Age biases in employment: - University of Auckland Business Review

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e s e a r c hAge biases inemployment:Impact of talent shortagesand age on hiringWith an ageing workforce, discriminationagainst older workers is also on the rise.So how are New Zealand employers choosingjob candidates – and why?Professor Marie WilsonDr. Polly Parkerand Jordan KanThose over 40 years of age make up approximately 44percent of New Zealand’s population. By 2051, this willincrease to 54 percent of the population, with over 25 percent ofthe population aged 65 and over. 1 The steady rise in the numberof older workers in the labour force has been accompanied byincreased evidence of discrimination against them, both in NewZealand and internationally. For example, recent studies havedemonstrated increased periods of unemployment for olderworkers, and perceptions by older workers - often based onstatements by employers - that age was the primary barrier toemployment. 2Internationally, research has highlighted that age-basedstereotypes distort employment markets, and reduce theperceived employability of older workers who are seen asless adaptable. 3 These stereotypes also limit New Zealandemployment for older workers, resulting in characterizations ofthose over 45 as less adaptable, creative and flexible than theiryounger counterparts. 4 Internationally, older workers are morelikely to be made redundant, less likely to be up-skilled and/orretrained, and increasingly face barriers to employment entry. 5As a nation, however, New Zealand relies on full participationin the labour force, and in an era of critical labour shortages,RobIn white, Landscape, Auckland, 1971, screenprint.The University of Auckland Collectionthe deployment of scarce skills and accumulated knowledgecapital is central to both economic and social development.Assumptions regarding full employment during years of peakearnings (typically 40 plus) also underpin the social welfare andsuperannuation planning of the country, as they do for mostindividuals and families. Age-based discrimination underminesboth personal and national productivity, and limits the growthand productive capacity of firms. To make matters worse, theassumptions behind age-based discrimination are largely false.Older workers are not less adaptable, often possess rare andcomplex intellectual capital, provide longer and more reliableservice to their employers, and have fewer accidents, injuriesand occasion fewer workplaces losses than their younger, andDr. Marie Wilson is Professor of Management at The University of AucklandBusiness School. Her area of expertise is in “extra” forms of performance,and decision-making biases in the management of people.Jordan Kan is a graduate of the Master of International Business, whoseinternship, working with Marie Wilson, was supported by the New ZealandHuman Rights Commission.Polly Parker is a Senior Lecturer in the University of Queensland BusinessSchool, Australia. Polly has a life-long interest in teaching and learningwhich she has applied in both academic and corporate settings.33
Age biases in employmentoften more expensive, colleagues. 6 Despite this, older workersencounter an increasing number of barriers in employment.These barriers may be overcome, however, both by legislativemeans and through education of employers. In many contextsthe “taste for discrimination” is overcome by market forces,as severe talent shortages focus employers on skills alone,overcoming prejudices based on gender, age and ethnicity. Themoderating effect of talent shortages on barriers to job entryis particularly well-documented in the healthcare industriesthroughout the OECD, where worker shortages havedramatically increased workforce diversity (in terms of gender,Executive BriefThe steady rise in the number of older workers in thelabour force has been accompanied by increased evidenceof discrimination against them, both in New Zealand andinternationally. A field experiment, simulation and interviewswere used to assess the selection process from multipleperspectives and enable a thorough consideration of boththe process and outcome of recruitment and selectiondecisions. The research also attempted to assess the impactof industry talent shortages, using current immigration servicelistings of skills shortages in New Zealand to target jobs withhigh, medium and low skill shortages. The study assessedemployer preferences (were the applicants seen as suitable),employment outcomes (were applicants short-listed) andemployer rationales (why were some candidates preferred overothers). Our findings indicate that younger workers were seenas more suitable and were significantly more likely to be shortlisted,although this effect was moderated by talent shortages.ethnicity and age) in a very short period of time.This study explores the nature and rationales for age-baseddiscrimination, as moderated by talent shortages in the NewZealand labour market in 2006. This is an exploratory study inthree parts: first, a field study of matched resumes (of differingages) mailed to advertised sales and nursing jobs in the NorthIsland; second, a short-listing simulation for sales, nursingand HRM positions, placing the matched resumes amongst abroader group of resumes to allow us to see not just whethercandidates “made the cut”, but also how they are evaluatedby managers in these sectors; and finally, a policy capturingAbout the studyThis research was designed using a multi-staged, multimethodapproach, providing a cross-sectional snapshotof current labour market recruitment conditions in NewZealand. A field experiment, simulation and interviewswere used to assess the selection process from multipleperspectives and enable a thorough consideration of boththe process and outcome of recruitment and selectiondecisions.In the field study and the short-listed simulation, we werestudy that involved a review of the resumes with managers andrecruitment consultants to surface considerations and concernsrelated to age.Ageism and discriminationThe term “ageism” was first coined by Dr Robert Butler inThe Washington Post in 1969. 7 According to Butler,ageism is “a process of systematic stereotyping anddiscrimination against people because they are old, just asracism and sexism accomplish this for skin colour and gender”.From the psychological perspective, stereotypes and prejudicesare socially rather than biologicallydetermined. Negative images ofaging are instilled in socialisationprocesses through language,religion, literature, the media andthe practices of medical institutionsand social services. From thisperspective, Branine and Glover 8offered their definition of ageismas “a form of prejudice whichuse perceived chronological age in forming judgements aboutpeople, and age discrimination as acts based on such prejudice.”Discrimination based on age may occur in many aspects oflife, including access to education and training, credit, transport,housing, services and employment. Discrimination researchoften concentrates on employment related aspects, includingstereotyping, undervaluation of ability and potential, and denialof development opportunities. In addition, the literature tendsto focus on “older workers”, particularly those 50 years of ageor above. 9 Stereotyping and the resulting discrimination canhave both positive and negative consequences; in the context ofage discrimination at work, the effects may enable or hinder theolder worker.Positive discrimination on the basis of age may includefavourable treatment relating to physical activities, such asexemption from heavy lifting, and reduced or non-compulsoryovertime and non-sociable hours of work. Additionally, agemay help older employees to receive recognition in relationto experience, knowledge and skills built up over the years.Some studies suggest that older workers are favoured in theiraccess to certain types of work, particularly managerial orsupervisory roles.Discrimination basedon age may occur inmany aspects of life,including access toeducation and training.assessing the impact on short-listing of age of the applicant(20-something, 40-something or 50+); gender (in studytwo); and the industry effects (high, medium and low talentshortages). The dependent variable in both studies wasbeing short-listed, and in the simulation study, we were ableto assess the perceived suitability of candidates as well.We also attempted to assess the impact of industrytalent shortages, using current immigration service listingsof skills shortages in New Zealand to target jobs withhigh, medium and low skill shortages. Consistent withsimilar international studies, nursing was identified as a34autumn 2007
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