The influence of age diversity practices on workers’ well-being and intention to leave: The role of the relational psychological contract

Abstract

The aging of the world population poses numerous challenges for organizations, including the retention of an increasingly age diverse workforce. Drawing on psychological contract and social exchange theories, this study examines the effect of age-diversity practices on workers’ subjective well-being and turnover intention through a relational psychological contract. A sample of 257 Portuguese workers answered a questionnaire. Structural equation modelling (SEM) was applied to test the mediation model. The results showed that the existence of age-diversity practices contributes to the development of a relational psychological contract, which, in turn, leads to higher levels of well-being and lower turnover intentions. Theoretical and practical implications of results are discussed.