BEYOND AGE BIAS:
Successfully Managing an Older Workforce.

By: Sheldon Steinhauser

Two hundred million dollars and growing. That is the amount spent by corporate America in a series of highprofile lawsuits between 1996 and 1998 for legal awards and settlements-not for race discrimination or sexual harassment cases, but for age discrimination in the workplace. And that amount does not include the formidable price tags for legal fees, managers' time and damage to an organization's public image and company morale.

The impending explosion of the aging boomer populace in the United Statesa generation Of 76 million people starting to pass the age-50 mark-is expected to produce a substantial increase in such complaints and lawsuits involving discrimination, misrepresentation of benefits and pressure for employees to waive the right to sue. In California alone, about 15,000 claims of age discrimination were filed during the last five years, according to Gerald McDaniel, member of the State Legislative Committee of the American Association of Retired Persons (AARP) in Washington, D.C.
 

Eventually, companies will become increasingly dependent on the quality, skill and work ethic of older employees. Some corporate leaders are already realizing they can act to reduce or eliminate age discrimination and the more subtle forms of bias through effective management Although few if any companies are offering major ongoing educational programs designed to prevent age discrimination or deal with intergenerational issues in the workplace, there has been good news in the past year. Several national corporations have added these subjects to their diversity and human resources conferences.

Also, one substantial business development group in Colorado has shown interest in recruiting and better utilizing older adults who have skills more sophisticated than those associated with low-paying service jobs. The organization is considering educating its member companies about the competitive edge older workers can give them as the younger workforce shrinks. Additionally, a wellknown corporation included the subject of marketing to mature adults on the agenda of one of its human-resources and sales-andmarketing workshops.

Despite these positive sign., of change, concern remains that as buyouts, mergers and economic downturns lead to cutbacks and layoffs, pervasive age-based stereotypes and perceptions may still play a significant role in limiting employment of odler adults.

Also problematic are persistent perceptions among older adults that keeping or finding a management or executive job past age 55 will present serious challenges even in the present superheated economy. Should the economy turn downward, a disproportinate percentage of older workers is expected to experience layoffs like those seen in the early 1990's that triggered a large number of agediscrimination complaints.

Although only about 20% of all complaints filed with the federal Equal Employment Opportunity Commission (EEOC)are for age discrimination, settlements and jury awards are substantially higher in such cases than in those for race, sex or disability discrimination. From 1988 to 1995, people claiming age discrimination were awarded an average of $219,00compared to $147,799 for race discrimination, $106,728 for sex discrimination and $100,345 for disability discrimination, according to Jury Verdict Research.

An increasing number Of corporations have been accused of age discrimination in the '90s. In 1997, for example, First Union Corporation, one of the nation's largest banks, agreed to pay $58.5 million to 239 former employees to settle an age discrimination suit, and Continental Airlines settled another lodged by 207 employees for $7 million-$8 million. Although accused companies routinely deny the allegations, many reluctantly choose to pay substantial sums to settle age-related suits rather than incur the expense of court fights.

Despite the continuing threat of accusations against high-profile firms, business can take action now to reduce or eliminate age-discrimination litigation. Among the effective workplace strategies are assessment of organizational culture, expansion of preventive training, alteration of hiring and screening processes, and development of a supportive environment for older adults. All require a well-thoughtout plan and the commitment of senior managers.

Beyond the threat posed by age discrimination cases is the reality of the changing workplace, This concern is international: Among European Union nations it is estimated that by the year 2020, about 40% of the workforce will be between 45 and 65 years old. In 1994, the median age of workers in the United States was 38 years, and this figure will rise to 41 by the year 2005. There are now about 16 million Americans-ages 55 and older who are working or seeking work, and this number will increase dramatically in coming years.

Economic necessity will keep aging boomers working longer largely because of a mix of positive developments-especially longer life expectancy, rising education and improvements in health and fitness-and such worrisome factors as trends toward more limited private pension benefits and anxiety over potential changes in Social Security. No fewer than 80% of boomers say they plan to work at least part time when they retire, according to a 1998 AARP-Roper Starch survey. This compares to those surveyed who were ages 60-69, of whom 34% worked full or part time.

As boomers plan to retire, many economists are predicting a shortage of skilled workers that will result in a need for companies to recruit older workers who possess valuable' skills. Gordon F. Shea, author of Managing Older Employees (San Francisco: Jossey-Bass, 1991) predicts that for every six new entrants into the job market in 1990 there will be only five by next year. 'Ibis represents a need for millions more workers.

I have found that managers who operate on the basis of stereotypes bring out the worst in Gen Xers and older adults. The best managers build teams that support all employees as individuals, develop the potential of each employee, celebrate success and provide a sense of belonging. Gen Xers feel some of the same vulnerability as their older counterparts in the workplace. Members of both groups suffer when corporate culture undervalues them as people, devalues their work and provides no recognition,

Because older employees are likely to remain in the workplace longer, on-the-job training tends to be the most effective way of helping them improve their skills and prevent obsolescence, objectives that are very much in a company's bottom-line interest. Businesses also can keep these workers dynamic and up to date by consulting with them regarding plans and projects, including them in meetings on subjects relevant to their work and asking for input in their areas of expertise.

For managers to keep pace with the changing age demographics of the U.S. workforce, they first need to confront their own stereotypes about aging and to understand basic facts about the aging process. In his book, Shea emphasizes that "the choice is clear. If employers, management and workers themselves do not solve the problemsof older employees, all of us will suffer-not only through social and economic losses that we may never measure adequately but through the decrease in opportunities that we permit.... Creating a work environment that stimulates interest in continuing [employment] may require a fresh look at careers and occupations for older employees. While more of the same old thing may not cut it, fresh ideas may do the trick." *

Phone/fax: (303)220-5699;
Email: SheldonS3@aol.com.

This is an updated version of an article that first appeared in The Business and Aging Networker, newsletter of the American Society on Aging's Business Forum on Aging.