Professional Documents
Culture Documents
ORGANIZATIONAL COMMIT-
MENT, AND VOLUNTARY EARLY
RETIREMENT AMONG LATE-
CAREER MANAGERS
OLIVIER HERRBACH, KARIM MIGNONAC, CHRISTIAN
VA N D E N B E R G H E , A N D A L E S S I A N E G R I N I
ndustrialized countries have undergone aging of the workforce have resulted in com-
Correspondence to: Olivier Herrbach, University of Bordeaux and ESC Rennes School of Business, Institut
d’Administration des Entreprises, 35 avenue Abadie, 33072 Bordeaux Cedex, France, Phone: +33 556 00 97 07,
Fax: +33 556 00 45 66, E-mail: olivier.herrbach@u-bordeaux4.fr
Human Resource Management, November–December 2009, Vol. 48, No. 6, Pp. 895– 915
© 2009 Wiley Periodicals, Inc.
Published online in Wiley InterScience (www.interscience.wiley.com).
DOI: 10.1002/hrm.20321
896 HUMAN RESOURCE MANAGEMENT, NOVEMBER–DECEMBER 2009
for the implementation of appropriate poli- tirement. First, we examined the predictors of
cies and practices that help manage older actual rather than intended early retirement
workers’ careers (Collins, 2003; Crampton, decisions, which to our best knowledge have
Hodge, & Mishra, 1996) and encourage not been investigated in previous research.
them to stay longer in employment (Greller Second, we examined how a set of HRM prac-
& Simpson, 1999). tices that have relevance in the context of
As highlighted by Schmidt and Lee late-career management (training opportuni-
(2008), the extant literature on aging and ties, assignment of new roles, flexible work
retirement is both extensive and informa- conditions, and encouragement to retire
tive, with research that has examined both early) are related to older workers’ organiza-
work and nonwork predictors of early retire- tional commitment, which is an indication
ment intentions (e.g., Beehr, Glazer, Nielson, of their propensity to stay with the organiza-
& Farmer, 2000). Little is known, however, tion as well as of their general attitude toward
about how organizations can proactively dis- it. Third, we explored how the relevant HRM
courage older employees from retiring early, practices and two salient dimensions of
even though conventional wisdom suggests organizational commitment (affective and
that HRM practices represent an important continuance) related to older employees’ vol-
vehicle for managing employees’ untary early-retirement decisions. In the next
motivation to continue working section, we discuss the particularities of the
Little is known, (Kooij, de Lange, Jansen, & Dik- French context in which this study was con-
kers, 2008). Recent research indi- ducted. We then review the relevant litera-
however, about
cates that HRM practices play a ture on HRM practices and organizational
how organizations role in the development of orga- commitment and early retirement, and delin-
nizational commitment and in eate our hypotheses.
can proactively reducing organizational turnover
among employees in general Retirement in the French Context
discourage older
(Allen, Shore, & Griffeth, 2003;
employees from Meyer & Smith, 2000). It also has The French retirement system is based on a
been found that affectively com- so-called repartition model, whereby the cost
retiring early. mitted mature employees tend to of pensions is covered by active workers and
plan to retire later than when it is their employers. Basically, a given percentage
most financially attractive for of each employee’s salary is deducted every
them, whereas employees with high levels of month from his or her paycheck and a given
continuance commitment tend to retire percentage of the employee’s gross salary is
when financial benefits are highest (Luchak, paid by the employer. These amounts are
Pohler, & Gellatly, 2008). This is consistent transferred to a national pension system,
with the nature of these two forms of com- which in turn pays pensions to retirees. Al-
mitment, as affective commitment is based though not actually a governmental depart-
on the “desire” to remain with the organiza- ment but, rather, a private institution run
tion, while continuance commitment is jointly by unions and employers, the pension
based on the “perceived cost” associated institution is subject to strong regulation by
with quitting (Meyer, Allen, & Smith, 1993). the state and has de facto governmentlike
These findings suggest that even if retire- status. It is also mandatory and egalitarian:
ment and turnover represent distinct con- Any salaried employee is affiliated by default
structs or realities (Adams & Beehr, 1998), to the system, individuals’ contributions
organizational commitment and the way it is are proportional to their income, and the
managed can make a difference among older retirement allowance one ultimately receives
workers when it comes to predicting their is proportional to the contributions paid
retirement decisions. during one’s career. Consequently, we can
The objective of this study is to address assume that respondents in our study were
three gaps in the literature on voluntary re- exposed to similar retirement conditions.
