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1 – 10 of 170Social norms about the timing of retirement and stereotypes about qualities of younger and older workers are pervasive, but it is unclear how they relate to employers’ ageist…
Abstract
Purpose
Social norms about the timing of retirement and stereotypes about qualities of younger and older workers are pervasive, but it is unclear how they relate to employers’ ageist preferences. The purpose of this paper is to study the effects of employers’ retirement age norms and age-related stereotypes on their preferences for younger or older workers in three types of employment practices: hiring a new employee; offering training; and offering a permanent contract.
Design/methodology/approach
Survey data from 960 Dutch employers from 2017 are analysed to study employers’ preferences for younger or older workers. Effects of organisations’ and managers’ characteristics, retirement age norms and stereotypes are estimated with multinomial logistic regression analyses.
Findings
Many employers have a strong preference for younger workers, especially when hiring a new employee, while preferences for older workers are highly uncommon. Higher retirement age norms of employers are related to a lower preference for younger workers in all employment decisions. When employers are more positive about older workers’ soft qualities (such as reliability and social skills), but not about their hard qualities (such as their physical capacity and willingness to learn), they rate older workers relatively more favourable for hiring and offering training, but not for providing a permanent contract.
Originality/value
This is one of the first studies to estimate the effects of retirement age norms and age-related stereotypes on ageist preferences for a diverse set of employment practices.
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Elisabeth Christine Brüggen, Thomas Post and Katharina Schmitz
People around the world are not sufficiently capable or willing to engage in retirement planning. New technological tools have been proposed as a promising solution to foster…
Abstract
Purpose
People around the world are not sufficiently capable or willing to engage in retirement planning. New technological tools have been proposed as a promising solution to foster involvement and consequently encourage retirement planning. This paper aims to test whether an interactive online pension planner can improve participants’ behaviour, behavioural intentions, attitude, knowledge and perceived ease of use, usefulness and enjoyment.
Design/methodology/approach
In collaboration with a company specialised in technologically advanced pension planners, three different versions of an online pension planner were created. The control condition only allowed participants to check their pension situation and the composition of future retirement income. In the medium interactivity level, participants could choose to modify certain variables affecting their pension income, on top of the features from the control. The highly interactive planner additionally included an interactive budget tool and showed whether the accumulated pension income was sufficient to cover the desired spending. Data were collected with the help of an online panel (N = 285).
Findings
This paper finds a positive effect of interactivity on behaviour within the planner, that is, the number of clicked options, as well as on participants’ intention to check their personal pension situation in the upcoming three to six months. Moreover, this paper finds gender differences: male participants prefer a high level of interactivity, while women prefer a medium level.
Research limitations/implications
An interesting modification to the current research design would be to use personal, self-relevant data in the online pension planner. Moreover, conducting the study in a computer laboratory could increase concentration on the task, and hence involvement. Next to gender, there might be other factors that possibly influence the results. It would be interesting to investigate other measures of behaviour such as the time spent on the pension planner. Further research should also study the effects of other features that shape user’s perception of interactivity, which include human-to-human interactivity.
Practical implications
The results show that technological services, such as advanced online pension planners, can positively affect engagement with retirement planning. Thus, pension providers are encouraged to use interactive online pension planners. The results with respect to gender suggest tailoring pension planners to match specific preferences of recipients. New service technologies provide novel opportunities to cater to individual differences by, for example, integrating less interactive features for women than for men in a pension planner. Moreover, cognitive involvement should be stimulated by integrating relevant, interesting and valuable information.
Social implications
Lack of engagement with retirement planning is an important challenge to Western societies. People who do not sufficiently search for information about their expected pension benefits may encounter significant pension gaps resulting in detrimental welfare effects at retirement. This problem is enhanced by the fact that increasingly, the risks and responsibility for retirement planning are being shifted towards pension plan participants themselves. Thus, finding ways to increase engagement with retirement planning by making use of advances in service technologies brings benefits to society.
Originality/value
First, this paper contributes to the customer engagement literature by studying how new technological interfaces improve user experiences, knowledge and engagement within the low involvement context of retirement planning. Second, this paper advances service research by zooming in on customer heterogeneity in using the technology-based online pension planner and studying the moderating effect of involvement and gender more closely. Third, this paper contributes to the financial services literature by studying how new service technologies can help to increase attitudes, knowledge and engagement with retirement planning.
