Posts Tagged “experience”

The longevity dividend: Work in an era of 100-year lives

People are living longer, and organizations are shifting their attitudes toward older workers as a result. Organizations that can turn advancing worker age into an asset could gain a competitive advantage.

Longer lives, older workforces

Rising life expectancies and an aging global workforce present organizations with unprecedented challenges and untapped opportunities. Companies that plan, design, and experiment with workforce strategies, workplace policies, and management approaches for longer working lives can reap a longevity dividend. Those that lag behind face potential liability concerns and skill gaps. Creating ways for people to have meaningful, productive multi-stage and multidimensional careers is a major opportunity to engage workers across generations.

 

 

One of modern science’s greatest achievements is longevity: the unprecedented length of human lives today. Average global life expectancy has rocketed from 53 years in 1960 to 72 years in 2015—and it is still climbing,1 with life expectancy projected to grow by 1.5 years per decade.2 Longevity, combined with falling birth rates, is dramatically increasing the share of older people in populations worldwide.3 Looking ahead, the number of retirees per worker globally is expected to decline from 8:1 today to 4:1 in 2050.4

These demographic facts have profound implications for individuals, organizations, and society. In this era of longevity, an individual’s career can last far longer, spanning generations of technologies and businesses. Companies can employ people into their 60s, 70s, and beyond as the pool of traditional “working-age” (20- to 54-year-old) adults shrinks. For their part, many individuals find the need—financially and/or emotionally—to stay in the workforce past “traditional” retirement age.

In our 2018 Global Human Capital Trends survey, 29 percent of the respondents rated longevity as a very important issue, and another 40 percent rated it as important. Respondents in Japan in particular, whose population is rapidly aging, were especially concerned about the issue, with 41 percent saying that it is very important.

The looming impacts of global aging

Population aging poses a workforce dilemma for both economies and organizations. Thirteen countries are expected to have “super-aged” populations—where more than one in five people is 65 or older—by 2020, up from just three in 2014.5 These include major economies such as the United States, the United Kingdom, Japan, Germany, France, and South Korea. China’s 65-and-older population is projected to more than triple from approximately 100 million in 2005 to over 329 million in 2050.6 In fact, analysts have estimated that 60 percent of the world’s population over 65 will live in Asia by 2030.7

Compounding the challenge, almost all developed economies now have birth rates below the replacement rate of 2.1.8 This means that companies in these countries must either attract workers from abroad or tap into the maturing workforce. For a view of the challenges ahead, one needs look no further than Japan—the world’s oldest country—where a shortage of roughly 1 million employees in 2015 and 2016 is estimated to cost nearly $90 billion.9

New research is being conducted to help organizations shape their talent and business strategies for an era of longevity. The MIT AgeLab, for example, works with businesses, government, and other stakeholders to develop solutions and policies aimed at engaging the elderly population. The AgeLab uses consumer-centered thinking to understand the challenges and opportunities of longevity in order to catalyze innovation across business markets.10

Older talent as a competitive advantage

As talent markets grow more competitive, organizations often find it valuable to keep older workers on the job rather than replace them with younger ones. Our research shows that older workers represent a largely untapped opportunity: Only 18 percent of this year’s respondents said that age is viewed as an advantage in their organization. But leading companies are beginning to focus on this talent pool as a competitive advantage.

The older labor pool represents a proven, committed, and diverse set of workers. More than 80 percent of US employers believe that workers aged 50 and more are “a valuable resource for training and mentoring,” “an important source of institutional knowledge,” and offer “more knowledge, wisdom, and life experience.”11 The UK government incentivizes employers to retain, retrain, and recruit older workers, and it is committed to policies that support lifetime learning and training and decrease loneliness and social isolation.12

Proactive organizations are tapping into the older talent pool by extending their career models, creating new development paths, and inventing roles to accommodate workers in their 50s, 60s, and 70s. This year, 16 percent of the respondents we surveyed for this report say their companies are creating special roles for older workers, and 20 percent are partnering with older workers to develop new career models. Organizations could find great value in older workers’ ability to serve as mentors, coaches, or experts. Taking on these kinds of roles allows older workers to “pass the baton” to younger generations, while making room for ambitious younger workers.

Many companies are also experimenting with workplace changes to help older employees remain in the workforce. For instance, BMW increased productivity on an assembly line staffed with older workers by 7 percent in just three months through simple changes such as providing cushioned floors and adjustable work benches.13 Home Depot and other organizations are engaging older workers with flexible scheduling options and part-time positions.14 Further, as many as one-third of retirees are willing to work part-time, offering opportunities to leverage this group on a contingent or gig basis.15

Reskilling also plays a role in successful strategies to utilize older talent. One global telecommunications provider encourages senior workers to reinvent themselves and invests in programs to help them acquire new technical skills.16 Software engineers who have built careers on older technologies such as COBOL or C++ can use this experience to learn mobile computing, AI, and other technologies at a very rapid rate.

An interesting and little-known fact, moreover, is that older people are among the most entrepreneurial of workers across age groups. Between 1996 and 2014, the percentage of older workers (aged 55–64) starting new ventures increased—exceeding (by 68 percent) the rate of entrepreneurship among millennial entrepreneurs (aged 20–34), which actually decreased during the same period.17

The new challenges of an aging workforce

The transition toward older talent can present challenges. Older workers may have specialized workplace needs and can attract resentment from younger workers, and they often enjoy higher salaries because of their tenure. Organizations looking to assimilate an older worker population may face the need to design new wage policies, create more flexible rewards programs, and train young leaders to manage people across generations (including team members who may be their parents’ age).

