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Inclusive Human Resources Practices for Older Workers - iHRM

Deliverable 5.4 Research report

Rotterdam School of Management, January 2015

Deliverable WP 5.4/EUR

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538832-LLP-1-2013-1-NL-ERASMUS-EQR

Inclusive Human Resources Practices for Older Workers - iHRM

Deliverable 5.4

Research report

Coordinator RSM

Contractual delivery date August 30th, 2014

Actual delivery date January 9th, 2014

Dissemination level REDIVE Consortium partners, Commission Services, Project reviewers

Total number of pages 55

Reviewers All Partners


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EXECUTIVE SUMMARY

This report describes the main findings of a research project into older worker practices within European companies. To obtain in-depth insights, data was collected through four channels. 1) An overview is provided of the main insights from previous studies. 2) Interviews were conducted with HR professionals in the partner countries and a focus groups were organized to validate the interview results. 3) Case studies are described to illustrate current best practices in each of the participating countries. 3) For an added insight into the experience of the older workers themselves, a survey was conducted among 2258 workers in seven European countries, including 660 older workers.

Previous scientific research showed that older workers describe themselves as being competent and fit to do their work. Studies into job performance show that this does not weaken with age and can be supported by experience. However, highly physical demanding jobs cannot always be carried out throughout an employee’s career. Despite that their physical functions might weaken, older people also continue to extend and develop their mental capacity. White collar workers may even become more productive with age. Older workers had stronger commitment to their work, were highly motivated to learn, had better verbal command, were less absent and had a better ability to reason and comprehend the whole. Some studies suggest that older workers focus more on interpersonal side of work and control their emotions better.

Previous research also showed that stereotypes play an important role when it comes to the role older workers still play within organizations. Providing challenging work – with job control - and receiving appreciation from the supervisor helps older workers to stay productive and motivated. It should be noted that their needs do change with age. A positive view on HR practices helps as does more teamwork and allowing for flexibility in the way work is carried out.

Four important themes emerged from the interviews and the focus groups with HR professionals. There is a clear agreement that one of the key strengths of older workers is their experience and knowledge. Knowledge and experience are especially importance for those organizations and companies were it is their core business. The second theme focuses on the effects of the economic climate: the context of the economy is very important when it comes to age management. Across Europe, many organizations struggle with the harsh effect of an economic downturn, the focus for older worker policies is not the first priority. The third theme that is important for age management within organizations is the role and influence of the government. European governments differ quite a bit in the attention given to older workers. The fourth theme is the emphasis on meaningfulness and values. It addresses the importance of meaning as way to keep older workers motivated. They need to have a feeling of purpose; they want to feel that they are contributing to the organization.

The survey among older workers gave the following key findings. Within organizations, there is a potential generational challenge in that older employees perceive their competences as better than their younger colleagues perceive them, and vice versa. Older workers experience a drop in their ability to deal with the physical demands of their work. Their experience of still learning at work also decreases. Older workers turnover intention drops. On the positive side, it should be noted that vitality and a sense of meaning at work stay at similar levels throughout the lifespan.


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Finally, to improve the working conditions for sustainable employability of employees of all ages, the most important focus points for organizations are: implementing age-related inclusive HR practices, enhancing the demand-ability fit of employees and encouraging a supporting people-oriented leadership culture where employees feel encourage to actively craft their own jobs.


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ACKNOWLEDGEMENTS

We acknowledge the support and funding provided by the European Commission for this research project.

We are particularly grateful to the individual HRM professionals who participated in the interviews, the employees who filled out the survey and the panels of experts who helped us understand the results. Their insightful stories helped us gain a much better understanding of the older worker practices in European companies.

In addition, we gratefully acknowledge the contributions of the iHRM research team members:

The Netherlands: Dirk van Dierendonck, Daan van Knippenberg, Michelle Bloois, Chandro Kandiah and Derck de Haas (RSM)

Slovenia: Nada Trunk Širca, Katarina Babnik, Valerij Dermol, and Kristijan Breznik (ISSBS)

Portugal: Ana Barroca, Catarina Neto and Gonçalo Meireles (Advancis)

Spain: Maria del Carmen Osuna Lopez (FGUGREM)

Poland: Emilia Szczygielska and Agnieszka Mielczarek (AHE)

Denmark: Yvor Broer and Lene Mogensen (In-Dialogue)


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TABLE OF CONTENTS

Executive Summary ................................................................................................................................................................ 3

Acknowledgements ................................................................................................................................................................ 5

1. Context .................................................................................................................................................................................... 8

1.1 HR challenges ................................................................................................................................................................ 8

1.2 Scope of WP 5................................................................................................................................................................ 9

2. Older worker practices, an overview of previous research ............................................................................ 11

2.1 Desk research, Key findings from previous studies .................................................................................... 12

2.1.1 Health and well-being and early retirement ......................................................................................... 13

2.1.2 Older worker’s Capacity to perform ......................................................................................................... 14

2.1.3 Conditions for optimal performance ........................................................................................................ 15

3. HR perspectives on age management. ..................................................................................................................... 17

3.1 Indepth insights through interviews and focus groups ............................................................................ 17

3.1 country specific Themes ......................................................................................................................................... 17

3.1.1 the Netherlands ................................................................................................................................................. 17

3.1.2 Themes in Slovenia .......................................................................................................................................... 20

3.1.3 Themes in Poland ............................................................................................................................................. 21

3.1.4 Themes in Spain ................................................................................................................................................ 23

3.1.5 Themes in Portugal .......................................................................................................................................... 25

3.1.6 Themes in Denmark ......................................................................................................................................... 26

4.2 Comparing the Themes in Europe: Similarities and Differences ........................................................... 27

4 The employees’ perspective on age management and wellbeing at work ................................................. 30

4.1 Methods ......................................................................................................................................................................... 30

4.2 Sample ............................................................................................................................................................................ 30

4.3 Wellbeing at work ..................................................................................................................................................... 30

4.4 Age-related climate at work.................................................................................................................................. 31

4.5 Conditions at work ................................................................................................................................................... 32

1.8 Conclusions .................................................................................................................................................................. 33

5. Case examples ................................................................................................................................................................... 34

5.1 Best practice examples through case studies ................................................................................................ 34

5.1.1 The Netherlands ................................................................................................................................................ 34

5.1.2 Slovenia ................................................................................................................................................................. 35

5.1.3 Poland .................................................................................................................................................................... 40

5.1.4 Spain ....................................................................................................................................................................... 42


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5.1.5 Portugal ................................................................................................................................................................. 44

5.1.6 Denmark ............................................................................................................................................................... 49

6. Conclusion ........................................................................................................................................................................... 52

7 References ............................................................................................................................................................................ 53


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1. CONTEXT

The aging of both the population and the workforce is a global issue that has created concern about labour and skill shortages in many of the developed countries (Kinsella and Velkoff 2001).

In Europe, if nothing changes, there could be only one person employed for every retiree by 2050, at the same time that labour market could shrink by nearly 15%. This would come with heavy costs to companies’ competitiveness, to the social security systems and to social cohesion, as old-age population is the group more vulnerable to poverty. Basically, these costs reflect negatively on the European economy and society as a whole.

One way to address this problem is to encourage OW to continue to participate in the workforce. There is abundant evidence that OW can be active members of society and contribute decisively to organisations’ competitiveness and development. These workers have often accumulated substantial knowledge and have devised efficient ways to do their work (Warr, 1994 and Skirbekk, 2003), hence making them more productive.

Already there are estimates pointing to the fact that the proportion of workers aged 50 or more is deemed to grow significantly in the next decades, rising from about 17% in 2005 to 27% in 2050 (UN, 2007). This is attributable to increases in life expectancy, combined with falling birth rates and a drop in early retirements (Grant & Wade-Benzoni, 2009).

The importance of increasing the employment rate of OW is widely recognized by the EC. Europe’s workforce is shrinking and the EU’s employment rate for OW is only 46%, against 62% in the US and Japan. Demographic changes, retirement policies and discrimination against OW have left Europe, over the years, with an ever scarcer workforce supporting a growing number of inactive people.

The Europe 2020 strategy has a strong focus on the inclusive growth of the labour market, establishing as one of its objectives to reach an employment rate for OW of 55% by 2020.

In the same line, the European Employment Strategy encourages measures to increase OW’s employment rate and to reduce by at least 20 million the people in or at risk of poverty and social exclusion, being that the most vulnerable group is comprised of the elderly.

Also EC’s Recommendation 2008/867/EC on the active inclusion of people excluded from the labour market, stresses the need for Members States to implement active inclusion policies to facilitate the integration of those who can work into sustainable and quality work environments.

1.1 HR CHALLENGES

Within this context, one of the most pressing challenges for HR managers will be to find effective strategies for encouraging OW to remain engaged and active members of the workforce (Barnes-Farrell & Matthews, 2007). HR managers face specific challenges when comes to recruiting and manage OW:


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• Motivation: OW often lose the stimulus to keep working, especially because of retirement expectations

• Skills obsolescence: OW tend to have difficulty keeping up with technological developments and other changes to the work environment

• Physical limitations: OW may require changes to the workspace conditions or may more easily become unfit to perform their job

• Authority: often OW have difficulty accepting the authority of others, especially if younger

• Ethical dilemmas: namely concerning staff selection, salaries, performance management, redeployment, recruitment, equity/merit and downsizing (Shacklock 2002)

These are just a few of the challenges which HR managers will be subjected to, more and more, in the future.

Yet, the HR management community has largely ignored the call to implement HR practices designed to accommodate the needs and desires of OW (Patrickson and Ranzijn 2004). Many employers are aware of issues related to the aging of the workforce, but few of them have taken any action.

This lack of strategies to recruit and retain older employees often lies in the employers and HR managers’ misconceptions and negative stereotyping concerning these workers (van Dalen, Henkens and Schippers, 2010).

Another reason is the actual lack of knowledge about how to develop and implement specific HR practices relevant to this target group (Shacklock, Fulop and Hort 2007). This is especially true when it comes to know which HR practices are more adequate to the European realities. Since 1990 over 25 articles were published, mainly by American and Australian authors, describing various HR practices that employers could consider to retain OW but they just begin to scratch the surface and only a few of them focus on European realities.

So, to the need to keep OW active in the workforce, and thus to raise employment rates within this group, oppose negative stereotypes towards OW and actual lack of knowledge on how to approach, from an HR management perspective, many of the challenges that recruiting and retaining these employees generate.

HR managers are in a key position to assist organizations to effectively and strategically deal with the challenges of recruiting and retaining OW. They can have a decisive role deconstructing negative stereotypes, change attitudes towards OW and implement adequate HR practices that result in a higher participation of these workers in the labour force.

1.2 SCOPE OF WP 5

The iHRM project in general aims at developing an innovative training programme for HR managers on inclusive HRM practices for OW, based in research and using mobile technology, to provide the knowledge and competences needed for these professionals to deal effectively with the challenges of an aging workforce. The specific aim of WP 5 is to further understand the current situation in


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Europe with regard to older worker practices and identify inclusive HRM practices that were found successful in particular contexts. The research results will be particularly important to set the baseline for the definition of an innovative m-learning programme (WP6) specifically designed to give competences to HR managers so they become fit to deal with the challenges of an aging workforce. The research will build on insights from earlier European research on age management such as the Work Ability Index developed in Finland.

The research was carried out through a structured methodology that used quantitative as well as qualitative tools to gather data, such as focus groups, surveys, case studies and desk research. It provides a country-based comparative analysis, benefiting from the involvement of 6 different countries.

To achieve its objectives, the assessment and data collection has three parts that build on and complement each other: 1) Desk research on existing EU studies, 2) Quantitative research among OW using an online survey tool and paper questionnaires, 3) Qualitative research among HR professionals with interviews, company documents and focus groups.

This deliverable has two functions: to provide an overview of the key findings of the WP milestones and to identify and highlight best practices in older worker inclusive HR practices as input for the development of the training programme in WP6.

We will provide the results in four chapters focused on the desk research, interviews and expert panels, case studies and the survey. The final chapter will provide the main conclusions.


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2. OLDER WORKER PRACTICES, AN OVERVIEW OF PREVIOUS RESEARCH

The demographical change within the global population has become an inevitable trend. This change strongly influences the future of organizations and their Human Resources (HR) practices. Generally, with the term “older worker”, researchers address those employees aged between 40 and 75, depending on the purpose and field of study (Kooij, Lange, Jansen and Dikkers, 2008); for this project, the term older workers will focus on to those people who remain active in the workforce and are aged between 55 and 65. Following Kooij et al. (2008), this threshold was chosen because in many countries, this age range implies a decline in the participation rate in the labor market and is further justified in the fact for most countries 65 is the common age to retire (Eurofound retirement age, 2014), although this is rapidly changing.

