Determinants of Post-Retirement Employment in Sri Lanka

Sri Lanka has been undergoing the impact of population ageing. Many structural and behavioral changes begin to occur in the population as a result of this demographical shift. Re-employment after the formal retirement of employees increasingly becomes usual routinely marking it as a significant trend it in the economy. Therefore, there should be some significant determinants which determine this behavior of working after retirement in Sri Lanka. A quantitative and exploratory research study was launched as a field study depending on a comprehensive literature review. Six determinants were identified which impact to Post-Retirement Employment in Sri Lanka through the analysis. A new questionnaire was developed and then standardized after furnishing the pilot survey and reviewing by scholars, peers and other related third parties. Primary data was gathered from 97 post-retired employees. Since it was a one-time data collection, the study could be addressed as a cross-sectional study.


Introduction
Life expectancy of the communities around the world is ensured by better food, hygiene, increasing quality of health care and advances in sciences (Mayhew, 2003) and there are some notable materialized and structural changes in this increasing global population (Shultz & Henkens, 2010). With this rapid population growth and the significant changes, people are not willing to leave the workforce (Emanuel, Simon, & Segars, 2016). Re-employment after the retirement is a trend derived in Europe and North America at the end of the 20 th century (Arrowsmith & McGoldrick, 1997).
The nature of retirement has changed itself considerably (Feldman & Turnley, 1995) and also retirement is a process with multiple forms rather traditionally being concerned as a distinct and unforeseen termination of paid employment opportunity (Beehr & Bennet, 2007 as cited by Shultz & Henkens, 2010). As mentioned by Flynn (2010) it is exclusively obvious that some older workers who are even at the threshold of retirement are eager to obtain and exploit the advantage of policy initiatives which aim delaying the retirement. On the other hand, it is found that retired employees who re-employ themselves are noticed more happier and healthier than their non-working counterparts are (Kim & Feldman, 2000;Zhan, Wang, Liu & Shultz, 2009).
By the corporate sector point of view, many of primary and supportive activities in the value chain are now implemented by older workers. Even many dominant industrial countries in the world welcome retired employees into their workforces (Dumay & Rooney, 2011). Working after the retirement is not an abnormal phenomenon to Japan and South Korea (Kuhn, 2013) because in most of Asian countries, ageing rates are rising even surpassing those of the developed countries (Lim, 2003).
Sri Lanka is going to be an aged economy by 2050 and also, a significant rate of elderly population is still economically active by fostering their family economy and the nation's economy (De Silva & Fernando, 2013). However, there is a severe deficit of academic investigations on the extent to which the growth in employment of retired employees in the modern century (Lain & Loretto, 2016) though there is a clear cut trend in Sri Lanka relating to the Post-Retirement Employment. Therefore this study is committed to explore the significant determinants of Post-Retirement Employment behavior in Sri Lankan labor force

Review of Literature
Depending on a comprehensive literature review for this exploratory study, it is found that there are plenty of literature available in European and American contexts but no acceptable academic investigations to be found in Asian context focusing on Sri Lanka. It is discovered couple of socio economic theories and factors affecting to the post-retirement employment decisions of an employee focusing on Sri Lanka.

Theoretical Background
Strong theoretical support is obtained by the Work-Adjustment Theory (Dawis, England & Lofquist, 1964). If there is a best fit between rewards and personal values, an employee may remain at the workplace even without considering the retirement regulations. To fulfill this situation, there is another best-fit to be met from the organizational aspect which is called the fit between employee's abilities and job demands. If both fits are fulfilled, employees adjust themselves with the workplace. Employer could expect an organizational citizenship behaviour from the employee because values and job related skills orient with the current job and the organization. (Havighurst, 1961) institutes a strong foundation to the purpose of this study. It is explained if elders who could be active and healthier, personal relationships are more satisfied in later life. This theory influences indirectly to the concept of Post-Retirement Employment. The theory suggests that older people should continue the previous life roles, relationships and activities (working, caring and volunteering) while addressing new life roles (Zacher & Rudolph, 2017). Thus, it is not expected a relaxing or isolated life from older people but to be busier as before the retirement. But it is also disclosed that this theory ignores the socio-economic and health inequalities of older workers.

