Age discrimination is a common problem in organizations. In our pilot study, we want to explore the processes how the desired retirement age is influenced by age discrimination and see psychological empowerment as an important mediator for the relationship between these variables. Data stem from an online questionnaire completed by 130 employees from different organizations in Germany (all 50 years or older). Our results show that age discrimination is an antecedent for the desired retirement age. It has a direct as well as an indirect (via psychological empowerment) effect on the desired retirement age.
Purpose
The desired retirement age (DRA) becomes more important because some countries adapt their strict retirement regulations to it. A process is tested for how psychological empowerment influences the DRA mediated by psychological and physical strain and how the DRA is connected to the expected retirement age (ERA). The paper aims to discuss these issues.
Design/methodology/approach
Structured interviews with 1,485 German employees (55 years and older) were conducted via telephone.
Findings
Psychological and physical strain mediated both the relationship between psychological empowerment and the DRA. DRA and ERA were positively associated. The control variables – age, net income, and organizational size – also significantly affected the DRA.
Research limitations/implications
The results are only valid for the German job market. All variables were collected at one measurement point.
Practical implications
The strengthening of psychological empowerment can be one measure to motivate older employees to delay their retirement and finally keep them longer in the labor force.
Originality/value
A large sample was collected and interviewed via telephone, which helps to overcome some limitations of questionnaire research. The process model helps to understand how job characteristics are connected with the DRA and the ERA.
In times of demographic change, with the associated challenges for social security systems and the looming lack of skilled workers, extending working life becomes increasingly significant. According to the continuity theory (Atchley 1989) we can assume that individuals who are satisfied with their structures and performance will stay at work longer. We will therefore examine whether motivation and perceived work ability have an influence on the desire for continued employment. In addition, we will answer the question of whether factors that have a positive influence on motivation and work ability also have a direct influence on continued employment. Besides objective factors such as enterprise size and occupational status, we will examine subjective factors, such as assessment of recognition, the demands, and the meaningfulness of the work for their contributions to the explanation. The following analysis is based on a survey taken in May 2008 together with the Bundesinstitut für Bevölkerungsforschung (BiB). It enables us to identify the desire for continued employment in old age, the existing work motivation, and the state of health. The core results of the statistical analysis show that in men high motivation is linked to the desire for continued employment in retirement age. This does not apply to women; for them, work ability is the decisive criterion. In general, we observe that a positive assessment of the subjective influencing factors strengthen work motivation. In addition, with regard to objective factors it was ascertained that for men the working hour regime (full-time work) and occupation status (salaried “white-collar” employees) correlate positively with the desire for continued employment. In particular, meaningful work increases motivation among men and work ability increases motivation among women. It appears important that enterprises convince their employees of the meaningfulness of the work.
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