Pensions are another area where longevity impacts organizations. The World Economic Forum estimates that a $70 trillion global retirement savings gap exists today, highlighting the sharp difference between retirement needs and actual retirement income. Moreover, this gap is projected to grow to $400 trillion by 2050.18 Helping older adults to work longer and manage their retirement savings will be a vital need for companies in order to avoid the negative productivity effects of financial stress.

Our Global Human Capital Trends research shows that many organizations are unprepared to deal with the aging of global workforces. Nearly half of the respondents we surveyed (49 percent) reported that their organizations have done nothing to help older workers find new careers as they age. Rather than seeing opportunity, 20 percent of respondents view older workers as a competitive disadvantage, and in countries such as Singapore, the Netherlands, and Russia, this percentage is far higher. In fact, 15 percent of respondents believed that older employees are “an impediment to rising talent” by getting in the way of up-and-coming younger workers.

Based on these findings and our anecdotal observations, we believe there may be a significant hidden problem of age bias in the workforce today. Left unaddressed, perceptions that a company’s culture and employment practices suffer from age bias could damage its brand and social capital.

Age discrimination is already becoming a mainstream diversity issue and liability concern. More than 21,000 age discrimination complaints were filed with the US Equal Employment Opportunity Commission in 2016.19 The problem is particularly acute in Silicon Valley’s technology industry, where older software engineers are often pushed to take lower-paying jobs or look for work outside Silicon Valley because of the emphasis on the “youth culture.”20

The demographic math is undeniable: As national populations age, challenges related to engaging and managing the older workforce will intensify. Companies that ignore or resist them may not only incur reputational damage and possible liabilities, but also risk falling behind those organizations that succeed in turning longevity into a competitive advantage.

The bottom line

Staying competitive in a world of unprecedented longevity demands that organizations adopt new strategies to engage with older talent. Traditional assumptions—that learning ends in one’s 20s, career progression ends in the 40s, and work ends in the 60s—are no longer accurate or sustainable. Rethinking workforce strategies across multiple generations to account for longer lives will require open minds and fresh approaches.

What role does the C-suite play in capitalizing on longevity? How can individuals adjust?

Older workers face ‘outdated stereotypes’ throughout hiring processes

Businesses encouraged to look closely at recruitment or miss out on valuable knowledge and experience

Grey matter: Older workers have invaluable experience and knowledge

Grey matter: Older workers have invaluable experience and knowledge

Date: 26 January 2015

Older workers looking for work are often alienated by outdated hiring practices, according to employment minister Esther McVey.

McVey was commenting on a Recruitment and Employment Confederation (REC) report in which one-third of employers admit they should be doing more to provide opportunities for older workers.

The survey of 200 UK employers also suggests that 37% cite advertising as a hurdle to attracting workers over 55-years-old.

One in five employers said that the language used in recruitment campaigns should be inclusive for all age groups – while 17% said that organisations should look beyond solely advertising online to ensure candidates of all generations are reached.

McVey commented that more and more older workers are now looking for a new challenge in employment – and that “they have a hugely valuable contribution to make to any workforce.”

“Despite the recent impressive trends in those over 50 getting back into work, older workers still in many cases face outdated stereotypes when it comes to business hiring practices,” she said.

“Not only is this a waste of valuable talent and ‘life skills’, but it’s a missed opportunity for businesses to make their most of their experience to support younger colleagues develop their careers.”

DWP business champion for older workers Dr Ros Altmann added that it is vital for the economy that people living longer and wanting to work are given the opportunity to do so.

“Businesses need to act now in order to benefit from the extensive skills and experience that older workers bring. It is important not to rule out older applicants when recruiting new talent,” she said.

“In March I will publish evidence of the business case for retaining, retraining and recruiting older workers. As today’s survey shows, ongoing training and ensuring all workers have up-to-date skills will also be vital to make sure older people are not overlooked in the recruitment process.”

Finally REC chief executive Kevin Green suggested focusing on older workers could be one way to address the UK’s burgeoning skills crisis.

“Simple changes to the language used in job descriptions and the way jobs are advertised could be significant,” he said. “We encourage hirers to work alongside specialist recruiters who understand the benefits that older workers can bring, and who can help tailor job roles to meet their needs.”

– See more at: http://www.growthbusiness.co.uk/news-and-market-deals/business-news/2477897/older-workers-face-outdated-stereotypes-throughout-hiring-processes.thtml#sthash.IQ62aqdf.dpuf

Age Discrimination Commissioner Susan Ryan says workplaces need an overhaul to stop age prejudice

Date:  November 10, 2014

Reporter at The Canberra Times

Age Discrimination Commissioner Susan Ryan.

Age Discrimination Commissioner Susan Ryan. Photo: Andrew Meares

Lifting the pension age to 70 will make sense in the future, but first there must be a massive overhaul to keep people in the workplace, Age Discrimination Commissioner Susan Ryan says.

Ms Ryan said the federal government’s plan to raise the pension age to 70 by 2035 came as a “bombshell” to many older workers but was a signal things had to change now.

“We’ve got people in their 50s who are considered too old to be employed,” she said.