Throughout Europe, the age composition of the workforce is rapidly changing. The combination of increasing longevity and low birth rates results in a shift upward of the average age of employees in the workforce. Each month, the world’s elderly population increases by 795,000 people; being projected to increase even higher in the coming years (Kinsella and Velkhoff, 2001). It is strongly predicted that the proportion of older workers as active parts of the workforce will immensely increase, implying that “in 2050 the 50-64 age-group is expected to make up 32 percent of the potential workforce as compared to 25 percent in 2000” (Kooij et al. 2008: 365). To illustrate this trend, table 2.1 shows the old-age dependency ratio, which is the number of persons, aged 65 and over expressed as a percentage of the projected number of persons aged between 15 and 64 (Eurostat, 2014a). The higher the number, the more elderly (mostly on pension benefits) there are compared to younger (working) adults. This graph shows the development of the old-age dependency ratio for Europe in general and for the countries in this project. It may be clear that this ratio is rapidly changing where currently about a quarter of the adult population is above 65, this will increase to half by 2080. For a more in depth insight into current age management practices within Europe, please see: http://www.oecd.org/employment/ageingandemploymentpolicies.htm

It should be noted in this respect that some scholars believe that “chronological age” might be insufficient to address the factor age in the work setting (Settersten & Mayer, 1997; Sterns & Miklos, 1995). Sagie et al. (1996), for instance, have argued that, since individual preferences are largely transferred from significant others (e.g. parents and teachers) and modified on the basis of experience, chronological age is actually a substitute for societal roles, socialization, and expectations. Hence, there is often a substantial difference between the objective assessment of age (in calendar years) and the subjective experience (Logan et al., 1992). Empirical evidence seems to support this notion, as workers generally report that they feel, look, act, and prefer to be younger than their chronological age (Barnes-Farrell et al., 2002; Montepare & Clements, 2001; Montepare & Zebrowitz, 1998). However, for the purpose of this report – dovetailing current practice – we will keep with using the chronological age of 55 as the dividing line.

http://www.oecd.org/employment/ageingandemploymentpolicies.htm


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Table 2.1 Old-age Dependency Ratio (Source: Eurostat, 2014).

2.1 DESK RESEARCH, KEY FINDINGS FROM PREVIOUS STUDIES

Most companies commit to attention for older workers in some degree. Age management in the broadest sense includes a process of creating and maintaining an environment that naturally allows all individuals to stay active and productive throughout their working life. Another term that can be found within the literature is ‘sustainable employability’ (Van der Klink, et al. (2010). This is defined as “having the ongoing realizable capabilities and conditions to continue functioning in


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current and future work environment, while maintaining health and well-being” (van der Klink, et al., 2010, p. 8). Previous research into age management and sustainable employability has provided some useful insights for the current project. Van der Klink et al. (2010) made a useful distinction between the capacity and the capability of people. Capacity in their opinion is about what someone is able to do. Capability places this capacity in a context, most notably the working conditions. Imagine that you are a skilled road worker, but you do not have stones. In this context you have the capacity to perform the task but you do not have the capability to perform your task. An essential element within this all the health and well-being of the older worker. Following, we will give an overview of some core findings related to age management. We do not aspire to be all-inclusive in this review but do expect to give the reader the main and most relevant findings currently found in academic research as they pertain this project.

2.1.1 HEALTH AND WELL-BEING AND EARLY RETIREMENT

It may almost seem an open door, but the primary condition for people to be able to work until their retirement, is their physical health and their psychological well-being. Until recently, organizations have assumed that it is primarily the employee’s responsibility to reach the retirement age in good health. From their perspective employees should take care of their health and well-being and they are not convinced of having any responsibility to keep their employees’ active until the retirement age. However, due to the current economic and social situation, organizations may have to start acknowledging the need to rethink this point of view.

Research on factors that influence the possibility of reaching the retirement age while still employed distinguishes between physical and mental well-being; both influence the vitality of older workers. Employees who felt vital thought that they were able to work longer than colleagues who felt more restricted. Vitality influenced the inclination to retire on a certain age, before the official retirement age. On the other hand, however, vitality and health has also been mentioned as a reason to quit working earlier and enjoy life as long as possible (Ybema, Vos, & Geuskens, 2013). 2014).

It is essential to acknowledge in this respect that early retirement can happen for different reasons, not all of them are necessarily health and well-being related. When employees are unable to continue in their job for health reasons, this is called disability retirement. Second, employees may be out of a job because of a layoff and are not able to find a new job because of their age. This could be seen as a form of early retirement, without the retirement benefits and conditions. Third, some people leave paid employment voluntary; so-called early retirement. The last group does not quit working due to personal mental or physical conditions, but because they choose to (Van den Berg, Schuring, Avendano, Mackenbach, & Burdorf, 2010).

It is sometimes more the self-perceived health than the actual –objective – health that influences the (perceived) ability of older workers to reach the retirement age. Perceived well-being influences the willingness to keep on working; or instead to decide to stop working earlier than the mandatory retirement age as set by the government. It is noteworthy that in general employed employees feel healthier than unemployed workers or early retirees of the same age (Herzog, House, & Morgan, 1991; Van den Berg, Schuring, Avendano, Mackenbach, & Burdorf, 2010). De Wind et al. (2013) recently found four pathways through which poor health affected (early-) retirement intentions. In the first, employees felt unable to work at all due to current health problems. In the second pathway, poor health resulted in a self-perceived decline in the (future)


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ability to work. In the third, employees were afraid of further health-decline, while in the last, employees with poor health felt pushed out by their employer. In all scenarios, poor perceived health significantly increased retirement intentions.

The health and well-being of workers is influenced by different factors in employees’ work and private environment (Hanish & Hulin, 1990; Taylor & Shore, 1995). Several studies showed that stressful working conditions with heavy workloads are associated with higher intentions to retire early (Elovainio et al., 2005; Heponiemi et al., 2008; Solinge & Henkens, 2008; Sutinen et al., 2005). The limited studies on other work characteristics gave mixed and sometimes conflicting results (Beehr et al., 2000; Schmitt et al., 1979). It is clear, however, that lifestyle and labour conditions both have an impact on the employability of employees. People who have an unhealthy lifestyle tend to quit working earlier than their healthy colleagues. Factors as alcohol consumption and physical activities influence exit from paid employment. Thus these factors may be important elements in intervention programs for organizations to keep their employees employable until retirement age. (Van den Berg, Schuring, Avendano, Mackenbach, & Burdorf, 2010).

2.1.2 OLDER WORKER’S CAPACITY TO PERFORM

Within organizations, the added value of older workers for company performance is often questioned (Hertel, van der Heijden, de Lange, & Deller, 2013). This is in contrast to prior research that has shown the potential added value of older workers. Regretfully, neither organizations nor public opinions seem to share this potential positive view on the work ability and performance of older workers. This may partly be due to stereotyping and a lack of exposure to older workers as is exemplified by Billet, et al. (2011) who cite several studies that showed that when managers collaborate with older employees, their perceptions positively change in favour of older workers. Not surprisingly, older workers described themselves also as being competent and fit to do their work (Tikkanen, 2011).

Potential performance is an important factor in the decision to retain and/or recruit (older) employees (van Dalen, Henkens, & Schippers, 2010). In the cognitive aging literature, it has been well-documented that with age, functional capacities (and in particular cognitive resources, e.g. processing speed and working memory) decrease (Bassey, 1998; Tuomi et al., 1997; Silverstein, 2008). Based on this decline in fluid abilities, some suggest that older workers may have more difficulty in dealing with high mental load tasks (Kanfer & Ackerman, 2004). However, according to Ilmarinen (2001) and Van Dalen, Henkens, & Schippers (2010) work experience, performance and aging interact in intriguing ways. Their research showed that job performance does not weaken with age and that it is supported by work experience. They report that older people continue to extend and develop their mental capacity throughout their working life, despite a potential weaking of their physical functions and less fluid abilities. Some research even suggests that white collar workers may become more productive as their age increases (Munnel, Sass, & Soto, 2006). Notably for highly physical demanding jobs, which cannot always be carried out throughout an employee’s career, age is a factor. Also, there is research that points towards a less being able to handle working under excessive time pressure and reporting higher mental demands than younger workers. Similarly, Nolen-Hoeksema & Ahrens (2002), showed that a low-quality work environment was more strongly related to depressive symptoms among middle and old-aged workers (45-55 years) compared to younger employees (25-35 years).


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In addition to gaining experience, the strengths of older workers seem to lie in their “soft skills”. Where younger workers performed better on “hard skills”, Older workers had stronger commitment to their work, were highly motivated to learn, had a better verbal command, were less absent and had a better ability to reason and comprehend the whole (Ilmarinen, 2001; van Dalen, Henkens, & Schippers, 2010). Interestingly, a study by De Lange, et al. (2010) reported older (≥55) workers were less motivated to learn than their middle-aged colleagues (31-44). Their explanation is that middle-aged workers (in contrast to older workers) are in the middle of building career and still see possibilities for job transfers in the organizations. Older workers may have reached their highest possible position and did not have the opportunity for further job transfers (De Lange, et al., 2010). It should be noted that the motivation to learn of the older workers was similar to that of the younger workers (< 30).

2.1.3 CONDITIONS FOR OPTIMAL PERFORMANCE

In addition to the capacities that older workers bring to the workplace, the work conditions play a major role in the ability of employees to stay productive and employable until retirement. The first condition that influences the employment and employability of (potential) employees are stereotypes about older workers. Regretfully, stereotypes still influence the perspective of employers. These perceptions are sometimes based on facts, but often times are more opinions about the capabilities and performance of (potential) employees without real empirical proof. These stereotypes usually paint a less positive picture of productivity, motivation, adaptability, loyalty, and work ability of older workers. The organizational support for early retirement of older people as well decisions on support for extra training and education, suggest that organizations value younger workers more than older workers. These stereotypes and the consequential lack of continued support for older workers probably have not contributed to the extension of older workers’ working lives (Munnel, Strass and Soto, 2006, Van Dalen et al., 2006).

A second factor that influences the performance of older worker is the work condition. There are several factors that play a role in this respect. One factor is that they like to be challenged in their work (Van Solinge & Henkens, 2011). Furthermore, fairness is an essential element for the job satisfaction and engagement especially for older workers (Bal, de Lange, Jansen, & van de Velde, 2008); Bal, de Lange, Ybema, Jansen, & van der Velde, 2010), and Armstrong-Stassen & Schlosser, 2011)). High quality interpersonal connections (founded on trust) are also important to older workers. Elderly who perceived high procedural justice and high levels of trust were more likely to stay in the organization. Noteworthy is that is in less optimal circumstances, older workers – compared to their younger colleagues - seem to be able to focus more on the positive side of the relationship and can control their emotions better. Therefore trust and commitment were less affected when older workers face negative emotions (Bal, et al., 2008; Armstrong-Stassen & Schlosser, 2011). This relationship is stronger among older workers who trusted organizational procedures (i.e. high fairness) and experienced support from their supervisors. On the other hand breaking trust of older workers by injustice increased the risk on turnover significantly. Complementary, elderly people in the workplace with a bad relationship felt less harmed by injustice and had less impact on turnover risks (Bal et. al., 2010). These findings might have indicated that older workers’ job satisfaction depended on the established relationship with their colleagues and supervisors. This basis of trust ensured that older workers could handle negative emotions better as long as their trust was not harmed (Bal, de Lange, Jansen, et. al, 2008; Bal, de


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Lange, Ybema, et. al, 2010; Armstrong-Stassen & Schlosser, 2011). Leadership styles may thus have stimulated sustainable employability and decrease turnover risks of older workers. (Van Solinge & Henkens, 2011). Fairness in HR-practices and supervisors’ respect and support were the most important concepts to maintain and engage older workers (Armstrong-Stassen & Schlosser, 2011).

Third, a good balance between work and private life is an important factor for people to be able to continue working from start to the age of retirement. A well balanced life from the beginning of someone’s career seems to have a positive influence on the sustainable employability of the employee (Ybema, Vos, & Geuskens, 2013).

Fourth, older employees find it really important to have a certain level of job control, according to Van den Berg, Schuring, Avendano, Mackenbach, & Burdorf (2010). “Among work related factors, lack of job control showed the highest increased risks for exit pathways” (Van den Berg, et al., 2010)

Fifth an important point to take into consideration by designing and rolling out HR practices is that HR policies differed from HR practices as perceived by employees (Kooij, et al., 2010). This has influenced the commitment and job satisfaction of employees in general and thus also for older workers. Commitment refers to the general attitude towards the organization and job satisfaction is more directly related to the job itself.

Finally, employees’ needs change with age. These changing needs influence the way they value HR-practices (Kooij, Jansen, Dikkers, & De Lange, 2010). Performance management and promotion has a positive influence on job satisfaction of employees but as they get older these influences weaken. On the other hand, teamwork and flexible working hours become more important for (job satisfaction and organizational commitment with age.


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3. HR PERSPECTIVES ON AGE MANAGEMENT.

3.1 INDEPTH INSIGHTS THROUGH INTERVIEWS AND FOCUS GROUPS

The qualitative part of this research consisted of topic-focused, semi-structured in-depth interviews. Following recommendations by Yin (2010), these direct face-to-face encounters were adopted to obtain the necessary details of “what”, “how”, and “why”. The interviews allowed us to obtain deeper insights into diversity practices and build directly on the insights gained from the surveys reported in chapter 2.

Each partner was responsible for finding, contacting and interviewing HRM professionals within a company or organization in their respective home country. It is to be expected that cultural diversity will exist sparsely in organizations. As such, we targeted those organizations that already had such a practice. Our original aim was to obtain at least 15 interviews from within the co-participating partners. We interviewed HR professionals across the six partnership countries.

Parallel, focus groups were organized in each of the participating countries with HR professionals

Data from the interviews and the focus groups were analysed using content analysis, whereby the researchers examined the answers and identified common “thematic units”. We report the major themes and findings below.

3.1 COUNTRY SPECIFIC THEMES

First, an overview of the main themes for each of the countries will be presented.

