The Challenges of Older Workers

CHALLENGES FOR OLDER WORKERS:
MYTHS AND THE ACCEPTANCE OF AGE

DISCRIMINATION IN THE WORKPLACE
Cathy Ventrell-Monsees
Senior Counsel to Chair Jenny R. Yang
June 9,
2015
National Press Foundation
OVERVIEW
Data points
Age and the workforce
Challenges
Impact of technology
Antiquated assumptions
June 9,
2015
DEFINING GENERATIONS
Traditiona
l
Baby
Boomers
Generation X
Millenials
1930
June 9,
2015
1940
1950
1960
1970
1980
1990
2000
3
AGE AND THE

WORKFORCE
The 55+ workforce grew

by 40% or 8.3 million
since 2001. Thats nearly
equivalent to the
population of New York
City.
Source: CareerBuilder
June 9,
2015
June 9,
2015
AGE IS RELATIVE
What age is old?
Average responses of 50+ population said 71.5 is old *
6 out of 10 individuals age 50+ feel younger than their
age
69% of those with $50,000+ annual feel younger than
their age, compared to 53% with lower incomes
* Source: AP Center for Public Affairs Research, Working Americans: Older Americans Attitudes on
Work and Retirement,
http://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20Center_Working%20Longer%20Re
port-FINAL.pdf
.
June 9,
2015
IS AGE AN ISSUE?
62% of adults 50+ say their age is not
or 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
CHALLENGES
Prolonged Unemployment
Stereotyping
Discrimination
Technology
June 9,
2015
UNEMPLOYMENT RATES OF OLDER

WORKERS DURING ECONOMIC
DOWNTURN
More than doubled between 2007 and 2010: 3.1% to 7.6%

Older workers remain unemployed for the longest periods
By 2011, 35 weeks compared to 26 weeks for younger job
seekers.
By 2011 over 1/3 of all unemployed older workers had
been unemployed for over a year
Long term unemployment leads to earlier retirement and
lower standard of living in retirement
Source: GAO, Unemployed Older Workers: Many Experience Challenges Regaining Employment and Face Reduced
Retirement Security, GAO-12-445 (Washington, D.C.: April 25, 2012).
June 9,
2015
10
AGEIST STEREOTYPES
Costly to employ
Less competent
Less motivated
Less adaptable and flexible
Less energetic
RESEARCH REFUTES
STEREOTYPES
Performance improves with age

Performance varies greater within age
groups than between age groups.
Return on Investment Older workers
less likely to quit
Economic downturn has changed
compensation norms
BABY BOOMERS
CHALLENGING STEREOTYPES
Baby Boomers:
healthier
more active
living and working
longer
age is relative
Changes in Career
Compensation norms
have changed
No longer company
man for life
Many jobs; different
careers
POSITIVE
CHARACTERISTICS
Experience
Patience
Perspective
Accuracy
Loyalty (Boomers 65%; Millenials 20%)
Benefits of diverse (multi-generational) teams
June 9,
2015
14
WHEN DOES AGE DISCRIMINATION BEGIN?
HOW COMMON IS AGE

DISCRIMINATION
64% report age discrimination in the workplace
92% say age discrimination is very or somewhat common.
75% say their age has not caused their employers to treat
them differently than other workers.
* Source: Staying Ahead of the Curve 2013, AARP Multicultural Work and Career Study; survey of 1502 adults age 45-74
conducted in Nov.-Dec. 2012.
June 9,
2015
18
DISCRIMINATION
20% of those age 50+ report personally
experiencing age discrimination
Older workers are more likely than younger
workers to say they have not been hired
due to their age (24% vs. 18%)
22% of adults 50+ have searched for a job
in the last five years
June 9,
2015
19
EEOC AGE DISCRIMINATION

CHARGES
25,000
20,000
15,000
10,000
5,000
June 9,
2015
20
AN INCREASING NUMBER OF ADEA

CASES 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
BARNETT V. PA CONSULTING
GROUP,
715 F.3D 354 (D.C. CIR. 2013)
The most important fact is why PA fired the fiftyseven year-old female, Barnett, but retained the
forty-one year-old male, Gao. The most
significant differences between the two are that
Gao is male and younger than Barnett. Those are
differences a jury should be allowed to consider.
Evidence: Barnett had highest performance ratings;
was told she didnt fit the groups needs any more
EEOC V. PMT CORP.