“Let’s address that problem now and then by the time we get to 2035… if you fixed up the workplace… you’d find most people would want to keep working until they’re 70.

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Ms Ryan will deliver the keynote speech on Tuesday at the Academy of the Social Sciences in Australia annual symposium tackling the “extremely timely” topic of population ageing and Australia’s future.

“The whole issue of the impact on the economy of the ageing population needs more attention,” she said.

“I’m trying to focus decision makers on this huge looming issue of a rapidly growing older age group, but not an age group that needs to be seen just as a burden… mostly people retain health and energy until they’re 70 and… a willingness to work in the appropriate way.”

Ms Ryan said in coming weeks the commission would begin surveying employees and employers across the country to assess for the first time the prevalence of age discrimination in the workplace.

“We are hoping to get from that… a national picture of how much age discrimination there is, what the factors are that cause people to leave the workplace too early,” she said.

“I’m keen to see a better picture of how far having a higher education assists you in your working life… we want to see if it assists people stay in the workplace for as long as they want to.”

She said governments need to think ahead and plan for industry changes that left older workers in their 50s and 60s highly-skilled but unemployed and unable to find a new job because of age prejudice.

Her solution would see older workers undergo a “career check-up” giving them advice about finding a new skills base if needed.

Although blue-collar and trades workers are often the hardest hit, Ms Ryan said they weren’t the only ones affected by the widespread problem.

“You certainly see it in white-collar jobs, particularly in the middle level… in public and private sectors,” she said.

“Everyone should have the opportunity to recheck where they are going at about 50.

“If the sector they’re in is losing jobs they can see… where the other jobs are, what training they need and how they can get it.”

She said the “coordinated national approach” would need input from state governments, business leaders and training institutions, but should be led by the federal government because of the massive impact on the national economy.

Rather than “massive new funding” it would require “better investment in capable middle-aged workers”.

Modelling by Deloitte Access Economics for the Human Rights Commission shows that a 3 per cent increase in workforce participation for workers over 55 – beyond an already expected 2.7 per cent by 2024-25 – would contribute an extra $33 billion to Australia’s GDP.

Ms Ryan said it showed the economy could be massively strengthened without huge changes.

“The people are there, they want to work, they’re able to work… it’s a matter of having an approach and a system that brings the skilled highly-motivated mid-life workers into a position where they are able to take up the jobs that are available,” she said.

Read more: http://www.canberratimes.com.au/act-news/age-discrimination-commissioner-susan-ryan-says-workplaces-need-an-overhaul-to-stop-age-prejudice-20141110-11jn85.html#ixzz3IiMfphxp

Intergenerational Report will reveal massive cost growth: Hockey

Political Correspondent
Canberra
http://cdn.newsapi.com.au/image/v1/external?url=http://content6.video.news.com.au/Q4MzV3cDpw7WBKfchAKYSPeHl02Wzmlb/promo236831354&width=650&api_key=kq7wnrk4eun47vz9c5xuj3mc

A MASSIVE spending burden threatens to tip the nation into decades of deficits, according to new government findings that will be released early next year to jolt parliament — and the public — into accepting another wave of budget reform.

Setting a new strategy in the political fight over difficult ­savings, Joe Hockey has decided to hold back the official analysis to maximise its impact on national debate when parliament sits in February.

The findings will set off a debate over the nation’s long-term challenges by feeding into the tax reform white paper, which will consider the GST, and influencing the federation white paper on key issues such as the mounting cost of healthcare.

Mr Hockey considered publishing the long-range Intergenerational Report this year but rejected the option in favour of timing the new Treasury analysis to prepare the ground for further savings in the May budget.

The Treasurer, who is in New York and Washington this week for a series of meetings with business leaders and fellow finance ministers, warned of a “massive growth” in costs to be revealed in the IGR as the population ages and the commonwealth struggles to keep paying for the services Australians have come to expect.

“The IGR will come out early next year — not late this year but early next year,” Mr Hockey told The Australian. “That will create a framework that will help define the destiny of the federation white paper, the tax white paper and the budget next year.

“So it is a document that will begin the national discussion about where our economy must go — which is to focus on growth and jobs, and to reduce the complexity and red tape of government.”

Highlighting the cost of inaction on major savings, the report is likely to contrast the long-term improvements from the Coal­ition’s budget measures with the steady increase in government spending if Labor, the Greens and others succeed in permanently scuttling the reforms.

Bill Shorten has vowed to destroy the government’s budget reforms in the parliament and at the ballot box, branding the savings unfair because those on low incomes feel the biggest cuts as a proportion of their income.

“Why is it that this is a government who always asks the most vulnerable to do the hardest and heaviest lifting?” the Opposition Leader said in parliament last week.

The government appears set to use the IGR to shift focus away from the immediate losers from each measure and pay more attention to the risks to future generations from continuing deficits.

The new document is expected to influence some of the government’s most fundamental tasks in the rest of this parliamentary term, including the federation white paper, as it examines the long-term savings from cutting duplication between commonwealth and state spending in areas such as health and education.

It will also have a direct impact on the tax white paper, which will examine incendiary ideas such as an increase in the rate and base of the GST, as well as the wider search for new savings for the May budget next year.

Mandated under federal law to show the nation’s fortunes over 40 years, the IGR was last issued in January 2010 and sparked a furious debate about an estimate that the population would rise to 36 million by 2040.

