The lost opportunity costs incurred by not hiring experienced older workers can result in a workforce that's definitely not as knowledgeable, committed or wise. (Photo: Shutterstock)
Companies attempting to attract young workers may be shooting themselves in the foot by discriminating against older workers, both those who are already employed and those who are seeking work.
And the problem isn't just expensive on both sides of the equation, but also underreported, according to the Hiscox Ageism in the Workplace Study—making it difficult to fix. The results of the study aren't as thorough as they could be, since it only it surveyed 400 U.S. adults aged 40 and older who were employed full time, which means that part-timers and those attempting to find work did not provide input into the results. That means the problem is likely even more extensive than the survey results reflect.
However, said results are gloomy enough as it is, with the survey reporting the costs to employers of demotivated employees—those who have been discriminated against—and a loss of a reservoir of knowledge when older workers are shown the door.
In addition, the lost opportunity costs incurred by not hiring experienced older workers can result in a workforce that's definitely not as knowledgeable, committed or wise.
Then there's the actual dollar cost of settling age discrimination charges filed with the EEOC, which between 2010 and 2018 amounted to $810.4 million—a big chunk of change.
Older employees feeling the sting of discrimination in the workplace feel held back, with raises and promotions denied them and their career track stalled—something that will follow them all the way into retirement, assuming they ever get there.
As older workers seek to remain in the workplace longer, to financially shore up their retirement savings, they're finding it harder and harder to do so—and, says the report, they will "typically endure the longest period of unemployment compared to other age groups and will likely take a significant pay cut if they become re-employed."
Yet the whole problem is underreported. Even though 43 percent of respondents said they left a company because they either experienced or witnessed age discrimination, that doesn't mean they took their concerns to people in authority.
Only 40 percent said they filed a charge or complaint; 75 percent of those did so with their employer, but just 48 percent did so with a state or local agency or the EEOC.
In fact, 54 percent said they didn't file a complaint because they feared repercussions resulting in a hostile work environment, and 24 percent said they didn't know how to file a complaint.
Witnesses to ageism don't report, either, with 37 percent saying they saw it happen but 51 percent saying they said nothing; 62 percent of witnesses said they were afraid of retaliation from the boss if they did report.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
