Employers Attitudes Toward Older-Worker Job Seekers: A Comprehensive Review With Recommendations For Action

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Employers Attitudes toward Older-Worker Job Seekers: A Comprehensive

Review with Recommendations for Action
Chapter · December 2016
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EMPLOYERS ATTITUDES TOWARD OLDER -WORKER JOB SEEKERS : A
COMPREHENSIVE REVIEW WITH RECOMMENDATIONS FOR ACTION
Hila Axelrad and Jacquelyn B. James

Boston College Center on Aging & Work
ABSTRACT
Age discrimination violates the principle of equality, because it is based on a
difference (chronological age) that may be irrelevant or irrational in relation to
occupational demands. Reliance on chronological age alone reflects stereotypes and
ageism. However, investigating the phenomenon of age discrimination empirically is
complex: On the one hand, employers often deny its existence, and even in
anonymous studies, tend not to reveal their honest opinions of older workers. On the
other hand, older workers are reluctant to report age discrimination and rarely bring
legal action against it. Therefore, little if any comprehensive and reliable empirical
data exist to track the extent of the phenomenon (Doron & Klein, 2010). Even so, the
perception of age discrimination is widespread (James, McKechnie, Swanberg, &
Besen, 2013). This chapter has two purposes: provide a brief literature review of what
we do and do not know about the attitudes toward older workers that employers
express in their recruitment and hiring practices, and recommend policies and
practices that may enhance employers’ views of older-worker job seekers and
increase these workers’ prospects for continued employment in later life.
Key words: older workers, age discrimination, recruitment.
Introduction
Increasing the number of years of active labor-force participation by older
workers is a goal of policymakers in most developed countries, but this goal cannot be
achieved without the support and cooperation of employers (Conen, Henkens, &
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Schippers, 2011). Although many firms have older workers among their employees,
few firms hire older workers (Eichhorst et al, 2014; Stone, 2012). Indeed, studies
based on a number of countries in the Organisation for Economic Co-operation and
Development (OECD) revealed that the hiring rate of workers ages 50 and over in
2006 was less than half the rate for workers ages 25–49, suggesting that employers
may be reluctant to hire this age group (Keese, Queisser, & Whitehouse, 2006). This
pattern raises two questions: why does this reluctance exist and what might change
the situation for older workers?
Given demographic trends toward greater longevity and health, and also given
governmental shifts favoring later eligibility for full retirement benefits, many older
workers can and want to continue to work and be productive. The reluctance of firms
to hire them when they are out of work may push productive people with skills and
experience to the margins of society, and take away their ability to make money and
accrue pension income. In addition, this phenomenon may create a cycle of poverty
and distress, burdening already stressed social institutions and negatively affecting the
economy's productivity and gross domestic product (GDP) (Axelrad, Luski, and
Malul, 2013). Thus, suggestions to improve the prospects for older workers seem
timely. The purpose of this chapter is to survey what we do and do not know about
employers’ attitudes toward older workers in their recruitment and hiring practices,
and recommend policies and practices that may increase these workers’ chances for
continued employment in later life.
To accomplish these aims, we first review the literature about recruiting
workers and the characteristics of an attractive hire. Then we discuss older workers in
particular and roadblocks that they may face in recruitment. To the extent possible,
we review the evidence for and against negative perceptions of older workers that
lead to some of these roadblocks, and conclude with recommendations for changes in
policies and practices.
Recruiting Practices
Recruiting practices differ from firm to firm, sector to sector, and job category
to job category. That said, some practices are common. The total recruitment process
typically takes about a month. Depending on the position, of course, employers search
the applications for job seekers with an appropriate level of education and
experience—the desired skills and fit within the organization. Some job seekers are
eliminated in this first round, based on their education or experience and /or fit for the
position. In one study, for one fifth of the applications, being older than 45 was found
to lead to direct elimination, regardless of experience or job fit (Behrenz, 2001). Job
seekers who made it past the first round were usually invited for an interview
(Behrenz, 2001).
Employers distinguish different types of employees (management, clerical, and
manual workers) in their recruiting practices. Interviews (one-to-one and/or panel
interviews) and reference checks are heavily used for managers. Some employers use
psychometric tests—a tool especially common in Scandinavian countries.
Graphology—the study of handwriting as an indicator of “character”—is used in
Israel, the Philippines, and South Africa but is uncommon elsewhere. For
professional, clerical, and manual workers, interviews and references are also
commonly used, as opposed to application forms, ability and technical tests for
managers (Dewettinck & Parry, 2011).
Typically, an employer posts available positions with the kind of information
that the employer hopes will beckon the right person for the job. The way employers
choose to spread information about vacancies is determined by how efficient the
different recruitment channels are relative to the goal—that is, by the benefits and
costs that a given channel entails. In the past, organizations relied on newspaper
advertisements, job postings at the work site, college campus recruiting, and current
employees to develop an applicant pool. Today, though, technological advances such
as the Internet and social media offer employers a wider array of opportunities for
reaching targeted recruits (Breaugh, 2014).
Recruiting via the Internet is simple and cost effective. By simply logging on to
the web, company recruiters can locate vast numbers of qualified candidates for jobs
at every level, screen them in minutes, and contact the most promising ones