Another aspect of the French retirement (providing training opportunities), job con-
system pertains to the meaning of “legal” re- tent changes (assigning older workers to new
tirement age. Although there is an age limit roles), and ergonomic adjustments (offering
to employment (currently 65), it only corre- flexible work conditions) are HRM practices
sponds to the age at which an employer can that could particularly fit older workers’
force employees to retire. This limit is largely needs. Indeed, these practices, though being
irrelevant, however, because more than half important for many if not all employee
the workforce has already retired by the age groups, are particularly relevant to older
of 60 (Eurostat, 2006). The major factor influ- workers. In fact, research has shown that,
encing retirement is the minimal career compared to young employees, older workers
length for an individual to receive a full pen- express stronger needs for seeing their skills
sion allowance (currently, 40 years). The recognized, for being respected by
“legal” age for retirement, therefore, varies coworkers and management, and
and is not binding. If someone does not meet for being involved in continuing Older workers
the 40-year career condition, the pension is education activities (Armstrong- may tie their job
still available, though it will be smaller. This Stassen, 2008; McEvoy & Blahna,
gives people relative freedom in deciding 2001). This suggests that older satisfaction and
when to retire: at “legal” retirement age (that workers may tie their job satisfac-
is, when a full pension allowance can be re- tion and work motivation more work motivation
ceived) or earlier (with a financial penalty). closely to intrinsic aspects of their
more closely to
In the present paper, we are interested in ex- job than is generally thought. Of
plaining voluntary early retirement, that is, course, extrinsic factors, such as intrinsic aspects
the decision made by someone to retire be- financial, health, and family is-
fore “legal age.” sues, may be important as well; of their job than is
however, older workers’ unique
generally thought.
HRM Practices and Organizational needs justify our focus on the pro-
vision of training opportunities,
Commitment Among Older Workers
assignment to new roles, and flexible work
Research has repeatedly shown that HRM conditions as practices that may keep them
practices are related to organizational com- employed.
mitment among employees in general (e.g., Aside from HRM practices that construc-
Allen et al., 2003; Meyer & Smith, 2000; tively address older workers’ needs, some or-
Zacharatos, Hershcovis, Turner, & Barling, ganizations have developed practices directed
2007). According to Wright and Kehoe at reducing personnel costs. In essence, early
(2008), such links are favored by three types retirement plans have been used in the recent
of HRM practices: those aimed at improving past as a strategy to reduce personnel costs
ability, increasing motivation, or providing (Armstrong-Stassen, 2004; Beehr et al., 2000;
opportunity to participate in decision mak- Kiefer & Briner, 1998; Szinovacz & Davey,
ing. Only a few studies have investigated the 2005). Accordingly, research has shown that
role of HRM practices in older workers’ atti- early retirement is often a response to early
tudes, however (e.g., Armstrong-Stassen & retirement incentives (Hardy & Quadagno,
Schlosser, 2008; Kiefer & Briner, 1998; Mau- 1995; Shultz, Morton, & Weckerle, 1998; Tay-
rer & Rafuse, 2001; Saba & Guerin, 2005). As lor & Shore, 1995). Thus, encouragement of
this category of workers is likely to have spe- early retirement is a practice that primarily
cific needs, the ability of HRM practices to be addresses organizations’ need for reducing
associated with older workers’ commitment personnel costs.
may depend on the extent to which such The present study examines how provid-
practices specifically address them (Peterson ing training opportunities, assigning older
& Spiker, 2005). workers to new roles, offering flexible work
In that respect, Kooij et al. (2008) sug- conditions, and encouraging early retire-
gested that continuing career development ment relate to older workers’ organizational
commitment. Two forms of commitment needs replication among older workers, how-
are considered: affective and continuance ever.
