Ageism in the workplace is a growing issue. Employers need to take intentional steps to prevent and tackle age discrimination through robust policies and training.

Ageism and age discrimination are prevalent issues in the American workplace. About three in five older workers have experienced age discrimination at work. Also, 76% of older adults believe age discrimination has prevented them from getting a new job. Despite years of experience, older job applicants often face serious obstacles during their job search. In fact, older workers are offered jobs 40% less frequently than younger workers despite being invited for interviews at the same rate.

The US Equal Employment Opportunity Commission (EEOC) defines age discrimination as treating an applicant or employee less favorably because of their age.

Age discrimination is a facet of ageism. The World Health Organization (WHO) describes ageism as the stereotypes, prejudice, and discrimination towards others based on age.

While older workers might not be treated less favorably because of their age in a tangible sense, having to deal with subtle prejudice in the workplace is unacceptable as well. Nearly one in four workers over 45 have faced negative comments about their age from younger workers and managers.

This growing issue needs to be tackled. Demographic trends suggest that people are working longer than ever. For instance, in the 1990s, 25% of American men aged between 65-69 worked. But now, nearly 40% do. By 2030, almost 10% of the total labor force will be over 65. Increasingly, people no longer retire at traditional retirement ages, and hiring practices must reflect this. If not, managers risk alienating 10% of the workforce in the next few years.

Older employees should be empowered to speak up against ageism when it happens in the workplace. There should be policies in place that prevent ageist behavior and age bias. All employees should be offered training, especially hiring managers.

Not tackling this issue head-on could result in grave consequences for employers. For example, workplace age discrimination claims accounted for 22% of all claims made to the EEOC in 2020.

What does ageism look like?

Ageism can be subtle, but it is prevalent in society – social media is a breeding ground for subtle ageism. For example, off-hand remarks like ‘ok boomer’ have become commonplace in comment sections, but they are a great example of ageism.

Older people who experience it may not always recognize it right away. So what are some signs of ageism in the workplace?

• Laying off older workers in favor of hiring younger workers. Sometimes this is done to save costs. Other times it’s blamed on ‘culture fit.’
• Unpleasant comments related to an employee’s age by coworkers and even managers. Stereotypes relating to technophobia or retirement are examples of this.
• A stop to raises for older people where young people with similar results have been awarded raises that year.
• Sudden poor job performance reviews after a history of glowing reviews.

Other signs of ageism include being turned down for promotions, overlooked for challenging job assignments, and a pattern of hiring younger employees.

In a work environment, it can be tricky to connect the dots as the above signs, on their own, don’t always mean age discrimination is happening in the workplace. This is why employees must be open about their experience. If the lines of communication are open, it is a lot easier to identify potential victims of age discrimination and take the appropriate action.

What is the age discrimination in employment act of 1967?

The age discrimination in employment act of 1967 (ADEA) was passed to protect employees from age discrimination. ADEA is a federal law, and similar state laws exist. ADEA prohibits all forms of discrimination against anyone 40 years of age or older in the workplace, whether they are an applicant or an employee.

While all HR departments are aware of ADEA and strive to implement it as part of their policies, this isn’t always successful.

While there is a common misconception that age discrimination is hard to prove, major companies like Google and IBM have faced class-action discrimination suits. For example, Google recently settled a hiring age discrimination case for $11 million.

This shows that people can mobilize to tackle age discrimination in the workplace if it becomes an issue. This is why it’s important to implement robust policies to prevent and tackle ageism.

So what exactly does ADEA cover? Here are some key points:

• The ADEA applies to private companies with 20 or more employees, the federal government, state governments, local governments, employment agencies, and labor organizations.
• It prohibits age discrimination in circumstances including but not limited to hiring, firing, layoffs, promotions, job assignments, and benefits.
• It further makes it illegal to harass older workers because of their age.
• Individuals who wish to oppose employment practices that discriminate based on age cannot be retaliated against under the ADEA.
• Employers can’t deny older employees benefits, but there may be caps placed on benefits where they’re likely to incur higher costs than they would if they were paying benefits for younger workers.

Interestingly, the ADEA does allow companies to favor older workers based on their age, even if this negatively impacts younger workers under 40.

If employers are found to have violated the ADEA, they may face severe penalties, including but not limited to:

• Remedying the effects of age discrimination, i.e., if an employee was laid off, that employee must be reinstated
• Pay compensation in the form of lost wages and benefits, also known as back pay
• Pay the employee’s legal costs

Employers need to ensure they are compliant with the ADEA. If they do not, they risk an age discrimination claim. Identifying and tackling misconceptions about older people and putting in place comprehensive policies to tackle age discrimination are the first steps in the process.

Employer misconceptions about older employees

Employer misconceptions about older employees are common. Some stereotypes are well-known, including that older people are seen as:

• Stuck in their ways
• Unable to adapt
• Unable or unwilling to learn new technology
• Less energetic
• Less willing to work overtime.

These are clearly ageist attitudes and are unacceptable in the workplace.

