The multilevel impact of age diversity on group and individual outcomes: role of social integration

Purpose Workgroups are increasingly becoming more diverse. This study investigates the multilevel process and outcomes of age diversity via information-elaboration theory and social exchange theory. Design/methodology/approach Data were collected from employees and their immediate supervisors through time-lagged surveys at two banks in Pakistan. Seventy-eight groups comprising 305 group members participated in both surveys, with 78 group leaders participating in the second survey. Findings Multilevel analyses in Mplus indicate that objective age diversity has a positive association with well-being and perceived age diversity has a positive relationship with group performance at the group level, whereas, at the individual level, perceived age diversity is found to reduce social integration which in turn enhances employee turnover intention. Research limitations/implications Despite multiple methodological strengths, the research is limited by geographical context and is only focused on age diversity. Several contextual variables and mediating processes were also not included in the study due to time and resource constraints. Practical implications This research highlights the need for multilevel evaluation of objective and perceived age diversity. A clear articulation of the perceptions of individuals regarding age diversity at multiple levels can help understand ongoing processes within the group and achieve high levels of group performance and employees’ well-being. Organizations can focus on training efforts to capitalize on the benefits of perceived age diversity while weakening some negative effects at the individual level. This study provides a business case for employing older members of our society which can help address their high unemployment. Originality/value This study contributes to the literature by studying objective and perceived age diversity through the lens of information-elaboration theory, pioneeringly theorizing and testing social integration as the process of perceived age diversity and providing empirical support for the multilevel influence of perceived age diversity.