immediately. This process costs substantially less than other means of recruiting, and
the time saved is equally great (Cappelli, 2001; Hadass, 2004). Comparative data
from Cranet—the largest human resource management (HRM) network in the
world—on HRM in different countries over more than two decades reveal that
managers are mainly recruited through recruitment agencies, job advertisements, and
word of mouth. For professionals and clerical workers, company websites and
speculative applications1 are used. For manual workers, job centers and speculative
applications appear to be the most common recruitment methods (Dewettinck &
Parry, 2011; Hadji Abootorab Kashi, 2015).
Some firms use social job-finding networks. That is, they rely on current
productive employees in order to identify and recruit workers with better qualities in
1
Enquiring directly with organizations to find out whether they have jobs or work experience
opportunities that are not advertised.
dimensions that would be difficult to evaluate from the information in job applications
and résumés. By this method, some employers claim that they can identify employees
who have more ability than their résumé would indicate (Hensvik & Nordström,
2013). Regardless of the method, Cappelli (2001) argues that human contact, not
electronic contact, is vital in the last steps of a successful hiring process.
Thus, employers use interviews to judge the fit of the candidate with the
organization. By inviting candidates for interviews, the employer obtains "signals" of
applicants' capabilities to perform the required responsibilities. These include
appearance, style of dress, interactions with the interviewer, and so on. Some of these
signals are based on stereotypic notions of such individual characteristics as age, race,
and gender. Cappelli (2001) notes that companies must make sure that hiring criteria
do not discriminate against women, minorities, disabled people, or workers over 40.
Our focus for this paper is this latter group.
In what ways might current recruitment processes create roadblocks for older
applicants?
Despite the availability of older workers, many firms choose not to hire or train
them, owing in part to misconceptions about them (Sullivan & Duplaga, 1997). In the
aforementioned OECD (2006) study, employers in most of the countries studied
revealed their view that the skills of older workers are not relevant, that older adult
workers cannot adapt to changing circumstances, and that older workers are rather
inflexible. Even though many of these same employers report that the loyalty of older
workers to the workplace is higher than that of younger workers, most admitted that
they rarely recruit older employees for jobs (OECD, 2006). Employers may think that
loyalty just means that an employee can’t get a job elsewhere. In fact, Lahey (2008)
found that employers cite short career potential, lack of energy, higher costs of health
and life insurance and pensions, decrease in knowledge and skills, and fear of legal
action for age discrimination as reasons for not hiring them.
In addition to these preconceptions, employers may simply feel uncomfortable
with older workers. In a survey of 200 employers in the public and private sector,
Doron & Klein (2010) reported that 81 percent of employers preferred workers who
are younger than 35. In this same study, 38 percent of employers responded that
younger employees provide the company with a young and dynamic image in the eyes
of potential customers, and 13 percent said that they feel more comfortable working
with younger workers.
Employers may worry also about how comfortable their younger workers will
feel with older workers. For example, Turner & Reynolds (2010) suggest that older
workers may pose a threat to young people, because their very presence reminds
young people that they, too, will be old. It has also been suggested that, because older
workers often occupy the most senior positions in organizations, younger workers
may perceive them to be a hindrance to their own career prospects (Ekamper, 1997).
These indicators of employers’ discomfort with older workers may represent what has
been referred to as taste discrimination or preference against people from certain
groups (Ben Hador et al, 2005), which appears to apply to older adults as a category
of job applicants.
Similarly, the practice of statistical discrimination, a practice of inequality
based on stereotypes, constitutes another roadblock (Arrow, 1973). According to this
economic theory, inequality may exist and persist among demographic groups even
when economic agents (consumers, workers, employers, etc.) are rational and
unprejudiced. This type of preferential treatment is labeled “statistical,” because
stereotypes may be based on the discriminated group's average behavior. The theory
posits that in the absence of direct information about certain ability, a decision maker
substitutes group averages. As employers do not know with certainty workers' ability,
they may base employment decisions on the workers' visible features, such as group
identity, as long as these feature correlate with some desirable but less easily
measured trait (Phelps, 1972). Thus, the aforementioned preconceived notions about
older adults—that they are slow to adapt and inflexible—may lead employers to be
unwilling to give older job seekers a chance at the outset.
Taken together, these roadblocks appear to make it harder for older job
seekers to get a chance to demonstrate their abilities to fulfill job requirements. Lahey
(2005), for example, found that older applicants, defined as those age 50 and older,
are treated differently from younger applicants. A younger worker is more than 40
percent more likely to be called for an interview than an older worker. In the U.S.
state of Massachusetts, this trend translates into a younger job seeker needing to send
in 19 résumés to receive one invitation for an interview, in comparison with 27 for an
older worker. Similarly, in the U.S. state of Florida, the comparable numbers of
résumés are 16 and 23 respectively (Lahey, 2005).
The current context of aging and work
As the workforce in many countries across the world ages, many older adults
want to or need to work for pay beyond conventional retirement ages (Benz,
Sedensky, Tompson, & Agiesta, 2013; Anderson, 2015). At the same time, longevity
has imposed a strain on pension and public retirement plans worldwide, leading
policymakers to increase the age of eligibility (Vickerstaff, Phillipson, & Loretto,
2015).