(FILED MARCH 2014)
Alleges PMT failed to hire women age 40+
Alleges retaliation against HR Director who
complained about direction to reject older female
applicants for sales rep. positions
Screened out older applicants (women and men)
with college graduation dates > 10 years prior
PMT hired 70 people from 2007 to 2010 - Not one
woman or applicant 40+
AGE DISCRIMINATION IN TECH

INDUSTRY
70% of IT staff surveyed by Information Week said theyve witnessed or

experienced age discrimination.
http://www.informationweek.com/strategic-cio/team-building-and-staffing/too-old-to-earn-bi
g-in-it/a/d-id/1279140
42% of age 50+ in tech industry consider age a liability to their career =
more than double the rate of other industries. (Source: h
ttp://op.bna.com/dlrcases.nsf/id/smgk-9dmnl5/$File/AP-NORC%20CenterWorking%20Lo
nger%20Report-FINAL.pdf
)
Zuckerberg: Young people are just smarter (Stanford 2007)

ServiceNow ad on its careers page: We Want People Who Have Their
TECH INDUSTRY JOB ADS:

OLDER WORKERS NEED NOT APPLY
Fortune Magazine June 19, 2014
http://fortune.com/2014/06/19/tech-job-ads-discrimination/
Apple, Facebook, Yahoo,Dropbox, and video game maker
Electronic Artsall listed openings for new grad
Facebook settled age claim with CA DFEH fir a job posting for an
attorney Class of 2007 or 2008 preferred)
Yahoo response to Fortune inquiry ads targeting new or recent
college grads quickly disappeared from Yahoos career pages
TECHS YOUNG WORKFORCE

45
40
35
30
25
20
15
10
5
0
Digital Natives
Job Ads Seeking
Digital Natives
born with technology;
2nd nature
Presumed to be
younger workers
Digital Immigrants or
Tourists
unfamiliar with digital
technology;
struggle to make
good use of
technology
Presumed to be
older workers
TREND:
ONLINE & SOCIAL MEDIA
RECRUITMENT
77% of employers used social media for recruiting

(SHRM 2013 survey)
Many online job applications require DOB field or other
info indicating age; cannot proceed if not complete
ADEA: Request for age on an employment application is
not a per se violation of the ADEA, but EEOC will
closely scrutinize such requests. (29 CFR 1625.4-5).
USE OF SOCIAL MEDIA IN HIRING

69% of recruiters rejected a candidate based on content found
on social networks.*
68% hired a candidate based on information found on social
media profiles.*
Zappos announced it will conduct recruitment and hiring thru a
dedicated social network (WSJ May 2014)
*Source: How Recruiters Use Social Networks to Screen Candidates
http://mashable.com/2011/10/23/how-recruiters-use-social-networks-to-screen-candidates-info
graphic/
.
ANTIQUATED ASSUMPTIONS
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 for
less than 3 years
June 9,
2015
30
ANTIQUATED
ASSUMPTIONS
Older Workers are likely to retire

soon so its not worth it to hire
someone in their 50s or 60s
Fact: 36% of workers in 2015
expected to continue working beyond
age 65
June 9,
2015
31
ANTIQUATED
ASSUMPTIONS
Older Workers must retire to make room for

younger workers
Fact - Not a "zero sum equation; no evidence
that Boomer employment negatively affected
the labor force activity of the young
Source: When Baby Boomers Delay Retirement, Do Younger Workers Suffer? Pew
Research Center (Sept. 2012).
June 9,
2015
32
HIGH COST OF AGEISM

Perceived ageism has more serious health
consequences than perceived racism or sexism*
Long term unemployment leads to diminished income in
retirement;
Drain on public benefits;
Loss to the economy when older workers are not
earning, spending and paying taxes
Source: American Journal of Geriatric Psychiatry (July 2013).
June 9,
2015
33
HIGH COST OF AGE

DISCRIMINATION
$26 million verdict (Nickels v. Staples) (CA law against discrimination)
$3.2 million compensatory damages

$22.8 million in punitive damages
Common Facts:
Hired at age 55 and had solid performance ratings
Staples took over, he became the regular butt of jokes at staff meetings;
referred 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 of
harassment from co-workers and a manager.
Suspended for stealing, after taking a bell pepper $.68.
Receptionist testified management ordered her to provide a false
statement about Nickels conduct. She refused.

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CHALLENGES FOR OLDER WORKERS:

MYTHS AND THE ACCEPTANCE OF AGE

National Press Foundation

National Press Foundation

National Press Foundation

AGE AND THE

The 55+ workforce grew

National Press Foundation

National Press Foundation

National Press Foundation

National Press Foundation

National Press Foundation

UNEMPLOYMENT RATES OF OLDER

More than doubled between 2007 and 2010: 3.1% to 7.6%

National Press Foundation

Performance improves with age

National Press Foundation

WHEN DOES AGE DISCRIMINATION BEGIN?

HOW COMMON IS AGE

National Press Foundation

National Press Foundation

EEOC AGE DISCRIMINATION

National Press Foundation

AN INCREASING NUMBER OF ADEA

EEOC V. PMT CORP.

AGE DISCRIMINATION IN TECH

70% of IT staff surveyed by Information Week said theyve witnessed or

Zuckerberg: Young people are just smarter (Stanford 2007)

TECH INDUSTRY JOB ADS:

TECHS YOUNG WORKFORCE

77% of employers used social media for recruiting

USE OF SOCIAL MEDIA IN HIRING

Average 4.4 years at each job

National Press Foundation

Older Workers are likely to retire

National Press Foundation

Older Workers must retire to make room for

National Press Foundation

HIGH COST OF AGEISM

National Press Foundation

HIGH COST OF AGE

$3.2 million compensatory damages

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