By 2050, the number of elderly in the world will exceed the number of young for the first time in history. That was one of major findings stressed on World Population Ageing 1950-2050, a report prepared by United Nations in 2002. At that time analysts saw these predictions as dangerous for social cohesion and posed a global threat to the future well-being of all Nations.

According to the UN report, an ageing population will likely affect economic growth, savings, investment and consumption, the labour markets and pensions. Despite the prominent role that this issue have played in conferences organized by UN during the past quarter of century, developed nations’ authorities have never really embarked on ambitious strategies to mitigate its negative impact.

However, the lack of young people coming through the labour market with the required qualifications and the un-sustainability of the pension schemes brought the situation to a head. In most countries the retirement age has been pushed much beyond the traditional age of 61 while some others have re-visited their migration policies.

Employers and HR Managers need to retain talent as a matter policy as it is an important strategic tool for competition as opposed to retaining older workers simply because the law states so. According to The Eurostat Regional Year Book 2010 and EUROPOP 2008,by the year 2030, 100 people of working age –(16-64 yrs) will support 38 pensioners. Two working individual will support one elderly person which is financially unsustainable. Hence the need to change the culture of workers aged over 45 to stay in employment. Australia Human Resources Institute’s (AHRI) (“How to woo the boomers”, March 2009) suggested a new approach of older employees’ situation linking mature age workforce participation and flexible work practices such as part-time work, job sharing, creating work opportunities, flexible hours as well as working from home. So the corporate policy is changing in the right direction but real change comes not through policy alone but by internalizing the policy and putting into practice. This is where the challenge lies because most workers look at the retirement age as the bench mark for permanent holidays.

The Playmobil Chief Operating Officer, Matthias Fauser is directly involved in managing the retention policy of older workforce states that increasing the age retirement will not go far enough. Instead, he advocates for innovative an flexible work arrangements mentioned above. He argues that this approach allows for new work practices that often strengthens the company’s labour market position.

61-years-old former Group HR Manager and current Company Secretary at Simonds Farsons Cisk, Arthur Muscat, is still at work fulfilling administrative functions as a part-timer. “I left my manager position, reduced my working hours and compressed them in 3 days per week earning less money, but I’m still paying National insurance”. He could have gone into retirement but he opted to stay in work and avoid what he calls the permanent holidays. “I’m still able to provide Farsons with experience and knowledge, able to offer continuity and it keeps me fit”, says Mr Muscat.

In fact, AHRI mentions two barriers that hinder the development of innovative policy. First, flexible work practices are seen as something destined to young people who are working and enrolled in university at the same time, not linked to senior citizens. Secondly, managers’ ability to deal with the demands of a flexible workforce is lacking.

With irreversible demographic changes and with the current economic climate may force leaders and HR specialists implement their “must do” list about work retirement faster than anticipated. The issue of an ageing population caught up with us and now changes have become a must. For employees, the wish of permanent holidays, peaceful dog walks, and full-time garden care have to wait longer. Instead of telling tales about giants to their grandchildren, old workers just will be entrusted with a more important mission: guaranteeing both well-being and security to the newcomers.

Ms Soriano is a Spanish journalist at the Foundation for Human Resources Development.