commitment. Affective commitment—an
employee’s emotional attachment to, iden-
Training Opportunities
tification with, and involvement in the or-
ganization (Meyer & Allen, 1991)—is Rapid technological growth and changes in
thought to be influenced by HRM practices the labor market have required workers
that provide employees with a sense of sup- constantly to develop new skills, maintain
port and fair treatment (Allen et al., 2003) flexibility, and adapt to new working condi-
and enhance their feeling of personal im- tions (Maurer & Rafuse, 2001). Yet although
portance and competence (Meyer & Allen, it is necessary to allow all employees to get
1991). Continuance commitment is also access to training, previous research sug-
thought to be salient among older workers gests that training opportunities are not al-
(Luchak et al., 2008). The personal costs ways distributed in a fair and equitable way
that would result from leaving the organiza- (e.g., Barth, McNaught, & Rizzi, 1993; Saba
tion (high-sacrifice commitment) and the & Guerin, 2005). Indeed, a smaller amount
perceived unavailability of employment al- of training is offered to workers age 55-plus
ternatives (lack of alternatives commit- (Barth et al., 1993; Simon, 1996). These dis-
ment), which research has reported to be criminating conditions may decrease com-
distinguishable components of continuance mitment. Conversely, the opportunity to
commitment (e.g., Bentein, Vandenberg, develop skills and competencies may facili-
Vandenberghe, & Stinglhamber, 2005; tate older workers’ commitment (Maurer &
McGee & Ford, 1987), represent important Rafuse, 2001) because the availability of
motives that may influence older workers’ training is a strong signal that the organiza-
decisions to stay in the organization. Older tion is willing to “invest” in its aging work-
workers may, indeed, benefit from advanta- force. Not surprisingly, Meyer and Smith
geous conditions they do not want to give (2000) found that evaluations of career de-
up while experiencing less mobility in the velopment practices, including opportuni-
market. Both components of continuance ties for personal development, were the best
commitment are, thus, relevant for under- predictors of affective commitment among
standing older workers’ membership deci- employees in general. On a related note, it
sions. is likely that older workers would view the
Moreover, apart from their impact on provision of training opportunities as being
retention, both forms of commitment also an important advantage that they would
could have performance implications. In- lose should they decide to leave, thereby
deed, as Meyer, Stanley, Herscovitch, and inducing high-sacrifice commitment. Main-
Topolnytsky (2002) have shown in their taining and/or developing one’s skills is,
meta-analysis, affective commitment (the indeed, highly valued by older workers
“desirable” form) displays the strongest posi- (Kooij et al., 2008). At the same time, older
tive relations with desirable work behaviors, workers who have the opportunity to main-
such as task performance and organizational tain their competencies may develop a bet-
citizenship behavior, whereas continuance ter sense of job security (Ito & Brotheridge,
commitment is unrelated or negatively re- 2005; Sterns, 1986) and may not view their
lated to these behaviors, which led research- continued organizational membership as a
ers to question its relevance for organizations result of a perceived lack of alternatives.
(Suliman & Iles, 2000). People who remain These arguments lead to the following
in their organization because they feel hypotheses:
“trapped” (reflecting high continuance com-
mitment; cf. Meyer et al., 2002) may, thus, Hypothesis 1a: The provision of training oppor-
be low performers. This finding, which has tunities to older workers is positively related to
been reported for employees in general, affective commitment.
Hypothesis 2a: The perceived availability of Hypothesis 3a: Flexible working conditions for
new roles for older workers is positively related to older workers are positively related to affective
affective commitment. commitment.
Hypothesis 2b: The perceived availability of new Hypothesis 3b: Flexible working conditions for
roles for older workers is positively related to older workers are positively related to high-
high-sacrifice commitment. sacrifice commitment.
Hypothesis 2c: The perceived availability of new Hypothesis 3c: Flexible working conditions for
roles for older workers is negatively related to lack older workers are negatively related to lack of
of alternatives commitment. alternatives commitment.
Hypothesis 5c: Flexible working conditions are Hypothesis 6b: High-sacrifice commitment is
negatively related to voluntary retirement. negatively related to early retirement.
Hypothesis 5d: Encouragement to retire early is Hypothesis 6c: Lack of alternatives commitment
positively related to voluntary retirement. is positively related to early retirement.
work may decide to retire earlier (Hanisch & tively correlated with affective commitment
Hulin, 1991; Shultz et al., 1998). The decision (r = –.22, p < .01) and positively related to lack
to retire voluntarily also may be affected by of alternatives commitment (r = .20, p < .01).
the health of one’s spouse (Beehr et al., 2000). Finally, early retirement was significantly as-
For instance, people may want to retire to take sociated with training opportunities (r = –.18,
care of a needy family member or, alterna- p < .01), encouragement to retire (r = .24, p <
tively, to continue working to provide the .01), and lack of alternatives commitment
necessary resources for covering medical ex- (r = .14, p < .01).