OECD data on labor-force participation rates (Figure 1) indicate that
participation by those ages 55–64 has increased in most countries.
Fig. 1: Labor force participation rates of those ages 55–64, by country
(2010–2014)
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
-
2010 2011 2012 2013 2014
Source: OECD (2015a), Labor Market Statistics: Labor force statistics by sex and age
Indeed, the culture of early exit flourished in most major industrialized
economies until the 1990s (Earl, Taylor & McLoughlin, 2015). Prior to that shift,
older workers who left the workforce prematurely were regarded as early retirees
rather than as unemployed. Their joblessness ended not with their reentry in the
workforce but with their transfer to a pension (Casey & Laczko, 1989). Subsequently,
there has been a shift toward prolonged working lives, generated by the general aging
of the population as well as by the aging of workforces in specific industry sectors,
such as nursing and teaching (Earl, Taylor, & McLoughlin, 2015). In fact, the rates of
employment and unemployment of workers ages 55–64 has increased in many
countries (OECD, 2016a; OECD, 2016b(. These trends seem to suggest that when
older adults have a job, they are more likely to stick with it than leave.
For workers who are laid off or otherwise ousted from their source of
employment, the difficulties of reentering the labor force are well-known. As Rix
(2014) has shown, even though unemployment rates are higher among younger
workers, older workers wait much longer, once unemployed, to be rehired. Typically,
older unemployed job seekers look for work for longer periods than younger
unemployed job seekers do, and many give up in the process. On average, job seekers
age 55 and older spend more than 25 weeks looking for work; workers ages 25–54
spend 21 weeks (Rix, 2014). In addition, the unemployment figures for older adults
probably underestimate the problem, because they do not account for “discouraged”
workers who give up (Johnson, 2012).
As Figure 2 shows, there are countries (for example, Spain, Portugal, and
Poland) in which the percentage of discouraged older workers (that is, the share of the
extended labor force: labor force + discouraged workers) increased in the past few
years. In other countries (for example, the Czech Republic, Germany, and Hungary),
the percentage of discouraged older workers (55–64) decreased. These differences
among countries may be due either to better integration of older workers in the labor
market or to early retirement.
Fig. 2: Discouraged workers ages 55–64, by country (2010–2013)
7
6
5
4
3
2
1
0
2010 2011 2012 2013
Source: OECD (2015b), Labor Market Statistics: Discouraged workers—incidence (Edition 2015)
A study conducted in the Netherlands (Conen, Henkens, & Schippers, 2011)
revealed that efforts to recruit older workers may change with the economic climate.
During the recession, for example, this study found that recruitment of older workers
declined substantially, while efforts to retain them were in both absolute and relative
terms greater than in 2000. In 2008, employers were more inclined to recruit older
workers than they were in 2005, again following the development of unemployment
rates. In 2009, employers’ efforts to recruit older workers again declined significantly.
As for the quality of jobs, Figure 3 reveals that the share of involuntary part-
timers in total employment among those age 55 and older increased in most countries,
suggesting that older workers who managed to find jobs had to take part-time jobs
against their will. Germany and Sweden were exceptions; there, the share of
involuntary part-timers in total employment among those age 55 and older decreased.
Fig. 3: Involuntary part-timers age 55 and older, by country (2010-2013)
12
10
8
6
4
2
0
2010 2011 2012 2013
Source: OECD (2016c), Labor Market Statistics: Involuntary part-time workers: incidence
In sum, the number of employed older workers has increased in recent years.
Yet, the fact that unemployment spells are longer for older workers than for younger
ones suggests that the change in public policy increasing the age of eligibility for
pensions has not led to significant change in the attitudes and behaviors of employers
with regard to hiring older workers (Berkman, Boersch-Supan, & Avendano, 2015).
Although some of the ups and downs of employment opportunities appear to be
caused by ups and downs in the world’s economies, some of them surely manifest
perceptions and misperceptions of older workers and their capabilities on the job.
To what extent do these perceptions constitute age discrimination?
Age discrimination violates the principle of equality, because it is based on a
difference (chronological age) that may be irrelevant or irrational in relation to
occupational demands. Reliance on chronological age alone reflects stereotypes and
ageism (Doron & Klein, 2010). Regardless of the reality, the perception of age
discrimination is widespread (James, McKechnie, Swanberg, & Besen, 2013). A
survey conducted in Israel (Hendeles, 2010) examined perceptions of discrimination
at work that stem from belonging to different groups. Findings revealed that job
seekers age 45 and older reported the most discrimination; 48 percent of the older job
seekers, employed and unemployed, reported that they had encountered many refusals
that they interpreted as being age-related.
Perceptions, however, do not make for successful litigation, and age
discrimination is notoriously hard to discern. Employers' decisions on the basis of age
may be unintentional or deliberate, conscious or explicit (Levy & Banaji, 2004).
Employers, concerned about litigation, do not want to be asked about it or, if asked,
do not want to admit its presence. Discrimination lawsuits, while numerous, are very
hard to win, at least in the UNITED STATES (Selmi, 2000). Thus, researchers
struggle to come up with methods for identifying and rectifying the practice of age
discrimination.
A common technique in researching discriminatory hiring practices is to
measure response rates to résumés sent to job vacancies. For example, Newmark,
Burn, & Button (2015) conducted a large-scale field experiment that tested age
discrimination in the U.S. They created résumés that constitute the “observations,”
and included three age groups (ages 64–66, 49–51, and 29–31). The jobs to which
résumés were sent were identified using a common job-posting website. More than
40,000 applications for jobs were submitted. Responses to job applications were
recorded. These authors found robust evidence of age discrimination in hiring against
