External Environment
External Environment
Introduction
Continual changes in the external environment of the global work force dynamics are having major impacts on the way employers around the world manage their businesses. Singapore is no exception from these changes in which the government and employers are aware of, and have started to take measures in addressing these changes. The “external environment” consists of factors outside the organization that affects the main internal functions of the business and possibly the objectives of the business and its strategies. Increasing demographic and economic changes, and technological advances are some of the external environment factors that led to changes in the work force. These changes have become a new and progressive reality that plays a part in work force and they cannot be ignored.
Demographic Changes
An Aging Population
Source extracted from: www.singstat.gov.sg/stats/charts/popn-area.html#popnB
Singapore’s population, like many developed countries is rapidly aging. As shown in the table above, the population aged from 50 to above 80 years have increased significantly in year 2007 as compared to year 1997, especially for the aged group 50 to 59. It is expected to increase from 14% to 27% or approximately 1,124,200 by the year 2020. This impending demographic change would have a significant impact on the employment of older workers and their continued participation in the work force