OIT - Extending the productive working life of older workers - the role of human resource management

 ILO Brief 1 Extending the productive working life of older workers: the role of human resource management  Research Brief July 2025 Extending the productive working life of older workers: the role of human resource management By Fang Lee Cooke, Professor of Human Resource Management and Asia Studies, Monash Business School, Monash University, Melbou rne, Australia. And Nikolai Rogovsky, Senior Economist, Research and Publications Department, International Labour Office, Geneva, Switzerland.

 The ability of older workers to maintain a productive working life is likely to increase productivity and improve social justice in society.  Ageing of population and workforce is a critical challenge that should be addressed by policymakers, social partners and organizations.  This challenge could be addressed by an “active ageing” approach, which could be viewed as the process of optimizing opportunities for health, participation and security in order to enhance the quality of work life as people age.  An active ageing approach should challenge age stereotypes about older workers, such as their resistance to change, lower ability to learn, shorter tenure, more costly to hire and poor performers.  At the workplace level, active ageing could be associated with age -supportive human resource management (HRM) practices that are beneficial to older workers. There are various categories of HRM practices, each focusing on distinct functions and the needs of individual workers. These include accommodative practices, utilization practices, maintenance practices and developmental practices.  Older workers should have access to training and learning opportunities that should help them address technological challenges, including knowledge sharing between older and younger workers in both directions.  Assistive technology can be adopted by organizations to support older workers in reducing the physical demands of the job and possibly extend productive working life.  An inclusive approach towards older workers, and a system of supportive HRM practices will help entice older workers to stay on the job and contribute to the

to support older workers in reducing the physical demands of the job and possibly extend productive working life.  An inclusive approach towards older workers, and a system of supportive HRM practices will help entice older workers to stay on the job and contribute to the organization.

Key points ILO Brief 2 Extending the productive working life of older workers: the role of human resource management  Overview This research brief is based on a chapter in the forthcoming publication of the International Labour Office (ILO)1, which explores the links between social justice2 and productivity. One of the key messages of this publication is that the ability of vulnerable groups, including older workers, to remain economically active is likely to increase productivity and create a perception of justice in society. Unfortunately, the potential of older workers, which is based on years of experience and possession of tremendous codified and uncodified knowledge, is often ignored due to stereotypes that include resistance to change, lower ability to learn, shorter tenure, more cos tly to hire and poor performers. Older workers may be the first ones to be let go in organizational restructuring, which may lead to the loss of organizational knowledge and employee commitment as a result of perceived erosion of justice.  Ageing and work Population ageing is a salient feature of demographic changes in many countries, resulting from declining birth rates and increasing life expectancy, which leads to an ageing workforce. This has a profound impact on economies and societies as a whole, not only in developed countries of Western Europe and North America, but also in many middle -income economies, such as China, and, according to the World Health Organization (WHO, 2024), by 2050, 80 per cent of older people will be living in lowand middle -income countries. WHO (2024, no page number) observes that the pace of ageing is accelerating and predicts that, between “2015 and 2050, the proportion

by 2050, 80 per cent of older people will be living in lowand middle -income countries. WHO (2024, no page number) observes that the pace of ageing is accelerating and predicts that, between “2015 and 2050, the proportion of the world’s population over 60 years will nearly double from 12% to 22%”, and by 2030, 1 in six people in the world will be aged 60 years or over”. Moreover, ageing is becoming an issue for an increasing number of countries. As per the WHO report, by 2050, “two -thirds of the world’s