older women but considerably less against men. In addition, most of the evidence
indicated that discrimination against job applicants near the retirement age (64–66)
was stronger than for middle-aged workers (49–51).
In Belgium, Baert, et al. (2015) found that the younger candidate within a pair
of applicants had, on average, a 64.3 percent higher chance of being invited for a job
interview than the older candidate and a 39.7 percent higher chance of receiving any
positive reaction (Baert, et al, 2015). These authors also found that older age was
“punished” only if the older and younger candidates had the same amount of in-field
experience. In other words, the older candidates had to compensate for their older age
with additional in-field experience in order to get an interview. Finally, a study
conducted in Madrid (Spain) revealed that firms showed less interest in interviewing
38-year-old candidates than those ages 24 or 28). Such findings suggest that the
tendency to discriminate against older workers may be high, and, what is more, it may
start at a surprisingly young age (Albert, Escot, & Fernandez-Cornejo, 2011). (See
also Ahmed, Andersson, & Hammarstedt, 2012; Ben Hador, et al., 2005.)
These studies and others suggest reasons for the difficulties that adults age 50
and older have in finding a new job, even if they are physically and intellectually fit.
Even though studies have shown that employers perceive older workers as more
reliable and as having better business ethics, they are also perceived as less flexible
and less productive and as having higher salary expectations (Henkens & Schippers,
2008).
Indeed, the U.S. think tank and advocacy organization AARP reported that
loyalty and dedication were at the top of the list of traits that employers associated
with older workers but the bottom of the list of characteristics they were seeking in
their hiring efforts (AARP, 2000). The difficulties that older job seekers face in being
absorbed in the labor market indicate that their cumulative professional experience is
not sufficiently appreciated. Age discrimination appears to be a real phenomenon.
To what extent are employer perceptions of older workers accurate?
As noted, employers have both positive and negative attitudes toward older
workers. On the positive side, older workers are perceived as more mature and loyal
and less-often absent than younger workers (Vodopivec & Dolen 2008; Chiu, Chan,
Snape, & Redman, 2001; Bangali, 2004). On the negative side, employers report that
they do not recruit older adults, because of the following negative perceptions: older
workers’ shorter career potential; diminished ability to adapt to new technology;
higher salary expectations; diminished ability to be productive; and conflicts with
younger workers, both in terms of getting along well in the workplace and in terms of
the younger workers’ perception that older workers block their career path. To what
extent does evidence support these negative ideas about older workers?
Short career
Employers tend to think that older workers will have a shorter job tenure than
younger workers (Posthuma & Campion, 2008). They may be basing this notion on
the early exit and retirement patterns of long ago. As noted, older workers are
indicating a wish and/or a need to work longer: employment rates among older
workers are increasing. The number of workers ages 55–64 has increased 11 percent
in the past decade (OECD, 2016a), from 51.7 percent to 57.3 percent. Most important,
evidence indicates that older workers are less likely to leave their jobs than are their
younger colleagues (Bengali, 2004; Hedge, et al., 2006).
Some employers see loyalty as negative, believing that older workers stay
because they cannot find work elsewhere. A recent study suggests that even this type
of loyalty might be an advantage for the employer: Luski & Malul (2014), for
example, found that such employees are likely to exert greater effort than younger
employees do. These authors also note that older workers who perceive greater
difficulty in finding a new job after a job dismissal are also less likely to shirk their
obligations at work. Therefore, firms have to expend fewer resources monitoring their
work (Luski & Malul, 2014).
The high employment stability manifested by older workers reduces the effect
of substitution of employees in the organization and reduces costs of recruitment and
hiring. When these workers do leave, the exit is more likely to be planned than the
exits of younger workers tend to be (Hewitt, 2015). Thus, there is little basis for
employers’ concerns about short job tenure of older workers, at least among older
workers at the young end of the spectrum: between the ages of 40 and 55 (Newmark
& Song, 2012).
Inability to adapt to new technology
Taylor & Walker (1994) found that 40 percent of employers seem to think that
older workers cannot adapt to new technology, nor are they interested in technological
change. In New Zealand (and other countries, as well), a majority both of employers
and older workers had negative perceptions of older adults’ willingness to adapt to
new computer technology (McGregor & Gray, 2002; McCann & Giles, 2002).
Axelrad, Luski, and Malul (2013), in a study in Israel of employers' perspectives on
older workers, found that almost 56 percent of the employers surveyed viewed older
workers as more deterred by technological change than younger workers are.
Similarly, many of them believed that older workers adjust less well and more slowly
to technological change than younger workers do.
The number of older adults who are using computers, tablets, and other online
technology, however, is high and continuing to grow. In 2014, for example, 64
percent of workers age 50 and older had a smartphone and 41 percent had a tablet, in
comparison with 29 percent and 11 percent, respectively, in 2011 (Hewitt, 2015, p.
23). These same authors report that older adults are not only using technology but are
interested in training related to technological advances and take advantage of that
when it is offered. Less than 20 percent of employees report that they cannot keep up
with new technology. In some ways, everyone is coping with dramatic change in
technological resources. Older workers appear to be joining the fray.
Higher cost
There is a common perception that older workers are more costly, because
they are paid higher wages, use more benefits, and are generally closer to retirement
(Posthuma & Campion, 2008). Employers also point to healthcare expenses as a
