Flushed away at 40...
.gif)
Evidence is that, despite the 2006 age legislation, there is still a long way to go before organisations truly value older talent as an important resource. The results of recent research should make us all feel very uncomfortable, says John Neugebauer, a lecturer in HR management and director of Peoplevalued Partnership Limited
As increasing numbers prepare for retirement, a smaller number of younger people are there to replace them. In the September edition of Talent Management Review, Marcus Powell, in his workshop article entitled Survival of the Fittest, reminded us of the importance of taking a wider and more constructive look at rapidly shrinking talent pools.Marcus comments: “Knowledge loss due to the retirement of the baby boomers looms, and companies not yet feeling the pain of the human capital shortage need to wake up.”
It would be reassuring to think that organisations are taking a closer look at engaging all talent, irrespective of age. Despite the Employment Equality (Age) Regulations 12 months ago, and many organisations including age in their diversity policies, full use is still not being made of older managers.
As we look at the nature of age discrimination and talent management, we can explore the wider research on age, and this author’s own research in manufacturing, education, financial services, self-employment, not-for-profit and the public sector. Many of the participants have given responses on the understanding that neither their names, nor their organisations are named. The results should make us feel extremely uncomfortable in the extent that organisations under-rate the value of their older talent.
Discrimination and ageism
As we become older, society tends to regard us all as going in the same direction: perhaps slower, easily tired, awkward to manage and less capable of dealing with change. But it is far from true that everyone changes physically and psychologically at the same rate. Whatever organisation you work for, you may be unpleasantly surprised to discover the age at which you are regarded as older.
For example, Carol Lewis wrote for The Times: “You may consider yourself young and in the prime of life. But think again if you are male and more than 45. Think again if you are female and more than 35.”
Will Hutton, CEO of The Work Foundation and former editor-in-chief of The Observer, has reflected a similar view, but pointed out that some sectors regard ‘being older’ at much younger ages: “As far as many people in cutting edge industries, from television to software, are concerned you are, in effect, redundant by 35; only the young can have no history and so be useful.”
Self-identity
Older workers are often perceived to be slow and inclined to be absent minded. Yet, the same older workers feel that these stereotypes apply to others, not to themselves. Why does all this matter in talent management? If we want to make the most of talent, then it is obviously important that all levels of the organisation work within the spirit of regarding all people as having a valued contribution. Research consistently shows that people with positive self-belief outperform in work effort, quality and quantity than those with low self-belief. Many of the assurances and reinforcements of self-belief that may come with age can be undermined covertly or overtly. As an example, executives reported no longer being required to attend every executive committee meeting, or a tail-off in being considered for new roles and projects.
Work performance
Many talent pools appear to assume that older workers will have limited future potential, as a result of declining capability or interest. But there is little evidence that capability does decline with age, at least not before people are in their sixties and beyond. On mental ability, research has found that older workers tend to demonstrate crystallised intelligence (wisdom based on experience), while younger workers demonstrate fluid intelligence (quicker to learn and to adapt to new situations). Some attributes (eg, verbal communication) actually peak when you are in your mid-fifties. Overall, and despite what we assume in the workplace, researchers have concluded that age rarely accounts for more than 10 per cent variation in manual work performance – and no variation for clerical workers.
Gender
As we think about possible age impacts on our talent management programmes it is also important to look at how its affects women. There is evidence that women are subject to double jeopardy in age. First, they tend to be regarded as older workers at a younger age than men; and second, they have less opportunity to overcome negative assumptions about their work and performance than men.
But Amanda Alexander, global head of talent at executive search specialists Heidrick and Struggles, has observed that age may not always be a disadvantage for women: “Women often feel very conscious about their physical appearance, especially in the media sector. But, in some ways, women may find things improve in their forties compared to their thirties, when they shift from being regarded as ‘bright young things’, and become more confident, mature, and have greater impact.”
Senior management perspectives
The Advisory Conciliation and Arbitration Service (ACAS) found that six months after the age discrimination laws had been introduced, only 17 per cent of SMEs (small and medium enterprises) had amended their selection processes. My own research has shown those senior managers surveyed from larger organisations were well aware that age discrimination is now unlawful. They were also able to confirm that age was part of their diversity policies.Despite their technical understanding of age discrimination, there was less ability, bordering on self-denial, to recognise that age discrimination was happening:
“I don’t think I’ve seen [age] discrimination. I don’t see anyone over the age of 40 sailing through the ranks. I hadn’t really pondered it.” (Senior manager, female, 44)
In a minority of other organisations, a desire to avoid older and longer-serving workers is more blatant:
“We don’t want any grannies working in our stores.” (HR director, female, of a retail chain for teenage girls)
“We all do it [age discrimination]. In the end, the young people are easier to control.” (Commercial director, manufacturing, male, 57)
“People aged over 40 or with more than five years service are excluded [from the talent pool]. They have no tomorrow.” (Global talent conference for Japanese subsidiary)
At senior management level, key leaders are supposed to be maximising the use of organisational human capital, so a more discerning understanding of how people are developed – or disregarded – is essential.
At Heidrick & Struggles, Alexander has noticed attitudes changing: “In the past, I’ve seen some organisations start to think differently about candidates in their fifties, with questions such as ‘how much headroom does this person have?’ or ‘is this candidate simply looking for something for five years?’ There is a shortage of talent so this attitude does not make sense. Our people have been trained in age discrimination to make it clear that they know it’s illegal. We will not work with it, and occasionally, when we come across individuals in client organisations with outdated notions, we work hard to get them over the hurdle of those kind of pre-conceived ideas.”
