Older employees under pressure? Theorizing reasons for declining commitment

Abstract

If employees are asked to extend their working lives, equity requires that their conditions of work should be improved or at least maintained. This article argues that employees have in the past received relatively favourable treatment from employers in their later careers, consequent on the long-term employment relationship that employers maintain for motivational purposes. But changes in costs, competition and technologies are likely to have affected motivational policy, leading employers to renege on the implicit bargain with older employees. The analysis provides strong evidence of declining organizational commitment, consistent with the proposed theory.