Activity Theory
Post-Retirement Employment is associated with the Continuity Theory (Atchley, 1971). Under this theory, it is ascertained that most of older workers maintain activities and relationships from previous life stages. Thus, they could maintain their occupational related relationship and activities (job) even after the retirement. This was presented as an extension of the activity theory and there are two types of continuities coming under under this theory. Internal continuity demarcates the memory on ideas, experiences, affect and skills whereas external equity emphasizes the role performance, activities and relationships. Having focused on Post-Retirement Employment, it is justified the preference of older people toward re-employment and the consistency of their work related features such as personality, values, preferences and beliefs. (McCall & Mortensen, 1970) makes a significant contribution to foster this study domain of Post-Retirement Employment. The emphasis of this theory is, age is not a concerning fac-tor for finding the most suitable job opportunity even in later ages (after the retirement). Thus, age becomes an immaterial factor in job-search model and one of its basic assumption is that individuals have infinite lifetime (Faggian, 2014).

Factor Exploration
Depending on the previous literature on this study domain, fourteen factors were explored affecting to the Post-Retirement Employment.
Expertise: Skills of older workers is a key factor for productivity which correlates with job performance (Turek & Perek-Bialas, 2013). The skills required from employees in the modern century differ from older skill sets and employees should be up to date and maintain their modern level skills (Robinson, 2000;Shaw, 2001as cited in Patrickson & Ranzijn, 2003.
Motivation for Post-Retirement Employment: Vroom (1964) defined motivation as a process governing the choice made by an individual among alternative forms of voluntary activity. Future time perspective and goal orientation define the relationship between ageing and motivation to stay employable (Elliot & McGregor, 2001;Carstensen, 2006as cited in Emanuel, Simon & Segars, 2016.

Post-Retirement Learning:
Post-retirement learning highly correlates to the experience that gained at the workplaces by retired employees (Paul, Kate, & Black, 2015). Both older male and female employees now want not only to retain in their jobs but also retrained for sharpening the future (Walker, 1990). There is an inverse relationship between receiving developmental opportunities and at the job and intention of full retirement which means future development potential for older workers if they continue working without retiring (Zappala, Depolo, Fraccaroli, Guglielmi, & Sarchielli, 2008). Schlosser, Zinni and Armstrong-Stassen (2012) acsertained that there is a persuasion among retirees to arrive back to the labour market with the intention of upgrading the knowledge, skills and abilities and those retirees could be called as continuos learners.
Self-Actualization: Many managerial employees in the corporate world modernly perceive that older labour could be applied as a substitute to the younger labour (Arrowsmith & McGoldrick, 1997). Many retired employees are nowadays looking for re-employing themselves to exploit sufficient level of opportunities to deliver their tacit knowledge onto younger generations (Flynn, 2010). Meaningfulness of working becomes a prerequisite for retired employees because self-identity and the work role could leave a person to seek an employment at retirement ages (Fasbender, Wang, Voltmer, & Deller, 2015).
Occupational Generativity enables post-retired employees unleash their potential and work in mentoring capacities for younger employees at workplaces.
Health Conditions: This is a widely discussed matter in terms of reemployment of older workers. Real health status could make an impact to determine retirement age (Messe, 2012). Ill-health is one of the main cause which impacts on the retirement at the mandatory retirement age (Vodopivec & Arunatilake, 2008). Person's ability to carry out the work such as physical limitations, health problems of the worker and health of the worker's partner (spouse) are significantly impact to retirement decisions made by older workers (Shacklock & Brunetto, 2011).
Occupational Demands: Workplaces should be recreated that making sensitive to the needs and preferences of older employees (Koc-Menard, 2009). It is concluded the necessity of proper ergonomics for older workforce is critical (Roper & Yeh, 2007). Pundt, Wohrmann, Deller and Shultz (2015) pointed out the corresponding occupational characteristics associating to occupational demands namely occupational appreciation, occupational autonomy and occupational contact which are relevant in the context for post-retirement work. It is vital to re-arrange workplaces "retiree friendly" (Dessler & Varkkey, 2009).

