People’s Insights: Volume 2, Issue 37

Reputation | Employee Engagement | Citizenship

BMW Today for Tomorrow

What is Today for Tomorrow?

Source: csmonitor.com

BMW launched the Today for Tomorrow initiative as early as 2005, to prepare itself for an aging workforce. In the early years of the initiative, BMW introduced health management programs for employees.

By 2011 and 2012, BMW piloted and implemented ergonomic changes across plants in Germany and is now beginning to roll these out internationally.

Aging workforce at BMW

Source: CSR at the BMW Group report (November 2011)

An audit on its workplace revealed the average age of BMW workers at its Dingolfing plant was 39 in 2007, and was projected to rise to 47 by 2017 (it’s currently around 42), raising questions like :

How does the new age structure affect production? How can physical labour be organised more ergonomically and age-appropriately?

Prevention potential

Source: CSR at the BMW Group report (November 2011)

BMW identified four areas where they could slow down the effects of aging, and has introduced programs catering to all four:• Individual healthcare• Qualification and

leadership• Ergonomics & individual

working time• Social contacts

Why bother?

Source : UN Population Ageing and Development 2012 report

There are more older people in the workforce today, as a result of aging and shrinking populations, higher life expectancy, individual aspirations and financial hardship.

In addition to these external trends, companies like BMW, simply need experienced and high skilled workers.

An ergonomic makeover

In 2011, BMW simulated the predicted average age at a production line at the Dingolfing plant and piloted ergonomic changes to combat productivity loss. 70 changes were introduced, including: • barbershop chairs to

allow alternative sitting & standing

• orthopaedic shoes for comfort

• magnifying lenses to reduce eye strain and minimize sorting errors

Return on investment

Source: bbc.co.uk

The total investment on the production line was around $50,000. The return - the group increased productivity by seven per cent in one year, making it as productive as lines made up of younger workers.

Achieving scale

Source: dailymail.co.uk

BMW launched similar programs at all German-speaking plants – over a few hundred sites.

Since 2011, 10,000 employees have benefitted from the program. An international roll out was launched in 2012, beginning with a production facility in Austria and a plant in the UK. In 2012, BMW opened a car plant specifically for older workers.

Rising trend: Flexibility

Source: aarp.org

BMW also supports its older employees with various flexible work options, including temporary part-time positions, intermittent part-time work, and job-sharing among several employees; a sabbatical program allowing employees an additional 20 days off a year; and a phased retirement program.

Are employers prepared?

Source: The Ageing UK Workforce by unum

The extent of BMW's support for older workers stands out in stark contrast in a world where few HR managers and boards are actively preparing for an aging workforce. For instance, surveys in the UK found that only 14% of managers believe they are well equipped to cope with an ageing workforce.

Young vs old workers debate

Source: businessweek.com and mercatornet.com

Lack of preparedness can be explained by the polarized view of the performance of older workers – some argue that older worker’s life experiences help them relate to customers better, more patient and more loyal; while others argue that physical and mental health interfere with the job.

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