Sustainable Management and Future of Human Resource Management

Transcription

1 Sustainable Management and Future of Human Resource Management Prof. Dr. Seong Kook Kim (School of Management, Ewha Womans University, Seoul, Korea) 1. Sustainable Management Attention to sustainable management has been growing in global business area in recent years as the global society experiences harmful effects of massive consumption of resources. In definition, sustainable management creates the ability to keep a system running indefinitely without depleting resources, but maintaining economic viability and nourishing the needs of the present and future generations. From this definition, sustainable management has been created to be defined as the application of sustainable practices in the categories of businesses, society, environment, and personal life by managing them in a way that will benefit current generations and future generations. Sustainable management is needed because it is an important part of the ability to successfully maintain the quality of life on our planet. Sustainable management can be applied to all aspects of our lives. For example, the practices of a business should be sustainable if they wish to stay in businesses, because if the business is unsustainable, then by the definition of sustainability they will cease to be able to be in competition. Global financial crisis, started from U.S. subprime mortgage issue, made companies to acknowledge the importance of sustainable growth, and companies has begun to think how to apply the concept to their business practices. While the practices were only limited to Corporate Social Responsibility activities in the past, it is now extended to strategic management area to develop new business opportunities or profit making models. This new management trend shows that a company does consider sustainable management not only as a way to improve its brand reputation but also as a direction to build its corporate strategy and core competencies. This new trend is noticed in global business practices. For example, International Standard Organization (ISO) developed ISO to regulate overall social responsibilities on environment, human rights, labor management, and etc. As ISO becomes a global business standard, it can be disadvantageous to companies that do not follow the guideline and indirect trade barriers. Organizations need to face the fact that the boundaries of accountabilities are expanding and moving fast. It is imperative for a company to consider not only shareholders profit but also stakeholders interest, such as social and environmental (or ecological) responsibilities to succeed in long-term. With the consensus on the

2 importance of sustainable management, there has been a research on developing a framework to integrate sustainable management requirements into traditional management agenda. Triple Bottom Line (TBL) has emerged as one of the best integrated frameworks, to which a company can refer in building their short-term and long-term strategy. The TBL captures an expanded spectrum of values and criteria for measuring organizational success: 1) economic, 2) ecological and 3) social. The TBL is also known as people, planet, and profit or the three pillars. In practical terms, Triple Bottom Line means expanding the traditional management framework to take into account ecological and social performance in addition to financial performance. Here are some of the best practices listed for your reference: - Philips: Green Flagship : Green Flagship products provide concrete example of how Philips improves the quality of life and tackles the issues such as global warming that resonate with consumers worldwide. Green Flagship products must be proven to offer substantial better environmental performance than their predecessors or closest commercial competitors on energy consumption, packaging hazardous substances, weight, recycling and disposal and lifetime reliability. These products now account for an turnover of 2 billion Euros, double that of GE: Ecomagination Ecomagination contributed to cost reduction and sales increase by launching Lighting Efficiency Retrofits projects. Powering Your Home is one of the GE Ecomagination Challenges, part of GE s &200 million commitment to finding and funding the most promising technologies for our energy future. The Powering Your Home program contributes to dramatical improvement of creation, management and use of energy in the home. - BP: Wildlife Rescue and Rehabilitation BP worked with nationally-recognized wildlife groups to develop specific rescue and rehabilitation programs for nesting turtles, migratory shore birds and other species. Experts from NOAA, the US Fish and Wildlife Service, the National Park Service, as well as state agencies, helped BP to identify the most sensitive wildlife habitats and prioritize appropriate spill countermeasures. These measures included booming wildlife refuges, state wildlife management areas and rookeries along the coast, as well as using methods to deter wildlife from entering oiled areas. Within days of the accident, BP established a hotline for the public to be able to report sightings of impacted wildlife. Throughout the response, wildlife rescue and rehabilitation teams worked closely with oil removal and operations teams to prevent and minimize oil reaching sensitive wildlife areas.