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The purpose of this paper is to analyze the conceptual framework about human resources downsizing and restructuring and how organizations of the public sector can do that…
Abstract
Purpose
The purpose of this paper is to analyze the conceptual framework about human resources downsizing and restructuring and how organizations of the public sector can do that effectively and efficiently. These facts drive to the conclusion that the implementation of early retirement incentives requires the most elaborate planning and execution to be effective, predictable and safe in the long term.
Design/methodology/approach
This paper adopts an analytical, descriptive methodology approach to describe the basic features of the data by using the descriptive research design. Data have been collected through different sources, which include secondary data, to introduce the theoretical literature of the subject as books, journals, articles, published working papers and referred previous studies related to the same subject.
Findings
Downsizing process is a deliberate administrative process that includes, but is not limited to, workforce reduction and is primarily aimed at achieving efficiency in public organizations. The definition of workforce downsizing may be narrowed to reducing the number of workers, or more likely to refer to general efforts to restructuring human resources in public organizations, Early Retirement Incentive Programs (ERIP) represents a viable alternative for organizations seeking to reduce staff. For the ERIP to be successful, the program coordinator must understand the business objectives and goals that the organization is trying to obtain.
Originality/value
Human resources strategies concerning downsizing public administration workforce should be more appropriate to those who leave the organization and those who stay at work, reducing the negative psychological, administrative and economical effects. This could be achieved through a strategy called early retirement incentive programs.
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Wiebke Eberhardt, Thomas Post, Chantal Hoet and Elisabeth Brüggen
The authors develop and validate a conceptual model, the retirement engagement model (REM), to understand the relationships between behavioral engagement (retirement information…
Abstract
Purpose
The authors develop and validate a conceptual model, the retirement engagement model (REM), to understand the relationships between behavioral engagement (retirement information search), cognitive factors and engagement (e.g. beliefs and financial knowledge), emotional engagement (e.g. anxiety), and socio-demographic factors. Approach: The authors derive the REM through a three-step procedure: (1) an extensive literature review, (2) interactive feedback sessions with experts to confirm the model's academic and managerial relevance, and (3) an empirical test of the REM with field data (N = 583). The authors use a partial least squares (PLS) structural equation model and examine heterogeneity through a finite mixture model.
Design/methodology/approach
Around the globe, people are insufficiently engaged with retirement planning. The customer engagement literature offers rich insights into antecedents, outcomes, and barriers to engagement. However, customer engagement literature lacks insights into cognitive, emotional and behavioral factors that drive engagement in retirement planning, a utilitarian service context, which is important for financial well-being.
Findings
Beliefs such as perceived susceptibility, severity, benefits, barriers, and self-efficacy, together with trust and retirement anxiety, explain people's search for pension information. These factors can be used to define three clear, actionable segments of consumers.
Originality/value
The findings advance the customer engagement and transformative service research literature by generating insights on engagement with retirement planning, a utilitarian rather than hedonic service context that is especially relevant for financial well-being. The findings inform managerial practice and emphasize the relevance of including cognitive and emotional engagement factors that trigger behavioral engagement. The REM can help to improve pension communication. For example, the results indicate that marketers should stress the benefits of, rather than the barriers to, acquiring information.
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Dominique Anxo and Thomas Ericson
It is important to understand why some workers prolong their working life even though they are entitled to statutory pension benefits. This paper aims to investigate whether…
Abstract
Purpose
It is important to understand why some workers prolong their working life even though they are entitled to statutory pension benefits. This paper aims to investigate whether senior workers are motivated by external factors such as pay and social expectations (extrinsic motivation) or are primarily motivated by internal factors such as job satisfaction (intrinsic motivation). This is a central question for policymakers and social partners when it comes to the design of public pension systems and work organisation.
Design/methodology/approach
This study uses a combined longitudinal administrative data and an own-designed postal survey to ask individuals aged 65–76 years to describe their work motivation. Based on the answers, this study constructs an index of autonomous motivation (AM) where a value of zero implies only extrinsic motivation and a value of one implies only intrinsic motivation. The values between zero and one thus imply various grades of AM, where higher values signal motivation that is more autonomous and hence a higher degree of intrinsic work motivation.
