The Challenges of Older Workers

8/8/2019 The Challenges of Older Workers

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CHALLENGES FOR OLDER WORKERS:MYTHS AND THE ACCEPTANCE OF AGEDISCRIMINATION IN THE WORKPLACE

Cathy Ventrell-Monsees

Senior Counsel to Chair Jenny R. Yang

June 9,2015

National Press Foundation


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OVERVIEW

•

Data points• Age and the workforce

• Challenges

• Impact of technology• Antiquated assumptions

June 9,2015



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DEFINING GENERATIONS

June 9,2015


1930 1940 1950 1960 1970 1980 1990 200

Traditiona

l

BabyBoomers

Generation X

Millenials


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AGE AND THEWORKFORCE

•

The 55+ workforce grewby 40% or8.3 million

since 2001. That’s nearly

equivalent to the

population of New York

City.

June 9,2015


!our"e# $areerBuilder

http://careerbuildercommunications.com/pdf/changing-face-of-us-jobs.pdfhttp://careerbuildercommunications.com/pdf/changing-face-of-us-jobs.pdf


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June 9,2015



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AGE IS RELATIVEWhat age is old?

Average responses of 50+ population said 71.5 is “o6 out of 10 individuals age 50+ “feel younger than thage”

69% of those with $50,000+ annual feel younger tha

their age, compared to 53% with lower incomes* Source: AP Center for Public Affairs Research, “Working Americans: Older Americans Attitudes Work and Retirement,http://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%

port-FINAL.pdf.

June 9,2015


http://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdfhttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdfhttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdfhttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdf


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IS AGE AN ISSUE?

•

62% of adults 50+ say their age is nor was not an issue in their work life

• 18% say their age is/was a liability

•

17% say their age is/was an asset

June 9,2015



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CHALLENGES

•

Prolonged Unemployment• Stereotyping

• Discrimination

• Technology

June 9,2015


UNEMPLOYMENTRATESOFOLDE


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UNEMPLOYMENT RATES OF OLDEWORKERS DURING ECONOMIC

DOWNTURN•More than doubled between 2007 and 2010:3.1% to 7

•Older workers remain unemployed for the longest perio

•By 2011, 35 weeks compared to 26 weeks for youngerseekers.

•By 2011 over 1/3 of all unemployed older workers had

been unemployed for over a year•Long term unemployment leads to earlier retirement anlower standard of living in retirement

Source: GAO,Unemployed Older Workers: Many Experience Challenges Regaining Employment and Face ReducedRetirement Security, GAO-12-445 (Washington, D.C.: April 25, 2012).


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June 9,2015



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AGEIST STEREOTYPES

•Costly to employ

•Less competent

•

Less motivated•Less adaptable and flexible

•Less energetic


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RESEARCH REFUTESSTEREOTYPESPerformance improves with age

Performance varies greater within aggroups than between age groups.

Return on Investment – Older workeless likely to quit

Economic downturn has changed

compensationnorms


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BABY BOOMERS –CHALLENGING STEREOTYPES

Baby Boomers:• healthier

• more active

• living and workinglonger

• age is relative

Changes in “Care• Compensation normhave changed

•

No longer “companman” for life

• Many jobs; differencareers

POSITIVE


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POSITIVECHARACTERISTICS

•

Experience• Patience

• Perspective

• Accuracy

• Loyalty (Boomers 65%; Millenials 20%)

• Benefits of diverse (multi-generational) team

June 9,2015 National Press Foundation


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WHEN DOES AGE DISCRIMINATION BEGIN?

HOWCOMMONISAGE


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HOW COMMON IS AGEDISCRIMINATION

•64% report age discrimination in the workplace

•92% say age discrimination is very or somewhat comm

•75% say their age has not caused their employers to tthem differently than other workers.

* Source: Staying Ahead of the Curve 2013, AARP Multicultural Work and Career Study; survey of 1502 adults age 45-74conducted in Nov.-Dec. 2012.


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DISCRIMINATION

•

20% of those age 50+ report personallyexperiencing age discrimination

• Older workers are more likely than youngworkers to say they have not been hired

due to their age(24% vs. 18%)• 22% of adults 50+ have searched for a join the last five years



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EEOC AGE DISCRIMINATIONCHARGES


0

5,000

10,000

15,000

20,000

25,000


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AN INCREASING NUMBER OF ADECASES FILED BY OLDER WOMEN

2013:

• 45%of cases (50 of 110) filed by women

– 25 alleged age and sex discrimination

2007:

• 32% of cases (37 of 117) filed by women


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“The most important fact … is why PA fired the fifty

seven year-old female, Barnett, but retained theforty-one year-old male, Gao. …Themostsignificant differences between the two are thatGao is male and younger than Barnett. Those are

differences a jury should be allowed to consider.”

