Age-Diversity Practices and Retirement Preferences Among Older Workers: A Moderated Mediation Model of Work Engagement and Work Ability

Abstract

To meet the demographic changes, organizations are challenged to develop practices that retain older workers and encourage them to postpone retirement. The purpose of this paper is to examine the role of human resources (HR) practices in retirement preferences of older workers. Drawing on theories on lifespan development and social exchange, we suggest that organizations can facilitate longer working lives by implementing bundles of HR practices that are sensitive to age-related changes in workers’ skills, preferences, and goals – i.e., age-diversity practices. We posit that age-diversity practices are positively related to work engagement that, in turn, relates to the preference for retiring later. We further suggest that work ability moderates the relationship between age-diversity practices and work engagement. Finally, we propose a moderated mediation model in which the mediated relationship is moderated by work ability. A sample of 232 older Portuguese workers completed a questionnaire. Hypotheses were tested by using structural equation modeling (SEM). Findings show that work engagement completely mediates the relationship between age-diversity practices and the preference for early or late retirement. Moreover, this mediating relationship is more important for those workers who experience low work ability. Results further demonstrate that the effect of age-diversity practices on the preference for retiring later via work engagement is stronger for lower levels of work ability. This study highlights the organizational role in promoting longer and healthier working lives through the implementation of age-supportive HR practices.

Retaining an age-diverse workforce through HRM: The mediation of work engagement and affective commitment

“…In a context of an age-diverse workforce, HR practices that are sensitive to individuals' aging can be especially important to retain the best talents. Age-diversity practices are a set of flexible practices that can support workers throughout the life span, by accommodating and leveraging age differences (Sousa et al, 2019). Age-diversity practices can promote work engagement, a form of job-focused involvement that encourages workers to stay in the organization.…”

“…Age-diversity practices. Age-diversity practices were measured using a seven-item scale (Sousa et al, 2019). This scale assesses the extent to which workers perceive an inclusive and non-discriminatory treatment of workers of all ages regarding age-sensitive HR practices.…”

“…Thus, in order for all workers to reach their full potential in a sustainable manner, HRM should create, communicate, and implement practices that support and promote the development of workers of all ages, that is, age-diversity practices (Bieling et al, 2015;Boehm et al, 2014). Age-diversity practices refer to workers' perceptions that organizational practices, policies, and procedures are age-inclusive and age-sensitive, as well as accommodative to age-related changes in workers' needs, preferences, and goals (Boehm et al, 2014;Kunze et al, 2013;Sousa et al, 2019). According to the framework proposed by Parker and Andrei (2020), age-diversity practices can be understood as a set of integrative, inclusion, and individualized strategies.…”

A Model for Personal Financial Planning Towards Retirement

“…Due to the model is focused towards attitudinal factors, the Financial Management Practices was analyses by using of a set questions about recommended financial management practices and the possible obstacles to using those practices, which are effective usual tools to measure and hypothesize about how people manage and perceive their financial management (Davis & Weber, 1990). The effect of financial management practices on Financial Resources (savings) (Sousa et al, 2019) supports the consideration of Financial Management Practices as the key variable to determine the personal financial resources, as it is considered in the hypothesis No. 1 (H 1 ).…”

Employer Branding and Work Engagement in Non-Bank Financing Company

“…Kim and Kang (2016) experience in managing their volume of work. In addition, work engagement is carried out as a form of compensation to the workplace because the company still employs them and makes them as a longterm investment (Sousa et al, 2019).…”