To Work or Not to Work: Motivation for work after reaching retirement age Zdeňka Šímová, National Observatory of Employment and Training, National Training Fund, Czech Republic

Presentation content: Background Research description Research results –Basic motivation –Role of external factors –Situation of unemployment –Motivation to employment –Motivation to retire –Employers‘ role Key background factor: Education Implications and conclusions

Background Demographical changes: share of working age population (15-64) of the Czech Republic - projection Active ageing concept Mainstreaming ageing concept Life course perspective

Research description : research aimed to describe and evaluate current and expected conditions concerning elderly people employment in Czech Republic a wide context commissioned by the Ministry of Labour and Social Affairs led by the Research Institute of Labour and Social Affairs (VÚPSV) the National Training Fund involved in issues related to education and training. Main methods: - questionnaires: whole population sample (aged 15-74) older workers (50-64) employers - quantitative survey among labour office experts - document analyses

Research results: BASIC MOTIVATION To work or not to work in older age? -only 7% of respondents would spontaneously opt for a full-time job in their 65 = internal motivation Factors supporting work preference: -university education, -currently working (employees, entrepreneurs and working pensioners) -active age period (aged 30-39) -living in a larger city „Relaxing“ work conditions required: If willing to work in retirement age, most respondents would prefer: maximum one hour commuting time to work, low responsibility.

Research results: BASIC MOTIVATION Agreement with a statement “I enjoy going to work” (in %) According to educational attainment According to type of job

Research results: ROLE OF EXTERNAL FACTORS „Pro-work“ and „pro-retirement“ internal motivation co- exist in most people: 2/3 of respondents aged are looking forward to retirement at the same time 3/4 of them enjoy working. The final decision is mostly result of external factors, in many cases even expressed as pressure.

Research results: SITUATION OF UNEMPLOYMENT If a senior is in the situation of unemployment: -the importance of internal motivation increases -the motivation at the same time is very „fragile“ higher probability of psychical or/and physical problems Prolonging period of unemployment (or sickness) Unemployment perceived as personal defeat; low self-confidence, fear of failure; feelings of uselessness

Research results: MOTIVATION TO EMPLOYMENT FINANCE: „to maintain the standard of living“ = dominant motive among Czech elderly workers SATISFACTION AT WORK: „I enjoy work“ –career motives (self-fulfilment) –social motives (contact with people, usefulness)

Research results: MOTIVATION TO RETIRE HEALTH: „I can‘t work“ = dominant motive among Czech elderly workers SATISFACTION in retirement „I like not to work“ –self-fulfilment (hobbies, travelling…) –family

Research results: EMPLOYERS‘ ROLE Workers‘ part: lack of interest on the part of employers = very important factor for the low rate of employment among elderly: cutting down of the number of employees is the second most frequent reason (after health condition) for leaving the labour market anyway, only a minor group (4 %) of the working older employees feels pressured by the employer seniors are to some extent aware that their shortcomings in qualifications can be a problem (20%), but most of them (62%) are not willing to pursue further education, 57% of this group sees no reason for this activity.

Research results: EMPLOYERS‘ ROLE Employers‘ part: elderly people and retirees are „the last choice“ (majority of employers would choose another category of worker if they had the option) employers‘ demands: employees aged 50+ should have higher qualifications, professional knowledge and skills and PC skills Discrepancy: at the same time employers are not willing to invest in training of elderly workers (only fewer than 7% of employers find this investment effective without age limitation).

Research results: EMPLOYERS‘ ROLE Employers‘ agreement with a given feature in employees aged 50+ * Scale of 1-5, where 1= completely agree and 5= completely disagree Source: Markent: Elderly people employment: Organisations. Final report of the survey, In: Remr, J.; Kotíková, J. (2007): Support of elderly people employment: Summary report. Praha: VÚPSV, Markent.

Key background factor: EDUCATION Higher education… higher job position (predominantly not manual) less physical demands higher wage higher income decrease after retired higher readiness to further education better overall labour market prospects Lower education… lower job position (often manual) higher physical demands lower wage lower income decrease after retired lower readiness to further education worse overall labour market prospects

Implications and conclusions To support the elderly people employment is essential: Support of LLL / education of elderly (incl. the offer of specially designed courses…) Financial benefits of employment of elderly (benefits for employers as well as employees) Support of flexible working life (combination of working and „relaxing“ life, reducing health load) Change of negative attitude towards elderly (complex, long-lasting process) Good news: Some steps to implement measures supporting these goals are envisaged in the strategic document “National Programme of Preparation for Ageing” for

Thank you for your attention! Zdeňka Šímová