1 Fang Lee Cooke and Nikolai Rogovsky. 2025 (forthcoming). Social justice, human resource management and workplace productivity: Gender and age perspectives. ILO, Geneva. 2 For the ILO, social justice is reflected in the aspiration that “all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions population over 60 years will live in lowand middle-income countries” (WHO 2024). In Japan, 30 per cent of the population is already over 60 years old (WHO 2024), and in China, “the population of people over 60 years old … is projected to reach 28% by 20 40, due to longer life expectancy and declining fertility rates” (WHO 2025, no page number). According to the Economic Commission for Latin America and the Caribbean (2022), in 2022, people aged 60+ represented 13.4 per cent (approx. 88.6 million) of the total population in Latin America and the Caribbean; and by 2030, this proportion is projected to reach 16.5 per cent. Ageing is often associated with poverty, including in -work poverty for some socio -economic groups (Otto 2024). For example, in developed economies with well -established social security systems, poverty may occur among older

cent. Ageing is often associated with poverty, including in -work poverty for some socio -economic groups (Otto 2024). For example, in developed economies with well -established social security systems, poverty may occur among older people after they have stopped w orking before reaching state pension age. Otto (2024, 4) draws our attention to the fact that the “UK is facing a hidden poverty crisis among 60 to 65 -year-olds” because, between “2010 and 2022 the numbers in poverty between 60 and the state pension age increased by 140 per cent – or more than 800,000 people” as a result of a public policy change that raised the pension age from 60 to 66 for both men and women. When it comes to the workplace, in-work poverty is a global problem (Liu, 2022), and it is very c ommon among older workers, in particular, older women, due to the intersectional effect of age and gender. This is because women are more likely to work in low-paid, part-time and informal employment, have less access to a pension, or have a lower level of pension due to lower earning and shorter employment duration as a result of career breaks, home-making roles and midlate life characteristics (for example Kuitto, Madia and Podesta 2023; Vartanian and McNamara 2002). As a result, many workers are trying to extend their working life, even if on a part -time basis. These efforts could be supported by a number of age -supportive government and enterprise -level policies and practices. These may include measures such as gove rnment tax reduction policies, financial planning, healthcare programmes, as well as flexible work arrangements that help reduce work intensity for older workers, which also of freedom and dignity, of economic security and equal opportunity” (ILO, 2021). ILO Brief 3 Extending the productive working life of older workers: the role of human resource management promote decent work and facilitate transitions to

help reduce work intensity for older workers, which also of freedom and dignity, of economic security and equal opportunity” (ILO, 2021). ILO Brief 3 Extending the productive working life of older workers: the role of human resource management promote decent work and facilitate transitions to retirement for older workers. For example, the concept “active ageing” has gained policy support and attracted research attention (WHO 2002; Zacher et al. 2018). WHO (2002, 12) defines active ageing as “the process of optimizing opportunities for health, participation and security in order to enhance [the] quality of life as people age.” Hijas-Gómez et al. (2020, 1) argue that “Active ageing is multidimensional: health -participationlifelong learning -security”. These dimensions are highly relevant and critical in supporting older worker s’ active ageing. According to Zacher et al. (2018, 37-38): In the work context, active ageing means that as workers age, they maintain or improve (1) their physical, mental, and social well -being; (2) continue to show high levels of work engagement and performance; and (3) experience fair treatment and employment security. As a consequence, older workers are not only able and motivated to work past traditional retirement ages, they also continue to be happy and productive members of the workforce. Achieving active ageing in the work context, as outlined by Zacher et al. (2018), therefore will help retain older workers vis-à-vis labour shortage. In other words, organizations can benefit from the “silver dividend” (Park and Shin 2023a) by adopting HRM policies and practices that support active ageing productively and contribute to economic growth. For instance, Cao et al.’s (2024) study of managers and employees in China shows that a high level of job variety will help older workers remain proactive at work. Similarly, using the European Sustainable Workforce Survey data,