factor they consider in the overall cost of employing older workers (Towers Perrin,
2005). Munnell, Sass, and Soto (2006) found over 40 percent of the employers they
surveyed said older workers are more expensive than younger workers are. The
pattern was much the same for white-collar and for rank-and-file workers. These
authors suggest that it is common for workers’ increased experience and seniority to
be reflected in compensation, assuming a profile of continuous employment in a
particular field over the course of a career. Thus, it may be true that older workers
cost a bit more, but it might be more accurate to say that experience costs more.
Older workers place a higher non pecuniary value on work than younger
people do (Axelrad, Luski, & Malul, 2016). They are less subject to the constraints of
time, which might adversely affect occupational activity, because they are no longer
actively involved in parenting. Some of the added costs may also be offset by older
workers’ reliability, lower absenteeism rates, and knowledge transfer. Importantly,
benefit trends are changing the relationship between age and labor costs in such a way
as to reduce the costs of hiring and retaining older workers (Hewitt, 2015).
Diminished productivity
Variations in the measurement of productivity make it complicated to assess
the extent to which older workers are more or less productive than their younger
colleagues (Börsch-Supan & Weiss, 2016). Some measurement approaches tend to
overlook older workers’ strengths that may compensate for age-related weaknesses
(Carstensen, 2014; Schaie & Schooler, 1998). When a broad array of job functions
was assessed in a meta-analysis, Ng & Feldman (2008) concluded that “older workers
demonstrate…greater safety-related behaviors…[and they] appear to engage in fewer
counterproductive work behaviors in general and exhibit less workplace aggressions,
on-the-job substance use, tardiness and voluntary absence in particular” (p. 403). In a
carefully controlled case study of a truck manufacturing plant with a large number of
observations over time, Börsch-Supan and Weiss (2016) revealed an increase in the
average age-productivity profile of employees up to age 65. In sum, there is little
evidence that older workers are less productive—except when certain health
conditions make them unable to fulfill the requirements of the job (Schultz &
Edington, 2007).
Young workers’ discomfort with older colleagues
The view that older workers cannot get along with younger workers is another
old saw. It comes in many forms, but as noted, the idea is that the placement of older
workers in a predominantly young workforce “unsettles” younger employees. Some
say that older workers tend to be bossy with younger staff and dislike taking direction
from young supervisors (Bennington & Tharenou, 1996). Evidence on these points is
mostly contrary.
In the first place, the combination of older workers in a young workforce can
lead to mentoring, reduced absenteeism, and lower turnover (Bennington & Tharenou,
1996). Moreover, Brooke and Taylor have reported that mixed-age teams are more
productive than age-homogeneous teams. These authors found that older workers
were explicitly valued for their “experience” when mentoring younger workers. The
most frequently identified positive attributes of “experience” were the abilities to
work “smart” and avoid mistakes, to monitor the quality of production, and to
stabilize work groups. The transmission of experience and expertise from older to
younger workers (and vice versa) increased productivity (Brooke & Taylor, 2005).
The idea that older workers and younger workers are in conflict because older
workers hinder younger workers’ career prospects is known as the “lump of labor
fallacy.” This perception stems from the idea that the number of jobs is finite. If older
workers are getting jobs, according to this argument, then there are fewer for younger
workers. As Berkman, et al. (2015) point out, however, this argument does not hold
up in a large and complex economy. These authors report that “cross national
comparisons show that higher employment of older individuals is actually positively
correlated with higher employment of the young; that is, countries with a high
prevalence of early retirement tend to have higher unemployment rates and lower
employments of the young” (p. 48).
Therefore, there is little research evidence to support the hypothesis that older
workers cannot get along with younger workers; on the contrary, the combination of
older workers in a young workforce can be positive in terms of mentoring, reduced
absenteeism, lower turnover, and higher productivity. Additionally, higher
employment of older individuals is positively correlated with higher employment of
the young.
Discussion and Policy Implications
In the past, age was seen as a positive individual attribute. For example,
gaining adulthood was the key to “adult rates of pay,” which were clearly
distinguished from those of apprentices and other young persons. Long service,
sometimes within an occupation but more often within an organization, brought
certain advantages for workers. Seniority was a workplace concept almost totally
devoid of negative connotations. Indeed, it was really the key to being taken seriously
within an organization (Lyon & Pollard, 1997). Today, although some aspects of
senior status are positive, the negative ones that affect recruitment and hiring
processes appear to be detrimental to the prospects of employment for older workers.
Although the literature shows that many of the stereotypes associated with
older workers are at best weakly supported, older workers still find it difficult to re-
enter the labor market. Reports from older unemployed, both from research studies
and media reports, indicate a high perceived level of discriminatory attitudes and
behaviors. To deal with the growing phenomenon of age-related discriminatory hiring
practices, clear strategies are needed. In our view, change must be based on the
following parallel processes: (1) clear and focused antidiscrimination legislation,
accompanied by effective sanctions and enforcements (“the stick”); (2) government
policies aimed toward encouraging organizational leaders to hire older workers (“the
carrot”); and (3) a publicity campaign that dispels myths and stereotypes having to do
with the capabilities of people who are 45 years old and older. We will briefly discuss
each one of these strategies in turn.
(1) Clear and focused antidiscrimination legislation, accompanied by