3 2. Sustainable Human Resource Management Human resource management (HRM) is a big part of sustainable management in general. For example, cooperative labor union relations management, global talent management, corporate and community welfare are core themes of sustainable management, and it is closely linked to human resource management. In this context, sustainable human resource management is playing critical roles in sustainable management(see Figure 1).!!!!!!!! Economic Profits! Ecological Soundness! Social Responsibility! <Figure 1> The Relationship between Sustainable Management and Sustainable HRM In general, sustainable human resource management is defined as strategies and activities to achieve a company s balanced objectives of social accountabilities and economic profits through acquiring, developing, and attaining human resource. The perspectives on the subject can be different from an employer and an employee. While an employer focuses on accomplishing sustainable profits and meeting social responsibilities, an employee is more interested in individual responsibilities,

4 motivation, and continuous development to accomplish both personal and organizational goals. Considering the different interests, close collaboration between an employer and an employee is required. There are diverse perspectives on sustainable human resource management among academic researchers. No one universal consensus exists on the key subjects yet. However, there was a meaningful research to develop the list of key subjects in the area. The empirical research was funded by the Swiss Confederation and conducted by (IOP) members in University of Bern in Around 1,000 organizations across 8 countries participated in the study. 300 key words under 20 categories on sustainable human resource management were surveyed. In Figure 2, core key words that came frequently from the survey are listed. The most frequently stated concept by participants was human resource development. Here, human resource development covers training and development, re-training, license and certification, and career development. Employee characteristics are ranked as the secondly important concept. This includes the concepts of employee motivation, flexibility, reliability and volunteerism for performance. This research displayed huge influence on following researches, and scholars have developed key subjects and components as listed below. - Employee wellness program - Work-life balance: Flexible working hours Job-sharing Sabbaticals Teleworking - Human resource development Promoting employee motivation Increasing employee responsibility Expanding training opportunities - Leadership and coaching Participatory Leadership Management by objectives Communication among employers and employees 3. Future of Human Resource Management

5 Sustainable human resource management is like a two-sided coin. In employee aspect, key components of sustainability are 1) higher opportunity for employment, 2) larger individual responsibilities, and 3) work and life balance. However, from employer stance, the competitiveness of the organization comes first (Figure 2). To address both parties interest, collaboration between management and employees should go along with sustainable human resource management system. Studies on this topic are still at early stage. Even though there is awareness of the importance of sustainability, there are few real business cases of sustainable human resource management. Given the time required to prepare for it, it will be too late for companies to start related initiatives when they need to implement. To achieve long term sustainability and mitigate future risk, it is the right time to design and start sustainable human resource strategy and initiatives. According to German scholar Norbert Thom s theory (2001), sustainable HRM can be achieved through close collaboration between an individual and an organization. To maintain sustainability as an individual, one should 1) focus on self-development to increase one s marketability in the labor market, 2) provide the best efforts to the organization in line with one s responsibilities and 3) make a work-life balance (see Figure 3). As an individual strives for sustainability, a business organization should build sustainable HRM practices to support its employees to be adjusted into organizational culture, values, goal and strategy. Sustainable HRM is an ideal management practice for both employees and employers, and it contributes to the future of HRM in a positive way. Here are some of the best practices of corporate sustainable HRM in Korea: The Hankyoreh Economic Research Institute, an affiliate of The Hankyoreh, analyzed the sustainability reports 2007 of 22 South Korean companies to estimate how transparent they have been in disclosing their business achievements in diverse categories. The areas include the economy, the environment, labor, human rights, society and consumer protection...yuhan-kimberly (joint venture Yuhan & Kimberly-Clark) scored an average 57 points on a scale of 100, ranking first among those surveyed. Korea South-East Power came in second...followed by POSCO and Daewoo Securities...Samsung SDI and Korea Electric Power Corp. were next...along with the top six companies, Samsung Electronics, KT, Samsung Electro-Mechanics, Korea Water Resources Corp. and Korea Midland Power received higher-than-average scores, while SK Telecom, Korea Land Corp., LG Electronics, Lotte Shopping, Korean Air [part of Hanjin Group], Hyundai Motor Company, GS Caltex, Shinhan Bank, Kumho Asiana Group and Woongjin Coway were among those which received lower-than-expected scores. Yuhan-Kimberly Model (4-Day Shifts): Workers at Yuhan-Kimberly, Korea s No. 1 maker of diapers and toilet tissues, take the time to ensure that the company s products are free from the most minor defect. An assembly line worker at Yuhan-Kimberly typically works 12 hours for four days and takes the next four days off. That s unusual here, where many people still put in 50 or

