Psychological Capital Mediates the Effect of HR Practices on Work Continuance Intention Among Older Employees: Evidence from Taiwan

Cheng-Wen Lee, Yuan-Chao Chi and Aileen Rachelle Aurelio Rabago

Advances in Management and Applied Economics, 2025, vol. 15, issue 6, 17

Abstract: As global populations age, retaining older workers becomes critical. This study investigates how HRM practices—training, flexible work arrangements, and health management—influence work continuation intentions among Taiwanese employees aged 45+. Grounded in positive psychology, it examines Psychological Capital (PsyCap) as a mediator and tests Perceived Age Discrimination and Work Flexibility as moderators. Using SEM-PLS analysis of survey data from 412 employees, we tested eight hypotheses. Results confirm that HR practices significantly enhance PsyCap (resilience, hope, self-efficacy), which in turn boosts intention to continue working—supporting PsyCap’s mediating role. Perceived work flexibility directly and positively affects continuation intent, underscoring its strategic value. However, perceived age discrimination neither directly nor moderatingly influenced work continuation intentions; similarly, work flexibility did not moderate the HR–intent relationship. These findings suggest organizations should prioritize HR strategies that build psychological capital and offer flexible work structures to retain older talent. While age discrimination may be salient socially, it does not appear to drive retention decisions in this context. The study provides actionable insights for HR practitioners aiming to foster inclusive, supportive environments for aging workforces, aligning organizational strategy with demographic realities.  JEL classification numbers: J26, M51, I12.

Keywords: Aging workforce; Psychological capital; Work continuance intention; HR practices; Perceived age discrimination; Work flexibility. (search for similar items in EconPapers)
Date: 2025
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