Subjective Age in Organizations – Performance Consequences and Antecedents

Abstract

This paper extends the knowledge of the concept of subjective age in organizations by exploring organizational-level antecedents and consequences of employees on average feeling younger than their chronological age. We draw from the theories of selection-optimization-compensation and socio- emotional selectivity to build a theoretical framework for subjective age in organizations. We hypothesize that companies in which employees on average perceive themselves to be younger than they actually are have a higher average individual goal accomplishment and in turn experience higher company performance. We further hypothesize that employees’ average experience of high work-related meaning relates to a younger subjective age in organizations. In addition, we assess the role of environmental dynamism and age-inclusive human resource management as moderators in this theoretical model. Through empirically testing this model in a multisource dataset including 107 companies with 15.164 participating employees, we received support for the hypothesized relationships. Our results contribute to current debates in the scientific literature on age and have important practical implications in light of the demographic changes faced by many companies. This research indicates to both audiences that it is not employees’ chronological age but their subjective age, a factor that can be influenced, that drives organizational performance outcomes.