6 60 hours a week and have only one day a week to rest. Not only that, but after their four days of rest, the employees then work night shifts for four days in a row, 12 hours each night. After another four days of rest, they work four day-shifts again. Their schedule continues to alternate in this way, an arrangement which allows Yuhan-Kimberly to keep its expensive production machinery operating 24 hours a day. Though unorthodox, there is no denying the four day scheme has produced solid returns. Employee satisfaction is high and increased productivity has led to a 17-fold leap in net profit over the past 13 years. In addition, the system has contributed to job creation. Over that period, the consumer goods company has increased its workforce by 30 percent. Yuhan-Kimberly also enjoys the top market share in eight product categories. Its product list includes "Huggies," Korean mothers most favored diaper brand. While companies worldwide have adopted a policy of having "reserve" workers, particularly in sectors where safety is a concern, the so-called Y-K model is original because of its emphasis on education. On one of the four days they are off, Yuhan-Kimberly workers attend a study session at work. It s voluntary, but about 80 percent of the assembly workers participate. Those who attend also get paid 150 percent their regular day rate. A large portion of the classes is devoted to keeping employees well versed with the machines and tools they use. Despite the company s phenomenal success, most Korean corporations still believe that cutting the workforce - not bolstering it - is the first step to restructuring. But given Yuhan-Kimberly s reputation as Korea s most ethical company, many companies are willing to give the Y-K model a second thought. The company has been flooded with inquiries from corporations nationwide that want to learn the secret of the company s success. <Figure 2> Core Issues on Sustainable HRM (Results of the Survey) Source: Swiss University of Bern (2001)

7 Organizational Culture & Values! Marketability! Responsibility! Individual! Goal & Strategy! Work-Life Balance! Instruments,! Methods,! Process,! Structure! <Figure 3> Thom s Model for Sustainable HRM Source: Norbert Thom (2003)

8 The Age Management and Wage Peak System of Korean Firms So-Yeong Kwon (School of Management, Ewha Womans University). Introduction Korea has entered into an aging society and its aging rate has been increasing at an exceptionally high speed. It results from the longer average life span and low birth rate. UN has categorized aging society into three base of the proportion over 65 years old against its whole population. 7 percent is categorized as an aging society, 14 percent is an aged society and 20 percent is a super-aged society. There are differences of population aging between countries, but it is still obvious that they will have a common problem in the near future. <Table 1> Comparison of Aged Population Rate in Major Countries. country Population ratio of over 65 years old Time spent from Entry of 7% Entry of 14% 7% to 14% Japan U.S.A (E) 69 UK France West Germany Sweden Korea (expected) 18 Source: KCCI(The Korea Chamber of Commerce & Industry) As shown in the table 1, Korea faced faster growing aging society compared to other countries and it seems entry to aging society will be faster than we expected.

9 According to 2011 Korea censuses, 5,420,000 people is over 65 years old and it makes 11.3 percent out of the whole population. The number obviously showed that Korea is entering into an aged society. Aging society leads to aging workforce. It is expected to reach 40 percent of total Korean workforce is over 50 years old by 2020 and 50 percent by 2050 (Hanam Bang et al. 2005). <Table 2> Change of Internal Employee Age Year Average age Source: Korean Ministry of Employment and Labor, 2009 Aging society and the workforce require some major changes in Korean firm s human resource management system. Increased number of older workers gives bigger labor cost burden to Korean firms due to their seniority based pay system. Thus many Korean firms have been trying to control labor costs through encouraging various types of early retirement programs. To cope with aging workforce issue, three options are generally considered in Korean enterprises: 1) restructuring of an organization (i.e. early retirement program or lay-off), 2) performance-based compensation system, and 3) wage peak system. While the restructuring and the performance-based compensation system drive immediate cost reduction impact, they can harm the company s long-term success by decreasing employees loyalty toward the company and moral. Companies need to prepare more realistic solutions for aging workforce. Adopting flexible retirement program, which allows workforce changes one s roles and work hours in line with one s life stage changes, can be a good realistic solution

10 for the company. One option for flexible retirement program is Gradual retirement program. Another option can be providing Second career program that helps employees prepare life after retirement in advance. Company can provide profound second career consulting for employees in their late thirty. Third option can be re-hiring process which is hiring experienced retirees back and transferring their knowledge to younger generation workforce. Last option we can consider is Wage peak system. Wage peak system is the most popular program in Korea to mitigate aging workforce issue.. Wage Peak System in Korea 1. Definition of Wage Peak System Wage peak system is defined as providing guaranteed job security to employees with a reduced wage after a certain age. But there has not yet been a strong consensus among stakeholders of Korean firms on introducing wage peak system as one of the major tools for human resource management. Wage peak system can be explained by Lazear s Agency theory. Seniority based system which is the base of Wage peak system pays young workers lower wage than their productivity, but pays more when they reaches middle, old-age according to their age and years of service. However, Lazear pointed that companies cannot take the salary burden as the payment become bigger than the productivity. Lazear argued that it is more reasonable to decide retirement time when the portion of lower salary than the productivity (A) becomes equal to the portion of higher salary than the productivity (B).

