recharging or retiring the older worker? strategies of european employers kène henkens, nidi, the...
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Recharging or Retiring the Older Worker? Strategies of European EmployersKène Henkens, NIDI, The Hague, University of Amsterdam
With Harry van Dalen (NIDI) and Mo Wang (University of Florida)
NEUJOBS, Thursday 10 April 2014, Bonn
AGE COMPOSITION OF THE POPULATION (EU 25), 1950-2050
GOVERNMENTS AT NATIONAL AND EU LEVEL
• Ageing and dejuvenation require higher participation to combat decline potential labour force and make welfare state sustainable
• Increasing life expectancy driving force behind extension working life and increase pension age
EXTENSION OF WORKING LIVES….
SUPPLY AND DEMAND SIDE FACTORS
Most research is focussed on the supply side of
the labour market: Workers’ behaviours and
attitudes
Few studies look at the demand side of the
labour market: Employers’ behaviours and
attitudes
OVERALL AIM OF THE ASPA PROJECT
To gain insight into effects of employers’ behaviour on
the use of older workers
ASPA MULTINATIONAL SETUP
RESEARCH QUESTIONS ASPA PROJECT
How active are employers in stimulating labour force
participation of older workers?
What are the impediments for active ageing?
What type of solutions do employers see to deal with
current labour market challenges?
ASPA EMPLOYERS SURVEY, 2009
Organizations with 10 employees or more
Stratified sample size and sector
6,000 employers in eight countries
Identical questionnaire in all countries
EXPECTED INCREASE IN RETIREMENT AGE (%)
Source: ASPA Employers Survey (2009).
CENTRAL RESEARCH QUESTION
Which types of age-based HR strategies do
employers actually use?
And do different types of organizations (old,
knowledge intensive, etc.) employ different
strategies?
PERSONNEL ECONOMICS
Lazear’s theory of implicit contracts
DILEMMAS
Macro: seniority wages sensitive to age
structure of staff
Micro: seniority wages imply mandatory
retirement rules
HUMAN RESOURCE STRATEGIES
• Exit, early retirement
• Accomodation
• Development, investment
METHOD
Structural equation modelling with latent
variables:
•Exit routes
Early retirement
Part-time retirement
•Accomodation
• Reduction of working time
• Decreasing workload
• Ergonomic measures
• Age limit for irregular work or shifts
….CONTINUED
• Development measures
• Training plans for older workers
• Promoting internal job mobility
• Continuous career development
DESCRIPTIVES
• Exit routes
Early retirement (31%)
Part-time retirement (26%)
• Accomodation
• Reduction of working time (24%)
• Decreasing workload (20%)
• Ergonomic measures (33%)
• Age limit for irregular work (11%)
• Development measures
• Training plans for older workers (19%)
• Promoting internal job mobility (28%)
• Continuous career development (32%)
HUMAN RESOURCE STRATEGIES
EXPLANATORY VARIABLES
• Proportion of older workers
• Organization size
• Importance of seniority-based compensation
• Influence of unions in HR policies
• Knowledge intensity organization
• Training requirements
RESULTS: EXPLAINING HR STRATEGIES
HR strategies
Exit Accommodation Development
% Older workers +++ ++ +
Size organization
Seniority compens. + + +
Unions influence + ++ +
Training requirements + ++ +++
Knowledge intensity ++
CONCLUSIONS
• Micro-macro paradox
• Employers use both exit and retention
strategies
• Aging firms more set on exit routes than
younger firms
• Large country differences
• Public sector more age conscious than
private sector
Reserve slides
RECRUITMENT AND RETENTION
EUROPEAN EMPLOYERS' PERCEPTION OF WAGES RISING WITH TENURE (%)
Source: ASPA Employers Survey (2009).
EMPLOYERS' EXPECTATIONS WITH RESPECT TO THE LABOUR COST-PRODUCTIVITY GAP WITH AN AGEING STAFF (%)
Source: ASPA Employers Survey (2009).
ORGANISATIONAL POLICIES
Source: ASPA Employers Survey (2009).
HOW TO RESPOND TO A CRISIS?
Source: ASPA Employers Survey (2009).