RETENTION OF OLDER WORKERS: FLEXIBLE WORK PRACTICES AND EMPLOYMENT RELATIONS

Abstract

Demographic aging and shrinking labour force proposition raise the question of the older workers retention and their motivation to continue working. Flexible work practices have proved to be the one of the most effective tools for retention and encouraging older workers to postpone retirement. In Ukraine, enterprises are insufficiently prepared to the changes in labour force structure. Hence, retention of the older workers is a strategic goal both for enterprises and state level in the developed of western countries. This study aims to systematize flexible work practices and employment relations for attracting and retaining elderly workers and to develop recommendations for strategic management of the older workers in the organization. Demand for flexible work schedules is a universal trend both among the elderly and young people. Flexibility allows to balance work and life, to fulfill family responsibilities, to adapt workplace design to age-related changes. The benefits of flexibility for employers decrease the level of employee turnover and absenteeism, increase employee satisfaction and motivation, rise in productivity. The classification of flexible work practices for older workers is proposed on the basis of flexibility typology: flextime, work design flexibility, workplace / spatial flexibility, employment relationships flexibility, wage flexibility. Decisions concerning the implementation of flexible work practices should be based on age structure analysis of the staff, skills gap analysis, cost benefit analysis compared with the recruitment of younger staff. It is proved that the implementation of flexible work practices requires interests intersection and the actions from the following stakeholders: individuals, business and state.