ageing productively and contribute to economic growth. For instance, Cao et al.’s (2024) study of managers and employees in China shows that a high level of job variety will help older workers remain proactive at work. Similarly, using the European Sustainable Workforce Survey data, Visser et al.’s (2021, 301) study found that “providing training to older workers is a fruitful HR strategy for employers to stimulate job satisfaction among their older employees and facilitate longer working lives.”  Stereotypes of older workers One particular issue that might make the active ageing approach less effective is the perceived mismatch between the skills required by the introduction of new technologies, including artificial intelligence (AI) and the skills (in particular, basic and transferable skills) that older workers possess. Although in some cases such a mismatch is real, in many other cases, managers are driven by age -related stereotypes. Age stereotyping is common, even though the stereotypes may be contradicted by evidence (P osthuma and Campion 2007; Truxillo et al. 2015). Typical stereotypes about older workers include resistance to change, lower ability to learn, shorter tenure, more costly to hire and poorer performance, even though skills, health and attitude are more important in predicting job performance than age (Posthuma and Campion 2007). Van Dalen et al. (2010, 325) “examined stereotypical perceptions of employers and employees regarding the productivity of young and older workers in the Netherlands”, and found that “both employers and employees rate the productivity of older workers substantially lower than that of younger workers”. In particular, “stereotypes about hard qualities and soft qualities of workers underlie perceptions of productivity”. According to Van Dalen et al. (2010, 325), “hard qualities include flexibility, physical and mental capacity, and the willingness to learn new technology skills”, whereas “soft qualities include commitment to the organization,

qualities of workers underlie perceptions of productivity”. According to Van Dalen et al. (2010, 325), “hard qualities include flexibility, physical and mental capacity, and the willingness to learn new technology skills”, whereas “soft qualities include commitment to the organization, reliability, and social skills”. The comparative advantage of older workers (aged 50+) lies in their soft qualities, whereas younger workers have the edge in hard qualities, which carry “much greater weight than soft qualities in the evaluation of the productivity” for all workers without age differentiation (Van Dalen et al. 2010, 325). These findings suggest that age discrimination is entrenched in the labour market and workplaces, including workers at the nonmanagerial level, making it difficult to uproot (Van Dalen et al., 2010). Older workers often recognize the pervasiveness of stereotypes. As a result, they tend to be more reluctant to seek support in the workplace. The consequences of this reluctance have an impact on their health, well -being and work motivation. For instance, a study by the Fabian Society based in the United Kingdom reported that those aged 60 to 65 who had experienced health issues at work in the past five years were less likely to request workplace adjustments than those aged 50 to 59 (30 per cent v. 42 per cent) for fear of unfavourable employer reactions. For those who did request workplace adjustments, 41 per cent of those aged 55-64 reported that their request was granted in full. Moreover, workers aged 60 to 65 were less likely than their peers in their 5 0s to have access to most forms of workplace support, including flexible work arrangements, additional support from their line manager, reasonable adjustments, support for physical or mental health ILO Brief 4 Extending the productive working life of older workers: the role of human resource management concerns, occupational health, supportive equipment and a workplace assistance programme. The lack of workplace support is compounded by the personal challenges faced

adjustments, support for physical or mental health ILO Brief 4 Extending the productive working life of older workers: the role of human resource management concerns, occupational health, supportive equipment and a workplace assistance programme. The lack of workplace support is compounded by the personal challenges faced by older workers at this life stage, such as health problems, care responsibilities, low educational attainment, and inadequate support networks, all of which make it difficult for older workers to obtain and maintain employment (Otto 2024).  Age-supportive HRM practices At the workplace level, active ageing could be associated with age -supportive HRM practices that are beneficial to older workers. There are different bundles of HRM practices, each focusing on different functions. Several bundles of HRM practices specific to older workers have been identified (Pak et al. 2019; Van Beurden et al. 2024). Pak et al. (2019) categorize four types of practices: accommodative practices, utilization practices, maintenance practices and developmental practices (see also table 1). Mo re specifically, “accommodative HR practices help workers function at lower levels when maintenance or recovery is no longer possible”; utilization HRM practices “make use of the knowledge, experience and competences of older workers, and can be used to he lp workers return to previous levels of functioning after experiencing a loss”; maintenance HRM practices “are those practices that allow workers to maintain their current levels of functioning despite (age -related) changes”; and developmental HRM practice s “are those practices that assist workers in reaching higher levels of functioning” (Pak et al. 2019, 339). Pak et al. (2019) also examined the outcomes and effectiveness of specific types of HRM practices for different types of older workers with specifi c practical implications.

