Managing Generational Diversity: Lessons German Companies Can Learn From Silicon Valley

Research Background

More than any other OECD nation, Germany’s economy is approaching a demographic shock of a scale not observed since the Middle Ages. By 2030 the German working-age population is expected to decline by 6 m, already skewing sharply older in the coming decade (Robert Bosch Foundation 2013). Due to talent shortage, more than half of Germany’s small and medium sized enterprises are expecting a decline in prosperity and growth (Ernst & Young 2013).

To safeguard the employment provision, and thus further ensure Germany’s prosperity there are two basic options: a) increase the volume of work performed and b) improve workforce productivity. As immigration has yet been unable to compensate for the loss in labour force, some important reforms have already been put in place to lengthen one’s working lifespan. School and academic education were shortened, pension was postponed to the age of 67 and retirement pay was cut thus incentivizing employees to work until the statutory retirement age. Given the implemented changes in both exit age and education system, collaboration time of employees of different age with connected divergent values will increase by roughly 10 years.