Labor initially aimed to produce another report three years later but chose not to as the 2013 election loomed, leading Mr Hockey to consider releasing the sensitive forecasts sometime this year. But a Senate blockade has contributed to another delay as the government tries to secure some of its budget savings in the upper house against the objections of Labor, the Greens, the Palmer United Party and others. The savings being stymied are worth about $30 billion over four years but would have a far greater impact on the long-term projections by cutting outlays on Medicare benefits, universities, family tax benefits and pensions.

Mr Hockey said he would not speculate on whether the next report would show any improvement in the deep deficits projected in the last report, which warned of a “fiscal gap” from the strain of paying for services as the population ages.

The January 2010 report found that federal government spending would exceed revenue by 2.75 per cent of GDP in 2040 on existing trends, as relatively fewer taxpayers had to carry the burden for a growing number of pensioners. Labor acted on the problem by legislating a future increase in the pension age to 67 and applying stricter tests on family tax benefits, but those reforms are not enough to fix the gap. “What the IGR will do is illustrate that the massive growth in costs associated with an ageing population have simply become more urgent for Australia to address,” Mr Hockey said.

The Coalition is seeking to extend some of the Labor reforms by making further cuts to family tax benefits — saving $7.4bn over four years from benefits worth $70bn over the same period — and trying to increase the pension age to 70.

While the pension age reform delivers no saving in the budget forward estimates, it starts to take effect from 2034 and would make a significant difference to the IGR projections. Mr Hockey confirmed to The Australian that the government was thinking of using contrasting projections in the next IGR to show the impact of its budget reforms when compared with “business as usual” if the Senate continues to stymie the changes.

“That’s certainly under consideration,” he said in an interview ahead of his visit to the US this week.

“There are some people who need to be reminded how important the structural reforms in the last budget were, and how essential they are for Australia to be able to live within its means in the future.”

A spending gap of 2.75 per cent of GDP would produce a deficit of about $50bn a year in today’s dollars. Last year’s deficit was 2.8 per cent of GDP but the government wants to cut this to 1.6 per cent in 2014-15.

How an ageing population will stunt our growth

The Australian economy continues to be underpinned by strong population growth, but the data also highlights the increasing divergence between the Australian states.

Population growth remains weak in both South Australia and Tasmania, with both states struggling to attract immigration and capital investment.

The Australian population rose by 1.7 per cent over the year to the March quarter – reflecting strong growth on the east coast – and will continue to underpin real GDP growth for the foreseeable future. Nevertheless, population growth has begun to slow over the past few quarters.

New South Wales and Victoria continue to lead the way, with their populations rising by 1.6 per cent and 1.9 per cent, respectively, over the past year. The population in NSW sits at 7.5 million, and in Victoria at 5.8 million.

But the strongest growth remains in Western Australia. The mining boom might be over, and former mining towns have now become ghost towns, but their populations continues to rise at a rapid pace.

 

 

The population in WA rose by 2.5 per cent over the year to the March quarter. This is well down on its peak during the mining boom – 3.7 per cent growth over the year to September 2012 – but it remains rapid in every sense of the word.
Graph for How an ageing population will stunt our growth

Population growth reflects a number of factors. Economic opportunity can explain a great deal of WA’s growth; the mining boom made the state a particularly attractive destination for not only immigrants but those living interstate.

For NSW and Victoria it is a combination of the nation’s pursuit of high immigration combined with the appeal of big city living. Queensland, to a lesser extent, benefits from this but also from the mining boom and intangibles such as their tropical climate.

At the other end of the spectrum we have states where opportunities have been poor. Population growth in South Australia and Tasmania have been remarkably soft given Australia’s high immigration intake.

I’ve been critical of our federal government’s preference for a ‘Big Australia’ because it has been pursued with little regard for our existing infrastructure and natural resources (The Big Australia illusion; April 22). But low population growth poses its own set of problems.

Why would businesses invest in SA or Tasmania when their market would grow more quickly elsewhere? They might be beautiful states but there’s little room for sentimentality in business.

Attracting capital investment has been difficult in these states – so difficult that it encouraged the Tasmanian government to sponsor an AFL team to increase tourism and offer the most generous first-home builder grants in the country. Tasmania has to be creative to keep its economy chugging along.

The other trend worth keeping an eye on is Australia’s ageing population. This has been well documented on a national level, but each state will be affected differently.

Over the past few decades Australia and each of the states has experienced favourable demographics that have helped boost real GDP growth. From 1980, the share of the population aged between 25 and 54 years of age increased sharply in each state and territory. Workers are traditionally most productive within this age group.
Graph for How an ageing population will stunt our growth

That created the sweet spot for economic growth and, combined with rising labour force participation among women, created the perfect environment for strong growth. But those favourable demographics are at an end, with the share of the population between 25 and 54 years old now on the decline.

The effect has been felt most in Tasmania and SA, where the populations are oldest. But each of our six states is generally quite old, and growth will continue to be hamstrung by an ageing population.

The Australian economy continues to be underpinned by strong population growth but it has been concentrated on the east coast and in WA. Despite a strong immigration intake, our demographics continue to turn unfavourably and that will weigh on growth over the foreseeable future.

Gen Z falling through the cracks of economic recovery

Date   chael Emerson

Jobs are growing at a faster rate for baby boomers, and Australians in their twilight years, than for youth and young adults.

These surprising statistics are revealed in a study conducted for Fairfax Media.