Legal
Enforcements: Legal enforcements play an essential role for enabling re-employability of post-retired employees but rigourous legal status could lead for a deterioration the reremployability (Conen, Dalen, & Henkens, 2012). Labour legislature in Sri Lanka should be flexibly amended to enable older workers to work after the retirement for flex working in order to increase labour force participation in Sri Lanka (Vodopivec & Arunatilake, 2008). In Sri Lanka, retirement age for public sector employees is 60 (compulsary retirement) whereas 55 is the retirement age for private sector employees (for female employees, retirement age is 50). However, there are cosiderable excemptions for this retirement age margins.
Financial Sustainability: Finance is the most prioritized reason which pushes older employees for post-retirement employment (Schlosser, Zinni, & Armstrong-Stassen, 2012). Older workers continue to work because of financial reasons (Kooij, Lange, Jansen, & Dikkers, 2008). Retirees may need to maintain an affordable luxury living with accomplishing comparatively higher living standards in the life (Schlosser, Zinni, & Armstrong-Stassen, 2012). Monthly income is regularly secured for post-retired employees because there is no significant evidence to prove the decline of monthly earning of older employees (Charni & Bazen, 2017). Younger employees are lower paid but older employees are highly paid (Hallberg & Eklof, 2010).

Intentions of the Employer:
Depending on the organizational support theory, perceived organizational support could get re-energized older workers to continue their careers even after the formal retirement (Cheung & Wu, 2013). Corporate restructuring may impact either positively or negatively to older workers. But older workers greatly demand to re-employ themselves in small and medium scale enterprises (SME) than giant organizations (Arrowsmith & McGoldrick, 1997). Employers are willing to offer more benefits to older workers in order to retain and keep satisfied them (Buyens, Dijk, Dewilde, & De Vos, 2009). But there are some discriminatory practices adapted by employers in terms of selection, performance appraisal, career advancement, interpersonal interactions and training and development (Cadiz, Pytlovany, & Truxillo, 2017).

Retirement Benefits:
Accessing for social security schemes is a fundamental right (Bekemans, 2007). Elderly population could make a great impact on rising social insurance and pension schemes (Aaltio, Salminen, & Koponen, 2014). Some employees may retire earlier even before the formal retirement age due to the entitlement for receiving higher amounts of retirement benefits (Hallberg & Eklof, 2010). In Sri Lanka, there are six legalized and approved retirement benefit schemes namely, Public Service Pension Scheme (PSPS), Employee Provident Fund (EPF), Employee Trust Fund (ETF), Farmers' Pension and Social Security, Fishermen's Pension and Social Security Benefit Scheme (FSHPS) and Self -Employed Persons Pension Scheme (SPPS).
Declining Fertility Rates: Sri Lanka is experiencing in declining fertility rates which seriously cause to population ageing in the country (Abeykoon, 1996;De Silva, 1994;Siddisena, 2004;De Silva & Fernando, 2013). Europe is experiencing the lowest fertility rate in the history by recording 1.58 children per couple (Buyens, Dijk, Dewilde, & De Vos, 2009). Declining fertility rates is perceived as a prolonged factor which leads for postretirement employment because European Union and some other individual European countries decided to increase the birth rate within those countries decided to increase the birth rate as a long term initiative for the labour market unbalance (RAND, 2005  Job Security: It was depicted that job security of older workers depends on the clasg of expectations between older employee and the employer (Patrickson & Ranzijn, 2003). There are several rifidities in the job market which disable retired employees to reemploy themselves and making vulnerable their future job security (Hurd, 1993). Job security is a matter which largely depends on the excellent perofrmance that employee could show (Cadiz, Pytlovany, & Truxillo, 2017). But job performance is not necessarily reduce with age (Brough, Johnson, Drummond, Pennisi, & Timms, 2011). With the interlink to the Spot Market Theory, fiems pay to its workers in a perfectly competitive labour market to their marginal product without concerning the age (Conen, Dalen, & Henkens, 2012).

