Individualized work arrangements and socio-economic factors in relation to motivation to continue working: a multilevel study of municipal influences

This paper introduces a socio-economic perspective on the relationships of idiosyncratic deals (i.e. i-deals) with motivation to continue working beyond retirement. On the basis of work adjustment theory, we expected that i-deals enable employees to engage in innovative behavior and professional development, through which they experience more work engagement, subsequently facilitating higher motivation to continue working. Moreover, on the basis of signaling theory, we introduced two socio-economic factors to explain when i-deals are most effective in the context of the current study among teachers: municipal child population growth and municipal unemployment. A study among 1,210 teachers in the Netherlands was conducted to test the mediation and moderation model. Results show positive indirect relationships of growth i-deals with motivation to continue working through innovative work behavior, professional development and work engagement, while indirect relationships were negative for accommodative i-deals. Moreover, child population growth boosted the relationships of i-deals, while unemployment accentuated the effects of professional development. The study contributes to the literature by showing the importance of socio-economic factors in explaining the relationships of i-deals and individualized HRM.