Workforce aging represents one of the biggest Human Resource challenges to an organization today. According to a recent report, most of the employees in Malaysia are intended to retire between ages of 60 to 65. The baby boomers generation is become older and birth rate is decreased which resulting in a workforce that the proportion of older employees is increasing. Demographic changes lead to a competitive environment in which organizations are facing large-scale workforce retirements and potential shortages of skilled workers. Some organizations establish programs in order to retain older employees to work beyond retirement age. Continuing trend of early retirement will cause potential shortfall of skilled labor in the future. Therefore,
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Employees perceive that the situation is fair and justice prevails. When employees think it is unequal and feeling under-rewarded, employee will definitely not to work beyond retirement age if they work in an unequal working environment. They can enjoy the rest of their life after they retire. When employees are over-rewarded, tension will creates guilt. In fact, it is usually no problem for workers of being over-rewarded. There are four comparisons of the equity theory include self-inside, self-outside, other-inside, and other-outside. Employees will decide whether to work beyond retirement age by comparing the offer of organization to others. Employees will compare employee’s benefit provided by organization such as salary, compensation, retirement program or employee care program. In theory of Organizational Justice, there are three types of justice which is distributive justice, procedural justice, and interactional justice. Distributive justice is most strongly related to organizational commitment and satisfaction with outcomes such as pay, bonuses, and promotions. Procedural justice relates most strongly to job satisfaction, employee trust, withdrawal from the organization, job performance, and citizenship behaviors. Interactional justice describes an individual’s perception of the degree to which she is treated with dignity, concern, and respect. In another word, employees’ decision to work beyond retirement age will be affected by the level of justice in an
Employees perceive that the situation is fair and justice prevails. When employees think it is unequal and feeling under-rewarded, employee will definitely not to work beyond retirement age if they work in an unequal working environment. They can enjoy the rest of their life after they retire. When employees are over-rewarded, tension will creates guilt. In fact, it is usually no problem for workers of being over-rewarded. There are four comparisons of the equity theory include self-inside, self-outside, other-inside, and other-outside. Employees will decide whether to work beyond retirement age by comparing the offer of organization to others. Employees will compare employee’s benefit provided by organization such as salary, compensation, retirement program or employee care program. In theory of Organizational Justice, there are three types of justice which is distributive justice, procedural justice, and interactional justice. Distributive justice is most strongly related to organizational commitment and satisfaction with outcomes such as pay, bonuses, and promotions. Procedural justice relates most strongly to job satisfaction, employee trust, withdrawal from the organization, job performance, and citizenship behaviors. Interactional justice describes an individual’s perception of the degree to which she is treated with dignity, concern, and respect. In another word, employees’ decision to work beyond retirement age will be affected by the level of justice in an