effective sanctions and enforcements (the “stick”)
Although age-discrimination legislation differs across countries, two types aim
to prohibit age discrimination at work. The first type is broad legislation prohibiting
discrimination on the basis of age along with other types of bias such as race, religion,
sex, disability, and sexual orientation. Examples of this type have been passed by the
European Union Council, Ireland, and Israel. The second type is legislation
specifically prohibiting age discrimination in the workplace. Examples are the Age
Discrimination in Employment Act (ADEA) in the United States and the Equality Act
in Britain (Tabibian Mizrahi, 2007a).
The ADEA is a federal law that protects workers and job applicants age 40 and
over from age-based discrimination in all aspects of employment (AARP, 2014).
Unfortunately, more than 40 years after its passage, age discrimination in the
American workplace continues to present serious impediments to employment in later
life. According to Rothenberg & Gardner (2011), the ADEA has had limited
effectiveness in protecting the civil and economic rights of older workers. Its current
form makes filing a claim of age discrimination difficult and time-consuming, and
tends to favor the defendant (the employer) over the claimant. In fact, Lahey (2010)
says that age-discrimination legislation in the United States has positive effects for
those workers already employed but negative effects on those seeking work. Pensions,
disability, unemployment, and social security eligibility have stronger effects on
social norms for retirement age than antidiscrimination legislation does (Lahey,
2010).
European legislation calls for less enforcement and more exemptions than U.S.
laws do. There are, for example, exemptions for people over mandatory retirement
age for certain industries, such as the military, the judiciary, and government. There
are also exemptions for “occupational requirements”—occupations in which safety
could be compromised by conditions correlated with aging.
The increasing number of countries implementing age-discrimination legislation
in their national labor law is a welcome development to ensure the rights and
responsibilities of employers and older workers. But there is no one-size-fits-all
approach (Ghosheh, 2008). It would seem that age-discrimination legislation is
necessary but not sufficient for protecting older workers against unfair hiring
practices.
(2) Government policies aimed toward encouraging organizational leaders
to hire older workers (“the carrot”)
Thus, some countries use a carrot: encouraging employers to hire older workers
rather than punishing them for discriminatory practices. Norway, for example, works
to create tripartite cooperation among the trade unions, employers, and the
government to keep older adults in the workforce longer. The government also is
willing to subsidize the contributions that employers are expected to make on behalf
of older workers. Using this approach, Norway reduced employers’ contributions to
employees older than 62 (Tabibian Mizrahi, 2007b).
A government can also fund or subsidize the first period of employment after
recruitment of the older worker (the “learning period”), or subsidize vocational
training of an older worker to address skill gaps. For example, in Sweden, the
government subsidizes the employer in the amount of double the payroll cost for the
applicant hired. This policy is directed toward unemployed youth and older workers
and newly arrived immigrants (INSPIRES, 2016). In Germany, vocational training
subsidies are available not only to the unemployed but also to workers who are 45 or
older and employed by a company with less than 250 employees. The intention is to
keep vulnerable groups employed (INSPIRES, 2016). Government programs that
promote training for older workers will provide pathways by which older adults can
strengthen their skills and abilities and prepare for the ups and downs of the labor
market. Research has found that many older job seekers have skill limitations that
make it difficult for them to return to work (Heidkamp, Mabe, & DeGraaf, 2012), so
enabling older workers to update their computer skills, as well as their job-finding and
networking skills, is especially important as technology advances in both areas
(Hansen, 2016).
Finally, subsidizing employers with tax credits may help them to overcome their
biases and reduce their exposure to the higher costs associated with hiring older
adults. The earned income tax credit (EITC)—a refundable tax credit for low- to
moderate-income workers—provides substantial assistance (in the form of offsetting
taxes and a wage supplement) to adults who find jobs and leave the welfare rolls but
continue to be poor or to have modest incomes (Greenstein & Shapiro, 1998). The
EITC is already in place in many countries, where it significantly decreases welfare
use and increases employment, labor supply, and earnings (Grogger, 2003). A
comparison of employee-based and employer-based labor market subsidies revealed
that the EITC appears relatively successful in targeting the desired population,
inducing additional labor market participation, and raising incomes (Dickert-Conlin &
Holtz-Eakin, 1999). This option may be a better alternative to welfare or other
payments that governments pay older workers when they are ejected from the labor
market (Malul & Luski, 2009).
(3) A publicity campaign that dispels myths and stereotypes disparaging

