Labour shortages and employer preferences in retaining and recruiting older workers

Abstract

Purpose

This article investigates whether employers are more likely to employ older workers when faced with a shortage of qualified labour. Furthermore, it analyses whether in such cases age stereotypes moderate employers' preferences towards four employment options: (1) supporting workers to continue until the retirement age, (2) encouraging workers to continue beyond the retirement age, (3) recruiting someone older than 55 and (4) (re)hiring someone who has retired.

Design/methodology/approach

Data were drawn from a survey conducted among Finnish employers in 2021 (response rate = 66%, N = 1,442). Applying factor analysis to questions about older workers' qualities compared to those of average workers, a distinction was made between perceptions of experience-related and adaptability-related qualities. Generalised ordered logistic regression models were estimated to analyse the relations of preferences for each employment option with experiencing recruitment problems, workplace age stereotypes and interactions between these.

Findings

Experiencing recruitment problems was positively related to preferences for hiring a retired person. Employers with difficulties in recruitment were more likely to support work until the retirement age and recruit someone over 55, but only if they had above-average positive perceptions of older workers' experience-related qualities. Employers confronted with recruitment difficulties were more likely to encourage workers to continue beyond the retirement age if they had more positive perceptions of older workers' adaptability-related qualities.

Originality/value

This study shows that, even when confronted with labour shortages and population ageing, workplace age stereotypes still pose a potential obstacle for employers to make the best use of an older workforce.