HR leaders face the task of developing policies and practices that cater to five distinct generations, where one group, older workers, will become more prevalent in the future as the U.S. workforce ages.
The Ageing American Workforce
According to the U.S. Bureau of Labor Statistics, individuals over the age of 65 are projected to make up approximately 8.6% of the U.S. labor force by 2032, an increase from 6.6% in 2022. They are expected to contribute to nearly 60% of the overall growth of the labor force during this period. Two years ago, approximately 19% of Americans aged 65 and over were working, a figure that is anticipated to rise to 21% in the coming years. Labor force participation rates are projected to remain stable or decrease for all other age groups except for individuals aged 55 to 64.
Stacie Haller, chief career advisor at ResumeBuilder, suggests that a variety of factors contribute to Americans staying in the workforce longer today, such as living longer, healthier lives, financial concerns, and the increase in work-from-home opportunities, part-time work, and non-traditional roles.
The Pros of Older Workforce:
According to Richard Wahlquist, CEO of the American Staffing Association, the employment of experienced workers can significantly benefit organizations, especially in a tight labor market, with their wealth of knowledge, institutional memory, and proven skills, with higher levels of innovation and productivity.
But are employers ready to capitalize on these opportunities? New research from ResumeBuilder suggests that many are not. The organization's findings reveal that 42% of hiring managers surveyed admitted to taking age into account when reviewing resumes, and one-third acknowledged a bias against senior candidates.
The Cons of Older Workforce
Among the hiring managers surveyed by ResumeBuilder who acknowledge bias against older workers, three-quarters attribute this bias to the proximity of this population to retirement, nearly two-thirds express apprehension about their potential health issues, and almost half cite concerns about lacking sufficient technology experience.
Paradigm Shifting: Skill-Based Hiring
Ageism can manifest at various stages of the employee lifecycle, but it is particularly evident and impactful during the hiring process.
According to a survey by ResumeBuilder, over 40% of hiring managers admit to being less inclined to hire a candidate who appears elderly during a job interview. Among hiring managers who factor in an applicant's age, almost half assess the candidate's appearance from a photo, while nearly as many believe LinkedIn contributes to age bias in hiring. Furthermore, over 80% of the candidates determine their age based on their years of experience, with a similar number relying on the year the candidates earned degrees.
Haller emphasizes that hiring professionals should acknowledge the desire of many older individuals to work and their potential to make valuable contributions, even if they encounter challenges in creating a modern resume. She suggests that it is time to overcome age bias and embrace the diverse talents of all candidates.
On the other hand, Wahlquist emphasizes that age discrimination is not only unfair but also detrimental to business, which can result in a loss of talent, diminished employee morale, and the risk of potential lawsuits. Wahlquist emphasizes the importance of allowing older workers to demonstrate their abilities without making judgments based on personal biases, believing that all ages are capable of learning, growing, and adapting. Furthermore, he highlights the significance of skills-based hiring as a tool to empower older workers and reviewing hiring practices to prioritize skills and qualifications that can help mitigate unconscious biases.