penses (Talaga & Beehr, 1995). Conversely, Table II displays the results of regression
people may wish to retire to spend more time analyses for organizational commitment di-
with a spouse when his or her health condi- mensions. Controlling for demographics,
tion is good (e.g., Floyd & Haynes, 1992; perceived personal health, spouse health
Rennemark & Berggren, 2006). Perceived per- status, and work centrality, HRM practices
sonal health and spouse health status were, accounted for significant increments of vari-
thus, used as controls in this study. Perceived ance in affective commitment [ R2 = .10, F
health was measured using Bailey and Hans- (4, 51) = 17.16, p < .001], high-sacrifice com-
son’s (1995) three-item scale (for example, mitment [ R2 = .03; F (4, 51) = 3.55, p <
“How is your health in general?”) while per- .01], and lack of alternatives commitment
ceived spouse health status was measured [ R2 = .06; F (4, 51) = 8.21, p < .001]. As can
using one item (“How do you assess your be seen, the availability of training opportu-
spouse’s health status?”). A 5-point Likert nities was positively related to affective com-
scale, with poor (1) and excellent (5) as anchors, mitment ( = .24, p < .001) and high-sacrifice
was used for the two measures. Lastly, we con- commitment ( = .17, p < .001) and nega-
trolled for work centrality in our analyses. tively associated with lack of alternatives
Work centrality refers to the general impor- commitment ( = –.10, p < .05), thereby pro-
tance that the individual attributes to work in viding support for Hypotheses 1a, 1b, and 1c,
his or her life (Kanungo, 1982). Research has respectively. The assignment of older workers
shown that individuals with high levels of to new roles was unrelated to organizational
work centrality tend to plan to retire later in commitment dimensions while flexible work-
life (Adams, Prescher, Beehr, & Lepisto, 2002; ing conditions were significantly (negatively)
Schmidt & Lee, 2008). Five items taken from associated with lack of alternatives commit-
Paullay, Alliger, and Stone-Romero (1994) ment only ( = –.11, p < .05). Hypotheses
were used to assess work centrality (for exam- 2a–c, 3a, and 3b are, thus, rejected, while
ple, “Overall, I consider work to be very cen- Hypothesis 3c is supported. Finally, encour-
tral to my existence”; = .79). agement to retire early was negatively related
to affective commitment ( = –.16, p < .001)
and positively linked to lack of alternatives
Results
commitment ( = .13, p < .01), yielding
Table I presents descriptive statistics, correla- support for Hypotheses 4a and 4b, respec-
tions among variables, and alpha coefficients. tively.
Training opportunities were positively corre- Hypotheses 5a–d and 6a–c were tested
lated with affective commitment (r = .36, p < using logistic regression analysis predicting
.01), high-sacrifice commitment (r = .19, p < early retirement decisions. Results are re-
.01), and lack of alternatives commitment ported in Table III. Controlling for perceived
(r = –.17, p < .01). Assignment to new roles personal health, spouse health status, and
and flexible working conditions were signifi- work centrality, HRM practices and commit-
cantly associated with affective commitment ment dimensions accounted for significant
(r = .16, p < .01, and r = .09, p < .05, respec- incremental variance in voluntary retire-
tively) and lack of alternatives commitment ment, 2 (7) = 39.37, p < .001 (cf. Model 4 in
(r = –.15, p < .01, and r = –.16, p < .01, respec- Table III). As predicted by Hypotheses 5a and
tively). Encouragement to retire was nega- 5d, respectively, the availability of training
opportunities was negatively associated with duced by more than half), compared to the
early retirement (B = –.82, p < .01), while en- likelihood of retiring early among those who
couragement to retire was positively related give their organization a 3 on the same scale.
to it (B = .68, p < .001). Contrary to Hypoth- Conversely, each one-unit increase in assign-
esis 5c, flexible working conditions were not ment to new roles and encouragement to
significantly associated with voluntary retire- retire early resulted in the likelihood of leav-
ment (B = .16, ns). More importantly, assign- ing’s being multiplied by a factor of 1.86 and
ment to new roles was associated with a 1.98, respectively. This means that those who
significant increase in the likelihood of retir- give their organization a 4 on the 5-point
ing (B = .62, p < .05), while Hypothesis 5b scale used for measuring the propensity to
actually predicted the reverse pattern of rela- assign late-career managers to new roles or to
tionship. A better understanding of these encourage them to retire early see their likeli-
findings can be gained from looking at the hood of retiring early nearly doubled as com-
Exp(B) or odds ratios reported in Table III. In pared to the likelihood of retiring among
substance, holding all other variables con- those who give their organization a 3 on the
stant, each one-unit increase in training op- same scale.