Findings
The results of the statistical analysis show that the extent of intrinsic motivation is higher among senior workers who retired aged 65 years or older compared to those who retired at 65 years or younger. In addition, this study found that the degree of intrinsic work motivation among senior workers decreases when they face economic and financial constraints. It also found that intrinsic motivation is more prevalent among high-skilled workers.
Research limitations/implications
This study shows that individuals who continue to work after 65 are mostly motivated by the satisfaction they derive from their job. Job satisfaction is strongly related to skill level, job quality, job content and job autonomy. Results indicate that job quality and commitment to work are essential elements for motivating seniors to postpone retirement.
Originality/value
This study contributes to this literature by applying a multidisciplinary approach from organisational psychology and labour economics that considers the potential importance of intrinsic motivation to work after standard retirement age. The authors think that this approach enhances the understanding of the mechanisms behind the lengthening of working life. Finally, this study suggests a simple, but efficient way of empirically measuring the extent of intrinsic motivation among workers.
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Qi Wang and Virpi Timonen
Existing research focuses on the pension systems and reforms in China from a macro-level and financial perspective. The expectations of mid-life Chinese people regarding their…
Abstract
Purpose
Existing research focuses on the pension systems and reforms in China from a macro-level and financial perspective. The expectations of mid-life Chinese people regarding their retirement and pensions have been ignored to date, and this research set out to address this lacuna.
Design/methodology/approach
The application of qualitative research methods is relatively novel in Chinese social science. As a grounded theory (GT) study, the research reported here deployed semi-structured interviews to investigate middle-aged Chinese women's and men's perceptions of their pensions and retirement. In total, 36 interviews were conducted, following the constructivist GT method.
Findings
The data point to disparities between the choices and perceptions of individuals on the one hand and the official assumptions underlying the current pension regime on the other hand. Research participants had varying interpretations of the inequality in retirement incomes in China, the main division being between enterprise workers and public-sector employees.
Originality/value
Although there are in principle rigidly fixed retirement ages for men and women in contemporary China, the phenomena of early retirement and working post-retirement are increasing. There are trade-offs between work/retirement and family needs, which influence the choices of middle-aged citizens. Retirement pathways are increasingly individualised, reflecting broader patterns of individualisation and inequality in China.
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Mairead Cahill, Rose Galvin and Judith Pettigrew
Retirement is a complex process that can impact daily lives and relationships. While some gender differences in academic retirement experiences have been noted, few studies have…
Abstract
Purpose
Retirement is a complex process that can impact daily lives and relationships. While some gender differences in academic retirement experiences have been noted, few studies have focused exclusively on women academics’ retirement experiences. This follow-up study aims to explore the meaning of retirement and its impact on retired women academics' daily lives and relationships over time from an occupational perspective.
Design/methodology/approach
Using a qualitative, longitudinal descriptive design, semi-structured interviews (n = 11) were completed with women retirees from one university and an academically linked university-level, college of education and liberal arts, in the Republic of Ireland (n = 11). This paper presents the findings of follow-up interviews conducted one year later (n = 10). Data were analysed using Braun and Clarke’s six-phase thematic analysis. A longitudinal analysis was then undertaken using a recurrent cross-sectional approach (Grossoehme and Lipstein, 2016) to enable discussion of changes and continuity that had occurred over time in their daily lives.
Findings
The analysis yielded four themes: (i) continuing to navigate occupational identity challenges, (ii) structuring free time, (iii) appreciating health and well-being and (iv) continuing meaningful professional relationships and activities. Participants described on-going occupational identity challenges linked with contextual factors and experiences of occupational injustices of lack of recognition, lack of inclusion and a lack of choice to continue working in their paid academic employment.
Originality/value
These findings suggest that occupational therapists advocate for older adults, so that meaningful choices in retirement timing can be offered to all equally and so that older people are acknowledged for their contributions to society.
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Although the Chinese nation is undergoing rapid modernisation and urbanisation, there remains widespread interest in some traditional familial arrangements and practices…
Abstract
Purpose
Although the Chinese nation is undergoing rapid modernisation and urbanisation, there remains widespread interest in some traditional familial arrangements and practices, particularly in the intergenerational context. This paper discusses the family relations of urban middle-aged citizens in present-day China.
Design/methodology/approach
This study employed the grounded theory method to investigate family relations among middle-aged citizens in urban China based on data obtained via semi-structured interviews with 34 participants. A grounded theory coding strategy was used for data analysis.