11 Wage peak system is a compensation scheme in which employee s payment is adjusted according to the level of stabilization of employment (retirement-security model or retirement- extension model). In Korea, a similar policy has been operated, as an alternative for early retirement for middle-aged and elderly employees with high payment demands primarily by financial institutions, such as a policy of work sharing, since IMF crisis and wage peak officially has been applied by KODIT (Korea Credit Guarantee Fund), in July The policy has recently been revived as a buffer for employment conflicts among the baby-boomers (seven million and twelve thousand people from 1955, right after the Korean War, to 1963). According to KCCI(The Korea Chamber of Commerce and Industry), the implementation rate of the wage peak system has been increasing from 3.3 percent (2006), 4.4 percent (2007) to 11.2 percent (2010). Yet, percentage of adoption of wage peak system is not high (11.2%). The KCCI- Surveys represent that the adopting the wage peak system by Korean companies has increased every year since <Table 3> Adoption rate of wage peak system

12 !!! The employees expressed 71.4 percent of favor on wage peak system based on KCCI survey. Those firms that are adopting wage peak system experienced positive effects such as greater employment security and reduced labor cost. 2. The Effects of Wage Peak System First, the policy increases job security for middle-aged and elderly employees and renders less layoff for firms by adjusting payments according to reduced productivity. Second, firms can keep skillful human resources with lower cost which can create new jobs. Third, the mental and economic well-being of middle-aged and elderly employees expects be increased, as they can meet their desire to work and have economically stable life in relatively longer period. Forth and finally, the policy can solve the issue of a shortage of economically valuable workers, reduce youth unemployment, and mitigate costs of social security. 3. Types of Wage Peak System in Korea Wage peak system operated in Korea is divided into two models: retirement- security model and employment-security model. The former adjusts wages after a certain age is reached to ensure the retirement age established by collective

13 agreement or by employment rules. The latter adjust wages instead of extending employment after retirement and sub-categorizes into retirement-extension model and employment-extension model. Retirement-extension model adjusts the wage level for extended retirement age or an extended period of retirement, based on the precondition of extending companies current retirement age. Employment-extension model refers to a system in which an employee retires and is extended of the employment as a temporary worker. The report of KLI (Korea Labor Institute) in 2008 says that among the companies surveyed, 105 companies introduced wage peak system, in which 31 brought in retirement-security model, 52 retirement-extension, and 22 employmentextension, demonstrating the higher proportion of retirement-security model than the others. <Figure 1> Three models for wage peak system in Korea (Company Survey) Source: Korea Labor Institute (2008). The KLI reports showed that the policy has been introduced mostly in the manufacturing sector in Korea. So far, larger firms with closer cooperation with labor unions are more readily accepting such policy. As for the purpose of the introduction of wage peak system, 59.4 percent of respondents said for easing the burden of labor costs, 50 percent for utilizing the experiences and know-hows of elderly employees, 35.4 percent for relieving middleaged and elderly employees concern on job insecurity, 22.6 percent for boosting employees morale, 18.6 percent for tackling a personnel congestion, and 18.4

14 percent for an alternative for restructuring. For retirement-security, easing the burden of labor costs occupies the highest proportion while employment-extension utilizing the experiences and know-hows of elderly employees, indicating the differential objectives for different types of the system. 4. Cases of Korean Companies A. LG Electronics - Overview : Foundation in 1958, A global leader of technological innovation worldwide with more than 120 businesses and 93,000 employees electronic, mobile communication & home appliances. - Wage peak system background : In 2007, adopted wage peak system to secure employment stabilization and competitiveness by using highquality workers(retirement- extension model). - Wage peak system characteristic : retirement extension(55! 58), calculate severance pay at the age of 55 and 10% of wage cut down every year. Rehire competent workers age of more than 58! B. POSCO - Overview : Korea s the most representative steel company found in POSCO became the world s top steel company in 1998, and privatized in Wage peak system background : : Initiated wage peak system in Jan Current average age of workers is 47. Percentage of workers more than 53 years old will reach 30% in Wage peak system characteristic : Extended retirement age from 56 to 58(retirement-extension model). Wage freezes form 52 to retirement.

