Productivity of Older Workers: Perceptions of Employers and Employees

TLDR

Productivity perceptions vary with age and hierarchical position. The study investigates how older workers’ perceived productivity is determined and compared to younger workers’, examining whether soft qualities such as reliability and commitment are valued as much as hard skills. Using data from Dutch employers and employees, the authors distinguish dimensions of productivity—soft and hard qualities—to assess their relative importance. Results show that both employers and employees favor their own age group, rate overall productivity lower than employees do, yet across groups hard skills are deemed far more important than soft skills, with notable similarities between employers and employees.

Abstract

What determines the perceived productivity of the older worker and how does this perception compare to the perception of the productivity of the younger worker? In this study we present evidence based on data from Dutch employers and employees. Productivity perceptions are affected by one's age and one's position in the hierarchy. The young favor the young, the old favor the old, and employers value the productivity of workers less than employees do. However, there are also remarkable similarities across employers and employees. By distinguishing the various dimensions that underlie the productivity of younger and older workers, we tested whether soft qualities and abilities—e.g., reliability and commitment—are just as important as hard qualities—cognitive and physically based skills—in the eyes of both employers and employees. It appears that both employers and employees, young and old, view hard skills as far more important than soft skills.