The effect of downsizing on organizational practices targeting older workers

Abstract

Purpose

The 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/approach

Study 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.

Findings

Respondents 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/implications

The 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 implications

Organizations, 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/value

The paper illustrates that downsizing is detrimental to organizational practices that the aging workforce literature identifies as especially important to older workers.

Citation

Armstrong‐Stassen, M. and Cattaneo, J. (2010), "The effect of downsizing on organizational practices targeting older workers", Journal of Management Development, Vol. 29 No. 4, pp. 344-363. https://doi.org/10.1108/02621711011039150