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Consider this thought exercise: How old is too old—or too young—to work at your company? What about when considering a management role or VP? Does age play a role in those decisions where you work, and should it?
In today's workforce, ageism, or discriminating against individuals based on their age, presents a pervasive challenge. While it can impact individuals across generations, its effects are particularly pronounced among older workers, who often find themselves marginalized despite possessing a wealth of experience and expertise. Ageism is a multifaceted issue, but one thing is clear: Businesses are missing out on the valuable contributions of seniors because of misplaced stereotypes. If leaders can understand the detrimental effects of ageism in the workplace, they can become better advocates and employers for this important group of workers.
The Cost of Ageism
Despite their accumulated knowledge and proven skills, older workers frequently encounter bias that undermines their career prospects. A whopping 93% of workers say ageism occurs in their workplace, and a 2021 AARP survey showed that 78% of older workers have seen or experienced age discrimination on the job.
The challenges compound for women and people of color. AARP's research revealed that 72% of women aged 45 to 74 perceive ageism as a pervasive issue at work, overshadowing the 57% of men who reported it as a problem. Similarly, Gallup's findings indicate that 75% of Black workers and 61% of Hispanic workers face discrimination in the workplace.
Some legal frameworks, like the Age Discrimination in Employment Act of 1967 (ADEA) and the Workforce Investment Act of 1998, aim to protect older workers from discrimination. These laws have come with a hefty price tag for businesses that accrue penalties. Between 1997 and 2022, companies paid out over $90 million in some fiscal years to victims of ageism, with individual lawsuits costing anywhere from $2.85 million to $250 million.
The reasons why age discrimination occurs are blurry and stereotypical at best. Some have cited an inability to learn new technology or a “stuck in their ways'' mentality as reasons for passing over older employees. In hiring, older individuals are overlooked as businesses prioritize youthful energy over experience, particularly in tech. With the average retirement age jumping from 60 in 1995 to 66 in 2022, an inability to get hired at a later age leaves many unemployed and with limited retirement savings. In short, older people have to work longer today, yet they’re fighting a job market that doesn’t want them.
Leveraging the Valuable Expertise and Perspectives of Older Talent
Yet contrary to prevailing stereotypes, seniors constitute a valuable asset for businesses. As the fastest-growing segment of the American workforce, seniors are poised to play an increasingly pivotal role in driving organizational success. The Bureau of Labor Statistics projects a staggering 96.5% increase in the number of individuals aged 75 and older in the workforce by 2030, underscoring the demographic shift toward an aging workforce. Harnessing this demographic shift requires recognizing and capitalizing on the wealth of expertise that seniors bring to the table.
Firstly, seniors offer an unparalleled depth of knowledge. Even if they’re newer to an industry, their years of experience in professional environments have provided them with the emotional intelligence to help them see the bigger picture more clearly and contribute to their teams.
Additionally, their diverse perspectives contribute to a more inclusive workplace culture, fostering innovation and creativity that can help younger-generation teams think differently. And despite assumptions, seniors are eager and capable learners, demonstrating a strong interest in acquiring new skills and staying abreast of industry trends. This willingness to adapt and evolve positions seniors as invaluable teachers and motivators to entire teams.
Lastly, older workers play a crucial role in knowledge transfer, imparting the “soft skills” and resilience they’ve learned through the highs and lows of their careers to younger colleagues. A Gallup survey found there is a stark contrast in stress levels between generations, with 68% of Gen Z and younger millennials reporting workplace stress compared to 40% of baby boomers. By sharing coping mechanisms and stress management techniques, seniors can contribute to a more resilient and cohesive workforce as a whole.
Conclusion
The imperative to embrace age diversity has never been more pressing. By recognizing the inherent value of older workers and leveraging their expertise, organizations can unlock a wealth of benefits that extend far beyond the bottom line. From fostering innovation and creativity to promoting resilience and inclusivity, seniors play a pivotal role in shaping the future of work. It is incumbent upon businesses to dismantle age-based stereotypes and create environments that celebrate the contributions of workers of all ages. In doing so, they not only uphold principles of equity and fairness but also position themselves for sustained success in an increasingly competitive landscape. Embracing age diversity isn't just good for business—it's essential for creating thriving, resilient, and inclusive workplaces where every individual can thrive.
Sources
Columbia Mailman School of Public Health
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