The Age-Performance Paradox: Employees aged 45 and over are less likely to be employed than younger cohorts, but outperform them!

?? Despite their increasing presence among the labor workforce, workers aged 45–64 encounter several challenges. Overall, workers’ economic participation rate drops as their years advance, with a?turning point at?midcareer (age 45–54).

?? Hiring managers cling to?a?deeply held perception bias against job candidates over the age of 45?– they believe members of this age cohort are less able to adapt to new technologies or learn new skills. On the other hand, those very same managers also acknowledge that when they do?hire people over 45, those workers perform on?the job just?as?well as or?even better than their younger counterparts, according to a new interesting research published by OECD - OCDE (Organization for Economic Cooperation and Development) and Generation a?global employment nonprofit organization using data from 6,029?employed and unemployed people (aged 18–65) and?1,510 hiring managers in?eight countries between 24?February and 7 March 2023.

?The ageing Society

Today, people between the ages of 45 and 64 account for some 40 percent of the working-age population in OECD countries.

Researchers found that over the past 70 years, apart from the hiatus caused by the COVID-19 pandemic, life expectancies around the world have been rising steadily. As?people enjoy longer post-retirement lives than ever before, active workers will be forced to?carry a?heavier and heavier economic load.

?Employment declines with age

Researchers found that across countries and regardless of gender or level of education, the employment age profile follows an inverted-U shape?– it increases until peaking around the age of 45, and then declines sharply after age 50.

?Hiring practices across sectors continue to be shaped by Ageism

Researchers noticed that hiring practices across sectors continue to be shaped by ageism. Employers perceive professionals who have passed the midcareer threshold (of?age 45) to lack both the drive and the openness to innovation possessed by their younger counterparts. Compared to younger candidates, midcareer jobseekers are finding the search for employment more difficult across the board, lowering their confidence.

Researchers found that employers often express the?belief that midcareer and older workers are less willing than younger peers to learn new technologies and processes. And yet, despite such negative perceptions, the survey also found that when older workers do gain a?chance to show what they can do, employers say that they consistently match or exceed the performance of younger colleagues.

Researchers found that employers believe midcareer job applicants are?less adaptable than their younger peers: 25?percent believe that workers aged 55–64 are reluctant to try new technologies, tools, and processes, and a?quarter say they are slow to?adapt.

Researchers found that 89 percent?of employers reported that the midcareer and older workers they had hired performed as well or better than their younger hires.

?? These current employees aged 45–64 were also perceived to stay as?long or longer (86 percent) and to?learn as or more quickly (83?percent) than?younger employees.

?Midcareer and older workers are ready to seek out more satisfying roles

Researchers found also that job satisfaction is higher for successful switchers compared to potential switchers and for younger employees?compared to their older colleagues

Job dissatisfaction is a?strong predictor of?job quitting, labor market exit, and, for those old enough, of early retirement.

Researchers found that a?midcareer switch could be a?remedy to?this?danger, the path to change is strewn with barriers. Many midcareer workers express low levels of?confidence in their prospects of?transitioning to?a?new career and report greater difficulty in the job search?than younger cohorts.

Finally researchers believed that to resolve the “age-performance paradox,” reduce structural barriers, and strengthen the competitiveness of midcareer and older individuals in the job market, all stakeholders need to adapt their job recruitment and application strategies.

Researchers made some recommendations to three categories below to mitigate ageist bias in?hiring practices, empower job seekers, and promote greater dynamism in careers at any age:

• For employers:?? Revise recruiting practices to proactively attract qualified midcareer and older applicants for available positions??Adjust screening and interview processes to account for the strengths of midcareer and older candidates, and equip hiring teams to accurately evaluate candidates?? Upskill midcareer and older workers to overcome perceived and?real?barriers to success in the workplace?? Measure the job performance and retention of midcareer and older employees in comparison to that of younger peers in the same role

• And for midcareer and older employees: ??Develop and demonstrate in-demand skills by seeking out job-relevant training and industry certifications?? Search for jobs in priority channels for employers
• For Policymakers :?? Provide greater information and career guidance to support job change to midcareer and older workers?? Deliver targeted job-search and placement support to prevent older?workers from slipping into long-term unemployment?? Lower barriers to geographic mobility?? Fund training programs and support skills development at older ages?? Revise labor market regulations and tax policies to prevent sidelining of older workers?? Evaluate training and employment program effectiveness?? Facilitate entrepreneurship for older workers

Thank you ?? OECD - OCDE and Generation researchers team for these insightful findings: Shruti Singh Mona Mourshed Dana Blumin Helen Cashman Goldie Chow Dimitris Alexandre Mavridis Karen Salazar Jennifer Sikes Marc Pearson

Dave Ulrich George Kemish LLM MCMI MIC MIoL

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