Since the global financial crisis of 2008, Australian jobs have grown steadily, with 870,000 jobs added to the economy. However, the growth among lifestage segments has been varied. This has led to significant attitudinal changes among workers to employment, especially among the younger Gen Z (teens) and Gen Y (young adults) segments. 

As the chart shows, among full time jobs, Gen Z and Gen Y, have lost employment since 2008Gen Z has lost 48,000 jobs whereas for Gen Y the market has shrunk by 54,000 jobs, according to labour force data from the Australian Bureau of Statistics, modelled by EMDA, a business solution company, for Fairfax Media.

So what’s happened?

In any economic downturn, the young and least experienced suffer the most. Before the global crisis, Gen Z and Gen Y were known to be demanding. They were used to jobs being plentiful and so could pick and choose. Loyalty to an employer was an old-fashioned idea to them.

In the more difficult job market since 2008, there have been profound changes in attitudes, such as  delivering value to employers and concerns over the security of employment have become more prominent.

Unemployment among the younger segments is also the highest in the workforce. Among Gen Z it’s three times the average than for the rest of the workforce.

Among Gen Z there are sub-segments, which signal extremely concerning employment outcomes. Among indigenous Gen Z, unemployment rates are just over 30 per cent and among Gen Z new arrivals to Australia the rate is 42 per cent, according to census data.

Lack of education and work-related skills are major barriers to employment for these segments, and if unemployed for six months or more, it’s hard to get them into the workforce. Consequently, entrenched unemployment with its social and financial problems for the individual and society become the norm.

Education remains a key for a successful entry to the workforce.

For baby boomers, the job market has continued to be one of steady growth, with 240,000 full-time jobs added for this segment since 2008. Their experience and skills have kept them in good stead.

The real surprise is the growth in twilight careers (workers aged 63 or more). Although the smallest segment of the workforce, there are now 580,000 twilight workers employed, which is only slightly less than Gen Z (681,000). For this segment, 79,000 full-time jobs have been created since 2008. Their lifetime of work skills, their loyalty and reliability is increasingly appreciated by employers.

There is still some resistance to employing older workers, although this attitude is gradually changing.  This is good for twilight workers and the economy overall, but the downside could be there are fewer older Australians available to provide care for their grandkids. The numbers are significant: according to the census about 350,000 Australians over the age of 63 cared for other children, so more twilight workers in the paid workforce means less time available for child care duties. For Generation X parents, this can be a significant issue as one important factor which contributes to labour market participation among parents in the Gen X lifestage is access to child care.

Michael Emerson, is an economist and director of Economic and Market Development Advisors, EMDA. emda.com.au.

Source:  The Age

How your resume is turning off employers

  •  SEPTEMBER 16, 2014
Always customise your resume to the specific job you’re applying for.

Always customise your resume to the specific job you’re applying for. Source: News Limited

The majority of job seekers aren’t using their resumes to paint themselves in the best light, new research finds.

Three quarters of human resources professionals say one of the reasons they’re having trouble finding qualified candidates for their open positions is because of poor resumes, according to a study from the career network Beyond.

Overall, 73 per cent of the HR pros surveyed believe job candidates are doing a bad job of tailoring their resume to the specific position they’re applying for, and less than 30 per cent of job seekers say they always customise their resume to a specific job.

That means the majority of candidates are not taking advantage of the opportunity to highlight their most relevant experiences and to prove to employers that they are worthy of an interview, the study’s authors said.

Further underlining their need to alter the way in which they present themselves to employers, many of those looking for work aren’t sure whether hiring managers are looking for their hard skills, such as degrees and technical training, or their soft skills, like communication and teamwork, according to the research.

The study revealed that while hard skills will get candidates in the door, it’s their soft skills that will get them the job. Nearly 70 per cent of the HR professionals surveyed look at hard skills first when searching for candidates. Fifty-six per cent, however, said that the most important abilities in a new hire — and those that often get them the job — are soft skills, especially interpersonal relations.

“There’s no secret password for getting hired, however, job seekers can increase their chances by highlighting hard skills in their resumes and demonstrating soft skills during the interview process,” Beyond’s vice president of marketing, Joe Weinlick, said in a statement. “Many job seekers have the right ingredients; now they need to put them in the right order.”

The study was based on surveys of nearly 4,000 job seekers and human resources professionals.

This article originally appeared on Business News Daily and was republished with permission.

What’s the real cost of ageism?

 

By Neil Patrick and Dean Goranson

 

The debate about the relationship between employee age and business performance has been going on for ever. But the recent economic turmoil and its after effects on young and old alike have resulted in the topic surfacing again. It’s time to ditch the prejudices.

Employer attitudes can be summarised as:

Younger workers are cheaper to hire, have more up-to-date skills – especially in the area of technology and have more energy and dynamism. They also have lower reliability and significantly less loyalty.

Older workers stick around for much longer than their younger peers. They attain greater mastery of their work and have higher interpersonal skills. But they are also more expensive, less energetic and struggle with today’s technology.

This simplified view distorts the real question. There is no simple correlation between employee age and business performance. Having an older or younger workforce doesn’t automatically make your business perform better or worse. Neither does providing a great working environment result in greater staff loyalty.

The surprising truths about age and employee retention

According to the PayScale report, the Fortune 500 company with the highest median employee tenure (20 years) is Eastman Kodak. More than half of its employees are older than 50. Over the five years through 2012, according to data compiled by Bloomberg, it delivered an average return on assets of negative 12%…

Another myth is that creating a great working environment and culture for staff increases loyalty.