Family Accomplishments:
Elderly population may move to another job even after the retirement because the family headdhips they bear. It is a cultural value that being elderly with their children and grand children (De Silva & Fernando, 2013). Extensively, elderly males provide material support to their children whereas elderly support them in tangible aspects (Perera, 1999). Older people need to make some changes in their living environments for either adapting to the current recidencies or relocating to cope with a more supportive environment due to decline their capacities (World Health Organization, 2015).

Theoritical Framework
Fourteen factors are identified which impact to postretirement employment decisions of retired employees in Sri Lanka depending on the literature that available in both local and global contexts. Those are comprised into a diagram as per figure 01.

Methods
Quantitative approach was selected as the approach of the current study and it is deemed as an exploratory research work since the involvement in a factor exploration. Exploratory study should be undertaken when not much information or awareness about the research purpose (Sekaran, 2010). Severe inadequacy of extended literature in the recent academia creates the research gap and it leads this attempt to further carry out as an exploratory study. The research problem is "what are the significant determinants of postretirement employment in Sri Lanka?" Unit of analysis is the individual (a postretired employee) and launched as a field study. This is considered as a cross sectional study because it entails oneshot data collection.

Motivation to Work
Post -Retirement Education

Self-Actualization Health Conditions
Occupational Demands

Job Security Declining Fertility Rates Increased Life Expectancy
Family Accomplishments

Figure 01: Determinants of Post-Retirement Employment in Sri Lanka (Literature Based) Source: Author
Since this is a quantitative study, monomethod was applied (Saunders, Lewis, & Thornhill, 2009) because only single quantitative data collection technique was adopted. That is questionnaire method. No standard questionnaires were available to the current study so that selfadministered questionnaire was taken for the data collection after ensuring reliability and validity. There is a high scholarly involvement (research supervisor, research coordinator and other academicians) in building up the questionnaire and amended it to theorize for this study purpose.

Sample
Population of the current study is unknown. Because no acceptable statistics available to ascertain the data of the population which is entire postretirement community in Sri Lanka. Therefore convenience sampling method was applied as a nonprobabilistic sampling technique. The sample demarcated only to 97 respondents with ensuring 69.3% response rate. There were no standard measurements for this domain of study in the literature therefore had to come up with a self-made questionnaire. Pilot survey was launched and Reliability and validity were ensured. Cronbach's Alpha value was 0.745 which ensures the reliability and KMO measure of sample adequacy was 0.569 which ensures the validity. The sample size for the pilot survey is 25 and the current study is carried out further since reliability and the validity of the sample was clearly ensured at the pilot survey.

Findings and Discussion
It is ascertained that average retirement age in Sri Lanka gender wise is 62 years for male employees and 61 for female employees. Public sector confirms the highest employable age that is 63 years. It is 62 years in the private sector and 61 years is the average retirement age in both non -

Findings from Exploratory Factor Analysis
Reliability was ensured of the data collected. As the depiction

Finalizing the Determinants of Post -Retirement Employment in Sri Lanka
Component 01 was renamed as Late Career Meaningfulness. There are three types of meaning of working called social meaning, personal meaning and financial meaning of work (Fasbender, Wang, Voltmer, & Deller, 2015). All the factors loaded under component 01 are covered by those three meanings of work. Therefore, the author of the current study exclusively applied the name, Late Career Meaningfulness for this component.

Component 03 was renamed as Health
Conditions. Plenty of academic reviews available explaining the impact of health conditions on late career employment decisions around the world. But here it is demarcated only to the annual report of World Health Organization (2015) which demonstrates comprehensively the health status of older workers.
There are another three factors called Legal Enforcements, Family Accomplishments and Social Security. For this determinants it was impossible to apply Exploratory Factor Analysis to quantify statistically but results were obtained by the univariate analysis. Therefore those are not rejected.

Comments by Respondents
In addition to the factors explored from the literature, some respondents in the sample pointed out factors which affect their postretirement employment decisions. Some of key comments by respondents are as follows.
 Need for gaining a distinct experience in a different field.  Uniqueness of the talent.  Integrity and commitment to work.  Nonavailability of a second layer of the organizational hierarchy.  Passionate to work (teaching and lecturing).  Serve to the motherland.
It is tracked that not only person related reasons impact to postretirement employment decisions but also organizational related reasons which complied much the key findings of this study.

