The Retention of Workers Nearing Retirement: A Job Embeddedness Approach

Abstract

In light of projected labor shortages in key industries and underfunded retirement plans, this study investigated the reasons some older employees choose to continue working past their retirement-eligibility dates. Using a sample of 15 workers ages 52 to 67 and a qualitative interview methodology, the authors determined that retention of employer-provided health care benefits may be a critical factor in encouraging older workers to remain on the job. Further, workers in this sample highly valued the opportunity for positive social interaction on their jobs and indicated that more flexible work schedules would be one change the employer could make that would have the most immediate impact on their decision to retire. They also said that more money, more recognition/appreciation, more autonomy, and more opportunities to develop skills and knowledge would potentially keep them on the job longer. The authors conclude with a discussion of implications for practice and research.