The perks Google lays on for its youthful employees are the stuff of legend. Free gourmet food all day, the best health insurance plan anywhere, five months’ paid maternity leave, kindergartens and gyms at the workplace, the freedom to work on one’s own projects 20 percent of the time, even death benefits. The tech behemoth has topped Fortune Magazine’s list of best companies to work for every year since 2007.

Despite this, Google ranks amongst those with the highest employee turnover rates. The median employee tenure at Google is just over one year, according to the payroll consultancy PayScale.

The simple truths are staring us in the face

So what are businesses to do? If you hire younger people, you are burdened with higher turnover rates. If your workforce is older, you risk stagnation and loss of competitive edge.

A friend of mine, Dean Goranson has provided a valuable perspective which I provide below. It’s a simple tale about his experiences when seeking to get his watch strap repaired.

Here’s Dean’s tale:

A while back I had somehow managed to break the watch band on my high end wrist watch. I finally got tired of running around with it in my pocket, so one day I decided to go down to the mall and check out the jewellery stores to either get it fixed or replaced.

The first store I stopped in, I showed the young lady my watch. She took it to her manager. He asked if I had purchased the watch in their store. I said , ”No”. He replied, “I’m sorry it’s the store’s policy to only work on Items we sell from here.” I then asked, “Isn’t that the style of watch you have in your display case?” “Well yes” was this young man’s reply “but we don’t service anything we haven’t sold. Perhaps you should try that watch band kiosk across from us.” This young manager who must of been well on the south side of thirty was definite in his conviction of his being right. Consumer experience was nowhere to be found on his radar screen. So off to the kiosk to see if I would have any better luck there.

The experience with the young lady who also appeared to be well on the south side of thirty turned out to be quite similar to the first store I had stopped at. I asked if she thought she could fix my watch band. “No, I’m afraid I can’t. We only sell watch bands and put them on for the customer and I don’t have anything that nice. I have an imitation leather if you want me to put that on for you?” I declined and bid her adieu. I really started to feel like this was becoming a quest by this point with no easy answers, yet on I trudged to the next jewellery store.

At the third store I was confronted by another well under thirty something young fella. I showed him the watch and asked if they could fix it “Let me get my manager.” The manager is summoned. Another under 30 something, he takes a look at the watch and say’s “Let’s see what my jeweller can do with this.” so over to the jewellers station we go he looks at it and say’s ” I’m not going to be able to fix this band.” the manager then asks ” Do we have any watch bands in the store to replace this?’ They look and no can do. “Well, I guess we’ll need to call home office to order a replacement.”

The manager asked the jeweller to call home office for the order, the jeweller came back and said he couldn’t get home office on the phone. The manager then asked, “Let me get your phone number and I will call you as soon as I find out something.” At least this young manager was trying to make my experience worthwhile but his operation was in such a state of chaos that he couldn’t make it happen. So off I went disappointed and frustrated.

By now I was a bit dejected at not being able to either get my watch band fixed or replaced.

 

Walking past the fourth jewellery store, I happened to look in and behind the counter were a couple of ladies. They were well up in age – the grey hair, the glasses and thick figures. I thought to myself what the heck, let’s see if they have any ideas.

Into the store I go and ask these two women, “I’ve got a broken watch band is there anything you can do with it?” “Let me see it,” the white haired gal asked. “We’ve only just started selling this brand of watch; you’ve had yours for a while haven’t you?” “Yes I have.” I could tell in her mind she was fussing over what her next move was going to be. “Let’s take this over to Bill and see what he has to say”.

So over to Bill we go who turns out to be their manager. He too is older and greying. The lady explains the situation to him and asks what they could do to help me. Bill looks at me and says ” Technically I’m not supposed to work on a watch we haven’t sold to a customer, the upper management has the fear we will get sued by someone who claims we broke their stuff.” “You wouldn’t do something like that if I worked on your watch would you?” I said “It’s already broken, what have I got to lose.”

Bill then asks,” Where did your watch fit on your wrist before the band broke?” I showed him and he said “Let me try something.” He took my watch over to another counter and came back in a couple of minutes and said “See if that fits over your hand?” My watch fits better now than it did before I broke the band. Bill even refused to charge for the repair.

A few weeks later it was a good friend’s birthday. And I bought her some diamond earrings. Did I shop around? No I just went straight back to Bill…


Horses for coursesDean’s experience is not research data of course. It’s no more or less than a personal experience. But I am sure it is one that most of us can relate to and have probably shared.

In the effort to improve on profits, what ends up being missed is the consumer experience – the part which keeps the customer coming back for more and recommending the business to others. This hinges on those people the business owner has retained to be the company’s representatives to the public. The higher the quality service the customer receives, the better the results for the business.

As Dean’s story relates, the different levels of service received directly influenced his purchase behaviour now and probably for many years to come. An older employee might be well past the dynamic approach of their youth. But today, youthful distractions are behind them. They have the rich experience of what quality service and customer care really mean.

It seems to me that it’s time to forget the over-simplistic and pointless debate of young versus old. What we need is a simple recognition that age in and of itself is not the issue. Skills and attitudes are what matter. If you want to give your customers excellent service, there is a strong argument for hiring older people. And even if they are slightly more expensive, you’ll recover these costs in longer tenure and enhanced customer loyalty. If you need the sort of perspective that the young have and can afford to replace them frequently, then hire young people. But don’t expect there’s anything you can do to keep them for long.

