Like many countries around the globe, Thailand’s population is aging, fast. But what does that mean for your business and your hiring strategy? By 2060 the World Bank predicts that Thailand’s working-age population will have declined by around 30%, making it harder for businesses to attract and retain young talent with the skills they need for sustainable, long-term growth. Businesses need to act now, to put in place strategies that will help them combat the effects of Thailand’s aging workforce and ensure they have a strong talent pipeline to see them into the future.
The Demographic Challenge
It is estimated that by 2029 Thailand will join Japan, Singapore and Germany as one of the worlds “super-aged” societies. Defined by the UN as a country where over 21% of its population is over the age of 65, a “super-aged” society is the result of medical advances and access to better healthcare combined with declining birthrates.
Thailand’s labour force is still relatively young. The total working age population (those aged 15 or over) is around 58.65 million people. However, as the population overall ages out of the labour market, if businesses fail to replace them the economy will struggle.
Why Is the Aging Workforce a Problem?
An aging population can be beneficial for businesses. It opens up new opportunities for products and services to meet the needs of this new demographic and new markets for investment. But a decrease in the number of available workers causes problems, such as:
- Declining graduate rates and skill gaps
- Increasing competition for top-level candidates
- Reduced productivity and workforce efficiency
- Increasing labour costs
Strategies for Addressing an Aging Workforce
Businesses seeking to take proactive steps to bridge the potential talent gaps caused by an aging workforce should consider the following:
1. Rethinking Recruitment Strategies
In the face of an aging workforce, rethinking your approaches to recruitment can help navigate the challenges effectively. Investing in skill development and training programs that use the skills and institutional knowledge of your senior staff can ensure your workforce has the skills you need to fill talent gaps internally and working with educational institutions can ensure graduates possess in demand skills for your industry.
Diversifying your recruitment channels is also essential. Collaborating with a specialised recruiter like Jackson Grant can help you go beyond traditional recruitment methods and expand your reach to a wider pool of candidates both locally and internationally, including seasoned professionals looking for new opportunities.
2. Retaining and Using Older Workers
Recognising and valuing the wealth of experience held by older employees is important. Businesses need to shift attitudes and norms around retirement to allow older employees to continue to contribute their valuable knowledge and experience. Flexible work arrangements and phased retirement programmes alongside knowledge transfer and mentorship schemes can keep older workers productive for longer and creates a platform for them to exchange skills and insights with younger workers. This can be beneficial in both directions as younger staff can encourage digital skills in the older generation reaffirming their importance in the organisation. This intergenerational collaboration not only enhances productivity but also nurtures a culture of mutual respect, reducing age-related biases and stereotypes.
3. Embracing Technology and Automation
It’s clear that automation and technology will continue to reduce the need for large workforces by increasing productivity, efficiency and automating repetitive tasks allowing businesses to focus their human resources on more strategic and creative areas. However, technology and automation offer other solutions for dealing with an aging workforce. Technology can facilitate upskilling initiatives through online learning platforms, virtual training modules, and interactive tutorials to enable the existing workforce, including older employees, to adapt to technological advancements at their own pace. And, integrating technology and AI-driven tools can revolutionise the recruitment process, not only saving time but also ensuring more precise matches between job requirements and applicant skills. Significantly improving your ability to find and hire the right talent quickly, essential in a competitive job market.
4. Engaging with New Talent Pools
One of the most effective and immediate solutions for businesses struggling with an aging workforce is to explore new pools of talent to diversify their talent base. There are a variety of avenues to explore, including collaborating with local communities and engaging
grassroots organisations and educational institutions to discover hidden talent pools overlooked in traditional recruitment processes. Businesses should also be participating in government initiatives aimed at upskilling workers and advocating for national and international policies that support a diverse and skilled workforce.
Increased female participation in the workforce is another vital step to reducing the negative effects of an aging workforce. Just 46% of Thailand’s workforce is female and only 15% of those are in a leadership position. Businesses should also be making themselves attractive to international applicants by offering competitive benefits.
The coming demographic shift, marked by a shrinking pool of skilled workers, demands strategic foresight and proactive measures. By recognising the urgency of the situation and adopting innovative strategies, such as investing in skill development, embracing technology, and tapping into diverse talent pools, your business can navigate the impending talent gap caused by Thailand’s aging workforce.
Embracing initiatives to address an aging workforce shouldn’t merely be a response to a challenge; it's an investment in the future resilience and sustainability of your businesses. The time to act is now, paving the way for a workforce that is skilled, diverse, and well-prepared for the challenges and opportunities of the future.
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