3.1.1 THE NETHERLANDS

The first theme, the physical burden on older workers, was mentioned for sectors like the healthcare, which are demanding on the body: “The physical demands are harsh and people keep on going. Every day people have to be washed and dressed.” ‘Back in the days’ it was clear that the workers in care centers were a lot younger: “The average age in healthcare was 28.” Due to a decrease in physical strength, older workers may struggle to finish their tasks. This physical burden also shows up for occupations with night shifts: “When older employees finished their night shift and you see them again the next morning, you wonder if they are still able to arrive home safely by driving the highway. Are they still all right?” Among the possible solutions for lightening the physical burden, technical solutions seem to be the primary answer, for instance patient lifts and forklifts. Another solution is to change the way the work is conducted and to ‘spare’ older employees by exempting them from their night shift duty or by matching them with younger employees: “the strength of a younger person is used to compensate for the strength that the older worker does not have anymore.” Even though their physical endurance might decline with age, older workers do possess a great quality, which is introduced in the second theme.


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The second theme is the knowledge and experience of older workers. During their career, older workers have gained a lot of practical knowledge and insights into the work itself, into the way the organizations functions and people collaborate. Especially in knowledge intensive industries, the innate knowledge of an organization is to be found within the older workers. When they leave, this knowledge is lost too. It is a recurring theme that comes to surface through different narratives. In several organizations, older workers were matched with younger employees to share their knowledge and experience. In this way, they are contributing to the development of the younger worker. The younger workers gain knowledge: “the strength of a younger employee with the knowledge of an older worker is often a good combination.” Regretfully, this is not yet regular practice: “The added value of a senior employee lies in his or her experience, the knowledge and experience from this group could be used more by coupling them with younger employees.” Often the more experienced, and thus, older workers are used to prepare new employees for their jobs. They sometimes function as a mentor or as trainer, but at none of the companies is this arranged as a formal policy. It is often an informal arrangement: “However informally, it is more often the case that the more experienced employees take care of younger employees in their first months”. One of the companies showed a best practice in this regard, because the knowledge of the employees was essential for their core business; they created an association for retired employees. This ensured that they did minimalize the loss of knowledge when employees left the company. The association is consulted for all kinds of challenges, and pensioners still feel of use for the company. To keep the association connected with the company, a lot of informal events like drinks and trips are organized for the pensioners. It should be mentioned that this can be a two-way road. Older workers could also learn from their younger counterparts, especially in the area of technology.

The third theme is meaningfulness, or ‘sense of purpose’. It focuses on the core values that help older workers to keep motivated to give their best until retirement.. As a person’s career develops and one gets older, one’s values also change. Whereas maybe in the younger years, there is the thrill of the ‘corporate rat race’ and ‘climbing the corporate ladder’, at an older age, money and responsibility can no longer compensate for the daily stress. This is something that should not be underestimated and it is crucial for employees, but also for mangers to wonder if everyone is still at the right place: “Do I still do what I really want to do? Does the job make me feel energetic and exited?” But even if employees realize that they might not be at the right place and lost their ‘sense of purpose’ in their jobs, they often do not want to make a change. It is hard to be open for a change, and put in any extra effort or take on different tasks. In addition, older workers are often afraid of change or scared that they won’t be able to find another job again. One thing that came up was the importance continued development and an openness for change. Especially if their daily routine job is safe and sound, older workers may be much happier in another position or even in an another organization.

The fourth theme is the labour costs of older workers. Due to the seniority based wage system older workers often have a relatively high salary in comparison to their actual productivity. The choice to leave the company will probably result in a job that pays less, addition they would not get their severance pay. This is a big threshold for older workers to either decide to leave to company and find a job that suits their qualities better or to increase their productivity for monetary incentives. This may be one reason why companies are reluctant to hire or keep older workers. Although they are much more productive than younger workers, this does not always compensate the higher salary. Demotion was mentioned as a solution. However, demotion has negative consequences for the employees. It makes them feel like they’re not appreciated after years of commitment.


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The fifth theme concerns the collective labour agreements (CLA) and informal policies. As the labour force within the Dutch society continues to age, many CLA agreements regarding older workers are under pressure. During the interviews it became clear that CLA’s for early retirement were still present up to 2012 and in the CLA for ‘metal and engineering’ there still are arrangements available for early retirement at the age of 61. Presently, within CLA’s the policies for early retirement are being abolished and the special arrangements for older workers are also being cancelled. HR managers are supporting these developments, according to them, it makes no sense to offer every older worker the same policy at a certain age: “You see it here with the additional ‘age leave days’, many people did not use it at all. So these policies were partly embraced, but another share of the employees also thought: ‘I’ll happily continue my work’.” As employees become older, the differences in well-being are more diverse. Therefore the general consensus was that a case-by-case approach was the best policy to use for older workers: “some older workers are asking to continue, even after their pension age and others are looking forward to the quit as early as possible.”

The sixth theme identified is sustainable employability. One of the main topics within sustainable employability is mobility, especially horizontal mobility: “to get the right persons, at the right place at the right time.” This is crucial in making the job attractive for the employee, but also very beneficial for the organization. However, some companies take it a notch further: they focus on external mobility. External mobility focuses on the labour market and employees get possibilities to increase their employability outside the company. Even though sustainable employability is really embraced at multiple companies, the policies regarding this theme are often not made specific yet. It seems more as a certain attitude towards all employees, an attitude that should be beneficial to all employees. Some companies do have policies that are specifically meant to support the ‘sustainable employability’ approach. One example is the orientation internship, which enable employees to try something completely different without the loss of pay. Other examples are the sustainable employability measurement and giving employees an investment budget per year for training and education to increase their employability. And in the pipeline for one of the new CLA’s is a sabbatical leave. It must be emphasized that these measures are there for all employees and not specifically for older workers. However, it is not considered a top priority, often because it is a policy that is really focused on the long term without any short term gains: “it is not something that we are used to here, we normally have really practical and concrete measures, but this is a true long term topic.”

The seventh theme is the effect of the economic climate, more specifically, the effect of the current economic crisis. If the economic climate would be prosperous and not in the current state of crisis, it could be that employers would hire older workers due to labour market shortages: “we don’t have to hire people now, but won’t that issue be solved when the market corrects itself?” Organizations are still processing the effects of the crisis in the Netherlands and reorganizations seem to be a recurring topic of conversation between the participants of the focus group and the interviews. They’re struggling with making ‘firing’ decisions, instead of ‘hiring’ decisions. When organizations do hire employees, they are mainly focused on young talented professionals and employees with specific experience or qualifications, for instance, technical engineers. In addition, quite a few organizations already have a workforce that is disproportionate: the older workers are overrepresented. So in a market that is still recovering from crisis, the demand for older workers is low. In addition to the low demand, it seems employees don’t feel the need to switch jobs due to


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uncertainty: “The problem is also that the best employees are staying put where they are because they prefer the certainty. And that has everything to do with the current economic situation.”

The eighth and final theme concerns the government policies. The common consensus in the focus group and the interviews was the understanding of the pension policies of the Dutch government: “Everyone will understand that if people get 85 instead of 75, you have to earn back 10 years. And with the current baby boom generation reaching the pension age it is just necessary to take measures.” However, there was a clear message from companies that employed workers that had to deal with a lot of physical activity. They could understand that a project manager, a secretary or any other staff employee could work longer. However, for installers, plumbers, and care workers, the increased pension age will be too harsh. It differs case-by-case if employees are fit to continue their work and a blunt government policy to set the pension bar at 67 for everyone wasn’t a solution that was appreciated: “people that work here just won’t make it, they’re going to call in sick because they do not have the strength to continue.” In addition, if employees are no longer fit to work, it will increase the costs for social insurances. In this regard, there were often suggestions to consider the sector and the kind of labour that employees have to do before deciding on the increase of the pension age.

3.1.2 THEMES IN SLOVENIA

The first theme identified is the generational difference between younger and older workers. Slovenia used to be part of Yugoslavia. Within the last years, the change in the political and economic climate has brought differences in the expectations towards work and collaboration. Amongst the older workers, the past culture of socialism is still very much alive and the same goes for the work ethics of that time. For example, during the socialist era experience and age were of great importance. Hence, one could not imagine that a younger worker would be a manager of someone older. In two or three decades, there has been a big cultural shift: the elderly have adjusted fast, but not completely. Among young people, a large degree of modern culture and competition is present, which is certainly welcomed, as long as it does not become too competitive. These generational differences show their relevance in certain perceptions about older and younger workers: “The general opinion in our company is that older people complain more and are not ready for new challenges. They are very committed to their knowledge and experiences and are not willing to listen to others. However, the question is, are younger workers more perceptive? I believe that young people just have a greater need to prove themselves and therefore are more willing to please. The older workers just want more comfort and ease.”

Knowledge sharing between workers, the second theme, is a reoccurring topic in the interviews and the focus group. Even though there are a minimal amount of older worker policies, mentoring programs seem to be a common practice: “The major HR management practices for older workers is the mentorship function for young researches.” However, this transfer in knowledge from old to young does not always go smoothly. HR professionals mentioned that older workers don’t really want to learn anymore, which is a big problem for knowledge transfer. If older workers don’t want to gain more knowledge it is difficult for them to be a mentor given the continued influx of new insights. There are barely any practices or policies mentioned other than mentoring programs, if there are any they are mostly on an ad-hoc basis.


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The third theme focuses on these ad-hoc strategies; companies only deal with older workers when it becomes necessary. There aren’t any well-established practices or strategies for older workers in Slovenian companies. Only one participant mentioned the use of additional annual leave for older workers. The situation within companies, however, shows the need for developing more of these policies. One of the current challenges is how to motivate older workers. Especially older workers employed by the same company for a long time can be extremely unmotivated. These older workers have mostly already achieved their life goals (i.e. a house, kids, car, etc.) and most of their career goals. As such, there is no incentive or need to further prove themselves: “gradually they become calm and embodied in the monotony.”

The fourth theme is the strong focus on legislation. Older worker policies other than those prescribed by legislation are a rarity in Slovenian organizations. The response on questions regarding older worker policies was often: “we do not have those policies, we follow legislation.” One respondent even mentioned that the policies in the public sector does not allow to create policies that are differentiated by age: “Unfortunately the policy in the public sector does not give directors more freedom to decide how to motivate different generations.” It remains a question if this is a fact or an opinion. Perhaps HR professionals are stuck in following legislation and don’t even consider to introduce policies other that those prescribed by legislation to choose from. There is a strong legal protection of older workers, which influences vertical mobility within organizations: “Based on my experience I noticed that legal protection for the elderly can cause losses for the young people. For example, a very ambitious and talented young employee is unable to obtain a certain position until someone has retired. Talented young people will not wait four years or more, so they go elsewhere where they have the opportunity for promotion or other success.”

The fifth theme focuses on the government policies. The participants in the focus group agreed that different grants at national level are very important. However, they also mentioned that state funding for increasing the participation of older workers is not the only or the best solution for the problem. Companies have been quite ingenious in exploiting these subsidies. When state funding for the older workers ended, companies fired these employees and accepted new applications for the same position: “I know a good example of a company that has had some specific jobs which can be quickly trained for. They were hiring older workers who needed a few more working years until retirement. Nonetheless, companies do not have many of those types of jobs.” It seems that subsidies could increase the participation of older workers in the short term, however, for long term perspectives the impact is unclear.

3.1.3 THEMES IN POLAND

The first theme identified is the low awareness of the ageing problem. The answers on questions regarding older workers polices were: “I do not know anything about this” or “It is difficult to say, it is not something that is practiced in our company.” It seems that companies are not focusing on the ageing problem and perhaps it has something to do with the second theme: equal rights for employees. This is a problem at societal level, where the awareness should be created. However, it is essential that the efforts at societal level are taken seriously at the organizational level, otherwise, the efforts will be in vain.


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The focus on the sharing and transfer of knowledge during the focus group showed the importance of this second theme in Poland: “it is essential when it comes to unique knowledge, otherwise it is at risk of being lost forever when a person retires.” The dangers of not sharing knowledge were described as loss for the proper functioning of the organization. By prompting the active sharing of knowledge of older workers, these difficulties can be countered. A way to do this was to create a mixed-age work team and some best practices were mentioned in this regard. Firstly, there was an e-learning module for older workers, which adjusted to the needs of older people: “the time to explain was lengthened, there were pictograms that showed how to use the computer and no time pressure was put on the participants of that e-learning course.” However, it was also mentioned that older workers were sometimes hesitant to share knowledge because they were scared to lose their jobs: “they may suspect that after sharing their piece of knowledge with younger workers, they might be made redundant.” In this regard, another best practice was mentioned during the focus group. This practice made sure that mixed-age work teams were effectively sharing knowledge by focusing on three key areas. Firstly, there was a motivational system implemented that rewarded older workers who were able to share their knowledge with younger co-workers. Secondly, older workers were assured that they would not lose their jobs after transferring knowledge with others. Thirdly, it was clearly explained that knowledge sharing was a true necessity to guarantee the sustainability of the company in the long-term. Even though this example of a best practice worked out, the focus group members often pointed out the generational challenges when it came to sharing and transferring knowledge.

The third theme focuses on these generational differences: “in terms of values there is a difference between the older and the younger generation.” For some older workers, authority is strictly connected with age: “it is not easily accepted that an older worker has a younger manager.” What makes the situation even more complicated is that managers often have short work experience and that older workers have been working longer and longer. This is especially true since the older generation places a high value on experience and practical knowledge. Another example that shows the differences between generations is their different ways of. Older workers use more traditional ways of communicating: “in our organization the same piece of information is distributed in two ways, by the use of IT and by printing and positing on boards, so that workers of different ages would have access to it.”

