Does Employing Older Workers Affect Workplace Performance?

Abstract

Using a panel of workplaces in Britain, we investigate the implications for businesses of employing older workers. Workplace labor productivity falls where the proportion of older or younger workers rises. These raw associations are attenuated somewhat after controlling for aspects of human capital. In contrast, there is no significant association between age shares and workplace financial performance, suggesting that any reluctance by employers to employ greater numbers of older workers may be misplaced.

How and When Does Psychological Wellbeing Contribute to Proactive Performance? The Role of Social Resources and Job Characteristics

“…Second, by identifying LMX and TMX as mediators, our study addresses the need for identifying the social exchange mechanisms that connect employee wellbeing to performance [ 9 ] and highlight the role of the social pathways through which psychological wellbeing fosters proactive performance [ 20 ]. Third, by assessing the moderating role of job complexity and task interdependence, our study extends the wellbeing and proactivity literatures, which have overlooked the conditions that alter the effects of employee wellbeing and social exchange processes on proactive performance [ 4 , 20 ]. This way, our study brings to light that the characteristics of jobs matter in determining the extent to which psychologically healthy individuals involved in high quality social exchanges can behave proactively to improve individual and organizational outcomes.…”

“…The relationship between employee wellbeing—a psychological state reflecting a positive experience at work [ 1 , 2 ]—and work performance fascinates organizations [ 3 , 4 ] and researchers [ 5 , 6 , 7 , 8 , 9 ]. Over the years, this relationship has been investigated through various analytical perspectives and operationalizations of performance [ 9 , 10 ].…”

“…The literature linking psychological wellbeing to performance has reported small and variable effects for wellbeing [ 4 , 7 , 9 ]. This suggests that intervening variables (e.g., mediators and moderators) may come into play for elucidating how and when psychological wellbeing can result in a higher level of proactive performance.…”

“…Higher levels of resources, such as psychological wellbeing, would place people in a resource gain perspective [ 32 ]. Employees with a higher level of wellbeing would be more confident and open with others, interact more frequently with them, and be more inclined to achieve satisfactory social relationships [ 1 , 2 , 4 , 18 ]. Feeling serene, socially fitting and involved in their work, psychologically healthy individuals would be better able to see the resources available from others as well as the benefits of further developing a positive social context to continue to obtain resources in the future.…”

The Relationship Between Firm Productivity, Wage Level and Employees’ Age: A Sectoral Perspective

“…They conclude that they 'cannot confirm the wide-spread opinion that older workers are less productive than younger workers' (p. 37). Bryson et al (2020) examine the relationship between the age composition of the workforce and workplace performance using panel data for private-sector workplaces in Britain. They find some evidence that a higher proportion of older or younger employees result in a reduction in workplace labour productivity.…”