Let’s not be trapped by the pointless argument about which is better. The key to getting the best business results is about understanding the distinct merits of young and old, making hiring decisions on the value of each and the requirements of the role regardless of the candidate’s age.

Posted by at 11:11 

Don’t let age bias limit your opportunities!

Posted on  by Beverly Jones

Age Discrimination Starts Early!

These Strategies Can Help.

numbersWhile finishing her MBA at a top tier university, Sarah was enthusiastically recruited by a large company. She accepted their offer to join the marketing department. Once there, she connected with a powerful mentor who helped her snag plum assignments. For several years Sarah was the most junior professional in her group, and she enjoyed being treated like a young star.

After a few years, the growing company made a wave of new hires and Sarah began to feel neglected. She said she was stuck with routine workwhile the interesting new projects went to her younger colleagues.

Sarah was asked to supervise the internship program, but didn’t enjoy the work. She said the interns didn’t have the right work ethic and were obsessed by technology. One day as she entered the kitchen, she heard them making fun of her for being clueless about the power of social media.

When Sarah came to me for coaching, she complained that she was past her career peak. She felt like she was cut off from the company’s high potential challenges and might be too old to compete for another good job elsewhere. Sarah was 34 at the time.

Sarah felt she was the victim of age discrimination and to some degree her concerns were well founded. Ageism is rampant in the workplace and can be hard to fight. And even 30-something careerists like Sarah can find themselves sidelined by employers seeking fresh talent.

Sarah found ways to demonstrate her energy, talent and enthusiasm, and soon worked her way out of her slump. One thing that helped her was finding examples of older professionals whose age did need not seem to limit their success. She noticed that while some in her circle were dissed for being out of date, others seemed timeless despite their years.

If you’re facing a subtle age bias, a starting point for getting past it is to understand the negative stereotypes on which it’s based. Then make it clear that the stereotypes don’t fit you. Consider these strategies for minimizing the burden of ageism:

  •  Be tech-savvy. You don’t have to enjoy Skyping, sharing on Instagram or building a Twitter community. But if those are the ways that your colleagues or customers communicate, you absolutely must know how to join in. If you want to stay in the game, keep up with the technology. Take classes or find help, buy the devices, and do whatever it takes to keep your skills current.   And when you don’t understand the latest developments, avoid the temptation to indulge in a Luddite rant. Express an interest, ask for assistance and get on board.
  • Look and act fit. Some employers and younger workers believe that their older colleagues may have physical limitations that will prevent them from performing their fair share of the work. And your boss or clients won’t offer you new challenges if they think you are about to have a heart attack. If you want to maximize your career options, it is vital not only that you stay healthy but also that you look healthy and you exude energy.
  • Talk healthy. Most of us have health issues from time to time, but we can manage the way they impact us in the workplace. Beware of sabotaging yourself by talking too much about your symptoms or crises. If you endlessly discuss your health challenges, not only will you be boring, but people may start to think of you as frail and over the hill. Talk about the great hike you took last weekend, instead of how sore you felt on Monday morning.
  • Be stylish. Looking shabby may seem cool when you’re 27. But the older you get, the more important it is to look polished and up to date. If your clothes, hairdo or glasses seem out of style, you may seem like you are past your prime. That doesn’t mean you should dress like a kid, but you should aim for a look that feels current.
  • Don’t bring up your age. If you are older – or younger – than the people you work with, it is very tempting to keep mentioning that fact.   But if you can refrain from alluding to the age difference, there is a good chance that other people will forget about it.
  • Build a varied network. If you are accustomed to hanging out with friends of all ages, you are more likely to blend easily into a group of younger or older people. If you don’t allow age to be a barrier in your social life, you will be more comfortable talking and keeping up with different age groups at work.
  • Listen to your colleagues. A great starting point for building strong relationships at work is to genuinely listen to what other people have to say. If you’re part of the older set, show an interest in what younger folks say and learn from their perspective.

If you put aside your own prejudices about age and look for opportunities to work on projects with people of all generations, you’ll become more skillful at avoiding the burden of age bias.

Special Report: Ageism in the Job Market

 Ageism in the Job Market

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Are we our own worst enemies? Part 1 of a series on ageism in the workplace.

FIND A JOB by Eilene Zimmerman on 

“We’re looking for someone hungrier.”

“The right candidate is high energy.”

If you’re over 50 and job-hunting, chances are you’ve heard phrases like these. Or maybe you’ve been told you’re overqualified or too senior. These are code words for “too old” and they pepper the language of hiring managers nationwide. Jacquelyn James, director of research at the Sloan Center for Aging & Work at Boston College says when people are asked on surveys to rate others on the basis of age and corresponding characteristics, older people are associated with negative traits that include a lack of interest in growing and developing, inflexibility in thinking and an unwillingness to learn and adapt to new technology. “The data about those kinds of traits are very mixed and much of it is perception,” she says.  And some weren’t negative. “Older people are seen as having a good work ethic, as working harder and being more comfortable with authority.”

