Strategic Human Resource Management

Section Three

Although there is little in the literature on the effects of
irregular age distributions in the United States, as noted in
earlier, some companies with disproportionately older
workforces have incurred higher health care costs. Their health
care outlays have challenged their cost competitiveness. Such
challenges will probably grow in importance and will consume
more of the planning time and attention of general managers.

It is interesting to speculate on whether European
countries will reduce restrictions on terminations and layoffs as
in the United States. Some European observers have noted
their desire to obtain productivity gains made possible by the
greater workforce flexibility enjoyed by U.S. firms.