Employee well-being, early-retirement intentions, and company performance.

OBJECTIVE

To explore the relationship between employee well-being and early-retirement intentions, and the extent to which early-retirement intentions are associated with company performance.

METHODS

This study is based on cross-sectional survey data on the ageing employees of the Finnish metal industry and retail trade, collected in 2007 (company-level n = 129, employee-level n = 1281). It was analyzed using multinomial logistic and multiple regression analysis.

RESULTS

Poor work ability, frequent emotional exhaustion, low organizational commitment, and job control were associated with the prevalence of early-retirement intentions among aging employees in both industries. Metal industry employees' early-retirement intentions were associated with weaker company performance measured by the perceptions of the manager.

CONCLUSION

By enhancing well-being, employees may stay at work for longer rather than retiring early. Early-retirement intentions can be counterproductive for companies.