Implications of employee age on individual work performance and considerations to leave the organisation

Abstract

Purpose – This study investigates two distinct yet interconnected sets of relationships. First, grounded in the person–organisation fit theory, it examines the relationship between individual work performance dimensions – namely, task and contextual performance – and employees’ intentions to leave their current employer for organisations that are either more stakeholder-oriented or have a more ambitious reputation. Second, guided by considerations of demographic change, life-span development theory and socio-emotional selectivity theory, the study examines the relationship between age and individual work performance dimensions. Design/methodology/approach – To examine the relationship between individual work performance and person–organisation values fit as well as the association between different age groups and individual work performance, we use a path analysis on extensive survey data of Estonian employees (n = 3, 606) collected in autumn 2022. Findings – The dimensions of individual work performance influence employees’ consideration for leaving, but in counterintuitive ways. High task orientation is not associated with any considerations to leave the current employer. However, employees with high contextual performance are more likely to leave their current employment for an organisation with a more ambitious reputation. Those employees also show preference for a more stakeholder-oriented employer, which in itself is not a standalone reason to leave their current employer. Consistent with predictions from life-span development and socio-emotional selectivity theory, older employees demonstrate significantly stronger task performance yet notably weaker contextual performance. Research limitations/implications – Relying on self-reported measures of work performance may introduce biases, such as social desirability effects. The study relies on conceptual rather than validated constructs, which limits the interpretative depth and comparability of the findings. Objective performance measures could provide more robust insights. In addition, Estonia’s cultural context may limit the generalizability of our findings. Cross-cultural studies could elucidate the role of cultural factors in shaping the observed relationships. Practical implications – Organisations can reduce employee turnover by improving their public reputation for being more ambitious, whereas stakeholder orientation should not be undermined in this process. This is especially important for attracting younger employees, who also tend to exhibit higher contextual performance. For them, high ambitions and stakeholder orientation are not mutually exclusive. Organisations should consider that older employees tend to be more task-oriented, prioritising the specific job responsibilities. Originality/value – This paper enhances the current understanding of person–organisation fit by exploring two specific motivations – a more ambitious reputation and a stronger stakeholder orientation – for leaving the company and how these factors interact with individual work performance. Individual work performance, as a behavioural attitude related to work, has not previously been linked to employees’ intention to leave and age predicts dimensions of individual work performance.