the capabilities of people age 45 and over
Active campaigns to fight prejudices that organizational leaders and/or those
with hiring responsibilities have about older workers (not to mention those that older
workers have about themselves) have been used in several countries. In Norway, for
example, there was an effort to dispel the belief that older workers are neither flexible
nor capable of keeping up with developments in their working environment (Bangali,
2004).
Similarly, Australia, Finland, and The Netherlands conducted wide-ranging
government-funded campaigns to tackle age discrimination in the workplace. Some
have issued guidelines for employers regarding proper management and best practices
for thinking through the potential of older workers, as well as general information to
raise awareness of issues related to the aging population and work. In the United
Kingdom, for example, the government launched a public awareness campaign in
1999 aimed at encouraging employers to make decisions about recruiting, training,
and retaining workers with a focus on inclusivity. This campaign presented guidelines
for recognizing the benefits of a diverse workforce for the bottom line. The guidelines
included six areas of focus: recruitment, selection, promotion, training, reducing the
number of employees, and retirement (Tabibian Mizrahi, 2007).
Importantly, some existing opinions about older workers can be turned to their
favor. Because, as noted earlier, older workers are seen as trustworthy, loyal, and
reliable, organizations that require a high degree of reliability (for example, agencies
responsible for taxation, banks, and high-security operations) can be encouraged to
hire older workers and take advantage of this perceived comparative advantage.
Overall, study after study reveals that older workers are more engaged by their work
than their younger counterparts are (James, et al. 2010; AARP, 2015). Ignoring the
positive attributes that older adults bring to the workforce can only be seen as a
negative for employers and their would-be hires alike.
Conclusion
Although both positive and negative traits are associated with older workers,
the negative ones appear to have a significant impact on their ability to re-enter the
labor market after a job loss or other disruption of employment. Among employers,
there is still too little recognition of the changing work horizon for older adults. Long
seen as easy layoff targets (because they might be leaving soon anyway), older
workers are now more likely both to want and need to keep working. Extending the
work horizon depends a great deal on employer attention to unwarranted concerns
about retaining and hiring older workers. Forward-thinking employers and
government agencies in all developed countries are beginning to come to terms with
the changing context of aging and work. Clearly, more research attention needs to be
paid to the effectiveness of these early efforts and other innovations designed to
overcome biases and help employers prevent the loss of knowledge, expertise, and
productivity that older workers bring.
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Employers Attitudes toward Older-Worker Job Seekers: A Comprehensive