portunities was associated with a reduction of Table III also reveals that affective
the likelihood of retiring by an average mul- commitment was unrelated to retirement
tiplicative factor of .44. This suggests that decisions (B = .43, ns). Hypothesis 6a is, thus,
older managers who give their organization a rejected. Finally, as predicted by Hypotheses
4 on the 5-point scale used for measuring 6b and 6c, high-sacrifice commitment was
training opportunities see their likelihood of associated with a decrease in the likelihood of
retiring early multiplied by .44 (that is, re- retiring (B = –.56, p < .05; Exp(B) = .57), while
HRM encouragement .65*** (.17) 1.92 15.51 .68*** (.18) 1.98 14.59
to early retire
Organizational Commitment
Affective commitment .00 (.29) 1.00 .00 .43 (.36) 1.53 1.42
High-sacrifice commitment –.50* (.25) .61 3.94 –.56* (.28) .57 4.01
Lack of alternatives .62** (.22) 1.86 7.79 .56* (.25) 1.75 4.89
commitment
2
(df) 2.83 (3) 35.20*** (7) 12.91* (6) 42.20*** (10)
–2LL 197.67 165.30 187.59 158.30
Nagelkerke R 2 .02 .22 .08 .26
Note: B = unstandardized beta coefficients (standard errors are in parentheses).
* p < .05; ** p < .01 ;*** p < .001
lack of alternatives commitment was related fects associated with training opportunities
to significant increases in the likelihood of contrast with employers’ general tendency
retiring (B = .56, p < .05; Exp(B) = 1.75). to offer fewer opportunities for training and
Finally, we also examined on an explor- development to older workers than to
atory basis whether commitment variables younger employees (Armstrong-Stassen,
would possibly partially or completely medi- 2008; Barth et al., 1993; Rosen & Jerdee,
ate the relationships of HRM practices to 1976). Our findings suggest that organiza-
early retirement. As can be seen from Table tions should reconsider these practices in
III, the effects associated with HRM practices light of the benefits they can gain from de-
remained essentially the same, whether com- veloping older workers’ competencies. In-
mitment variables were in the model (Model deed, as these practices are associated with
4) or not (Model 2). In addition, commit- increased affective commitment, they may
ment variables had roughly the same effects indirectly foster job performance and reduce
on early retirement, whether HRM practices organizational turnover (Meyer et al., 2002).
were in the model (Model 4) or not (Model We found that flexible working condi-
3).1 This pattern of findings indicates that tions and the assignment of older workers to
HRM practices and commitment variables new roles (for example, mentor or coach for
had essentially independent effects on early younger employees) did not have the ex-
retirement. pected positive effects. Flexible working
conditions were unrelated to affective com-
Discussion mitment and voluntary retirement, while the
provision of new roles was unrelated to com-
The present study represents a contribution mitment and positively associated with early
to the understanding of the role of HRM retirement. This suggests that although re-
practices and organizational commitment in searchers argue that HRM practices need to
voluntary early retirement. Given the ex- be targeted to older workers’ unique needs
pected growing importance of older workers and expectations (Kooij et al., 2008; Peterson
in the overall workforce and the challenges & Spiker, 2005; Saba & Guerin, 2005), such
created by this trend (Vaupel & Loichinger, practices may not be as effective as antici-
2006), Kooij et al. (2008) suggested that three pated. One reason for these findings may be
HRM practices were relevant to manage the that these workers may actually want to es-
careers of aging workers: career develop- cape from the stereotype of older workers’
ment, job content changes, and ergonomic needing specific attention because of declin-
adjustments. By focusing on closely related ing skills and performance and do not want
practices (training opportunities, assignment to be treated according to their presumptive
to new roles, and provision of flexible work- unique needs, as doing so may indirectly re-
ing conditions) and on encouragement to inforce the stereotype of the “old, poor-
retire, we found evidence that such practices performing” worker. This interpretation is in
were significantly associated with organiza- line with Desmette and Gaillard’s (2008)
tional commitment and predicted whether finding that when individuals identify them-
older workers actually would decide to retire selves as “older workers,” they are less in-
early or stay employed longer. In particular, clined to develop their careers and more
our findings suggest that providing older likely to engage in negative work attitudes.