Add to such negative stereotypes the mistaken perception that people working into their 60s and early 70s are taking jobs from younger workers. Although arecent Pew study soundly debunked that, as does Kevin Cahill, a research economist at the Sloan Center, the belief is pervasive. Cahill says although people are retiring later, the idea that older workers need to move out of the way for younger workers is a misperception. “The argument breaks down pretty rapidly if you look beyond individual firms and over time,” he says.

See also: Top LinkedIn Tips for Job Seekers

But prejudice of any type, of course, isn’t based on fact, and much of the age bias we see in hiring is unconscious, says Jacquelyn James. That’s due, at least in part, to the fact that ageism is the least studied or examined form of discrimination. A recent paper on ageism from psychologist Susan Fiske and Michael North at Princeton University, called ageism “the most socially condoned” form of prejudice. And it has intensified. By the time people reach their mid-60s, two out of three have retired, either voluntarily or because they weren’t able to keep or find a job, according to research from Gary Burtless, a senior fellow at the Brookings Institution. By age 75, nine out of ten are out of the workforce.

Among the long-term unemployed, the situation is most severe for those over 55, who face the longest period of unemployment. Carl Van Horn, director of the John J. Heldrich Center for Workforce Development at Rutgers University, says although the number fluctuates, at least two million people over age 55 have been out of work more than six months and at least half of those for more than a year.

See also: How Can I Compete With People Younger Than My Kids?

Because ageism is often unconscious it’s tough to disarm. With any bias, the key to mitigation is awareness, says James. Fact is, people generally don’t think of themselves as biased. In order to fight the stereotypes—say, that older workers don’t embrace new technology—James advises job candidates be explicit with interviewers that they are eager to learn, and have history of learning and embracing new technology.

With the right strategies, job seekers can combat age-related stereotypes rather than buying into them, says James, and take steps to adapt to the changing culture of the workplace.

Speak the Same Language

“People over 50 grew up talking about their accomplishments, about what they did and how well they did it,” says Gail Palubiak, owner of Interview Academy in Denver, a job search and interview consulting firm that specializes in over-50 job seekers. “But companies today speak the language of contribution. And this is critical—because you are likely interviewing with someone who isn’t the same generation. So talk about how you served a company, not how great you are.”

Palubiak says a candidate who gets an interview is close to getting the job; at that juncture, it’s primarily language that becomes the barrier—not age. “Rather than saying, ‘I was the number one sales rep in my division,’ say ‘The company encountered serious competitive challenges in my division. Through my actions, ultimately the company was able to…’  and then show the contribution you made.”

It may also help to simply swim in the same water as those under 40. On Facebook, impressions of older people among those in their 20s are very negative, according to a new study, “Facebook as a Site for Negative Age Stereotypes,” authored by Becca Levy, director of the Division of Social and Behavioral Sciences at the Yale School of Public Health, as well as researchers at the University of California, Berkeley, Hunter College and the Hopkins School. Levy’s research, which was published online in the journal The Gerentologist, found negative stereotypes of older people were rampant. “One of the conclusions we had from the research was that social networking could be a way to break down intergenerational barriers and a great resource for older adults,” she says, making connections that could help with their job search and illustrating publicly that they are comfortable with technology younger people use.

Present Well, in Real Life, on the Phone and Virtually

Nicole Williams, LinkedIn’s career expert, says midlife job seekers often think they need to look younger, when what they really need is to look relevant. “Get your hair cut so the style is modern, wear something that makes you feel confident. You want to convey vibrancy, passion and energy,” she says. That goes for the photo on your LinkedIn profile too.

See also: Capitalize on Your Eclectic Experience

Companies often do a screening interview by phone before deciding to meet a candidate. Stand up and use a headset during that call, suggests Dana Manciagli, a career consultant and author of Cut the Crap, Get a Job. Manciagli says when you stand up, you dial up your voice and energy level. On the phone, age bias occurs when a candidate sounds feeble. “Even if it’s a 22-year-old screening you, it’s an interview,” she says. “Stand up, gesture with your arms and be energetic.”

Show a Solution

Remember that behind every job description lies a problem. As a candidate your questions should come early—rather than at the end of the interview as is traditional—to unearth the problems a company is trying to overcome. “Too often older candidates are preoccupied with trying to sell themselves, rather than trying to understand the issues facing the company,” says Palubiak. By offering ways you can contribute, you become a problem solver, she says, and that’s when age doesn’t matter.

Another strategy older job candidates often stress their expertise in a variety of areas. “It’s far better to stick to what your specialization really is,” says Palubiak. “It’s counter-intuitive, but trying to be everything to everybody dilutes your value in the market.”

Never Sell Yourself Short

Williams says midlife job seekers on LinkedIn often under-chronicle their experience, playing it down to avoid being dismissed as overqualified or too old. “A lot of employers have young employees and need older workers for their experience and ability to mentor, so don’t think there aren’t opportunities,” she says. “There’s ageism, yes, but don’t dig into that self-fulfilling prophecy that it means there’s nothing out there. As a 50-plus, promote your experience, your great organizational and leadership skills, and that you have a breadth of experience in your industry that will benefit a company.”

See also: 3 Key Questions Job Seekers Forget

She also suggests addressing the elephant in the virtual room—that you are a midlife worker—rather than dancing around it, by doctoring your photo and leaving dates and experience off your profile. Williams suggests stating in the summary section that in addition to your long history in the industry you have “an abundance of energy you want to share,” she says. “Make it clear you want to spend the rest of your career contributing to a company you feel passionate about.”

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