The connection of values in a meaningful way is the fourth theme that was identified. When asked for ways to ensure productive employees over a course of their lifetime, the focus of the respondents was to connect the values of the organizations with employees in a meaningful way. Communicating the values of the organization to the employee is hereby essential: “values provide a pattern, enabling the identification with the organization.” Especially for older workers it is important to really know the employee: “what motivates him or her, what is happening in his or her life.” Furthermore, it was mentioned that it is important to know what older workers value. Some require stability of employment and other would like to find the right work – life balance. HR professionals mentioned that older workers must feel needed by the organization and feel that they contribute to the goals of the company.

Most of the participants in the interview referred to treating people the same; the emphasis on equal rights for employees is therefore the fifth identified theme. It acknowledges that HR professionals find it important that recruitment policies are not age dependent and that trainings


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and workshops are also available for all employees without any distinction in age categories: “At every age you can take part in trainings and we do not have special training for older employees.” Also regarding salary, the respondents reply that equal payment is important: “There are no differences regarding age. If somebody is good – his/her salary will increase.” This does not mean that there are no age related practices. Seniority based principles only seem to be relevant if an employee has experience in the same company for many years. It does not depend on the age of an employee, but his years of service in the company. Perhaps this also explains the low employee turnover that is mentioned several times. Older workers often stay at companies for long-term employment while younger employees move around more often. This is also seen in the applications for positions. Often, the younger workers are applying for jobs, and they seem to have the preference: “but if we have a vacancy, our boss rather recruits young people.”

The sixth theme focuses on the government policies regarding older workers in the sense that during the interviews little mention was made regarding governmental policies on the development of an aging population in Poland. Only one participant had a critical voice regarding the efforts of the government: “Now we have money from the EU for programs which support employment of older workers. However I do not see special efforts of the government in policies dedicated to older workers.” There seems to be an issue, but it is not mentioned often. It seems that the organizations have no focus yet on older worker policies and don’t really feel the need for this. The only suggestion mentioned by respondents for government policies that will increase the participation of older workers is tax reliefs: “the government could give some tax reliefs for my firm to increase the employment of older workers.”

3.1.4 THEMES IN SPAIN

The first theme identified in Spain is that big companies are trying the adapt their traditional and successful HR programmes, such as those focused on talent management, performance assessment and competences’ development from the perspective of challenges coming with age management. Examples of such initiatives are promoting horizontal mobility of older workers, positioning them in external advisory services and knowledge management programmes.

The first theme identified is the labour costs of older workers. During the focus group it was often mentioned that older workers cost more money, while they are not necessarily more productive. However, this difference in productivity is not experienced by every HR professional, it depends on the work that the older worker does. One HR Professional mentioned the essential experience and knowledge that is needed by research and consulting firms: “our higher profit is mainly created by older workers.” Ultimately, the high costs for older workers are also a reason to pursue early retirement structures, especially in the current economic climate: the second theme.

The second theme focuses on the effects of the economic climate. The real problem in Spain is youth unemployment and companies are currently focused on surviving the harsh economic climate instead of focusing on practices that could increase the participation of older workers in the labour market: “the priority is to survive, to increase the profits and to save costs.” Due to the high labour costs of older workers, organizations focus on letting them go. Especially in the private sector the use of early retirement schemes is a common practice: “the main policy has been early retirement, which is very negative for the worker, the companies and the country.”


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The third theme focuses on the government policies that were suggested by participants in the focus groups and the interviews. It was suggested that the high labour costs for older workers could be reduced by government policies, for instance by decreasing the costs for social security. Organizations might find it more attractive to hire older workers if the costs are lower. If the early retirement schemes continue this could have a very negative impact on the pension funds. Currently there is relatively low attention for the ageing of the labour market from the government. Even public organizations do not hire any people at all, no older workers but also no younger workers: “the public sector should set the example to move this economy forward… but it is not doing anything at the moment.”

The third theme is the structure of the career, which was discussed during the focus group. During their careers, employees gain more experience, organizational skills, and manage more teams. The logical trend is that the more experienced workers ascend in the hierarchy of the organization. However, if companies have to deal with an ageing workforce, then they may not have enough positions available at the management level. It is often the case that organizations have the option for vertical mobility: growing towards the top of the organization. However, organizations should also focus on horizontal mobility by specialization: “a change in the structure of the professional careers within the companies: from a more vertical structure towards a more horizontal structure that allows the employee to re-qualify and specialize.” This theme is closely linked to mobility, and in this regard the mobility for older workers can be considered low.

The fourth theme focuses on meaningfulness and ‘sense of purpose’. During the focus group, it was mentioned that it is hard to keep older workers motivated and productive over the years: “the solution is not to retrain workers, but to give them the ability to reinvent themselves.” This does emphasize the need for other ways to motivate older workers. One respondent recalled the use of breaks in the career, which was an additional tool to keep workers committed to the company. Another good practice was conducted in the banking sector. Office managers were offered the option of taking paid leave for three years. During these years many of them undertook business projects, joined faculty positions in college or enrolled in a master program. This shows another way of experiencing some form of purpose or meaningfulness during the working life. Respondent argued that there should be more attention for the values and commitments of older workers.

The fifth theme identified is the knowledge and experience of older workers. Companies differ in their use of older workers, but depending on the kind of work that the older worker has experience in is very important: “when it is about the work content and roles, there is much work that cannot be delegated to recent graduates, but only to workers with a lot of experience.” Senior workers are considered to be indispensable due to their knowledge and experience: “in our case the firm could not survive without the experience of older workers.” However, older workers also lack some technical know-how to keep up with the fast pace of today’s world. During the focus group, a best practice example was mentioned in which younger employees were mentoring older workers. Younger workers helped the oldest workers in the use and application of new technologies. Training and development of older workers was also mentioned as a policy to increase the motivation of older workers, at relatively low costs: “the internal training organized and implemented by the companies’ staff is a possible solution with minimal costs and has a lot of impact on the older workers, but also the youngest ones.” The impact refers to the joyful experiences of sharing ones knowledge.


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3.1.5 THEMES IN PORTUGAL

The first theme is knowledge sharing between older and younger workers. All respondents mention this theme in the interviews as a practice that is very important. Knowledge sharing is often conducted via mentorship programs; the older worker shares his knowledge with younger employees to ensure that the information is passed on to the future generations. They have a key role in this regard: “older workers are also employees that transfer unique knowledge to younger employees and help them with the ‘know-how’ for working within the company.” In some sectors, there is a strong need to hold on to older workers, because they possess knowledge that is not easily transferred. In this regard some HR practices are in place to ensure the ‘handover’ over management and technical skills. These HR practices are often one-year programs applied for young top management and technical employees. The organizations do not only benefit from the exchange of knowledge between employees, but it also increases employee engagement

The second theme identified is the effect of the economic climate. The economic climate has a major influence on the recruitment of employees. Some companies do not recruit employees at all, and others focus on retaining older workers instead of hiring new personnel. This does have a positive influence on diminishing the practice of early retirement. HR feels constraint by the current economic climate: “it forces reorganizations and reduces the opportunity for (re)integrating employees and creates more labour outflow.” For older workers, the outlook seems quite negative, because the real problem in Portugal is youth unemployment. Older workers with low salaries were among the first that suffered from the economic downturn and they get very little government support once they are unemployed. To make matters worse, they are probably among the last to be reintegrated into the labour market. The effects of this crisis are harsh on older workers, because most of them have low qualifications, especially woman.

The third theme focuses on the differences in values of older workers. In one company, the recruitment for production and operational function is specifically focused on older workers. Not due to their skills, but because the company follows the ‘familiar environment’: “older workers are referred by internal employees belonging to their family or community.” The values of older workers seem to align flawlessly with the culture needed at the company and they have used this method since it started with only six employees (now 380). During the focus group it was also mentioned that older workers show more commitment and are more willing to act as company representatives than younger workers. In some regard, the difference in values can also be derived from the emphasis regarding the work-life balance and the importance of family for older workers. Additionally, there seems to be practices in Portugal that focuses on the recognition of seniority, which have been mentioned by all participants. For instance, employees get an award if they work at the company for 5, 15 10, 20, 25 years etc.

Even though some themes were identified in Portugal, there is a very low emphasis regarding older workers policies and the effects on demographic change in general. “We do not have any policies for older workers” was a common reply in for many interview questions. Even though organization do recognize and face the difficulties with population aging themselves, they hardly deal with the issue. In addition, there were no governmental policies mentioned at all by the respondents. It seems that the impact of population ageing is still not considered to be a top priority within Portugal.


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3.1.6 THEMES IN DENMARK

The topic mentioned first and foremost was the so-called flexicurity, which is sometimes called the golden triangle of (1) flexibility in the labour market combined with (2) high social security and (3) an active labour market policy with rights and obligations for the unemployed. All respondents of the interview and the focus group mentioned it and also said that the word and concept originated in Denmark. With a lesser risk to employ unqualified staff (as one can lay them off much faster and easier than in most other EU countries), older workers don’t impose a risk for the company. In the focus group an employer said “even if there would be doubts if someone’s age could compromise the ability to fulfil a certain task within the company, it is relatively easy to lay him off again, especially shortly after employing him”. Additionally, people who are in between of jobs get further specialised training and education, by state sponsored job centres, basically until they reach their pension age. Thus, most new personnel, regardless of their age, are well and up to date educated. From the side of the employer, this flexicurity seems to have advantages too. Workers, and also older workers, can safely move from one company to the other, as the welfare state will take care in case of lay off after a switch. This in turn leads to a high labour mobility, also with older workers.

Older workers policies form an integral part of equality policies of many companies. Most companies have detailed policies and strategies, on diversity and equality management. In one interview it was said “That if we would not come up with a strategy, the trade unions would do it for us”. Thus, policies and strategies to be inclusive towards older workers stand beside equality of man and woman, integration of ‘minorities’ etc. Some of these policies/ strategies come even down to the level on which action to take/ consequences it has when disqualifying statements are made towards an older person by a younger person, or vice versa. Age management, specifically aimed at retaining older workers is not that much developed, most interviewees agreed. In case they knew about the existence in their organisations, they could not clearly state what it contained specifically.

Education is offered to all, but not all take the opportunity. Both by companies as well as job centres (for people in between of jobs) there are opportunities for ongoing education and training, for all ages. However, it was noted that especially after the age of 55 years, employees took less advantage of these opportunities, especially those provided by companies. Job centres can force unemployed to take part in education and training, whereas companies do not seem to insist on older workers to continue to educate themselves. One interviewee mentioned that there are special programmes for young potentials of the company, but not for older workers (with guidance, coaching, assessment, etc.). “And that when there is no higher or lower chance that a younger worker, part of our young potential programme, will be more loyal and stay with us, than an older worker.” A participant from the focus group mentioned that in a survey from 2012 of the Chamber of Commerce in Denmark, it showed that education and training was not really a factor that motivated elder workers to stay. Reduced working time (or flexibility) and requests from the management to stay (and appreciate their being in the company) seemed to motivate much more.

Finally, the economic climate seems to hardly have any influence on the employment of older workers. Probably this is different from other European countries (with exception from the other Scandinavian countries), as job cuts were not too high and the rise of youth unemployment stayed low. None of the interviewees and participants of the focus group could see a shift in perception of elder workers (being more critical of their capacities and attitudes). On the contrary, it seems, older


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workers seem to be more valued now for the loyalty to the company, compared to younger workers, than before the start of the recent economic crisis.

4.2 COMPARING THE THEMES IN EUROPE: SIMILARITIES AND DIFFERENCES

Table 4.1 gives an overview of the main themes identified within the different countries. The themes are divided according the level that they have the largest impact.

Country Individual level Organizational level Societal level

The Netherlands - Physical burden - Knowledge and experience - Meaningfulness - Sustainable employability

- Labour costs - Collaborative labour agreements (CLA) and informal policies - Sustainable employability

- Labour costs - Economic climate - Government policies

Slovenia - Generational difference - Knowledge sharing

- Generational difference - Knowledge sharing - Ad-hoc strategies - Strong focus on legislation

- Generational difference - Strong focus on legislation - Government policies

Poland - Sharing and transfer of knowledge - Generational differences - Connection of values in a meaningful way

- Sharing and transfer of knowledge - Generational differences - Connection of values in a meaningful way - Equal rights for employees

- Low awareness of the ageing problem - Generational differences - Government policies

Spain - Meaningfulness - Knowledge and experience

- Labour costs - Structure of the career

- Labour costs - Economic climate - Government policies

Portugal - Knowledge sharing - Differences in values of older workers

- Knowledge sharing

- Economic climate

Denmark

- Education - Loyalty older workers

- Integral HR equality policy

- Flexicurity - Limited influence economic climate

Across Europe, four themes emerge that are shared by most countries within this study. The first one focuses on the knowledge and experience of older workers, but also on knowledge sharing. There is a clear agreement that one of the key strengths of older workers is their experience and knowledge. Knowledge and experience is especially importance for those organizations and companies were it is their core business. As a result, knowledge sharing is emphasized actively in most of the countries. Usually, this practice is operationalized by setting up a mentor-mentee relationships, bringing together older workers with younger workers. Other examples are the


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rotation of staff between different departments and internal training. It should be mentioned these practices aren’t always formally presented as a policy within organizations. Quite often it is based on informal arrangements.