 Table 1. Types of HRM practices for older workers Accommodative practices

outcomes and effectiveness of specific types of HRM practices for different types of older workers with specifi c practical implications.

 Table 1. Types of HRM practices for older workers Accommodative practices Utilization practices Maintenance practices Developmental practices ● Part-time work/semiretirement

● Additional leave

● Demotion

● Early retirement

● Exemption from working overtime/night shifts

● Reduced workload

● Prolonged career interruptions ● Lateral job movements

● Participation

● Second career

● Task enrichment

● Compressed work week

● Ergonomic adjustments to the workplace

● Flexible benefits

● Performance appraisal

● Pay for performance

● Teleworking ● Career planning

● Development on the job

● Promotion

● Training

Source: Pak et al. (2019, 341) Van Beurden et al. (2024, 2815) investigated the availability and use of the four bundles of HRM practices: development, maintenance, utilization, and accommodative “in increasing commitment among older workers” in a Dutch university setting. They found that “perceived availability of maintenance HRM practices was ILO Brief 5

Extending the productive working life of older workers: the role of human resource management positively associated with commitment over time” and that “the relationship of the perceived availability and the perceived usage of utilization HRM practices with commitment strengthens with age”. These findings suggest that different bundles of HRM pract ices play an important role in different ways in increasing older workers’ commitment over time. In a similar vein, Jiang, Zhang, Hu and Liu’s (2022) study of employees in US government agencies found that adopting highcommitment strengthens with age”. These findings suggest that different bundles of HRM pract ices play an important role in different ways in increasing older workers’ commitment over time. In a similar vein, Jiang, Zhang, Hu and Liu’s (2022) study of employees in US government agencies found that adopting highinvolvement work practices is likely to reduce the retirement intention of older workers, especially male workers. Kulik et al. (2016) proposed the concept of mature -age practices, which reflects primarily the maintenance and developmental HRM practices. According to Kulik et al. (2016, 2156), mature-age HRM practices consist of: 1) Opportunities for mature -age employees to take on challenging and meaningful new roles or work assignments 2) Reverse-mentoring programmes that team mature-age workers with more junior staff members to facilitate skill upgrading 3) Monitoring the skills of mature -age workers and providing training to upgrade and maintain skills 4) The opportunity for job redesign or transfer to a less stressful/strenuous job 5) Incentives to mentor others (for example, reduced workload, additional compensation) 6) Performance-related feedback specifically relevant to mature-age employees 7) Phased retirement programmes that allow employees to ease into retirement 8) Alternate career paths specially focusing on mature-age employees. Teo et al.’s (2022) study applies Kulik et al.’s (2016) findings in an Australian setting, showing that inclusive leadership and the adoption of mature -age HRM practices can help improve older workers’ psychological well-being. Chong et al. (2025: 1) developed the “3i” framework that encompasses: • inclusive practices aimed at reducing biases and creating an inclusive climate for workers; • individualized practices aimed at designing and adapting work to the changing needs of an agediverse workforce, and • integrative practices targeted at effective collaboration and knowledge -sharing processes

