Notícias

The age issue is at the heart of modern business strategies for two main reasons: the shrinking talent pipeline and discrimination in the workplace, which have led to an increase in employment litigation. Companies need to re-evaluate their approaches to attracting, hiring, developing and retaining talent in order to address these challenges.

image: Freepik

Globally, we are witnessing an increase in longevity combined with a decline in birth rates over the decades, a double demographic consequence that impacts on the economy in different ways. A declining birth rate means less talent to fill positions in the labor market. According to a report by Korn Ferry, by 2030, more than 85 million jobs could go unfilled due to a lack of qualified people, especially if candidates over the age of 50 are excluded.

Employers are realizing that the talent attraction, development and retention strategies they have been using for the last few decades are no longer effective. Not only must they rely on talent of all ages to fill the gaps through hiring and retraining, but they also need to offer more flexibility to younger workers facing a working life of 60+ years. This flexibility includes the freedom to temporarily step away from the workplace for various personal reasons, such as mental recovery, family care or to try out an entrepreneurial idea.

Although age is a protected category with the passage of several laws against age discrimination in employment (in the US since 1967) for people aged 40 and over, these workers are drawing attention to ageism. From small restaurant chains to large global defense companies, several news stories have come out exposing discriminatory practices.

IBM, for example, has settled several age-related collective claims after officials discovered that the company fired almost 100,000 older workers to hire younger ones. Eli Lilly also settled an age discrimination lawsuit for an undisclosed amount, just two months after reaching a settlement of 2.4 million dollars. PwC in the US paid 11.6 million dollars in a settlement in 2021 after being accused of discriminating against older candidates by recruiting on college campuses and advertising positions only on school-related websites. More recently, RTX, formerly known as Raytheon, was named in a class action lawsuit for rejecting and discouraging candidates aged 40 and over, preferring recent graduates.

image: Cielo Talent

Age Affects Everyone

The effects of ageism are felt by everyone. Why is this so? Because aging is a common reality for all of us. When younger employees see older colleagues regularly fired, even when they are highly competent, it sends an ominous message about their own future and undermines organizational trust. When a candidate pool includes only people under 30, employees believe that their future in the company has an age limit, which increases the risk of leaving.

For these reasons, companies must prioritize an age-inclusive talent strategy. Company dynamics must become less threatening by reviewing policies, practices and accountability measures aimed at hiring, developing and retaining talent of all ages. According to Cielo Talent, 89% of employees over 45 are as productive or more productive than their younger colleagues.

Research by academics at the London School of Economics and the University of Essex in the UK suggests that efforts to address the systemic exclusion of older workers must be more direct. Subtle hints are not enough to combat hiring bias against older workers. Instead, companies that choose to be explicit with recruiters and hiring managers about hiring goals are more likely to achieve them.

It is imperative that organizations adopt an inclusive approach that values workers of all ages. This approach will not only help mitigate the risk of litigation, but will also strengthen trust and retention within the organization. By recognizing and combating ageism, companies can ensure that they are making the best use of all available talent, creating a fairer and more balanced working environment for all.

In addition, implementing intergenerational mentoring programs can be an effective way of promoting the transfer of knowledge and skills between workers of different ages.

Ultimately, age is a question of attitude, and organizations can only benefit if they invest in a diversity of perspectives and experiences, as this not only enriches corporate culture, but also contributes to a more collaborative and innovative working environment.

Article by Sérgio Almeida, in partnership with Vida Económica.