The second theme focuses on the effects of the economic climate: the context of the economy is very important when it comes to age management. Across Europe, many organizations struggle with the harsh effect of an economic downturn, the focus for older worker policies is not the first priority. Youth employment, for instance, is the real issue in Spain and Portugal. Many organizations have to deal with budget costs and reorganizations; especially in the Netherlands, reorganizations were mentioned often. The exception seems to be Denmark, were the economic climate has only limited influence. At the same time, the economic downturn gives employers a luxury position in regard to the labour market: they often have a large pool of good to excellent applicants to choose from. The demand for work is higher than the demand for labour.

The third theme that can be seen as important for age management within organizations is the role and influence of the government. European governments differ quite a bit in the attention given to older workers. In some European countries, the priority given to the ageing problem is low, perhaps even too low. Within the countries included in this study, the government in the Netherlands seems to be one of the most active governments that try to face the issue of population ageing. Respondents across Europe mentioned different policies that could help their organizations to retain or to hire older workers. Most recommendations focused on lowering the costs of older workers, for instance, by reducing taxes or offering subsidies. The practice of flexicurity in Denmark may be an example how to combine flexibility on the labour market with high social security. Some mentioned the need for more awareness regarding older workers and the issue of population ageing. The government could also take on a more facilitating role. For instance, by coupling companies with best older worker practices with companies that would like to reach the same level for their older worker policies.

The fourth theme is the emphasis on meaningfulness and values. It focuses on the importance of meaning as way to keep older workers motivated. They need to have a feeling of purpose; they want to feel that they are contributing to the organization. Especially older workers that have been working at the company for many years might not want to put in the extra effort, because they’re already satisfied with accomplishing other life goals. As such, it may be important that give older workers the space to reinvent themselves. In addition, older workers hold values in higher regard and therefore it is important to clearly communicate the values of the organization, but also to be aware of the values of employees. This is a two-way process.

Other themes that are shared by some countries are labour costs of older workers and generational differences between younger and older workers. The latter being mentioned in Slovenia and Poland seems to be a cultural inheritance of communist times. The differences in themes are especially present in The Netherlands. Surprisingly the physical burden for older workers is only mentioned in the Netherlands. Sustainable employability, which is a ‘hot topic’ in the Netherlands, was not identified in other countries. The same goes for the emphasis put on collaborative labour agreements and informal policies. In Slovenia two themes can be considered unique: the strong focus on legislation and the ad-hoc policies. Poland also had two unique themes: the emphasis put on equal rights for employees and the low awareness of the ageing problem. In Spain, one unique theme has been found: the structure of the career.


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4 THE EMPLOYEES’ PERSPECTIVE ON AGE MANAGEMENT AND WELLBEING AT WORK

4.1 METHODS

The perspective of employees of age management practices within European Companies was studied through a survey. Its primary aim was to provide a thorough insight into factors important for the retention of older workers. The survey included the most important aspects identified in previous research on older workers and insights from the field of positive organizational psychology. The latter field provides valuable and state-of-the-art insights into optimal human performance.

The survey was conducted among workers of all ages. For comparison purposes, we included both older and younger workers in our sample,. This survey was employed within European companies and organizations using the network of the consortium partners and associated partners all over Europe. Additional data was gathered through an online survey panel. Data was gathered mainly through the online survey tool available at the RSM, In addition, paper surveys were used when appropriate. The surveys were conducted in the native languages of the participating countries. Participation was voluntary.

The survey consisted of 4 parts: 1) Demographic characteristics, 2) Work design, 3) Personal attributes 3) Social and organizational environment, 4) Wellbeing at work.

4.2 SAMPLE

The full sample consisted of 2258 persons. The respondents were from The Netherlands (341), Poland (334), Portugal (158), Spain (432), Denmark (76), Slovenia (592), United Kingdom (312), and other countries (13). Fifty-three percent was female, 49 percent was male. 40.7 percent indicated having some kind of management responsibility. The average age was 44.7 years (SD = 12.1) with 13.0 years (SD = 13.0) of work experience.

Six-hundred-sixty persons were 55 years or older: 101 from The Netherlands, 109 from Poland, 49 from Portugal, 36 from Spain, 36 from Denmark, 224 from Slovenia, 100 from United Kingdom and 6 from other countries. For the age-related analysis, the sample will be divided into three groups: “young”, 35 years or younger (n = 640), “middle”, between 35 and 55 years (n = 930) and “older”, 55 years or older (n =660).

4.3 WELLBEING AT WORK

The first question to be answered focuses on how able workers are to do their daily work and handle its demands, both physically and mentally. Table 1 shows the results based on items from work Ability index (Ilmarinen & Tuomi, 2004). As can be seen, the work ability drops after the age of 55. The age groups “young” and “middle” are comparable. The strongest drop is in their ability to deal with physical demands of their work. Although the difference for mental demands is also


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significant, it should be noted that this is mainly due to the large sample. The actual difference is small, only .1 below the average of the group as a whole

Table 4.1 Work Ability of workers in Europe, divided over age groups

How do you estimate your work ability, compared to your lifetime best (range 0-10),

How is your ability to deal with the physical demands of your work? (range 1-5)

How is your ability to deal with the mental demands of your work (range 1-5)

Full Sample 7.5 (SD = 3.9) 4.1 (SD = .9) 4.1 (SD=.9) Young 7.6 (SD = 1.7) 4.3 (SD = .9) 4.2 (SD =.9) Middle 7.8 (SD = 1.7) 4.2 (SD =.9) 4.3 (SD =.8) Older 7.0 (SD = .8) 3.8 (SD = 1.0) 4.1 (SD = .8) F (2,2191) = 42.774 F(2,2208) = 51.948 F(2,2208) = 10.103

Next question focuses on employees’ psychological wellbeing at work. Table 2 shows the averages on three aspects: vitality, learning, & meaning. As may be clear from the F-values (testing the differences between the age groups), that the differences are less than with respect to work ability. Most notably is that the level of vitality and the meaning at work are actually lowest within the younger workers. The older workers experience meaning at work and have the lowest turnover intention.

Table 4.2 Wellbeing at work, divided over age groups

Vitality at work Learning at work Meaning at work Turnover intention

Full Sample 5.0 (SD = 1.2) 5.1 (SD = 1.2) 4.8 (SD = 1.4) 2.5 (SD = .9) Young 4.9 (SD= 1.2) 5.2 (SD = 1.2) 4.6 (SD = 1.4) 2.7 (SD = .9) Middle 5.2 (SD = 1.3) 5.3 (SD = 1.3) 4.9 (SD = 1.5) 2.5 (SD = .9) Older 5.1 (SD = 1.1) 5.0 (SD = 1.2) 4.9 (SD = 1.4) 2.4 (SD = .9) F(2,223) =

12.232 F (2,2222) = 8.984

F(2,223) = 8.157 F(2,224) = 25.372

4.4 AGE-RELATED CLIMATE AT WORK

One of the challenges for age management is the stereotypes of older workers. An indication of the way older and younger workers are viewed by themselves and by others in the organization is studied by asking about several characteristics that are generally perceived as important competencies (Karpinska et al, 2013), these include flexibility, social skills, commitment to the organization, creativity, management skills, reliability, willingness to learn, physical capacity, resistance to stress, new technological skills. Table 4.3 shows the average scores (range between 1 and 4). The differences between the age groups are significant (p <.001). The results show that older workers have a more positive view of themselves compared to the rest of their younger and middle aged colleagues. Similarly, young worker also have a more positive view of themselves compared to the rest of their middle aged and older colleagues. These results indicate that the


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largest gap between self-perception and other-perception exists between workers below 35 years and above 55 years old.

Table 4.3 Average worker characteristics as perceived by different age groups

Young Middle Older Characteristics applied to workers aged 55 and older

2.6 (sd = .6) 2.6 (sd = .6) 2.8 ( sd = .7)

Characteristics applied to workers aged 35 and younger

3.0 (sd = .6) 2.9 (sd = .6) 2.8 ( sd = .7)

Next, we tested the perceived organizational climate in terms of general HR inclusive climate and age-specific HR practices. There were no significant differences between the three age groups. As a second step, we also analysed the differences between the countries, which turned out to be significant (p < .001), see table 4.4. These differences are for the most part due to the lower scores in Poland and in the United Kingdom.

Table 4.4 Inclusive HR practices

Inclusive climate Age-specific HR practices The Netherlands 2.1 (.7) 2.2 (.7) Poland 1.9 (.9) 1.9 (.9) Portugal 2.2 (1.0) 2.3 (1.0) Spain 2.2 (.9) 2.3 (.8) Slovenia 2.0 (1.0) 2.1 (1.0) United Kingdom 2.0 (.9) 2.0 (.9)

4.5 CONDITIONS AT WORK

The working conditions themselves were tested on seven dimensions. With one exception, all of them were experienced differently between the three age groups. There was no difference in the person-environment fit. All the other difference were significant, however it should be noted that the actual differences were small. Noteworthy is also that with respect to work demands, the highest score was found for the middle age group, the lowest for the older workers. With respect to needs-supplies fit, it is the younger group that reported the lowest scores. The older workers do experienced less servant leadership (i.e., less support from their direct supervisor) and also are less active in actively crafting their job.

Young Middle Older Work Demands 3.2 (.8) 3.4 (.8) 3.1 (.8) Autonomy at work 3.0 (.8) 2.9 (.8) 2.9 (1.0) Servant Leadership 3.4 (.9) 3.3 (1.0) 3.2 (1.0) Person-Organization fit 3.2 (1.0) 3.2 (1.1) 3.2 (1.1)


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Needs-supplies fit 3.2 (1.0) 3.4 (1.0) 3.4 (1.0) Demands-abilities fit 3.6 (.9) 3.7 (1.0) 3.7 (1.0) Job Crafting 3.8 (.9) 3.9 (1.0) 3.7 (1.0)

The final step is to relate these work conditions with the ability to deal with the physical and mental demands of the job. There were no practical relevant differences between the age groups. The correlations for the group as whole are .03 for work demands, .18 for autonomy, .22, .25 for P-O fit, .23 for N-S fit, .28 for D-A fit and .34 for job crafting. Age-related HR practices were correlated .20 and inclusive climate .17.

A stepwise regression analysis showed that together these work related factors explain 16% of the variance in work ability in relation to physical and mental demands of the job with the most important predictors being: Job crafting, Age-related HR practices, Demands-Abilities fit, inclusive climate and servant leadership.

1.8 CONCLUSIONS

Overall, the survey showed that older employees within our European sample experienced a positive wellbeing at work in terms of vitality and meaning at work. Their wellbeing is similar to their younger colleagues despite a drop in work ability after the age of 55; this work ability drops most notably with regard to the ability to deal with the physical demands of their work. Extra attention to this factor is therefore certainly warranted.

The most important conclusions from the survey are:

Older workers experience a drop in their ability to deal with the physical demands of their work.

Vitality and meaning at work stay at similar levels throughout the lifespan.

Learning at work and turnover intentions drop for older workers.

There is a potential generational challenge in that older employees perceive their competences as better than their younger colleagues perceive them, and vice versa.

To improve the working conditions for sustainable employability of employees of all ages, the most important focus points are: implementing age-related inclusive HR practices, enhancing the demand-ability fit of employees and encouraging a supporting people-oriented leadership culture where employees feel encourage to actively craft their own jobs.


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5. CASE EXAMPLES

5.1 BEST PRACTICE EXAMPLES THROUGH CASE STUDIES

To exemplify good inclusive HR practices for the recruitment and retaining of older workers, case studies were conducted in each of the partnership countries. The case studies generate additional insight for the development of the training program.

5.1.1 THE NETHERLANDS

OLDER WORKER POLICY THROUGH A SUSTAINABLE EMPLOYABILITY PROGRAM WITHIN A GOVERNMENTAL ORGANIZATION.

Rijkswaterstaat describes itself on their website as: “part of the Dutch Ministry of Infrastructure and the Environment and responsible for the design, construction, management and maintenance of the main infrastructure facilities in the Netherlands. It manages the Netherlands’ main highway network and main waterway network. We are responsible not only for the technical condition of the infrastructure but also for its user-friendliness. Smooth and safe traffic flows, a safe, clean and user-friendly national waterway system and protection from flooding: that is what Rijkswaterstaat is about. Rijkswaterstaat is working to ensure: protection against flooding, sufficient clean water, smooth and safe flows of transport on the nation’s roads and waterways.”

Rijkswaterstaat employs 9000 people at 350 locations throughout The Netherlands. They have a yearly budget of more than 5 billion euro’s.

As most governmental organizations, budget cuts have become a normal part of doing business. For 2015, the business plans foresees a budget reduction of 17.5%. At the same time, Rijkswaterstaat is confronted with rapid technological changes, an aging infrastructure and the potential consequences of global climate change. They need to keep enhancing the quality of their services with less money.

At the same time, the average age of their employees is increasing. At the moment, the age of about one third of their employees is over 55 years. This brings two main HR-challenges. First of all, providing care for these older employees so that they can reach their pension in good health, while staying productive and motivated. Second, the work is highly knowledge intensive and much of the work within Rijkswaterstaat is based on tacit knowledge that employees built up over the years. Experience counts in this organization. The transference of knowledge from the older generation to the younger generation is therefore an important issue for the continued deliverance of high quality service. Without a good knowledge transference system, all this experience will be lost to the organization within a few years.

Rijkswaterstaat already realized this several years ago and developed a program to enhance the sustainable employability of all its employees. The program focused on keeping one’s health, strength and energy intact from age 20 to age 70. The most important goal was to make sure that


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employees would be able to stay productive within the organization throughout their working life. Rijkswaterstaat differentiates hereby between four age groups, the starter who is younger than 30 years, the rush hour years between 30 and 40, the stabilizing years between 40 and 55 and the senior years after 55. The pilot program ran in 2009. Afterwards, it has been rolled out to different departments within the organization.

