Retaining Older Workers: Fields Of Action – Constituting A Comprehensive Age Management Model

Abstract

The need to improve labor market participation of older people has gained heightened attention in recent years, especially in view of the significant demographic changes the European Union will undergo due to population aging. Besides the macroeconomic level, the implications of this trend are very present on the company level, especially through managing the aging workforce. Companies are thus introducing new approaches, policies and instruments which are supposed to foster higher employment rates of elderly through implementing active aging concept into business and HRM practice. The aim of this paper is to highlight the development of active aging initiatives within Slovenian companies where the practice of age management is still in its early stage. However, we expect that due to the aging population and the shortages on the labor market one can expect that those practices will receive more and more attention in the future. Because of age discrimination, and a longstanding culture of early exit from employment, many organizations in Slovenia, both the workplace and the community, have no experience in positively targeting older workers. Therefore, those looking to respond to workforce aging usually start from a low or non-existent base. Moreover, Slovenian employers are still often reluctant to employ older workers, either because of age stereotypes or because of some very reasonable dilemmas concerning personnel economics. With the aim to help beginners, we have developed a conceptual model, thus providing a useful base for further development of company-specific age management model that suits to the company needs the most. A key message of this paper is that when it comes to good practice, even very small changes can have a positive impact. The paper concludes with some recommendations for the future development of active aging practice, with an emphasize on new HRM approaches, policies and instruments which seem to be of extreme importance when striving to prolong working life.