Evidence: Barnett had highest performance ratingswas told she didn’t “fit” the group’s needs any mo

.GROUP,715 F.3D 354 (D.C. CIR. 2013)


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EEOC V. PMT CORP.(FILED MARCH 2014)

• Alleges PMT failed to hire women age 40+

• Alleges retaliation against HR Director whocomplained about direction to reject older femaapplicants for sales rep. positions

•

Screened out older applicants (women and mewith college graduation dates > 10 years prior

• PMT hired 70 people from 2007 to 2010 - Not owoman or applicant 40+

AGEDISCRIMINATIONINTECH


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AGE DISCRIMINATION IN TECHINDUSTRY

70% of IT staff surveyed by Information Week said they’ve witnessed oexperienced age discrimination.

http://www.informationweek.com/strategic-cio/team-building-and-staffing/too-old-to-eg-in-it/a/d-id/1279140

42% of age 50+ in tech industry consider age a liability to their career more thandouble the rate of other industries.(Source: h

ttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20CenterWorking%nger%20Report-FINAL.pdf)

•Zuckerberg:“Young people are just smarter”(Stanford 2007)

•ServiceNow ad on its careers page:“We Want People Who Have The


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TECH INDUSTRY JOB ADS:OLDER WORKERS NEED NOT APPLY

Fortune Magazine June 19, 2014http://fortune.com/2014/06/19/tech-job-ads-discrimination/

Apple, Facebook, Yahoo, Dropbox, and video game makerElectronic Arts all listed openings for “new grad”

Facebook settled age claim with CA DFEH fir a job posting for attorney “Class of 2007 or 2008 preferred)

Yahoo response to Fortune inquiry – ads targeting new or rece

college grads quickly disappeared from Yahoo’s career pages

http://www.informationweek.com/strategic-cio/team-building-and-staffing/too-old-to-earn-big-in-it/a/d-id/1279140http://www.informationweek.com/strategic-cio/team-building-and-staffing/too-old-to-earn-big-in-it/a/d-id/1279140http://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdfhttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdfhttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdfhttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Report-FINAL.pdfhttp://www.informationweek.com/strategic-cio/team-building-and-staffing/too-old-to-earn-big-in-it/a/d-id/1279140http://www.informationweek.com/strategic-cio/team-building-and-staffing/too-old-to-earn-big-in-it/a/d-id/1279140http://www.informationweek.com/strategic-cio/team-building-and-staffing/too-old-to-earn-big-in-it/a/d-id/1279140


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05

101520253035

05

TECH’S YOUNG WORKFORCE

http://fortune.com/2014/06/19/tech-job-ads-discrimination/http://fortune.com/2014/06/19/tech-job-ads-discrimination/


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Digital Natives

Job Ads Seeking“Digital Natives”

born with technology;2nd nature

Presumed to beyounger workers

Digital Immigrants Tourists

unfamiliar with digtechnology;

struggle to makegood use of

technologyPresumed to beolder workers

TREND:


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TREND:ONLINE & SOCIAL MEDIA

RECRUITMENT• 77% of employers used social media for recruiting

(SHRM 2013 survey)• Many online job applications require DOB field or othinfo indicating age; cannot proceed if not complete

ADEA:Request for age on an employment applicationnot a per se violation of the ADEA, but EEOC will

closely scrutinize such requests. (29 CFR §1625.4-5


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USE OF SOCIAL MEDIA IN HIRING

• 69% of recruiters rejected a candidate based on content foun

on social networks.*

• 68% hired a candidate based on information found on socialmedia profiles.*

• Zappos announced it will conduct recruitment and hiring thru dedicated social network (WSJ May 2014)

*Source: How Recruiters Use Social Networks to Screen Candidateshttp://mashable.com/2011/10/23/how-recruiters-use-social-networks-to-screen-candidates

graphic/.


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ANTIQUATED ASSUMPTION

• The Company Man

Facts:

• Average 4.4 years at each job

• Average 15-20 jobs over their working lives

• 91% of Millenials expect to stay in a job forless than 3 years


ANTIQUATED

http://mashable.com/2011/10/23/how-recruiters-use-social-networks-to-screen-candidates-infographic/http://mashable.com/2011/10/23/how-recruiters-use-social-networks-to-screen-candidates-infographic/http://mashable.com/2011/10/23/how-recruiters-use-social-networks-to-screen-candidates-infographic/


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ANTIQUATEDASSUMPTIONS

•

Older Workers are “likely to retiresoon” so it’s not worth it to hiresomeone in their 50s or 60s

• Fact: 36% of workers in 2015expected to continue working beyonage 65


ANTIQUATED


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ANTIQUATEDASSUMPTIONS

• Older Workers must retire to make room foryounger workers

Fact - Not a "zero sum“ equation; “no evidence

that Boomer employment negatively affectedthe labor force activity of the young”

Source: When Baby Boomers Delay Retirement, Do Younger Workers Suffer?Research Center (Sept. 2012).



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HIGH COST OF AGEISM• Perceived ageism has more serious health

consequences than perceived racism or sexism*• Long term unemployment leads to diminished incomeretirement;

• Drain on public benefits;

•

Loss to the economy when older workers are notearning, spending and paying taxes

Source: American Journal of Geriatric Psychiatry (July 2013).


HIGHCOSTOFAGE


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HIGH COST OF AGEDISCRIMINATION

$26 million verdict (Nickels v. Staples) (CA law against discrimination)

$3.2 million compensatory damages

$22.8 million in punitive damagesCommon Facts:

• Hired at age 55 and had solid performance ratings

• Staples took over, he became the regular butt of jokes at staff meetreferred to as “old coot” and “old goat.”

•

Refused to resign voluntarily when prompted to by a manager.• Subjected to a series of false accusations and increasing levels ofharassment from co-workers and a manager.

• Suspended for “stealing,” after taking a bell pepper $.68.

• Receptionist testified management ordered her to provide a falsestatement about Nickel’s conduct. She refused.

The Challenges of Older Workers

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