In selection decisions my own research showed that senior managers had experience of the potential for age discrimination towards employees, and to themselves. For example:
“If you don’t make it to director by 48, you won’t [you will be too old],” (Career advice to a senior manager, male, 42)
“I am worried if there is a restructure when I am in my late 40s, [that ] I’ll be considered too old.” (Senior manager, male, 42)
The expectation of older senior managers, that they would be considered too old and quietly phased away from talent reviews, was also apparent. A male senior talent executive – aged 54 – leading executive search for a financial services organisation, briefed a search consultancy on the need for them to include candidates of all ages in the selection pools, only to be told by the search consultancy: “We are relieved to hear you say that, since your line directors have told us that anyone over the age of 40 will be considered too old.” Elsewhere, internal selection decisions start by simply considering age as one of the key, off-the-record selection criteria.
“The first thing they ask when appointing a new branch manager is how old? If over 35, the assumption is they won’t have the energy or the drive for the job.” (Director, male, 47)
“There is no point applying for a job with company x (national radio station) if you’re over the age of 30.” (Senior manager, broadcasting, 55)
“There is an element of ‘why would I want to take him on at age 60, when he only has another five years?” (Senior manager, manufacturing, female, 43)
“Jobs advertised internally first, but then go outside to get someone younger.” (Director, financial services, male, 47)
The research results suggest that, as senior managers approach the age of 50-plus, their awareness and expectation of age discrimination increases, yet there is little they perceive they can do about it.
“We wouldn’t touch you with a bargepole.” (Executive search company to senior manager, male, 54)
“I’ve not noticed age discrimination…but I’d be reluctant to apply for another job. I assume I’ll be seen as too old.” (CEO, male, 55)
Improving the way we work with older managers
With this background, how can we continue to make use of older talent, and ensure that they continue to provide fresh, high-quality performance, and genuinely take their place in an expanded talent pool?
Performance management
Continue to use performance management as realistically and openly as for everyone else. Discuss performance issues, and continue to focus on performance development, new opportunities and new learning. Avoid making inept assumptions about how older managers feel. One director, aged 59, planned to use the new age legislation to request an extension of service to age 65. With an excellent performance record with the organisation, he was told: “We’ll put you in a quieter role for a couple of days a week until you retire.”
Another director, having narrowly missed out on a promotion, was told by his new managing director: “You are doing well for someone of your age.” He was 53, with people management responsibilities for 1,800 employees.
Pay as much attention to different work experiences as for younger talent
There is little reason to believe the need for achievement fades away with age. The key for talent management is
how to use accumulated experience and wisdom, and use this to find fresh challenges.
how to use accumulated experience and wisdom, and use this to find fresh challenges.
Dealing with ‘burnout’
High achieving managers are likely to want to continue to be high achieving throughout their careers, but burn out can be a problem. For 10-20 years, many organisations have dealt with burnout by offering early retirement. But this is an expensive option, and may not be feasible with reduced access to talent. Options for dealing with burnout may include reassignment to another role, coaching, and sabbatical leave. Leaving the organisation does not need to be the default option.
Access to learning
Age discrimination requires older workers to have the same access to new learning as other workers. At Heidrick & Struggles, Alexander shows how this can be used to positive effect: “The demographic are changing, with fewer people coming through in their twenties and thirties”.
Organisations are paying a lot more attention to developing their older senior leadership teams, with the realisation that you don’t learn everything in your twenties. New learning ensures everyone is kept up to date, reaffirms the organisation’s ongoing commitment to the employee, and the fresh challenge for the employee.
Using older talent from other organisations
Do not hesitate to use older talent from other organisations even if they have failed to see the benefit of talent which they have developed over the years. One international law firm, recognising that their competitors were releasing lawyers in their early fifties actively promoted their interest in candidates wanting opportunities to work as far into their sixties or seventies as they wanted. Your organisation may have the opportunity to provide a genuinely fresh challenge and opportunity and benefit from the skills, competences, and knowledge developed elsewhere.
So where is talent management delivering for all ages?
Some organisations are, however, genuinely embracing talent for all ages and at all levels of the organisation – not simply the lower-paid customer service roles. There is evidence that working with greater diversity of age has been more extensively used in the not-for-profit sector.
Jaqui Brophy, head of HR for Triodos Bank explains: “We must compete as strongly for talent, business, risk management, and good decisions as commercial banks. We have no hesitation in seeing talent based on competence, capability and personal values, irrespective of age. This means that we are as likely to recruit management in their fifties as in their twenties and thirties. And irrespective of age, promotions, performance management and learning opportunities are accessed by everyone.”
Alexander at Heidrick & Struggles has seen the difference. “As a global search and development consultancy, age is irrelevant, but energy attitude and appetite for learning are everything. We have recently created a new role for a partner in his sixties. We are using him to give guidance and development feedback to our new, but younger, senior people.”
Much of the procedural activity in responding to age legislation, such as updating diversity policies and briefing managers, was completed in time for the launch of the 2006 age legislation. But there is widespread evidence that organisational attitudes towards genuinely incorporating older workers as part of out talent considerations is still a long way off. With constraints on the future availability of younger talent, talent management must look beyond the obvious. Men and women outside the ‘golden years’ of 30-40 must be realistically included in talent reviews. The evidence is that if this is to happen, then business and HR executives need to ensure that organisational cultures and values truly reflect the written policies they have adopted.