As companies struggle to fill vacancies amid the twin challenges of the Baby Boomers retiring and the Great Resignation, many are overlooking talent in candidates over the age of 50. Favoring younger candidates over older ones is not only illegal under the Age Discrimination in Employment Act of 1967 (ADEA), it’s short-sighted. With an increasing number of retirees looking for more meaningful ways to spend their later years, hiring older workers could be a win-win for everyone.
What does age discrimination look like today?
According to an American Association of Retired Persons (AARP) study, most people between the ages of 45 and 74 believe that age discrimination starts when workers hit their 50s, and 22% of workers believe age discrimination starts even earlier when workers enter their 30s and 40s.
Men and women perceive age discrimination in the workplace at different rates. Around 72% of female workers think people encounter age discrimination at work, while only 57% of men think older workers face discrimination, the study showed.
Age discrimination can manifest in a number of ways, including companies declining to promote older workers, or even laying off or firing older workers. The most common form of age discrimination, however, is not hiring older workers in the first place.
Hiring older workers can help companies
AARP’s study revealed that younger employees may be willing to work absurd hours to keep their employers happy, but older workers may be more engaged, stay with an employer longer, and have the practical knowledge to contribute.
More engagement
Engaged employees, defined by Gallup, are “those who are involved in, enthusiastic about and committed to their work and workplace.” According to AARP, 65% of employees ages 55 and up are "engaged," compared to 58-60% of younger employees.
Engagement can translate into increased productivity and revenue. Gallup found “engaged employees make it a point to show up to work and do more work,” with highly-engaged workers seeing a 41% reduction in absenteeism and a 17% increase in productivity. Highly-engaged units also have better customer ratings and sales numbers. Altogether, Gallup found that highly engaged behaviors led to 21% greater profitability.
Less turnover
According to the U.S. Bureau of Labor Statistics, older employees tend to stay at companies longer than younger employees. In January 2020, among workers ages 60 to 64, 54% had been employed for at least 10 years with their current employer, compared with 10% of those ages 30 to 34.
But turnover isn’t only an issue of loyalty. It can have a direct impact on a company’s finances.
Ever hear the saying, “Good help is hard to find”? It’s also expensive to find a great employee. Gallup reports the cost of replacing an individual employee can range from 1.5-2x the employee's annual salary.
To illustrate the aggregate impact of that figure, a 100-person organization that offers an average annual salary of $50,000 and experiences the average American turnover rate of about 20% will spend approximately $1.5-$2 million each year on turnover and replacement costs.
Lower turnover is better for the bottom line.
More experience
A study from Columbia Public Health found that “older workers bring a level of experience, critical thinking, and sheer knowledge that cannot be taught.” In certain highly skilled trades — like jewelers, embroiderers, cabinet and cheesemakers — the study found that it takes a decade or longer for workers to gain the technical skills necessary to do their job. Even in industries requiring less technical skill, like sales, it can take a significant amount of time for associates to become familiar and fluent enough with the product to be successful.
Cognitive ability isn’t necessarily correlated with age. Employees of different ages bring different abilities to the workplace. Harvard Business Review (HBR) explains that “for most people, raw mental horsepower declines after the age of 30, but knowledge and expertise — the main predictors of job performance — keep increasing even beyond the age of 80.”
There’s no age limit on learning new things, according to HBR, but there is a correlation between cognitive stimulation and productivity. The more intellectually engaged people remain when they are older, the more they can help contribute to the labor market.
Bridging the age gap
The average American retires at 62 and changes jobs 7–12 times throughout their career. Even with median job tenure of 9.9 years among old workers, that still puts most employees aged 50 and older navigating one more job change before retirement.
For older job seekers, Glassdoor’s company reviews are a great starting point for researching how a company treats its team. Have lingering questions about a company following an interview? Turn to Fishbowl, Glassdoor’s online workplace community for feedback on your concerns.