A basis point of departure of this program is that sustainable employability is a joint responsibility of employer and employee. Managers are considered playing a key role in raising awareness among employees. The first step is therefore that they follow an introduction into the program with their own workbook. Knowing the content of the program helps them support the employees who follow the program. Employees know that when they return from the training, their supervisors are aware about the specific topics and framework being taught. This is an essential element to ensure the successful transfer from the knowledge learned into actual practice. Possible changes in duties and responsibilities are discussed between supervisor and employee. The practical nature of the workbook also plays an essential role in the success of the program. It describes simple, practical and concrete suggestions that the participants can directly use in their daily practice. There is a strong emphasis on doing, not on talking.

Source: www.rijkswaterstaat.nl; Annual Report Rijkswaterstaat 2013; Corporate Mobiliteitscentrum presentation 26-3-2014.; http://www.duurzaaminjewerk.nl/486_duurzame-inzetbaarheid-bij-rijkswaterstaat;

5.1.2 SLOVENIA

COMPANY AS

COMPANY AS, second largest Slovenian insurance company operates in a very complex and demanding economic environment. Slovenia had been the most prosperous region of the former Yugoslavia and found the transition from a state economy to the free market easier than other Yugoslav republics. It was also the first former Yugoslav republic to join the European Union, and in 2007 it became the first of the new EU member states to join the Eurozone. Long regarded as one of the best-performing new EU members, Slovenia was dragged into a deep recession by the European financial crisis, prompting fears that it may need an international bailout.

When the recession hit the global capitalist economy in 2008 and 2009, Slovenian economy witnessed a sharp fall in export performance and a devastating decline in economic growth. The inflow of cheap credit from abroad grinded to a halt, and the bubbles in the construction and real estate sector burst. Unemployment started to rise swiftly: from 4 % in 2008 to an unprecedented 13% in 2013. The living standards of the Slovenian working class started to deteriorate accordingly. Since the Slovenian enterprises were largely financed by bank loans, loses of the enterprises accumulated on balance sheets of the banks in the form of non-performing loans, which made the situation in Slovenian economy and society even worse.

COMPANY AS is a well-respected Slovenian insurance company incorporated in 2005 by merging two well-known Slovenian insurers resulting in a strong marketing network, committed employees, assets, resources, strengths and know-how. It is the only insurance company in Slovenia that offers its policyholders a full range of insurance solutions: health, non-life, life and pension insurances. The company vision states commitment to designing innovative solutions that place the customer at the core of its activities on one side and economic efficiency on the other. The vision statement of

http://www.rijkswaterstaat.nl/

http://www.duurzaaminjewerk.nl/486_duurzame-inzetbaarheid-bij-rijkswaterstaat

http://www.duurzaaminjewerk.nl/486_duurzame-inzetbaarheid-bij-rijkswaterstaat


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the company stresses out directions like provision of employee’s development, encouragement of innovative business solutions, and informing the company stakeholders. At COMPANY AS the values such as integrity, expertise, trust, accountability, politeness and loyalty are placed at the very top of the value scale.

In spite of difficult business conditions COMPANY AS has been performing quite well recently with over 15% return on equity (ROE), 1 million 375 thousand insurance policies, over 900 insurance agents, and 1.050 employees in 2013. In comparison with the end of 2011, their number increased by 3.8%. On average the employees are well educated, as many as 41% of employees have completed university level of education. Employees with level V technical education account for an important share of the staff – as much as 40%, since the statutory requirement for insurance agents is completed secondary education. The average age of employees is rather high - around 43 years which is slightly over national average, and it is even increasing each year. From among the COMPANY AS staff, women account for 68% and men for 32%. As HR director of the COMPANY AS noted, the HR turnover is rather low in the company, but older workers are even less often leaving the company compared to younger ones.

HR director, 51 years old female, pointed out that the company in the field of HR practices aimed at older workers follows guidelines in national legislation, as well as older employees have the right on additional days of annual leave and 40 hours of additional sickness leave. In spite the right to additional “free days” the older workers do not exploit this possibility. As a matter in fact, the older workers are highly appreciated in the company especially because of their expertise in specific work fields, multi-skilling, greater tolerance towards co-workers, decision-making abilities, cost effectiveness etc. As the HR director in COMPANY AS said, they have also some deficiencies, especially related to the lack of IT skills. Nevertheless, as HR director noted, there are no differences in employment, development or redistribution on the internal HR market in the company between younger and older workers.

HR practices in the COMPANY AS focus on issues defined in the vision and values statement of the company - employee development, vertical and horizontal communication and employee well-being. It is impossible to divide practices and discriminate them between the ones directed on older and the ones directed on younger workers. Nevertheless, there are some possible problems that might be tackled because of the age issue stemming from e.g. values the company is trying to follow - expertise, trust, accountability, politeness and loyalty.

a) Provision of employee’s development

Education and training receives much of the company's attention. It sees it as an identifiable social value, a significant competitive advantage and most profitable investment. Education and training is planned in accord with the company's objectives, shared also by the management and not least the employees, as it is an important non-pecuniary method of employee motivation. The Annual Education and Training Plan seeks to upgrade and develop employee competences to the level allowing them to successfully manage both work and personal challenges. In order to make education, training and HR development more efficient, the in-house training system was improved already in 2012 with AS Academy. With respect to education, the in-house seminars and workshops organised by AS Academy in 2013 focused primarily on professional training of the marketing staff and on enhancing their social sales skills needed to boost sales. Special attention was also placed on


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those employee groups who are in direct client contact, and on senior, managerial and professional staff. In 2013, the Company finalized the general competence model of COMPANY AS.

In 2013 the company spent almost approximately 400 EUR per employee for education and training (55% on functional education and training in Slovenia and abroad, and EUR 3.5% on off-the-job training to obtain a formal professional degree and scholarships), and 97% of employees participated in such activities. Average attendance at educational and training activities amounted to 37 hours. The majority of education and training activities, i.e. 73%, were conducted in-house with company coaches, while numerous workshops intended for particular employee target groups were organised in cooperation with external providers. Education and training is offered in various professional fields, with priority assigned to those of sales and sales skills, personal development, communication, leadership, foreign-language courses, in-depth knowledge of the Company’s insurance products and the use of internal information systems. Moreover, the Company consistently carries out specialised training required by law, primarily in the occupational health and safety segment, but also in security policy and security notifications. Additionally, some employees could benefit from motivational workshops conducted by external coaches. Where appropriate, product sales workshops were organised at business units and carried out by an in-house coach.

E-training is based on the eAkademijaAS web portal which facilitates higher-quality and active learning, tailored to the needs of an individual. The purpose of eAkademijaAS is to grant access to knowledge everywhere and at all times, and employees can use it to refresh their knowledge, verify information, solve exercises and test their learning. The eAkademijaAS already offers e-materials on insurance products available under health insurance, on Office Tools and the Business Connect system, while further materials are planned on insurance law, internal information systems (INIS, CRS, ES) and other classes of insurance.

b) Informing the company stakeholders

Two-way internal communication between company management and the employees is the key building block of organisational culture. Since 2004, the internal communication systems ASnet intranet and in-house electronic newsletter AS News have played a key role in keeping the employees of COMPANY AS informed. These tools represent a knowledge base and an archive of all major events. Early 2014, a trial intranet will be launched and by mid-year a redesigned intranet under a new name – Compass, which would serve as an improved compass for employees in their work, showing the company’s position and the right direction of its activities. In 2012, a new e-mail address [email protected] (“povejmo si” means “let’s say to each other”) was set up so as to improve vertical communication among the company management and employees. Its purpose is to simplify communication and resolving of issues related to marketing and insurance development. The suggestions are delivered directly to the member of the Management Board in charge of marketing, sales and development. The new communication channel proved to be an effective means of communication as it enables the management to understand market developments. However, in 2013, the use of this channel slightly declined due to other more direct forms of communication. Thus, only 4 suggestions were sent to the e-mail address (26 suggestions in 2012). In autumn 2012, major organisational changes within the Pinwheel Project began to be implemented in internal communication as well. On the basis of this project the Management Board and the project team introduced to the employees a new strategy and changes in the company’s organisational structure by consolidating new corporate values.


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The Company again organised numerous in-house technical meetings. These included the already traditional Sales conference, the AS legal experts meeting, the Client Care team meeting, the OIZ team meeting, the sales network organisers meeting, as well as the first conference of key account managers who could also attend a special workshop on developing personal potentials to boost work efficiency. Colleagues working on debt collection were offered training on stress and climate management techniques.

c) Employee’s well-being

COMPANY AS is committed to ensuring a safe and healthy work environment, good interpersonal relations and a positive atmosphere to its employees. This endeavour is supported by the activities of the Sports and Culture Club, annual gatherings, sports events, preventive medical check-ups for employees as well as collective accident insurance and voluntary supplementary pension insurance that are co-financed by COMPANY AS for the company staff.

The Sports and Culture Club with the name True AceS was established in May 2010 to promote employee involvement in sports and cultural activities, thus encouraging them to spend active time together also outside work. One of the primary goals of the Club's members is to foster a positive climate among company employees. Membership of the club – presently counting 305 members — is open to all COMPANY AS employees as well as to the workforce of its exclusive agencies and pensioners formerly working in the Company. In addition, employees with families and pensioners of COMPANY AS can benefit from the quality and affordable accommodation facilities the company has in Slovenia and Croatia. In 2013, 144 employees with families took advantage of this possibility.

In the desire to foster good interpersonal relations and the team-building spirit, employees get together for a Christmas and New Year's celebration, and the company maintains the tradition of handing out holiday presents to the children of employees. Once a year (usually late May), a sporting and social event is organised for all company employees. These may also compete in summer and winter sports games for the employees of financial institutions, in which case their participation is co-financed by COMPANY AS.

The health screening programme and prevention are of immense importance for both the employees and the Company. In 2013, 31% (i.e. 320) of employees were referred to preliminary, periodic or targeted check-ups. As every year, vaccination against seasonal influenza was organised for company employees.

All COMPANY AS employees are included in group accident insurance coverage and they can also join the group voluntary pension insurance scheme co-financed by the employer. At the end of 2013, the supplemental pension insurance scheme co-financed by the employer covered 86% of all employees. The Company provides to all its employees a special bonus if they decide to purchase the higher-than-standard health insurance coverage.

FACULTY AT SLOVENIAN UNIVERSITY

The Faculty presented in the case study is an autonomous member of one of the Slovenian universities. It is a comprehensive educational and research institution, which represents the centre of creation and transfer of knowledge in the field of health and related sciences. Its mission is to implement the undergraduate and postgraduate education in health related study


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programmes. The best Slovenian and international experts in their fields participate in the educational process. The research group is formed, in addition to young scientists, by established researchers, who publish their research findings in the world’s most important professional journals. The Faculty provides a continuous cooperation between the teaching staff and researchers as well as various partner institutions. The results of its own and foreign research are not transmitted just on the students but - through lifelong learning and sustainable development - on other human resources in the field of health sciences as well. The development of its new educational programmes is based on the needs of the society, thus ensuring the employability of its graduates in Slovenia and in other European countries.

Faculty aspires to follow the highest educational and scientific standards of research and to become a creator of new knowledge, constantly passing it on clinical and other social environments in order to improve, maintain or recover health. The Faculty seeks international recognition and integration into the European network of the finest schools in the area of health care professions. It intends to become an environment of intercultural dialogue within which its own research findings as well as those of other scientists could be transmitted into the wider social, cultural and economic life; while the society’s initiatives would provide a guidance for further work in academia. In its operation it strives to follow the basic values: knowledge, quality, openness, freedom, and autonomy for all students and employees.

In the field of HRM function, the Faculty has to follow the rules, regulations and strategies defined by the University and the government. In Slovenia there is a strict law that prescribes to the public sector institutions to retire employees that achieve the current age and seniority. This leaves no space for inclusion of older workers. Currently at the Faculty work 45 employees; 4 % of them are older workers (more than 55 years old). The Faculty every year prepares the HR plan that is coordinated by the HR function at the University. Uniform practices of employment, selection, remuneration, education and training are performed at the whole University.

The Faculty is a part of Slovenian public sector. The HR director pointed out that at the institution and in public sectors as a whole they do not discriminate older and younger workers. They even don't have any special definition of "older worker". The expression “older worker” is simply defined according to the legislation. The employee in the Faculty asked about the definition of the older worker even did not know what the definition is.

As the dean of the faculty noted, the only policy in this sector and institutions included in it relates to the national rule that all the older workers must be retired when they reach the years for the retirement. The age for the retirement is defined by Slovenian legislation. There is a strong aversion to this rule, especially among older workers in higher education. As the dean of the Faculty said, »if the older worker is willing to work and his/her results are good, I do not see any reason, why he/she should be retired«. By the opinion of the dean, government policy should be focused completely in other direction – “I think that we put too much effort into the systems for retention of older workers”.

Another related problem which might affect the performance of a higher education institution in Slovenia is the limitation, that because of the economic recession which Slovenia faces at the moment, public institutions also cannot employ new workers, neither young neither old, except for young researches when the institution has the financial sources from research projects.


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The dean and HR director of the Faculty point out the key advantages of employing older workers in the institution – knowledge transfer. They are sure that transfer and interpretation of knowledge is ensured by mentorship to junior researchers and assistants, through the work performed on projects, through meetings and brainstorming (especially in the research part of the work). It seems that formal mentorship relations, as the only HR practice related to inclusive HRM practices, and formation of age-mixed groups of researchers should increase creativity and research performance in higher education institutions. As the Faculty dean noted, especially in science more experienced workers are the best mentors to younger ones.

