Age diversity and its performance implications – Analysing a major future workforce trend

Boehm, Stephan A.; Baumgaertner, Miriam Karin; Dwertmann, David J. G.; Kunze, Florian

doi:10.1007/978-3-642-15594-9_11

Cited by 14 publications

(11 citation statements)

References 66 publications

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“…This has major effects on workforces: owing to the shortage of young employees, an increasing average age, and a potential rise in the statutory retirement age, organizations will be forced to recruit, motivate and retain more older employees (Kunze, Boehm, & Bruch, 2011). Since to date organizations have primarily concentrated on younger employees, age diversity management will become a major challenge in human resource management (HRM), especially since it changes more rapidly than other diversity dimensions such as gender, ethnicity or nationality (Boehm, Baumgaertner, Dwertmann, & Kunze, 2011;Shore et al, 2009).…”

Section: Introductionmentioning

confidence: 99%

Job satisfaction in aging workforces: an analysis of the USA, Japan and Germany

Drabe

Hauff²,

Richter

2014

The International Journal of Human Resource Management

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In light of the dramatically aging workforces in many industrialized countries, age diversity management will become a major challenge in human resource management. To successfully handle an age-diverse workforce, it is crucial to understand how employees of different ages can be motivated. This paper analyzes age's moderating role in the relationship between situational job characteristics and job satisfaction. To control for the potential influence of the cultural and institutional context, we use data from the USA, Japan and Germany. Findings show that older employees' job satisfaction is driven by different factors than younger employees: older employees put more emphasis on good relationships with colleagues, while income, advancement opportunities, job security and having an interesting job are less important. However, these effects are mostly nation-dependent, which underlines the importance of conducting cross-cultural or cross-national aging research.

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Section: Introductionmentioning

confidence: 99%

Job satisfaction in aging workforces: an analysis of the USA, Japan and Germany

Drabe

Hauff²,

Richter

2014

The International Journal of Human Resource Management

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“…However, the proportion of the young and elderly population is becoming smaller and not very large, respectively (Falikhah, 2017). Based on a large proportion of productive age, the possibility of increase in the age diversity of company workers is assumed (Boehm et al , 2011).…”

Section: Introductionmentioning

confidence: 99%

“…The previous literature explained that several variables as moderate factors were used to highlight the relationship between TMT diversity, which contained other types of diversification (Carpenter, 2002; Boehm et al , 2011; Tanikawa et al , 2017), meetings (Al-Musali and Ku Ismail, 2015) or increased interaction among members (Boehm et al , 2011). Carpenter (2002) and Tanikawa et al (2017) studied the role of moderating variables by examining the relationship between TMT’s age diversity on performance with only a narrow focus on the variables related to personal characteristics of TMT’s members.…”

Section: Introductionmentioning

confidence: 99%

Top management team (TMT) age diversity and firm performance: the moderating role of the effectiveness of TMT meetings

Sutarti¹,

Syakhroza

Diyanty

et al. 2021

TPM

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Purpose This study aims to investigate the direct effect of directors’ age diversity, and its interaction effect with the effectiveness of TMT meetings on bank performance. Design/methodology/approach Quantitative data were extracted from the bank’s annual reports for the six years 2011–2016. Age diversity was calculated using the coefficient of variation, and the bank’s performance was measured as return on assets and return on equity. The frequency of directors’ meetings was used as a proxy for the effectiveness of TMT meetings. Findings Based on the hierarchical regression analysis, the results do not support the hypothesis that there is a negative influence between age diversity on performance. However, the results support the hypothesis that age diversity has a positive effect on performance because of the high effectiveness of TMT meetings. Research limitations/implications The limitations of the study include the use of only samples of the banks registered with Bank Indonesia. The subsequent research could use cross-country bank samples. In addition, the research uses age-related diversity variables only. Therefore, further research could consider other types of diversity such as education, functional or tenure. Furthermore, this study is limited to the effectiveness of the director (TMT) meetings as the only moderating variable. Further research could improve on this by including other moderating variables. Practical implications The findings of this study indicate that the existence of age diversity in TMT will aid bank governance if it is accompanied by effective meetings among groups of directors of varying ages. This age composition of directors will make meetings more effective as rich information for strategic decisions will be generated from different points of view because of the wide spectrum of age categories, and hence, there will be a positive impact on bank performance. Social implications This study indicates that effective meetings of TMT groups of different ages will minimize the rise of “self-esteem”. Therefore, they will benefit the creation of a better quality relationship among TMT individuals. Accordingly, TMT within a company will have more opportunities to discuss in providing bright ideas for the company on how to innovate and create a new strategy to improve its performance. Originality/value This study, being the first to explore the effectiveness of TMT meetings to bank performance in the contexts of directors’ age diversity, contributes to the literature in this area, and especially to the body of knowledge about companies implementing a two-tier governance system.

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“…Many organizations have therefore been forced to hire or retain older employees, a trend that will continue (Dychtwald et al, 2004). However, researchers note that the increase in the older working population will mean an increase in the variation in age between co-workers (Boehm et al, 2011). The resultant wider generation gap in the workforce is expected to result in increased tensions and disputes between older and younger workers, which will affect overall productivity (Nagarajan et al, 2019).…”

Section: The Challenges Of Retaining Older Workers In the Workforcementioning

confidence: 99%

“…Most organizations are facing challenges in adhering to government policy and employing workers older than the previously mandated retirement age, and one of the recurring problems is how to integrate a wide range of age groups in an organization (Boehm et al, 2011). If employers are to retain older workers in order to overcome labor shortages, they need to understand how different generations operate in organizations.…”

Section: The Challenges Of Retaining Older Workers In the Workforcementioning

confidence: 99%

Policy Initiatives to Address the Challenges of an Older Population in the Workforce

Nagarajan

Sixsmith

2021

Ageing Int

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Today's working population is expected to experience a longer and healthier life than previous generations did. This, combined with a currently shrinking workforce, means the participation of older adults in the labor market is expected to positively contribute to national economic and social development. Policymakers have therefore implemented a series of reforms to motivate and encourage both employers and employees to embrace the prospect of an aging workforce and to respond to the associated challenges of such a demographic change in the workplace. This paper aims to provide an overview of recent policy initiatives in this context and to identify the role of technology in major international initiatives in overcoming the key challenges faced by developed countries. We have conducted a scoping review to obtain large volumes of peer-reviewed and gray literature. Our findings suggest that the stakeholders (researchers, government agencies, employers, and communities) are not only aware of the current issues relating to the aging population but also understand the importance of policies in terms of retaining older people in the workforce. In particular, our results indicate that technology, in both the public and private sectors, can be leveraged as a tool to facilitate older adults' participation in the workforce.

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Age diversity and its performance implications – Analysing a major future workforce trend

Cited by 14 publications

References 66 publications

Job satisfaction in aging workforces: an analysis of the USA, Japan and Germany

Job satisfaction in aging workforces: an analysis of the USA, Japan and Germany

Top management team (TMT) age diversity and firm performance: the moderating role of the effectiveness of TMT meetings

Policy Initiatives to Address the Challenges of an Older Population in the Workforce

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