Age adds the economic edge

Given demographic trends across the industrialised world, there’s a clear case for hiring older workers.

Team output is significantly likelier to increase when people of different ages and experi­ences work together.

Several years ago, through our research for Deloitte, we asked about 10,000 companies, “Is age a competitive advantage or competitive disadvantage in your organ­isation?”

The answer prob­ably won’t surprise you. More than two-thirds of the companies considered older age a competitive disadvantage. This is consistent with data from the American Association of Retired Persons that shows two-thirds of individuals aged 45 to 74 have experienced age-related discrimination. In other words, if you are older, you are likely to be considered less capable and less able to adapt.

Much has been written about this recently because the workforce is ageing at a rapid rate. People 60 and older are projected to outnumber children under five within the next year, and by 2025 we expect 25 per cent of workers in the US and Britain to be over 55. In fact, this cohort of workers is the fastest growing in almost every country.

We face two clear demographic trends. First, we are living longer. In the US, life expectancy was 47 years at the beginning of the 20th century. It is now 79 years, and by the end of the century it should reach 100.

Second, young people are having fewer children and fertility rates are declining across the industrialised world. In the US, Britain, Germany, Japan and other countries, the birthrate is 1.7 to 1.9 children, far below replacement.

This means the only way these economies can grow is through improvements in productivity (which are not happening) or immigration (which is a political issue at the heart of most populist and nationalist candidates).

We argue that companies must bring older people back to work. The myth propagated by the retirement industry is that people over 65 should retire.

Despite the billions of dollars spent convincing us that our “golden years” should involve travel, golf and sitting around the pool, research shows that people who stop working and retire often suffer from depression, heart attacks and a general malaise of not having as much purpose in their lives. Many people, particularly those who have enjoyed long and meaningful careers, do like to work. Jobs offer an opportunity to contribute to a community. They also give you a social network and an outlet for your intellectual and physical energy.

Our recruitment and assessment systems are designed against hiring older people. Many companies believe that older people are “overpaid” and can be “replaced with younger workers” who can do the job just as well. People such as Mark Zuckerberg proclaim that “younger people are smarter”.

The scientific evidence on this issue shows differently. For most people, mental capacity declines after age 30, but knowledge and expertise — the main predictors of job performance — keep increasing even beyond the age of 80.

Older employees also can increase cognitive diversity in the workplace. Few things of value have ever been accomplished by individuals working alone. The vast majority of our advancements — whether in science, business, arts or sports — are the result of co-ordinated human activity. The best way to maximise team output is to increase cognitive diversity, which is significantly more likely to occur when people of different ages and experi­ences work together.

To overcome age discrimination, companies need to take action. Here are suggestions for steps you can take:

● Give older people titles and roles that let them contribute their expertise.

● Offer accommodations for ­flexible work. This includes ­accessible workstations and good lighting.

● Determine pay equity based on what the job is and the person’s level of experience — not tenure. Tenure is not a useful measure for pay unless it directly translates into experience and skills that drive value to the company.

● Bring age diversity into div­ersity, equity and inclusion programs.

● Give older workers roles as managers, supervisors and mentors.

● Recruit older people. Companies such as Boeing are inviting older people to come back to the workforce through tailored programs known as “returnships”.

● Train recruiters on age discrimination. This includes tackling implicit biases, which is an illegal practice.

● Teach younger leaders about reverse mentoring. Show them how they can help older workers.

As the global economy ages, age bias will become a more important issue than ever. If you can create an inclusive, fair and meaningful experience for older employees, as well as younger ones, you will find your company becoming more innovative, engaging and profitable over time.

Harvard Business Review

Copyright 2019
Distributed by New York Times Syndicate