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 10 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.