encompasses: • inclusive practices aimed at reducing biases and creating an inclusive climate for workers; • individualized practices aimed at designing and adapting work to the changing needs of an agediverse workforce, and • integrative practices targeted at effective collaboration and knowledge -sharing processes across age groups. This is a sophisticated model that requires significant resource commitment and HR competencies to design and implement.  Knowledge sharing at workplaces While age -inclusive HRM practices are relatively easy to introduce and can be effective, what is more difficult is to create organizational culture that would not only eliminate age-related stereotypes, but also improve knowledge sharing. Knowledge sharing among workers of different age groups is “crucial for business success” (Fasbender and Gerpott 2021, 1385). Why older employees are willing or unwilling to share their knowledge with younger employees is relatively well understood, but what motivates older employees to seek knowledge from their younger peers is much less well understood (Fasbender and Gerpott 2021). Despite their accumulation of knowledge and experience, older workers often encounter skill and competence deficits due to knowledge obsolete and technological development. However, they are often reluctant to learn new skills, especially asking younger peers for help, in part due to ageism and fear of exposing their ignorance and losing status. Several studies have demonstrated how organizations can facilitate older employees’ knowledge -seeking behaviour from younger colleagues through age -inclusive HRM practices and organizational climate (for example, Boehm, Kunze and Bruch 2014; Burmeister et al. 2018; Fasbender and Gerpott 2021; Pfrombeck, Burmeister and Grote 2023). Specifically, Boehm et al. (2014) and Burmeister et al. (2018) proposed age-inclusive HRM practices, which are bundles of HRM practices designed to provide equal opportunities

and Gerpott 2021; Pfrombeck, Burmeister and Grote 2023). Specifically, Boehm et al. (2014) and Burmeister et al. (2018) proposed age-inclusive HRM practices, which are bundles of HRM practices designed to provide equal opportunities for employees of all age groups. Burmeister et al. (2018, 605) further suggest that an age -inclusive organizational climate entails “shared perceptions of equal treatment of employees from all age groups”. This is important because employee perception is crit ical in influencing the effect of ILO Brief 6 Extending the productive working life of older workers: the role of human resource management HRM practices (Bowen and Ostroff 2004; Wang, Kim, Rafferty and Sanders 2020). Pfrombeck et al.’s (2023, 1) study of 764 workers aged 45 -76 in the United States and European countries found that older workers’ “knowledge seeking from younger coworkers was positively related to motivation to continue working and workability via perceived learning and negatively related to workability via embarrassment. They also found “that knowledge transfer from younger to older employees is a net contributor to successful ageing at work and embarrassment can be mitigated by positive intergenerational affect”. In a similar vein, Li et al.’s (2023, 954) study of workers at pension age in the Netherlands also found that “age -inclusive climate amplified the positive relationsh ip between individual growth need and training participation”.  The role of technologies The role of technology has different impacts on the employability and job quality of older workers. Pak et al. (2023, 1) reviewed the literature on successful ageing at work and technology” and proposed that Smart Technology, Artificial Intelligence, Autom ation, Robotics, and Algorithms (STAARA 3) technology can “facilitate successful ageing at work by reducing physical and emotional demands and increasing skill variety, autonomy,

work and technology” and proposed that Smart Technology, Artificial Intelligence, Autom ation, Robotics, and Algorithms (STAARA 3) technology can “facilitate successful ageing at work by reducing physical and emotional demands and increasing skill variety, autonomy, and support”; at the same time, “STAARA technology can also harm successful ageing at work by reducing autonomy, skill variety, and social support”. When used in a beneficial way and when responded positively to by older workers, these technologies can become a resource for enhancing their ability and motivation at work and wellbeing (Chang, Xu, Xie and Wang 2023). Other research suggests that building age -friendly workplaces through 1) ergonomics and assistive technology or equipment (for example, increased lighting, proper glasses, special needs chairs, data glasses, powered work tools, collaborative robots, and ne w lifting and handling devices), and 2) information and communication technology (ICT) can help older workers perform their tasks efficiently and comfortably (Calzavara et al. 2020; Sheng et al. 2022). Assistive -technology devices are particularly beneficial for workers performing physical tasks, for