15 C. KT(Korea Telecom) - Overview : Foundation in Privatized form government in The largest information and communications service company in Korea. - Policy for Aged- workers : NO wage peak system, but retirement age is 58 and provide re-entry and business start-up assistance program. D. KOLON INDUSTRIES - Overview : Found in 1957, leading company of industrial, electronic materials and fashion business. - Policy for Aged- workers: Deferred retirement and wage peak system is under consideration based labor union request. Retirement age is 56, but after specialized jobs Tech, Elec, Machine, Environment relate to can be extended after 56.. Conclusion In case of Korea, aging has not been perceived as a critical issue yet both in the enterprise and in the government. However, the speedy transformation of Korean society into an aged society requires special attention from the government, company owners and from the unions. Wage peak system should be introduced to guarantee income for a secure and healthy elderly life.

16 The biggest challenge of spreading wage peak system is that there is no clear success stories both in company and employee side yet. From the firm s perspective, they should focus on developing a process that can transfer experience of old skillful resource into company productivity increase. With the knowledge transfer process in place, companies see the direct business impact from keeping old experienced employees with wage peak system and it will make them more aggressive on its implementation. At government level, it is required to increase aids for companies and parties involved and to promote good examples of the system to dispel prejudice toward middle-aged and elderly employees and create atmosphere conducive to employment extension.

17 The Gradual Retirement Plan as an Age-Friendly Model for the Korean Economy So-Ra Min (School of Management, Ewha Womans University) Ⅰ. Introduction Modern society is facing various problems due to longer longevity owing to the advancement of the medical science and quality of life. South Korea has already entered aging society since 7.2% of the national population was aged over 65 in Aging society is defined as the society in which the proportion of population over 65 reaches 7% conceptually. The society is called aged society when it exceeds 14%, super-aged society when it exceeds 20%. South Korea s aged population has already reached 10%. Considering the rate of increase, Korea is expected to have 14.4% of population over 65 in In addition, extremely low birth rate, which was 1.08 in 2005, accelerates the transition to aged society. Only 19 years will take for Korea to become aged society, and another 9 years will be needed to become super-aged society. This would be an unprecedentedly fast changing rate in the modern history. For France, for example, it took 115 years, 85 years for Sweden, and 24 years for Japan from an aging to an aged society. The benefit of aging population is the lengthening individual s life span. The disadvantage it is having more aged working population and decreasing of productivity. To cope with the problem of rapid aging population, Korean society and economy need to be adjusted accordingly. More attention must be paid to older employees and their careers in the workplace. Benefits of healthcare and insurance should be provided for senior citizens. Older

18 workforce could have been offered opportunities for economic activities in spite of retirement. Along with that, extended hiring of the aged generation would ease the lack of labor in the aged society and devoting to financial clearance of the social welfare system including public pension. For that reason, the gradual retirement has been an emerging issue in the field of employment stability and extension. To address aging workforce issue, a wage peak program has also been discussed. However, it couldn t be expanded to wider industries due to relatively long implantation time and limited government support to smaller-sized companies. In addition, the wage peak system is not the fundamental solution but a temporary expedient. With growing political attention to aging workforce, Korean government is researching on the adequate options and setting relevant policies. For instance, the government is considering an institutionalization of labor aged over 50 to shorten the working hours with financial support from the government. To contribute the research, I focused on the gradual retirement program in the advanced countries such as Germany and Japan. The case studies provide key insights for Korean government to select effective gradual retirement program implementation strategy for Korea.

19 Ⅱ. Gradual Retirement Plan in Germany The discussion for the needs of gradual retirement has started in the end of 1970s in Germany and it has been highlighted through ADVANCED- AGE-STUDY in 1980s. In 1990s the study focus was shifted to utilize gradual retirement as a possible solution for financial instability of the national pension. The trait of German gradual retirement system is the dual modules made of a combination of employment insurance and national pension. The reason for having this unique model is to divide the budget systematically by its goal and function. In terms of employment insurance, the gradual retirement is used under the name of partial early retirement systems which is replacing existing early retirement system. Employment insurance can support senior citizen s job security while it reduces insurance costs due to large scale of early retirement. From national pension side, the gradual retirement is utilized as partial pension program which is replacing early retirement oldage pension program. These two modules has different age guidelines for its application and making it possible to cover around 10 years of gradual retirement program.