workers access to training opportunities is Therefore, HRM managers should realize that
the perceived HRM practice most strongly by targeting HRM practices to older workers’
associated with the willingness to remain needs, they run the risk of actually worsening
with the organization. Training opportuni- those workers’ self-image and of generating
ties were related to higher affective and counterproductive effects on voluntary early
high-sacrifice commitments, lower lack of retirement.
alternatives commitment, and reduced likeli- The fact that the assignment of older
hood of early retirement. The favorable ef- workers to new roles actually increased the
strong-Stassen, 2004; Beehr et al., 2000; Kiefer sensitive to new roles and flexible work con-
& Briner, 1998; Szinovacz & Davey, 2005) is ditions.3
not welcome and should be avoided. One A second limitation of this study relates
should note, however, that the perceived en- to its focus on a sample of managers. Al-
couragement to retire may be influenced by though our findings are informative regard-
stereotypes conveyed in organizations that ing the particularities of this occupational
older workers learn less quickly or adjust less group, it is uncertain whether they could
efficiently to changes (Capowski, 1994; Des- apply to other categories of workers, who
mette & Gaillard, 2008; Rosen & Jerdee, may have different needs and respond differ-
1976) and, hence, would contribute less to ently to organizational practices. For exam-
the organization’s success. As such stereo- ple, it could be that other occupational
types plausibly contribute to older workers’ groups consider new roles, such as mentoring
perceiving their organization as being less and coaching, more rewarding than was the
supportive of them and encouraging them to case in the current sample of managers. The
retire, they should be drastically reduced if same might be true for flexible working con-
one wants to keep older workers committed ditions. For example, using a diversified
to the organization and employed. sample of clerical workers, Zappala, Depolo,
Fraccaroli, Guglielmi, and Sarchielli (2008)
found that “preference for late retirement”
Limitations
was positively correlated with “firm aging
This study has several limitations. First, we policies” (roughly equivalent to our “new
used a sample of French managers from pri- roles” and “flexible working conditions”
vate organizations; hence, findings may not practices) and negatively related to “abilities
generalize across cultures and contexts. For to develop” (roughly equivalent to our “train-
example, it may be that in countries where ing opportunities” practice). This indicates
risk tolerance is higher—France being rather that older workers do not represent a homo-
uncertainty-avoidant—high-sacrifice and lack geneous group and that subgroups with dif-
of alternatives commitments would be less ferent values and expectations may exist
strongly related to voluntary early retire- within them (Peeters & van Emmerik, 2008).
ment. Similarly, in more collectivistic coun- It is a task for future research to determine
tries, it is likely that normative commitment, whether such differences across subgroups of
which we did not measure in the present older workers exist and, if they do, whether
study, would be an important predictor of they can be attributed to characteristics of
older workers’ retirement decisions (cf. Cheng occupational groups or careers, differences in
& Stockdale, 2003). Alternatively, it may be gender composition, or work-related atti-
that in countries with more “feminine” val- tudes (for example, work commitment).
ues such as Sweden—which typically focus A third limitation is that we did not con-
on quality of life at work—the role of flexible trol for individuals’ financial resources as a
working conditions in voluntary early retire- potential influence on retirement decisions.
ment would be strengthened. Moreover, our The pension system in France is largely pub-
sample was 92% male. Although this typi- lic and does not encourage individuals to
cally reflects the gender composition of the prepare for retirement via private insurance
population of older French managers, results because retirement allowances are funded by
could have been different with a more femi- the government, generally comfortable, and
nine sample. As there are gender differences accessible to all employees. This implies that
in career development and values (e.g., Phil- individuals’ financial resources are less of an
ips & Imhoff, 1997), it might be that the issue than they are in other national contexts
more feminine cohorts of managers who will and that other, more intrinsic factors, rather
reach maturity in the next few years will than extrinsic factors, come into play in
show different patterns of reactions to HRM retirement decisions. This is especially rele-
practices. For example, they may be more vant in a sample of managers such as in this
study, who are likely to be well paid com- more closely which specific HRM practices
pared to other occupational groups. It may may be meaningful predictors of continu-
also explain the relative unattractiveness of ance commitment, as the variance explained
flexible work arrangements, such as part-time by our model in that variable was relatively
work. It is likely that in countries where indi- small (despite being significant). This could
viduals are expected to take charge mean either that HRM is not highly relevant
of their own retirement pensions to continuance commitment and that extra-
Even if
financially, such as the United organizational factors, such as retirement
organizational States, older workers’ financial re- plans, are more important (cf. Luchak et al.,
sources would strongly influence 2008) or that practices other than those con-
turnover has been their decision to retire (e.g., Kim sidered here are important.
