Investigating the Impact of Age-Differentiated Leadership on Retention and Performance-Related Outcomes: A Moderated Dual Pathway Model

Although research indicates that age-differentiated leadership (ADL) is positively associated with wellbeing outcomes for both younger and older workers, the ways in which it relates to performance and retention-related outcomes, and the mechanisms through which these effects occur, remain an important focus for further examination. Based on the Categorization-Elaboration Model (CEM, van Knippenberg et al., 2004), this study proposes and tests a dual pathway model suggesting that ADL is associated with retention-related outcomes via reduction in age bias, while self-rated performance-related outcomes are enhanced via information exchange. It is expected that these pathways will be stronger for older workers, compared to younger workers, based on lifespan developmental theories (Baltes & Baltes, 1990; Carstensen et al., 1999). Using a sample of 416 workers in Australia, the results showed that ADL predicted retention-related outcomes via age bias, and self-reported performance-related outcomes via information exchange. Age only moderated the strength of the performance pathway and not the retention pathway. This study offers empirical support for the theorized social categorization and information elaboration pathways in the CEM through which ADL positively impacts retention and performance-related outcomes, and expands the range of outcomes considered by previous research.