Findings
The analysis revealed evidence of a transformation towards downward solidarity, with decreasing intergenerational co-residency; that is, the traditional norm of adult children providing support to their older parents is rapidly losing popularity. However, middle-aged and older citizens continue to support their adult children by helping them purchase real estate and assisting with childcare activities.
Practical implications
The findings suggest the existence of intergenerational inequality. Policymakers should acknowledge this phenomenon and provide the younger generation with enough support to improve the wellbeing of the country's middle-aged and older population.
Originality/value
The transformation towards downward solidarity implies a new intergenerational relationship in contemporary China, in which many young people rely on financial and functional support from their older parents. Meanwhile, traditional norms continue to exist despite greater downward solidarity among the younger generation. In other words, old and new norms simultaneously exist.
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Himanshu Singla, Amandeep Singh and Pooja Mehta
Based on the job demands–resources (JD-R) model, this study aims to answer a key research question, i.e. can the job characteristics (i.e. job demands and resources) affect…
Abstract
Purpose
Based on the job demands–resources (JD-R) model, this study aims to answer a key research question, i.e. can the job characteristics (i.e. job demands and resources) affect intention to retire early? Additionally, a mediating effect of emotional exhaustion and organizational commitment on the relationships of job demands and job resources, respectively, with early retirement intentions has been explored in the study.
Design/methodology/approach
The data has been collected from survey of 450 employees from the banking sector in the state of Punjab (India). A structured questionnaire adapted from past literature has been used as survey instrument for the study. Partial least squares structural equation modelling has been applied in the study using latest version of SmartPLS (version 3.2.8) software.
Findings
Both job resources and job demands have a direct significant impact on early retirement intentions. Moreover, a significant partial mediation effect of emotional exhaustion and affective organizational commitment has also been found out on the relationship of job demands and job resources with early retirement intentions, respectively.
Originality/value
The study makes incremental contribution by highlighting the role of both deterrent and motivational factors that either instigate or discourage early retirement intentions among employees. It offers valuable insights for the organizations to use efforts for curtailing the excessive job demands that lead to emotional exhaustion and further result in early retirement intentions. Besides this, adequate job resources should be provided to the employees that lead to the development of affective organizational commitment, which further helps in sustaining the workforce until their actual retirement age.
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Johannes Hagen, Amedeus Malisa and Thomas Post
How did investors in the Swedish Premium Pension System (PPS) react to the stock market shock ignited by the COVID-19 pandemic?
Abstract
Purpose
How did investors in the Swedish Premium Pension System (PPS) react to the stock market shock ignited by the COVID-19 pandemic?
Design/methodology/approach
The authors use fund-level data from the Swedish Pensions Agency on investment choices in the PPS. For each fund, the authors use monthly information on the number of investors and holdings' market value up to November 2020. The authors also use information on the total number of portfolio changes per day. For analyzing whether PPS investors reacted to the pandemic with claiming their pension, the authors use monthly data on the number of investors of a certain age group who initiate their public pension payment.
Findings
Trades more than doubled, and shifted capital from equity funds to low risk interest funds. In economic terms, however, trading stayed at low levels–less than two percent of investors traded in March 2020 and there was no effect on pension withdrawals. The increased trading during the market tumult was disproportionately concentrated among investors in the top of the pension capital distribution.
Research limitations/implications
With fund-level data, the authors cannot investigate what in particular made retirement investors stay calm in the midst of a severe market decline. Either, those investors have a long-term investment horizon as they save for their pension or particular features of the system's choice architecture induce inertia and discourage from trading. The sub-group analyses are more consistent with the explanation that PPS-induced inertia is responsible for the relatively small increase in trading activity, but future research could exploit individual level data to explore this in more detail.
Practical implications
The often-criticized PPS choice architecture provided positive side effects in times of a severe market shock by shielding retail investors from committing trading mistakes when trying to outsmart the market.
Originality/value
The study complements previous evidence on the effects of COVID-19 on investor activity. The small response of PPS investors to COVID-19 is in line with earlier US findings on 401(k) accounts during the 2007 financial crisis (Tang et al., 2012) and industry reports about the COVID-19 period (see, e.g. Mitchell, 2020). The authors find no effects at all on public pension withdrawals in Sweden, while evidence from US 401(k) plans indicates a small share of workers taking COVID-related early withdrawals.
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