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Age Diversity as a Core Business Strategy

The Age Discrimination in Employment Act (ADEA) has been in effect since 1967. But several recent trends have brought it in to sharper focus: the workforce is aging; workers are staying longer on the job; and assertive Boomer workers are not reluctant to file age discrimination claims. Clearly, the issue of age equity, or age diversity, has never been more important for companies.

With impending labor shortages in many industries, as well as the reality of a multigenerational workforce, employers who foster age diversity will have a tremendous advantage in finding and retaining skilled employees. Championing age diversity is not just a hedge against age discrimination claims; it's a smart business strategy.

Money Talks
In 2004, age discrimination settlements cost employers $69 million. Since then, according to the National Law Journal, the number of class action age discrimination claims has risen dramatically, promising to push costs even higher. Not only can age bias claims taint a workplace, but employees who successfully bring these claims have a 78 percent chance of prevailing, maintains Jury Verdict Research, a company that tracks the trends in jury verdicts and settlements. Another recent trend has been disparate impact claims, where a worker or a group of workers can charge they have been treated differently because of age (or race or gender).

The median age of a U.S. worker is 40, which means that half of all private sector employees are protected under the ADEA. It used to be that plaintiffs in these lawsuits were in their late 50s and early 60s; today many are in their late 40s, which widens the potential plaintiff pool. Juries may tend to identify more with an older worker-something they either are, or will ultimately be, themselves-than with corporate America. And, even if an employer does prevail, there's the cost of defending a lawsuit, risking a negative outcome, disrupting the workplace and getting a bad reputation internally, as well as the potential for negative media coverage.

Myths, Perceptions and Reality
Myths about mature workers are as familiar as they are persistent: "inflexible," "technologically challenged," "not team players," "expensive to employ." In 2006 the Center on Aging & Work/Workplace Flexibility at Boston College found that one out of five employers thinks it is "very true" that older workers are resistant to change versus just one out of ten for mid-career and younger workers.

It's undisputed that people believe workplace ageism exists. Age bias is "a fact of life," say 94 percent of job seekers, retirees and those currently employed, according to the RetirementJobs.com survey. A 2004 AARP survey also found that two-thirds of workers age 45+ feel age discrimination hinders professional advancement and well-being.

Employers recognize it is a problem, too, but believe it occurs less frequently than employees do. The RetirementJobs.com survey, for example, shows that employers are three times more likely to think age bias is declining than employees are (36% of employers vs. 12% of workers.)

Nevertheless, mature workers typically do seem to have a tougher time in the job market. In a 2005 experiment, job candidates 50+ had to fill out more applications to be granted an interview than younger applicants. Perhaps most disconcerting is that those under 50 had a 40 percent more chance to be asked to interview than those over 50. And early retirement packages can be code for, "Hit the road, Jack."

Age Advantages
Mature workers are a vital age demographic. For the AARP study, "The Business Case for Workers 50+," research firm Towers Perrin interviewed ten major American companies, all of whom found that 50+ workers have a winning combination of experience, maturity and positive attitudes. In other studies, Towers Perrin found that workers 50+ exceeded job expectations and had the highest engagement levels of all workers.

Besides, what manager wouldn't want to keep a valued employee - especially when the cost to recruit and train a new worker can be 50% or more of the person's annual salary, not to mention the loss of institutional knowledge?

What's the Answer?
How can employers win the confidence of 50+ workers and "walk the talk" of age diversity? It's a combination of policy, practice, culture, and communication. Follow these tips for fostering age diversity:

• Think of age equity as a bottom line business issue. Recognize older workers' contributions and the steep cost of ignoring this demographic.
• Make sure the management and HR department fully understands the ADEA and state law and strictly adhere to them. Train those unfamiliar with these statutes.
• Study staff demographics. Having different age employees is a key element of a good diversity programs. Do you need to reevaluate your hiring process to achieve the mix you want?
• Look at your workplace climate. Is it one that values older workers or rather stereotypes them? Is it welcoming? What's the attitude of top management? Its support is essential.
• Do you offer what many older workers want-flexible work arrangements, healthcare and retirement savings benefits? Make the job attractive for mature employees.
• Make sure you have a policy that says discrimination is unacceptable and will not be tolerated. Communicate that policy to everyone from supervisors to HR to other staff.
• Devise a way to publicize your commitment to having an age-neutral workforce.
• See how other companies successfully attract mature employees. Check out the business practices of AARP Best Employers for Workers Over 50 and members of the AARP National Employer Team.

Age bias is one of the last frontiers in workplace discrimination. Employers who want to attract the choicest pool of job seekers and employees; maintain a stable, skilled and talented workforce; and avoid prohibitive age discrimination court battles must realize that an age-neutral workplace is a savvy and forward-thinking business strategy-not to mention the right thing to do.

Additional Resources

Age Discrimination: What Employers Need to Know
This AARP publication covers age discrimination laws, evolving issues, trends, and age equity in the workplace. Available in downloadable (PDF) format or in hard copy.

The Business Case for Workers Age 50+: Planning for Tomorrow's Talent Needs in Today's Competitive Environment
Why employers need to retain workers 50+, including an analysis of costs and benefits.

Equal Employment Opportunity Commission
Read the text and regulations of the Age Discrimination in Employment Act and find information on litigation, enforcement procedures, and statistics on age discrimination cases and resolutions.

Age Bias in the Workplace: A Fact of Life Enters Its Own Phased Retirement
RetirementJobs.com examines the results of its 2007 Age Bias Survey.

Are You Ignoring Older Workers?
HR Magazine examines the subtle forms of age bias that persist despite the requirements of the ADEA.

Age Bias Suits on the Rise With Older Employees Working Longer
The National Law Journal looks at trends in age discrimination claims and lawsuits.

Age, Women and Hiring: An Experimental Study
This study from the Center for Retirement Research at Boston College reports differential hiring practices for older women in two cities.

Five Common Denominators of Effective Diversity Programs
The Wall Street Journal's Career Journal offers guidelines on implementing diversity.