Limitations
Definitional ambiguity makes an impossibility to be provided an independent definition to the term of retirement because it depends both length of the service period and completion the contract period of service. Consideration only postretired employees, working for a salary is another limitation of this study because not all postretired employees are employed under an employer for a salary. There are some retired workers who reactive as voluntary working, investors, entrepreneurs and self-employees. But this study only addresses the postretired employees which creates a demarcation.
The sample for the selected study purpose limits only to 97 individuals. But for reaching to a highly reliable result, it is important to move for bigger sample than this. Non-Availability of standard measurements in the relating and existing literature becomes a significant issue since this is the very first attempt in Sri Lanka to explore the factors affecting to postretirement employment. Therefore it was made a new questionnaire with conducting the pilot survey.

Conclusions and Recommendations
Male employees hold the highest potentiality for postretirement employment opportunities and the private sector in Sri Lanka is the most hospitable place for the postretirement employment for both male and female employees. Furthermore, it is determined that bearing family headships, being married and living in urban or semi-urban area significantly impact to postretirement employment in Sri Lanka by guaranteeing the determinant of Family Accomplishment. Moreover, retired workers are not financially satisfied therefore, they shift to re-employ themselves after formal retirement though they are entitled for retirement benefits. The employment opportunities of postretired workers are assured by the employment agreement because majority are permanent and contract basis employees.

Readjustment of retirement age limits
is recommended to amend the retirement age limits as 62 years for male employees and 61 years for female employees in the long run. Because the results of the study demonstrate that working community is reluctant to retire soon after completing the retirement age. Those are the average retirement ages of both female and male employees as per the analysis of the study. Postretirement educational opportunities become vastly available so that training and coaching are essential for post retired employees since majority of such workers shift to another organization to embark their second career after getting retired.
Government cost restructuring is another potential and benefit claiming age limits are recommended to be extended for EPF and ETF beneficiaries. Since the late life income is secured for postretired employees, Monthly contribution for such retirement benefit schemes could also be recommended to reduce. Strategic manpower planning is vital since postretirement employment is a rapid growing trend in Sri Lanka, organizations should prepare to welcome them in the near future. Organizations in the industry highlighting the corporate arena will not suffer labour deficits anymore in the future if they are ready to welcome retired employees who are looking for the second career initiation to fill up future vacancies. Therefore it is suggested to the institutional sector to come up with nondiscriminatory hiring practices and fair treatments to everyone in every industry.
Institutional and national level occupational appreciation would be a responsibility of both the corporate and the government sector to recognize the contribution to the national income expansion by postretired employees as senior citizens in the country. Therefore appreciating 'senior employee' could be applied as a non-financial motivation practice. This practices is not strange to Sri Lanka be-cause handful of organizations have already adapted this practice but here it is convinced that this practice should be widely accepted by both the private and public sectors. Finally, restructuring reward systems in private sector institutions is intentionally emerging because it is critically commended to introduce 'Age-Based' compensation system instead of 'performance-based' compensation systems. Because in the coming future, a significant portion of the workforce will be represented by the 'first time retired employees' so that age-based compensation system could lead to create a 'retiree-friendly atmosphere' within organizations.
Developing an initial questionnaire including quantifiable scales to measure the qualitative concept, post-retirement employment is recognized as one of significant contribution from this study to the existing academia. But still this questionnaire is not a standardized measurement so that it is critically needed the studies in future attempting to standardize the measurement scales.

Future Research Potentials
Since this is the first exploratory study carried out in Sri Lankan context in digging out the factors affected to post-retirement employment in Sri Lanka, it is further suggested to find out the following research gaps through launching scientific studies depending on the insights produced by the current study.
 How discrimination practices impact on the postretirement employment in Sri Lanka? (Determinant of intentions of the employer is not covered by this study).  Impact of Crude Birth Rate (CBR) and Crude Death Rate (CDR) on Post -Retirement Employment in Sri Lanka. (Fully neglected from the analysis in this study).