HR director in Faculty mentioned few issues which might be considered as hurdles preventing the employment of older workers in public institutions. She pointed out that in many cases older workers in public sector would like to work less (less hours) and in a more flexible working time. This might be also one of the reasons that younger candidates for a vacant job position would have the advantage in the recruitment and selection process. Nevertheless, for quite some time at the Faculty there has not been any vacant post available, which might be also a potential limitation for research performance. Besides, another issue which might be problematic when considering employment of older workers is the need of putting greater emphasis on recreation and health of workers. Financial constraints make such things impossible.

5.1.3 POLAND

TRANSFER OF KNOWLEDGE

One of the most challenging issues in terms of working in mixed age groups is transfer of knowledge. Older workers usually possess unique and expert knowledge in their field. On the one hand, there is a possibility of losing that kind of knowledge when the older worker is retired. In the other hand, older workers tend to be afraid of being made redundant or losing their job and that fear usually lead them to the conclusion that it is not worth sharing that piece of knowledge with anyone: they assume that this strategy will secure their job.

That is why transfer of knowledge is essential when it comes to unique knowledge. When an employee will not be encouraged to share the certain piece of unique, expert knowledge he/she possess, there is a danger of that knowledge to be forgotten, when the person is retired. That may lead to difficulties in terms of proper functioning of the organization that person used to work for.

The company in which that problem was appearing was a middle –sized manufacturing firm. Most of the employees were working there for many years and possessed unique knowledge and experience in their field.

Due to the fact that large number of employees in the company were known to be obliged to retire in a few years, the management and owners of it decided to prepare the whole company for the generation change. Of course there were always young people employed, but the lack of strategy that would engage and enable to share work experience and expert knowledge between generations was visible. There was a serious threat that if no actions will be undertaken, the company will have huge difficulties in terms of functioning properly. Therefore a strategy to


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overcome foreseen difficulties was prepared and implemented. The objectives of the strategy were: to motivate older workers to share their knowledge with younger people; to find instruments reassuring older workers that sharing knowledge and expertise will not entail making them redundant; to facilitate the process of transfer of knowledge by working with the employees involved in the process on communications skills

Preparation of the process lasted for few months. It took two years to achieve the main goal and secure the proper function of the company. The first step of the process was to organize several meetings with older workers. Each employee took part in few meetings with HR manager and executive worker. There were separate meeting for each of the employees. The meeting was treated as discussion between equal partners. The problem that was discussed was the future of the company and the future of the employee. The employee was encouraged to share their view on the current condition of the company and its prospects. Older workers were asked to propose methods of its development. Since they have been working for the company for many years, they were strongly emotionally attached to it. That enabled the HR managers and executives to make the employees aware of the necessity of sharing knowledge and experience among different generations.

A gratifying motivation system was established and presented to older workers. They were to earn more money during the process of transferring their knowledge to younger and inexperienced employees. However, the amount of money they were rewarded with was estimated according to the achievements of their younger colleagues. Older workers were also reassured that after completing the process, they will not be made redundant but will have steady job until their retirement.

The process of transferring the knowledge lasted for two years and was successful. The necessity of transferring the knowledge among generations was crucial in terms of sustainability of the organization and proved to be profitable many ways – enabled the company to grow economically and provide a transparent age management policy.

ICT SKILLS

It is a well-known fact that youngsters have no difficulties using IT. It is also common knowledge that older people tend to be afraid of using computer and their IT skills in that field are not developed enough. E-learning is becoming more and more common and the ability to take part in education by using computers is vital for active members of the society. Disability or low skills exclude some members of the society in participating in one of the most learner-oriented way of education.

The company was a middle-sized manufacturing firm. High percentage of its employees was older and never learned how to use a computer. Job of older workers did not demand having ICT skills. Nowadays however, such skills are regarded as functional skills. That is why it was decided that training should be organized as e-learning course and every employee should take part in it.

The older workers were concerned and feared they will not be capable of using computer and fulfilling the tasks prepared in the e-learning course. They were also afraid that their lack of ICT


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skills will be very visible and commented by younger workers. That is why they very reluctantly agreed to participate in the e-learning course.

The HR managers were prepared for that fears and concerns and therefore older workers were informed that the participants were divided into two teams: the older workers were one team and the younger ones the other, therefore the fear of visibility and lack of understanding of deficiencies in terms of older workers’ ICT competences decreased there was a tutor assigned to older workers older workers had classes organized and conducted by the tutor the classes were conducted in a very learner-friendly way: there was no deadline set for completing the whole e-learning course, learners were encouraged to ask as many questions as possible, the tutor was using pictograms to let the learners understand how to use the computer more easily

The self-confidence of the employees that decided to take part in the course increased. Despite the fact that the company had no direct interest in developing ICT skills of its older workers (their job did not demand using computer), the outcomes of the e-learning course was also beneficial to it. The employees understood that the company treats people not as replaceable work force but a whole person, whose personal development is essential even if the company gains no direct benefits out of it. The cost of preparing and organizing the e-learning course was not high and paid off in terms of employees’ engagement and loyalty to the company.

5.1.4 SPAIN

PHARMACEUTICAL COMPANY

This pharmaceutical company is dedicated to health care, improving lives through the development of

products and technologies that span the entire healthcare. It has a portfolio of leading brands in

diagnostic products, medical, nutritional and pharmaceutical established. It is a diversified company and

its main products cover all stages of the disease (prevention, diagnosis, treatment and nutritional

support) and are present in all stages of life (from newborn to the elderly).

The company was founded in the beginning of the previous century and is present all over the world. It

has been catalogued as “Best Workplace” in over 25 countries.

The pharmaceutical company has a diverse and well-balanced mix of healthcare businesses. They are

also balanced across payers, ensuring that they are not dependent on a single product, sector, and

geography or payment system for success. The company is comprised of four businesses – diagnostics,

medical devices, nutritionals and branded generic pharmaceuticals. Each business is roughly equal size.

Sales are evenly split across our businesses: Diagnostics 20%, Medical Devices 27%, Nutritionals 28%,

established Pharmaceuticals 25%. Moreover, the pharmaceutical company is a science-based company,

dedicated to the advance of technology to continually bring new healthcare solutions to patients.

The Spain subsidiary counts with over 1,000 employees, with divisions focused on diagnostic, health,

nutritional and pharmaceutical products. It is involved in research, development, manufacture and

marketing. The innovation is focused in products and advanced technologies in nutrition, vascular,


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diabetes, eye care and molecular diagnostics. There are two plants in Granada (Medical Nutrition) and

Alcobendas (Ophthalmology), exporting to over 50 countries worldwide. It sells more than 1.000

pharmaceutical products that must be added the area of molecular diagnosis, diagnostic tests, diabetes,

ophthalmology, cardiovascular, hospital, infant nutrition and adult nutrition and has commercial

relations with more than 1.500 hospitals, over 1.000 private hospitals and more than 260 wholesalers.

The pharmaceutical company is oriented to people and the development of the talent. It counts many

HR practices to retain and develop the talent although there is not a specific one directed to old

workers. Nevertheless, the priority of Abbott for this year is analyze possible differences by age in

variables such as the performance, motivation, retention and talent management of staff, with the idea

of adapting the following practices to the different age groups:

- “Commitment” Programme: the Project “Better Firm to Work” is organized for each business,

measures directly the commitment of the employees from 2007 through surveys and organizes

focus groups between the employees and the general directors for the diagnosis and monitoring

of the individual actions plans.

- “Knowing Talent” Programme: through this programme, It identifies the people that has an

outstanding contribution and trajectory for the business, localizes key positions and develop and

retain the talent in the organization. The programme aims to create a culture of the talent

management with a unique approach, with the purpose of fostering the talent of the

organization and developing the employees in different positions and business. The programme

has two main actions: a) showing the talent people of the organization to the general directors

and b) developing a mentoring project for promoting the relations.

- “Leading in Action” Programme: specific programme for the professional growth and

development of managers. The main objective is to provide of a common management pattern

to all the managers by developing the basic competences as well as the leadership

competences, to achieve efficiency in the achievement of the objectives. The programme has 5

phases, one introductory one and the others focused in four specific competences: developing

of people, bargaining, management of change and matrix working).

- “Competences” Programme: there are specific competences defined for all the employees in to

guarantee the success in the business management, training to the employees in their job

positions. The competences are the same for all the staff, although the behaviors defined in

each of them differ between the general directors (responsible or not of teams) and the rest of

the staff (behaviors of managers and employees respectively): establish view and strategy,

anticipate, innovate, construct and achieve results. The competences are assessed in two areas:

development (with the Talent Profile and Online Coaching tools) and performance (assessment

by objectives defined annually and reviewed every 6 months with the PEx tool and committee).

- “Performance Assessment” Programme: all the employees have defined the objectives that the

company expects they meet and count with an objective process of performance assessment.

The process consists in three stages: establishment of expectations, development/growth and

assessment/feedback. From 2013, there is a new global tool for performance management: the

“Talent Management System”. The Evaluation Committees by each business meet twice in a


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year to analyse the results of the performance assessment, the deficits in the organization and

the definition of the actions plans (or their monitoring).

- “Knowledge Management” Programme: the main objectives of this programme are develop

and train to the employees in the competences and knowledge needed for their job positions as

well as manage tools an forums that allow the exchange of information, practices and projects

between employees to facilitate the knowledge exchange and the competitiveness of the

organization. The main elements used are the online training (i.e Webex), the intranet, the

virtual university, the brand team meetings, the working groups of best practices sharing, etc.

- “Measurement of Acquired Knowledge” Programme: the objective of the programme is to

establish evaluation process that allow to certificate the grade of acquired knowledge by the

employees for the development of their functions and roles within the organizations, together

with the satisfaction and usefulness of the training activities. The stages in the evaluation

system are: face to face training, collective tests and exams and, finally, field visits with

managers to strengthen and improve the acquired knowledge.

- “Succession Plan” Programme: the main objective is to identify the gaps in the organization and

to establish an action plan for the key positions (direct reports to general directors and strategic

positions). The Evaluation Committees review meet twice in a year to review these gaps by

business.

- “Recognition” Programme: the objective is to recognize formally the extraordinary achievement

of the employees, generating a culture of recognition and gratitude, strengthening its values.

The nominations can be proposed in any moment by any staff of the organization. There are

different categories of awards, some of the more important are: “Best Commercial Results”,

“You Provide Value”, “Aging”, “Results Achievement”, etc.

5.1.5 PORTUGAL

CARRIS

CARRIS (http://www.carris.pt/en) is a centenary public urban transport company - founded in 18

September 1872 – that is closely related to Lisbon’s growth. Throughout time, it has been providing to

fixed and floating population suitable conditions to satisfy their mobility needs.

On 17 November 1873 it was inaugurated the first line of “Americans” (car pushed by horses) and on 31

August 1901 the tram service began, with the launching of the bus service in 1944. In 2012, took place

the merger of CARRIS and METROPOLITANO DE LISBOA (Lisbon Underground Railway Company) began.

CARRIS is a certified company at several areas, namely: quality certification - NP EN ISO 9001:2000 – in

2006; environmental management system certification - NP EN ISO 14001:2004 – in 2008; certification

of its security and wealth in work management system, in 2010; and, social responsibility certification -

NP 4469 – in 2012.

The mission of CARRIS is to provide surface urban public transport service, guided by sustainability

criteria, contributing for a development that meets the needs of the present without compromising the


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ability of future generations to meet their own needs. To achieve its mission, CARRIS, in 2013,

continued to meet daily mobility needs of about 575,000 passengers who use their services. To do so,

CARRIS counts with 632 buses, 8 lifts and 57 trams (data at 31 December 2013).

In 2013, CARRIS continued to play consistently their responsibility as economic and social agent that acts

in the field of urban mobility, contributing to the development and sustainability of Lisbon and its

metropolitan area, adjusting their activity to the needs of the market, optimizing the use of resources in

order to increase its business efficiency and continuously improving the quality of the service provided.

CARRIS structure includes the following participated companies:

CARRIS activity is structured by the following values: Excellence, Quality, Innovation, Accuracy,

Sustainability. CARRIS assumes its mission clearly committing themselves to the Customers through the

"Customer Charter" to: Develop the network, so that at any point in the City, customers will have a bus

stop at a reasonable distance; Set schedules adjusted to the customers’ needs, adapting quickly with

corrective measures as necessary; Provide clear and correct information; Promote actions that ensure

clients safety; Take steps to ensure the regularity, in collaboration with the management entities of

public roads; Develop the Sales Network and implement the best ways to facilitate the purchase of

tickets; Maintain vehicles in good repair and cleanliness conditions; Ensure the Quality of Human

Resources of the Company; Comply with legal requirements regarding emissions, contributing to the

protection of the environment; Evaluate periodically through specific inquiry, the degree of Customers

satisfaction; Respond to complaints and suggestions from customers as a source of information for

continuous service improvement.

Human Resources Management

CARRIS has 2041 employees (1552 work drivers and 751 in other functions). The average seniority is 12

years for drivers and 17 years for other jobs. The medium age is 42 years for the drivers and 49 for other

functions. Considering the older workers representation of the workforce, 383 are allocated to

operational tasks (231 have an age range between 50-54; 125, between 55-59 and 27 have between 60-

68 years old). In other tasks, the distribution is slightly different and for a total of 158 employees, 38 are

in an age range between 50-54; 97 have between 55-59 years old and 29 have between 60-68 years old.


