Inclusive leadership, matured age HRM practices and older worker wellbeing

The influence of the work environment on psychological wellbeing is an important consideration for organisations to motivate and retain older workers. This study examines how organisational factors can enhance older workers’ psychological wellbeing. Drawing on the Conservation of Resources Theory, we propose that the interaction of two organisational factors, inclusive leadership, and mature-age human resource (HR) practices, can foster older workers’ psychological wellbeing. Online panel data were collected from a sample of 398 older workers in the Australian public sector. Results showed that mature-age HR practices positively and partially mediated the relationship between inclusive leadership and psychological wellbeing. More importantly, we found that inclusive leadership acted as an antecedent and moderator by enhancing the ability of mature-age HR practices to beneficially influence the psychological wellbeing of older workers. Based on the findings, we discuss theoretical and practical implications.