& Feldman, 1998). Fifth, it would be worth investigating the
a concern for A fourth limitation of this extent to which predictors of organizational
decades among study is that we measured per- turnover differ from those of voluntary early
ceived rather than actual HRM retirement, an issue that research has not
both researchers practices. Actual practices may addressed yet. Although we know that orga-
not only differ from perceived nizational turnover and voluntary early re-
and practitioners, practices but also vary across orga- tirement do differ in a number of respects
nizations. For example, some or- (Adams & Beehr, 1998; Feldman, 1994;
organizations are
ganizations may actively engage Schmidt & Lee, 2008), we now need to know
now trying to keep in providing training and devel- how differentially these phenomena can be
opment opportunities to older predicted. This issue has practical relevance
older workers workers, while others may not for managers. Even if organizational turn-
want to head in that direction. over has been a concern for decades among
employed so
This may be partly related to how both researchers and practitioners, organiza-
they can transfer critical employees are for the orga- tions are now trying to keep older workers
nization’s business. In labor- employed so they can transfer knowledge
knowledge across intensive organizations, such as across generations. This requires a new
hospitals or service organizations, agenda for research, one that incorporates
generations.
it could be that HRM managers voluntary early retirement as a major out-
This requires a take particular care of older work- come in organizational behavior research.
ers’ career perspectives because Although we hope our study has provided
new agenda for they want knowledge to be trans- some insight into this new challenge, we
ferred to the younger generation. also acknowledge that the quantitative ap-
research, one Thus, we encourage researchers to proach we have taken in this study should be
that incorporates examine how actual (rather than supplemented by a qualitative approach to
perceived) HRM practices in orga- allow for deeper understanding of the mo-
voluntary early nizations influence voluntary tives that lead to early retirement and of the
early retirement and to consider perceived impact of HRM practices. Finally,
retirement as a potential differences in this re- although longitudinal research is often
spect across organizational con- viewed as a strength, a limitation is that pre-
major outcome
texts. It would also be interesting dictors may lose part of their predictive
in organizational to examine differences across in- power when the outcome is measured long
dustries. For example, in some after their measurement. In this study, 30
behavior research. industries (for example, manufac- months separated Time 1 from Time 2,
turing), it may be less easy for or- which may have diminished the predictive
ganizations to offer flextime or to assign validty of perceived HRM practices and com-
older workers to new roles. Moreover, it mitment. This issue needs further attention
would be important in the future to examine in the future.
CHRISTIAN VANDENBERGHE earned his Ph.D. in psychology from the Catholic Univer-
sity of Louvain, Belgium, where he has taught and researched in work and organizational
psychology since 1997. He is now at HEC Montreal, where he is a professor of organiza-
tional behavior. Since 2005, he has been the holder of the Canada Research Chair in the
management of employee commitment and performance. His research interests include
employee commitment, organizational change, and employee stress and health. His
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APPENDIX Items and Factor Loadings for HRM Practices Directed at Late-Career Managers
Component
Items
1 2 4 5
New roles (a =.89)
“My company offers to its late-career managers the
opportunity to act as”:
internal consultant .89
trainer .87
mentor .82
project coordinator .82
Training (a =.81)
My company provides me with training opportunities:
adapted to my needs .85
enabling me to extend my computer skills .83
enabling me to develop my management skills .80
enabling me to continuously update my skills .71
Flexible working conditions (a =.70)
My company offers me the opportunity to:
work part-time .80
reduce my work time gradually as I approach retirement .78
work from home .66
have flexible hours .64
Encouragement to retire early (a =.94)
I am enticed to take early retirement .95
Pressure is exercised on me to retire early .94
Eigenvalue 4.02 2.16 1.99 1.50
Percentage of variance explained 28.69 15.44 14.19 10.73
Note: N = 514. Responses were provided on a 5-point Likert scale (1 = strongly disagree, 5 = strongly agree). Data are analyzed using
principal components with varimax rotation. Total variance explained by the four factors: 69.1%. Only loadings greater than .30 are
shown.