46

Accompanying the improvement processes, institutionalized procedures and projects and programs

developed by the Direction of People Management and Human Capital, organizational development has

had an important role, especially with regard to the processes of change management, interpretation

and management of organizational climate, management of proximity, essential aspects in the context

of the ongoing integration of Carris and the Metropolitan of Lisboa, as well as in the valorization of the

employees as people and professionals, as they are the most valuable and impactful resources in the

company.

Recent key activities & projects in HR Management

A. Internal Communication

• e-mail - with the creation of specific mailboxes for different purposes (Academy; myCARRIS;

Offers CARRIS, etc.);

• Internal Newsletter - with the layout renovation and introduction of new topics;

• Special CARRIS - with dissemination of free activities and discounts and promotions for the

employees benefit;

• myCARRIS - internal portal providing new content and new functionalities accessible via internal

network or internet;

• MOBTv - corporate television with updated content.

B. Organizational Climate Study

• In 2103, in order to further evaluate the impact of the merge of CARRIS and METRO LISBON, a

first internal diagnostic was conducted. The results obtained in the CARRIS final report highlight that the

general level of satisfaction is positive in most indicators, registering some dissatisfaction regarding

aspects related to rewards, benefits and incentives. Results also suggest that it is appropriate to invest in

HRM practices, particularly in respect to leadership practices and employee participation at a strategic

decision-making level.

C. Development Programme

• The Academy program, designed for senior managers, developed in 2013, joined the students in

mixed teams of employees of both companies (CARRIS and Metro), assigning a theme to each. The

program was accompanied by a formative component to develop behavioral skills, a Mentoring side to

enable the sharing of experiences and knowledge between different generations as well as the creation

of a broad network of contacts. This program has, above all, strengthen the closeness between

employees of the two companies, creating common spaces of reflection on the reality of the business

and the industry and the different operators within it.

D. Integrated model of human capital management

• The DRIVE program aims to support and develop manager’s performance, in order to optimize

performance and develop the skills of its employees. This program summarizes the principles of the

Human Capital Management of CARRIS: (DRIVE = Develop + Recognize + Influence + Valorize + Energize).


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• Training: the skills developed in the year 2013 were focused on Driving Skills; Quality in

customer relations; Performance management skills, including management skills, leadership and team

management; Organizational commitment and involvement; Corporate sustainability, with regard to

knowledge and application of the principles of Integrated Safety Management and Health System.

Challenges and opportunities brought by older workers in the transport sector

In 2013, CARRIS workforce suffered a decrease of 141 employees following a trend in recent years. The

outflows in the year 2013 are due mainly to outflows by mutual agreement and resignations, making

these two variables a total of 127 employees.

Regarding the number of admissions made by Carris and in compliance with the defined in the State

Budget Law, where restrictions are imposed in this matter, CARRIS did not recorded in the year 2013,

any admissions to its staff.

Since 2012, the pre-retirement schemes were suspended and in 2013 the minimum age for retirement

increased to 66 years old. Both have impact on the internal management schemes as the company has

to comply with the government requirement to downsize in 20% in four years but, on the other hand,

has to deal with the delay on age retirement of senior employees.

As the majority of the employees are in driving functions and that specific professional category has

legal age limits (a maximum of 65 years old to drive vehicles of category D - buses) that starts prior to

the retirement age, the company is faced with a challenge: how to reallocate these employees in new

functions inside the company?

CARRIS addresses this challenge as an opportunity to organize the succession plan and prepare future

generations. Senior workers experience and knowledge is valued and formally transferred to new

employees using mentoring and tutoring programmes. This increases the involvement and recognition

of employees, a better transferability of knowledge, know-how and experience, wide diffusion of the

organizational culture and, consequently, a good alignment with the company strategy for future

generations.

CARRIS doesn’t distinguish at generational level but there are strategies and initiatives considered in

internal policies to optimize the transfer of knowledge between older and younger employees or

potential successors. This happens in specific programs, such as the CARRIS Academia, but also in

internal training offers.

CARRIS Academia is a program directed to younger employees in the company and aims to develop and

improve their talent in different areas and skills, namely but not only in leadership. The positive results

in the first year (2012) led to the replication of the program in 2013 introducing the concept of

mentoring and reinforcing the relation and transition of know-how between older and younger workers

of the company. The mentee selects his/her mentor from a different area of knowledge in order to

increase and develop new knowledge and skills; together they select a theme and start to develop a

project to present in the end of the program. This cycle of tasks involves also the attendance to specific

trainings and workshops in the area of leadership. At the end, there is an ending session to present and

discuss all the projects; all projects are also proposals with solutions to improve the mobility and


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sustainability in transport; in this event the board members are present and each team can invite

external experts to attend and actively participate in the discussion as well.

During the year of 2013, there were already teams with employees from CARRIS and METROPOLITANO

DE LISBOA, due to the integration process, and the third edition of the program in 2014 is supposed to

include more employees from both companies.

Considering the strategy of rejuvenation of the labour force carried in recent years, CARRIS faces the

ageing workforce as an opportunity to reinforce the successions plan and prepare future generations.

Thereby, it’s crucial to move older workers to processes of transferability of knowledge and professional

experiences like the already developed initiatives of recognition within these workers to better involve

them.

Training management is assured since 1980s through the company CARRISTUR; thus, employees have

access to tailor-made training offers regarding transports. This is a sign of proud as it assures the

knowledge management facing new technologies directly related to transports since the very beginning.

The annual training plan considers the specific needs stated by the employees themselves but also

noticed by the company, especially to what concerns older workers. To follow the internal

improvements on ICT (intranet) and the external demands (e.g. rise on tourist passengers numbers), the

offer on ICT and language courses has been increased; thereby, employees’ performance is not affected

by the evolution of the means of communication and by the need to respond to new clients’ profiles.

Also related to knowledge management, the model of skills management applied in CARRIS presents a

positive evolution at employees’ careers directly related to their retention and reintegration; the applied

model matches the employee’s expectations and skills with the internal needs of the company,

creating/increasing job posts that considers employee’s qualification and motivation.

To what concerns health management, CARRIS puts at the disposal of the employees medical assistance

with primary health care and several specialties, such as psychiatry and urology, among other

monitoring activities that assess and control professional risks aiming a continuous improvement of

labour conditions. There are also leisure activities assured by the sports group and the music band that

alow the participation of all employees.

Awards for good driving habits, innovation and seniority are also great examples of good practices

promoting the efforts of each employee. The awards for good driving are attributed to those who have

more hours of driving with no registration of accidents; the awards for seniority area assigned to those

who reach 35, 25, 20 and 10 years of service in CARRIS. Finally, all employees are challenged to present

innovative projects that improve the development of the company.

The internal mobility of staff reveals a strong connection with legal requirements and occupational

injuries resulting from previous positions in the company. In these cases, employees are reintegrated in

new jobs appropriated to their specific health problems. The process of internal mobility is followed by

the needed training and in place mentoring.


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CARRIS gained with the pointed retention strategies as they are a good practice to reach a more age

diverse workforce. CARRIS’ older workers have an overall satisfaction and value the lifelong learning

perspective and career evolution that is perceived as investment, trust and commitment from the

company and with the employees despite of their age.

5.1.6 DENMARK

LIFE PHASE POLICY (LIVSFASEPOLITIK);

A CASE IN THE NORTHERN JUTLAND HEALTH CARE SYSTEM

In the Northern part of Jutland (Denmark) hospitals are gathered in a regional structure, to e.g. divide specializations, have a common purchase strategy to reduce costs, and share also HRM policies and strategies. In this part of Denmark, but also some other regions, vast parts of the senior and experienced health care staff are approaching their (early) retirement age. Also, a high yearly outflow of younger workers (below 55) was witnessed, where they either move to other parts of the country (mostly Copenhagen), move to Norway (higher salaries, almost similar language) or change profession altogether, due to work life balance challenges. It is for that reason that, on the level of this regional cooperation, the so called Life Phase Policy (Livsfasepolitik) was introduced, in 2008.

In short, the main objective of this policy in the area of older workers, was to delay the retirement of senior employees by developing appropriate policies and practices to retain experienced older staff in the workplace.

Background

Already before the start of the project in 2008, the 7 hospitals in the region worked together on matters such as HR and HRM. For example, the salary administration and registration of ill workers has been done centrally for over 2 decades. The project, or better to say the new policy, formed part of an overall strategy, namely the iTop policy plan (Influence, Trust, Integrity and Professionalism).

Whereas in the prior overall HR policy plans older workers were mentioned under the heading work life balance, in the new plan starting 2008, a specific chapter was added on life phases of workers and how the organisation could better accommodate wishes and conditions of staff in their different stages of life. The iTop plan has been evaluated and prolonged after 5 years, so is still running at this point in time.

The new policy plan contained specific proposals for implementation (which are mentioned below), respecting the various cooperation structures between the hospitals. For instance, similar departments in the various hospitals had already close cooperation before the iTop plan, but that was until then mostly about professional development of the care and health professions.


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The policy plan itself was designed in close cooperation with the ministry of Health, the ministry for Employment matters and the major trade unions, and came into action in 2008. A committee was established, consisting of managers and hospital staff (representing the various life phases) to oversee the implementation and evaluation of the policy.

From there on all HR structures were asked to discuss and come up with strategies and actions to further implement the policy. This went for instance on the level of the individual hospitals, but also the various departments and units. In case there was a close cooperation to a similar unit or department in another hospital, the implementation of the policy was done in cooperation. For example, HR managers from the departments of physiotherapy met together, as well as the birth units. At the core of the policy it was to see and act based on different life phases of the staff, in very close connection with job requirements, to make the best fit between work-life balance.

Based on various meetings and consultations between HR staff and other workers (and under supervision of the trade unions), the following actions were taken to retain older workers (the result of the 5 years of the first plan):

• Older workers were offered special employment contracts, which included longer connected periods of holidays, special clauses on illness, and possibilities to work less (or more) for a limited period of time, with less (or more) salary.

• Employees of over 59 were offered a possibility to work shorter time while maintaining the same rate of payment. The additional costs for this were paid out of the pension schemes, in Denmark most often managed by the trade unions;

• Regular hours of work were offered in place of the shift system, known to many health care professionals. Next to that the obligation to be on duty (stand by shifts) was cancelled (or made voluntary) in relation to older workers;

• Flexible working hours were offered (depending on the actual profession) to facilitate better rest planning by the employees;

• The older workers were granted the same rights to participate in employee trainings as younger workers, and were invited to negotiate which education would be best suitable given the job task and the age of the worker;

• Special groups were created that offers guidance and assistance in older workers returning to work after accidents of workers;

• Specific attention for the life phase of older workers was given in yearly appraisal talks with HR professionals, where specific assistance to the needs of older workers could be offered.

• Clear mentioning of older workers as a category in the equality protocols of the hospitals, to deal with age specific forms of discrimination on the work floor.

Even though the exact impact cannot be measures (yet) by means of hard data, surveys under older workers and HR professionals show a clear shift. The implemented measures bring visible benefits both for employer and employees. To the employer they provided employment stability and reduced fluctuation of the staff. From the side of HR professionals a clear decrease has been witnessed in the use of early retirement schemes. Thanks to introducing of more flexible forms of


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employment, job satisfaction (appreciation and participation seem key) and sense of security of the older employees also seemed to have increased.

The case described here is an example of a comprehensive action taken in the framework of the age management policy, worked out in detail within the organization. It engages the employees in the consultation process, in which the consensus is reached in relation to the life phase management policy in use and its methods. Responding in a positive way to the needs of the older worker in employment, contributes to stability of the employment situation within the organization and deepens satisfaction that older people get from continuing their professional work.


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6. CONCLUSION

Our study on age management practices in European countries began as an explorative investigation with the aim of providing better insight into its actual practice. Our findings indicate that for most companies, age management is recognized as being of growing importance. However, explicit attention is given mostly through adjusting already existing HR practices. We were able to find several case examples of best practices in companies throughout Europe that may be inspirational for others.

The survey results showed that although the work ability of older workers is less than their younger colleagues, their vitality, meaning and turnover intention are still good. The general impression is that older workers may be less strong physically, mentally they are still committed and very able to do their jobs. Older workers issues may be more related to stereotypes than to actual diminishing performance. For example, older workers have a more positive view of their competences compared to how their younger and middle aged colleagues look towards them. Similarly, young workers have a more positive view of their own competences compared to their middle aged and older colleagues.

Similar to earlier results, the survey among workers within Europe showed only few age related differences with respect to the work environment. Only two aspects were lower for older workers: the support their perceived from their direct supervisor and to the extent that they actively crafted their own job. Overall, work ability across all ages was positively related to more job crafting, more Age-related HR practices, a better Demands-Abilities fit, a general inclusive climate within the organization and servant leadership.

The most important themes from the interviews and the focus groups with HR professionals throughout Europe was the growing focus on knowledge and experience of older workers, the influence of the economic climate, the role of the government in influencing age management policies and central role of meaningfulness and values.

Our most notable insight is the strong potential for a positive view on older workers within Europe. Despite diminishing physical strength, older workers feel as vital as their younger colleagues. They still have desire to have a meaningful contribution to the organization. What is needed is more attention for the stereotypes that people have of one-another. The results emphasize the importance of building an inclusive HR practice with specific attention for generational differences, the leadership culture and designing jobs that allow older workers to best use their unique qualities.


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