The effect of downsizing on organizational practices targeting older workers

Abstract

PurposeThe purpose of this paper is to examine the association between organizational downsizing and the extent to which organizations are engaging in human resource practices tailored to the needs of older workers (Study 1) and are providing a supportive training and development climate for older workers (Study 2).Design/methodology/approachStudy 1 data were obtained from 449 employed individuals aged 50 to 68 years. Study 2 data were obtained from 395 employed individuals aged 50 to 70 years. Respondents were from a broad cross‐section of occupations and organizations across Canada.FindingsRespondents in downsized organizations indicated that their organizations were significantly less likely to be engaging in human resource practices tailored to older workers and that their organizations had a less supportive training and development climate than their counterparts whose organizations had not downsized.Research limitations/implicationsThe findings are based on older workers' perceptions of organizational practices, which may or may not be an accurate reflection of what organizations actually have in place.Practical implicationsOrganizations, especially those that have downsized, will be at a disadvantage if they continue to ignore the needs of older workers. Employers will have to change how they view older workers and put in place organizational practices geared to older workers such as those examined in the paper. Ensuring that older workers have the requisite skills and competencies to extend their working lives may require government involvement.Originality/valueThe paper illustrates that downsizing is detrimental to organizational practices that the aging workforce literature identifies as especially important to older workers.

Reinventing retirement: New pathways, new arrangements, new meanings

“…Organizations vary in the approach they take to addressing differential needs of their employees (see Armstrong-Stassen and Cattaneo, 2010;Claes and Heymans, 2008;Midtsundstad, 2011). Some will engage in more proactive approaches, characterized by strategic planning that consists of analyzing and forecasting business needs, as well as considering the specific needs of the aging workforce.…”

Evaluation of Lifelong Work Satisfaction among Former Postal Service Workers

“…Work satisfaction is vital for individuals' wellbeing and happiness (Bojanowska & Zalewska 2016), but it is also vital for companies and successful extension of working lives: low work satisfaction associates with retirement intentions and absenteeism from work (Harkonmäki et al 2009;Kadefors et al 2016;Sagie 1998). If downsizing practices lower work satisfaction, they may hinder the extension of work careers in two ways: older victims face difficulties in finding new employment (Armstrong-Stassen & Cattaneo 2010;Furunes & Mykletun 2010;Solem 2015), and older survivors start thinking about early retirement (Badran & Kafafy 2008;van den Berg et al 2010).…”

Ageing employees and human resource management – evidence of gender-sensitivity?

“…Based on our literature review, it can be argued that the term "ag(e)ing", "older" or "mature" employee was used synonymously in the analysed studies. However, the threshold of the ageing differed from the age of 40 (Buyens et al, 2009) to age of 50 (Armstrong-Stassen and Templer 2005;Armstrong-Stassen and Cattaneo, 2010;Winkelmann-Gleed, 2012). For example, Ilmarinen (2006) has defined ageing employees as 45 and over, and justified it by the fact that this is the period when major changes occur in work ability and that this "early" definition of ageing employees provides better possibilities for implementing actions to raise low participation rates among ageing employees and prevent early retirement.…”

“…We identified four strands of studies related to ageing employees and HRM: age management, retention, ageism and gender-sensitive. The focus of HRM varied in the analyzed studies from one HR practice, for example training (Armstrong-Stassen and Templer, 2005) to multiple HR practices (Armstrong-Stassen and Cattaneo, 2010;Walker 2005). At the broadest sense, the influences of an ageing workforce were analyzed at the societal, organizational and individual level (Ilmarinen 2006;Walker 2005;Walker & Naegel 2006).…”

“…There is also a need to understand the contextual factors behind HRM, like downsizing, age structure or location (Armstrong-Stassen and Cattaneo, 2010), which influence HR practices and policies made in organizations. In addition, there are different 'drivers' (for example legislation, societal pressures) behind age management practices (Parry and Tyson, 2009), and therefore tailored solutions concerning age-friendly HR practices are needed.…”