3 STAARA refers to a set of advanced technologies named as Smart Technology, Artificial Intelligence, Automation, Robotics, and Algorithms, used in the workplace setting (Pak et al. 2023, 3). example, a chef’s hanging seat can help older chefs with back or walking problems continue to work in the kitchen; and lifting and handling devices can help reduce back injuries of care workers in elderly care homes, many of whom may be older workers. In the manufacturing setting, an integration of ergonomics, neuro -ergonomics and the human factor design principles that emphasize both usability and safety is critical in designing age -friendly workplaces that take into account each worker’s physical and cognitive needs and their work environment (Calzavara et al. 2020). In addition, The new digital industrial revolution holds the

human factor design principles that emphasize both usability and safety is critical in designing age -friendly workplaces that take into account each worker’s physical and cognitive needs and their work environment (Calzavara et al. 2020). In addition, The new digital industrial revolution holds the promise of increased age -friendly work environments since the smart manufacturing initiatives are the most financed at present. Inside a smart manufacturing environment, a set of connected devices and intelli gent systems collaborate with humans, without replacing them but enlarging their capabilities and empowering their capacities. In this case, an older worker actually becomes a “technology augmented master craftsman” (Calzavara et al. 2020, 736). However, investing in these assistive technologies can be highly costly and not affordable for smaller firms. Workers can also be quite resistant to adopting these technologies and prefer to work at a lower level of tasks to accommodate their declining physical ability and then retire early.  Conclusions As the world population and, by consequence, the workforce are ageing, organizations need to adapt to this demographic change. How organizations can retain older workers through effective HRM practices is a key challenge for firms that are facing skill sho rtages. A positive attitude towards older workers and a system of supportive HRM practices will help entice older workers to stay on the job and contribute to the organization. We argue that providing developmental HRM helps them achieve productive ageing through enhanced employability and gainful employment. However, not all older workers wish ILO Brief 7 Extending the productive working life of older workers: the role of human resource management to pursue development opportunities in their late career stage. Some may wish to adopt a slower pace, work parttime and transition to retirement. For these workers, flexible working arrangements (for example remote work/working from home, part-time work, flexible working hours) may be preferable. Organizations should, therefore, consider the life goals and conditions of the individual older

time and transition to retirement. For these workers, flexible working arrangements (for example remote work/working from home, part-time work, flexible working hours) may be preferable. Organizations should, therefore, consider the life goals and conditions of the individual older workers. In understanding older workers’ needs and work– life choices, gender differences and the intersectionality of age and gender also need to be taken into account in understanding older workers’ needs, career patterns and work and life goals and tailoring organizational support for them. When it comes to the future research agenda, it is becoming clear that more cross -disciplinary research is needed. For example, Beier et al. (2022) have called for longitudinal studies from multiple disciplinary perspectives, such as medicine, economics a nd sociology, to better understand how changes in the working environment affects workers over time and influences their prospects of successful ageing at work. In the future, we will also need to understand how the HRM practices mentioned above should be specifically targeted at older workers. Should the organizations have separate HRM programmes for older workers, or should they have universal HRM programmes tha t are flexible enough to accommodate all the workers, including older ones? In turn, it is important to recognize that older workers, like all workers, differ in their demographic characteristics, occupations and personal and family circumstances. HRM practices should recognize such diversity and specific needs and expectations.  References Beier, Margaret E, Ruth Kanfer, Dorien T. A Kooij, and Donald M Truxillo. 2022. “What's age got to do with it? A primer and review of the workplace aging literature.” Personnel Psychology 75 (4): 779-804. Boehm, Stephan A., Florian Kunze, and Heike Bruch. 2014. “Spotlight on age‐diversity climate: The impact of age‐ inclusive HR practices on firm‐level outcomes.” Personnel Psychology 67 (3): 667-704.

Boehm, Stephan A., Florian Kunze, and Heike Bruch. 2014. “Spotlight on age‐diversity climate: The impact of age‐ inclusive HR practices on firm‐level outcomes.” Personnel Psychology 67 (3): 667-704. Bowen, David E, and Cheri Ostroff. 2004. “Understanding HRM–firm performance linkages: The role of the “strength” of the HRM system.” Academy of Managemen