employee quitting the company out of his or her own volition and the latter is the […]
Job Enlargement – Meaning and its Benefits to the Organization
Job enlargement is a job design technique wherein there is an increase in the number of tasks associated with a certain job. In other words, it means increasing the scope of one’s duties and responsibilities. The increase in scope is quantitative in nature and not qualitative and at the same level. Job enlargement is a […]
Transformational Leadership Theory – Meaning, Criticisms and its Implications
Creating high-performance workforce has become increasingly important and to do so business leaders must be able to inspire organizational members to go beyond their task requirements. As a result, new concepts of leadership have emerged – transformational leadership being one of them. Transformational leadership may be found at all levels of the organization: teams, departments, […]
Role of Employees in Avoiding Politics
Employees indulge in politics to save their job and gain attention without working hard at the workplace. Individuals strive hard to win appreciation of the superiors by tarnishing the image of their fellow workers. It is the organization which suffers; if the employees are engaged in politics. Politics never benefits anyone in the long run, […]
How to End the Culture of Business As Usual After Instances of Corporate Scandals
The Worrying Decline of Corporate Governance Standards Worldwide Of late, there has been a worrying decline in corporate governance standards leading to the exits of many high profile CEOs (Chief Executive Officers) as well as Directors of Boards from such firms, as well as a breakdown in the compact between the corporates and their stakeholders. […]
We often hear the term, demographic dividend being bandied about in the media and in books. However, not many are aware what exactly it means and the implications of the same for business and society.
The term refers to the advantages that countries have if they have youthful populations. This is because there are more numbers of people who join the workforce leading to an uptake in the supply, which ideally should translate into greater numbers of jobs and more growth.
Further, demographic dividend also accrues when the proportion of working people is more than the proportion of retirees and those not yet ready to join the workforce.
It is believed that countries like India and China with youthful populations are at an advantage when compared to countries like the US and Japan which are graying and hence, “the shock of gray” would make them uncompetitive.
Of course, it does not automatically follow that the countries that have a greater proportion of youth would have higher growth rates.
For instance, the employability of the available workforce might be an issue. This happens when there are many people in the workforce but not all are equally qualified or have the necessary skills for the jobs on offer.
Hence, the demographic boom might be an advantage for those with premium skills and those who make the cut. Therefore, companies and countries must consider this aspect and factor in into their calculations when assessing the impact of the demographic boom.
Finally, when countries have younger people, the aspirations are more and if these aspirations were not fulfilled, it would lead to situations like the “Arab Spring” of 2011 where protests were the order of the day because of the presence of younger people and no jobs or a secure future for them.
On the other hand, countries like the US and Japan where the number of people over working age is growing steadily and where the retiring “baby boomers” are a liability because the state and the corporate sector has to spend on their pensions and healthcare.
These countries are hit by a double whammy wherein they do not have the numbers for new jobs and on the other end of the spectrum; they have to contend with providing for social security and other benefits.
For those countries that are facing a demographic bust, encouraging immigration might be a solution as skilled and qualified people from all over the world can emigrate to those countries to make up for the lack of native workers who are suitable for the jobs. This has been the case with the US and Japan is now considering following this strategy. However, the problems of assimilation and tolerance in a multicultural society have to be considered when the governments encourage migration.
Finally, whether a country is facing a demographic boom or a demographic bust, the fact that there needs to be a provision for job creation is the bottom line criterion.
Despite experts voicing views on both sides of the divide, the fact remains that having a healthy growth rate is the answer to both these situations. Either by creating jobs and employing native workers or by encouraging immigration and tolerance, the focus should be on boom instead of bust.
Your email address will not be published. Required fields are marked *
What the Current Wave of Protectionism and Populism mean for the Future of Globalization and Free Trade
February 12, 2025
