Age diversity and job performance

Age diversity and job performance

Age diversity is the ability of an organization to hire people in a variety of age groups and integrate them into its working culture.

Age-diverse teams are made up of coworkers who have accumulated a variety of authoritative, professional, or personal encounters (Kunze et al., 2011). These coworkers or staff members are ambassadors for various partner groups, and their ages vary by more than 25 years (Wegge et al., 2008).

Figure 1: Three generations of the workforce [A] Baby Boomers (Bertolino et al. 2013; Riach 2009), [B] Generation X (Crumpacker and Crumpacker, 2007), [C] Millennials (Bell and Narz 2007; Paggi and Jopp 2015)

Age diversity has become a critical challenge in developed-country organizations (Schneid et al., 2016).Organizations are considering recruiting older people in order to create an age diverse working environment (Bohem et al., 2014), thereby halting early retirements (Dychtwald et al., 2004).

Because age diversity can have both positive and negative consequences, employers must be astute enough to extract only the positive outcomes (Bohem et al., 2014). 

Positive effects of age diversity on work performance

  • Mutual respect
  • Creativity
  • Better analysis
  • Increased knowledge pool
  • Better problem solving
  • Enhanced group discussions

Negative effects of age diversity on work performance

  • Age discrimination
  • Communication problems
  • Raising conflicts
  • Individual dissatisfaction
  • Turnover intentions
  • Coordination problems
  • Absenteeism


(Gordon, 2018; Kunze et al., 2013; Wegge et al., 2012; Backes-Gellner & Veen, 2013; Joshi & Rho, 2009; Shore et al., 2009; Van Dijk et al., 2012)

References

Backes-Gellner, U., & Veen, S. (2013). Positive effects of ageing and age diversity in innovative companies: Large-scale empirical evidence on company productivity. Human Resource Management Journal, 23(3), 279–295. doi:10.1111/1748-8583.12011.

Bell, N. S., & Narz, M. (2007). Meeting the challenges of age diversity in the workplace. The CPA Journal, 77(2), 56–59.

Bertolino, M., Truxillo, D. M., & Fraccaroli, F. (2013). Age effects on perceived personality and job performance. Journal of Managerial Psychology, 28(7/8), 867–885.

Boehm, S. A., Kunze, F., & Bruch, H. (2014). Spotlight on age diversity climate: The impact of age-inclusive HR practices on firm-level outcomes. Personnel Psychology, 67(3), 667–704.

Crumpacker, M., & Crumpacker, J. M. (2007). Succession planning and generational stereotypes: Should HR consider age-based values and attitudes as a relevant factor or a passing fad? Public Personnel Management, 36(4), 349–369.

Dychtwald K, Erickson T, Morison B. (2004). It’s time to retire retirement. Harvard Business Review, 82, 48–57.

Daimler (2020). Company. [online] Available from https://www.daimler.com/company/ [Accessed: 10 December 2022].

Daimler (2018). Sustainability report 2018. [online] Available from https://sustainabilityreport2018.daimler.com/reports/daimler/annual/2018/nb/English/702030/diversity-management.html [Accessed: 10 December 2022].

Daimler (2018). Annual report 2018. [online] Available from https://annualreport.daimler.com/The-Power-of-C [Accessed: 10 December 2022].

Gordon, P.A., 2018. Age diversity in the workplace. In Diversity and inclusion in the global workplace (pp. 31-47). Palgrave Macmillan, Cham.

Joshi, A., & Roh, H. (2009). The role of context in work team diversity research: A meta-analytic review. Academy of Management Journal, 52 (3), 599–627.

Kunze, F., Boehm, S. A., & Bruch, H. (2013). Organizational performance consequences of age diversity: Inspecting the role of diversity-friendly HR policies and top managers’ negative age stereotypes. Journal of Management Studies, 50(3), 413–442. doi:10.1111/joms.12016.

Kunze, F., Boehm, S.A. and Bruch, H. (2011), “Age diversity, age discrimination climate and performance consequences – a cross organizational study”, Journal of Organizational Behavior, Vol. 32 No. 2, pp. 264-290.

Paggi, M. E., & Jopp, D. S. (2015). Outcomes of occupational self-efficacy in older workers. The International Journal of Aging and Human Development, 80(4), 357–378.

Riach, K. (2009). Managing ‘difference’: Understanding age diversity in practice. Human Resource Management Journal, 19(3), 319–335. doi:10.1111/ j.1748-8583.2009.00096.x.

Schneid, M., Isidor, R., Steinmetz, H. and Kabst, R., 2016. Age diversity and team outcomes: a quantitative review. Journal of Managerial Psychology.

Shore, L. M., Chung-Herrera, B. G., Dean, M. A., Ehrhart, K. H., Jung, D. I., Randel, A. E., et al. (2009). Diversity in organizations: Where are we now and where are we going? Human Resource Management Review, 19 (2), 117–133.

Van Dijk, H., Van Engen, M. L., & Van Knippenberg, D. (2012). Defying conventional wisdom: A meta-analytical examination of the differences between demographic and job-related diversity relationships with performance. Organizational Behavior and Human Decision Processes, 119 , 38–53.

Wegge, J., Jungmann, F., Liebermann, S., Shemla, M., Ries, B. C., Diestel, S., et al. (2012). What makes age diverse teams effective? Results from a six-year research program. Work, 41(2012), 5145–5151.

Wegge, J., Roth, C., Neubach, B., Schmidt, K.-H. and Kanfer, R. (2008), “Age and gender diversity as determinants of performance and health in a public organization: the role of task complexity and group size”, Journal of Applied Psychology, Vol. 93 No. 6, pp. 1301-1313.


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