Employers’ Efforts to Encourage Older Workers to Retire Later - A Case Study of Large Companies in Slovenia

Abstract

Background and Purpose: Most developed societies are facing the challenge of an ageing population, which poses
several issues, including low labour force participation and financial pressures on the sustainability of the pension
system. Countries typically address this situation by raising the retirement age, which often results in dissatisfaction among workers as such decisions are perceived as imposed. Therefore, our work’s main purpose was to research the analysis of implementing measures for managing older workers in companies, which would indirectly influence workers’ decisions to voluntarily choose longer work participation.
Design/Methodology/Approach: We designed our study on the assumption that companies that more frequently conduct various analyses of their employees also pay greater attention to measures for managing older workers. In doing so, we focused on the measures that the literature identifies as important for keeping older workers employed for longer. The data source was a study from 2020, which sampled large companies in Slovenia with more than 100 employees. We posed the questions to the person responsible for human resource management in the company. The initial question was whether conducting employee analyses is associated with the implementation of measures focused on education and training, skills transfer, and career development as well as managing the health of older workers. We formulated three main hypotheses, which we confirmed using linear correlation analysis.
Results: We found that companies that conduct more frequent analyses of employees’ qualifications and competencies, on average, also more frequently implement measures related to the area of education and training of older workers and to the area of knowledge transfer and career development of older workers. We confirmed statistically significant correlations in general as well as at the level of particular measures. Furthermore, we found that companies that more frequently conduct analyses of the health structure of employees, on average, also more frequently implement measures in the field of managing the health of older workers. We concluded that companies that conduct employee analyses more frequently demonstrate a higher level of commitment to implementing measures for managing older workers, which subsequently impacts their decision to retire later.
Conclusion: By conducting employee analyses, companies gain important information that leads to the timely and sufficiently frequent implementation of measures for managing older employees. With empirical data, we have supported our prediction that the frequency of implementing measures through which companies can influence older workers’ decisions for later retirement is associated with the frequent conduction of employee analyses. This article has contributed to our understanding of ageing and the treatment of older workers. It has also highlighted a softer approach to promoting prolonged work engagement for older employees as an alternative to unwanted, legally imposed later retirement.

Keywords: An ageing population, Management of older workers, Education and training, Knowledge transfer and career, Health management, Later retirement