20 Ⅲ. Gradual Retirement Plan in Japan The continued employment benefits for the aged( 高 年 ) is a Japanese system to support the extended employment with the similar goal of gradual retirement. The discussion has started after mid 1970s and the Aged Employment Security Law was in effect in 2006 after its registration in The Japanese gradual retirement is a supplement of the peak salary work-share program, which is an extended employment supporting model related to unemployment insurance system. The continued employment benefits for the aged( 高 年 ) is playing the role as the preparation of unemployment since it is supporting the payment functionally. This system is based on the stabilization of labor-management relations and functioned to preserve payment rate even after the decrease of earning when the labors become 60, likewise continuous employment program or the peak salary work-share program. In this case, The continued employment benefits for the aged( 高 年 ) do not require easing of the work or changing of the formation of employment. According to this, re-employment system is mainly used, which is relatively flexible when it comes to treatment including practical payment system. Also, the working hour is mainly full-timework.

21 <Table 1> The Continued Employment Benefits in Germany and Japan Country Model The minimum age of End of transition period Supplementary Income or Other support qualificatio n Germany The aged part Age 55 Age 60, 70% of previous time model linked the Employment Insurance 62, 63, 65 earnings partial pension Age 60, Age 65 Pension support linked the National Pension 62, 63 (1/3. 1/2. 2/3) based on working hours and reduced payment level Japan The continued Age 60 Age 65 Based on salary employment at 60; benefits for the if it is less aged 61% of ( 高 年 ) previous income, support 15% If it is between 61~75% of previous income, support less

22 than 15% based on discount rate Ⅳ. Gradual Retirement Plan in Korea As a preparation for the aged-society, Korea has been trying to develop more aged-friendly business model to increase and to maintain the aged-labor s economic activities simultaneously gaining organizational competitiveness.

23 As shown in figure 2, the age-friendly business model consists of 5 sub-elements. I will focus on the peak salary work-share program in this study. As stated above, wage peak system is criticized as it is not a continual resolution but merely a temporary expedient. Likewise, I would not pick aged-friendly administration of business model as a sustainable module. Therefore, I suggest the model based on gradual retirement instead of the one based on wage peak system.

24 Based on the model, it is needed that all 5 elements are connected well into a system to create a synergy effect. Separately from system itself, it is also important to have proper environment which can make benefits both to the government and to the enterprises. Below is Korean economic and social environment from the perspective of gradual retirement implementation. First, Korean labors retire mostly around age 54 (Workers 52.3, Nonwage workers 56.5) and they spent another 13~14 years working in abysmal conditions before real retirement. (Korea Labor Institute, 2003) It causes old

25 age poverty due to failure from self-employment or financial difficulty from unofficial work only as well as psychological or emotional maladjustment. Hence gradual retirement can ease the burden of labor for older ager by loosening working hours while it can provide employee a job security with government support to the company. For example, supporting partial pensions can be a possible way to implement it. Second, Korean National Pension has a plan for the old-age pension to extend pension payment schedule to 65 gradually. But improved labor market for the aged workforce is a prerequisite for the payment extension. Without any sources of income after retirement, employees rely on their pension for their household. Having no additional income for an extended amount of time can cause greater problem for aged population in the long run. I insist that gradual retirement can be utilized as a system to support the long term and extended employment, which also compensates the defect of delaying the pension receiving age. Above two reasons are valid enough to introduce the gradual retirement. Along with that, I suggest unemployment insurance model and gradual retirement model related to the national pension system. What we expect by this system is to get employment stability for aged people and supporting extended employment by easing the lack of labor in the aged society. The proper strategy for human resource management of the aged-friendly business model is broadening overall fulfillment section. Ⅴ. Conclusion Ability to overcome the expected economic and social shock of coming aging society is required for our country and individual companies. In this study, I suggested the way to introduce the gradual retirement for Korea through foreign case studies. In case of Korea, to fight with the unstable employment and coming lack of labor, we suggested the gradual retirement

26 plan related to employment insurance and national pension and aged-friendly business model based on it for both individual and the country. Since the models for the individual, enterprises and the country are organically connected, the goals of aged-friendly business model based on the gradual retirement pursuits can be met only when it is approached to the comprehensive synthetic dimension effectively.