There are also more subtle misconceptions that employers raise about their older workers. They can lead to age discrimination in their own right, especially if they lead to limited promotions and not hiring older workers.

Employers are as worried about older employers retiring as they are about rising costs for those who delay retirement.

Companies worry that older workers who are about to retire could pose the following problems over the next five years:

• 50% say leaving the company with company-specific knowledge, which is then lost, is an issue
• 48% believe they will struggle to find workers with similar knowledge, experience, and skills
• 43% believe the transfer of knowledge or handover planning may be ineffective

And companies that worry older workers might delay retirement believe they could pose the following issues over the next 5 years:

• 49% say they will need more pay out more in benefits as a result
• 41% worry about the increased wage and salary costs
• 37% voice concerns that older workers will take promotions away from younger employees

While many companies see these as legitimate concerns, digging deeper reveals deep-seated ageist tendencies. However, many of these concerns can be tackled with robust policies, open communication channels, and forward planning.

How can we prevent and tackle ageism in the workplace?

Preventing ageism and age discrimination in the workplace needs to start with the hiring manager and a robust process around employment practices.

Employment agencies can be particularly prone to displaying ageism. Some inexplicably let people go after they turn 40, while others refuse to hire older people. This is rooted in the fact that employment agencies generally look for cheaper, less experienced staff because of their billing model.

Specific industries, like advertising, are also prone to prefer younger millennials and Gen Zs. This can make experienced older employees more prone to layoffs and less likely to be hired in the first place.

That said, ageism exists in all industries, and companies should remain vigilant at all stages of employment.

Hiring managers could start by implementing the following hiring practices:

• Removing ‘overqualified’ as a reason for rejecting a job applicant because assuming an older, more experienced employee will get bored of the job is a form of age discrimination.
• Using an anonymous process to vet candidates. This can be done through anonymizing CVs or replacing CVs with tailored tasks and targeted questions that do not ask for identifying information.
• Using LinkedIn responsibly, as while most CVs do not include photos, LinkedIn profiles do, and they can age people.
• Creating hiring criteria to ensure employment decisions are based on people’s alignment with the company’s needs rather than their age.
• Ensuring any job applications do not require job applicants to fill in unnecessary information that could reveal their age.
• Writing applications that do not suggest you’re necessarily looking for younger applicants. This means avoiding terms like ‘recent graduates’ or even trendy terms like ‘ninja’ that may appeal to millennials but will likely alienate older people.

While it is vital to ensure everyone is given an equal chance to work at a company regardless of their age, ageism does not stop with hiring choices.

So what can be done to ensure a workplace is free of ageism? First, companies need to treat all their workers like meaningful contributors to the workplace. Some policies they might consider include:

• Ensuring promotions are based on skills and experience by introducing methods and processes that take the bias out of promotion decisions. This could include skills rubrics or anonymous tasks.

• Giving raises based on performance and ensuring there is a process to record how decisions for raises have been reached and against what criteria.
• Tackling stereotypes by investing in DE&I initiatives with a particular focus on ageism. Ensuring HR has a zero-tolerance policy towards workplace bullying and discrimination is another positive step
• Providing staff training around the intricacies of ADEA, so employees are aware of their obligations and the consequences of not being compliant
• Ensuring layoffs are not based on age or pay. For example, an employee retiring soon shouldn’t be first in line for layoffs based on that fact alone. Further, older employees are usually paid more by virtue of their experience. Therefore, laying off the most expensive employees could lead to an age discrimination suit.

Employers can go one step further by ensuring they strive to create a policy of age diversity. While tackling ageism is half the battle, recognizing that age diversity brings value to the workspace is even more critical.

Having employees from all walks of life with all types of experiences means more opportunities for out-of-the-box thinking and dissenting voices that come up with innovative ideas or point out issues that might not be brought up in echo chamber style teams.

Ageism in the workplace

Ageism in the workplace is a real and pervasive problem. Yet, while comprehensive laws like the ADEA protect workers from the worst aspects of age discrimination, it still happens too often.

Employers can make their workplaces more inclusive for people of all ages if they focus on age-neutral hiring practices. Choosing intentional words that do not imply someone has to be a certain age in job ads is a great start. Another critical step is ensuring that applicants aren’t outright rejected because they are ‘overqualified.’

Once hired, older employees should not be subjected to age-related harassment. Event light-hearted jokes about retirement plans can be taken the wrong way and are best avoided in the workplace. Raises and promotions should be managed according to people’s performance, and decisions should be logged carefully.

These are just some steps to ensure that workers are not subjected to age discrimination. And seeing as people are putting off retirement for longer and longer, employers must ensure they have inclusive workplaces for their staff.

How does AgeGroup plan to help fight ageism?

Here at AgeGroup, we’re building a digital universe for seniors – the AgeVerse. On top of our desire to create an accessible, high-value community for the world’s over 50s, we want to give both seniors, employers, and other stakeholders the tools and confidence they need to identify and tackle ageism in all settings, so that we can collectively take a journey towards a world without age discrimination.