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Hila Axelrad Jacquelyn Boone James

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Hila Axelrad and Jacquelyn B. James

difference (chronological age) that may be irrelevant or irrational in relation to

occupational demands. Reliance on chronological age alone reflects stereotypes and

ageism. However, investigating the phenomenon of age discrimination empirically is

perception of age discrimination is widespread (James, McKechnie, Swanberg, &

increase these workers’ prospects for continued employment in later life.

Key words: older workers, age discrimination, recruitment.

Increasing the number of years of active labor-force participation by older

based on a number of countries in the Organisation for Economic Co-operation and

the situation for older workers?

continued employment in later life.

To accomplish these aims, we first review the literature about recruiting

policies and practices.

Employers distinguish different types of employees (management, clerical, and

manual workers) in their recruiting practices. Interviews (one-to-one and/or panel

psychometric tests—a tool especially common in Scandinavian countries.

Graphology—the study of handwriting as an indicator of “character”—is used in

managers (Dewettinck & Parry, 2011).

choose to spread information about vacancies is determined by how efficient the

employees to develop an applicant pool. Today, though, technological advances such

reaching targeted recruits (Breaugh, 2014).

from Cranet—the largest human resource management (HRM) network in the

applications appear to be the most common recruitment methods (Dewettinck &

Parry, 2011; Hadji Abootorab Kashi, 2015).

electronic contact, is vital in the last steps of a successful hiring process.

organization. By inviting candidates for interviews, the employer obtains "signals" of

applicants' capabilities to perform the required responsibilities. These include

Our focus for this paper is this latter group.

aforementioned OECD (2006) study, employers in most of the countries studied

action for age discrimination as reasons for not hiring them.

In addition to these preconceptions, employers may simply feel uncomfortable

with younger workers.

been referred to as taste discrimination or preference against people from certain

Similarly, the practice of statistical discrimination, a practice of inequality

based on stereotypes, constitutes another roadblock (Arrow, 1973). According to this

unprejudiced. This type of preferential treatment is labeled “statistical,” because

unwilling to give older job seekers a chance at the outset.

in 19 résumés to receive one invitation for an interview, in comparison with 27 for an

résumés are 16 and 23 respectively (Lahey, 2005).

The current context of aging and work

policymakers to increase the age of eligibility (Vickerstaff, Phillipson, & Loretto,

OECD data on labor-force participation rates (Figure 1) indicate that

participation by those ages 55–64 has increased in most countries.

Fig. 1: Labor force participation rates of those ages 55–64, by country

2010 2011 2012 2013 2014

Indeed, the culture of early exit flourished in most major industrialized

of the population as well as by the aging of workforces in specific industry sectors,

employment and unemployment of workers ages 55–64 has increased in many

workers who give up (Johnson, 2012).

the percentage of discouraged older workers (55–64) decreased. These differences

market or to early retirement.

2010 2011 2012 2013

A study conducted in the Netherlands (Conen, Henkens, & Schippers, 2011)

2010 2011 2012 2013

Although some of the ups and downs of employment opportunities appear to be