Factors affecting employment retention among older workers in South Korea

Abstract

Purpose – The purpose of this paper is to determine employee retention rates and describe factors affecting employee retention among older workers. Design/methodology/approach – This study conducts a secondary data analysis using data from the Korean Longitudinal Study of Ageing (KLoSA) of Korea Employment Information Service. The authors use data on 1,264 newly employed older workers from the 2010 KLoSA and determine their employment retention status based on data from the 2012 KLoSA. Findings – The employee turnover rate of older workers was 37.1 per cent between 2010 and 2012, indicating that one-third of older workers stopped work within the two years under study. The factors affecting the employment retention of older workers were education level, job position, job type, work-related stress, health status, and activity limitation due to health status. Research limitations/implications – This study concentrated on the South Korea context. Given the particular circumstances facing South Korea (as outlined in the study) it is unlikely that the findings would provide a base for informing employment retention strategies for older workers in other societies. Practical implications – The South Korean government could use this study’s findings in formulating a policy for improving welfare in workplaces to increase the employment retention rate among older workers. Employers employing or intending to hire older workers would have a better understanding about factors affecting their retention. To reduce their work-related stress, older workers require a safe and healthy work environment that considers their health status. Originality/value – This study is the first one to look at the factors affecting the retention of older workers in South Korea.