Challenges of Older Workers in America - Research Paper Example

? Challenges of Older Workers in America Point Park Dr. Hineman As in the case of older workers in other parts of the world,older workers in America are also facing discriminations and challenges in their workplaces. Even though America is arguably one of the most civilized countries in the world, it is not free from social evils like stereotyping of employees in workplaces. Many of the employers in America are of the view that the productivity and efficiency of the older workers are lower as compared to the same traits in the young employees. Therefore, majority of the employers in America are not very interested in recognizing the contributions of older workers properly. While deciding promotions, incentives and salary hikes, employers often consider the needs of younger employees only. Moreover, when employers are deciding to reduce the number of employees, older employees often come in the list as the first priority. This paper analyses various challenges older workers in America face. Introduction As with many other demographic groups, older workers’ unemployment overall and long-term unemployment rates have increased dramatically since the recession began in 2007. In December 2011, the unemployment rate for older workers was 6.0 percent, up from 3.1 at the start of the recession, but down from its peak of 7.6 percent in February 2010. In particular, long-term unemployment rose substantially, and at a greater rate for older than younger workers. By 2011, 55 percent of unemployed older workers had been actively seeking a job for more than half a year (27 weeks or more) (“Many Experience Challenges Regaining Employment and Face Reduced Retirement Security”, 2012). Employers in the past were more interested in the services of experienced people whereas the present employers are more interested in the services of the young. Knowledge is bursting from all the corners virtually every second, and organizational principles and theories are changing rapidly. Employers are of the view that only the young are capable to adapt to the rapid changes taking place in the organizational world. “In a new study of more than 2,000 low-income unemployed workers age 55 and older, 46% need to find jobs so they don’t lose their homes or apartments, and approximately half have been looking for work for more than a year” (“Older Low-Income Workers Face Historic Crisis”, n.d.). These statistics clearly suggest that the social security of the older generation of America is in danger at present because of various reasons such as recession, economic crisis and many other social factors. It should be noted that the young in America are not interested in protecting their parents nowadays. Because of that, many of the unemployed parents are facing huge financial problems. They need enough money to seek the services of charity organizations when they are in need of some kind of assistance. In short, unemployment problems among older workers are not only an economic problem but also a social problem. In short, challenges facing by older workers are an important problem in America now, and it is extremely important to get more insights into this topic. Review of Literature: Challenges of Older Workers in America According to Richard W. Johnson (2010), “On average, laid-off male workers 50–61 who become reemployed earn 15 percent less on the new job than the old job, and those age 62 and older earn 21 percent less” (p.2). He has also pointed out that age discrimination prevails in American workplaces. He states: In 2008, 15 percent of workers age 55–61 reported that their employers give preference to younger workers over older workers in promotion decisions. Low-skilled older men are especially likely to report this type of discrimination: 29 percent of men who did not complete high school and 20 percent of high school graduates claimed that their employers preferred younger workers, compared with 13 percent of men who had attended college (p.2). According to Tomiko Thomas, program manager for the D.C. Office on Aging’s Older Workers Employment and Training Program, having to compete with the younger generation for the same pool of jobs is the biggest problem of the older workers in America at present. “Younger workers often have the college degrees and technical skills necessary to get a job in today’s economy, experts say, and they have a higher tendency to stay in a job longer, rather than retiring after a few years” (Dazio, 2012). “Many employers are reluctant even to consider applicants aged 50+,” says Sarah Welstead of Retired Worker, a website for retired people who want to work on a part-time or contract basis. “In many ways, looking for a job after retirement is a lot like looking for your first real job right out of school: you have to work a little harder to get your foot in the door and tell employers why they should hire you”(Cravit, 2012). According to a statement of Charles A. Jeszeck, Director Education, Workforce, and Income Security, older workers generally sustained greater earnings losses than younger workers. He has put forward certain evidences to substantiate his arguments: When comparing earnings before and after displacement, the median earnings replacement rate for workers aged 55-64 who were displaced from 2007 to 2009 was only 85 percent, compared with approximately 95 percent for workers aged 25-54 and over 100 percent for workers aged 20-24 (p. 7). Another challenge the older generation faces in the workplace is with respect to technology. Employers often believe that Younger workers have grown up communicating personally via text messages, instant messaging and email, and they bring those methods to work. Older people, on the other hand, have long favored face to face communication, and when they’re delivered orders or news via email it’s often seen as rude or inconsiderate (Johnson, 2012). Discussion Ageism is a kind of discrimination or stereotyping against older people. It is more evident in the workplace than in any other segment of human life. Employers are usually motivated by the preconceived notion that older employees are comparatively weaker than younger employees, physically and mentally. They may think that in a heavily competitive business world, it is necessary for an organization to keep the workforce as young as possible. Many employers have the illusion that with the help of the young an organization can increase its reputation and image. In fact, it is impossible for an organization to function with the help of the young only. It should be noted that the ideas and innovations brought by the younger generation need some kind of fine-tuning before the implementation. Only the older employees are capable of executing this fine-tuning process successfully with the help of their vast experience. Age discrimination not only affects the organization but also has the potential to affect the society. Many of the Americans do not have the habit of saving money for future. They usually spend more than they earn. Such lavish spending habits will create problems for the older generation, especially when their children show less interest in looking after them. In order to take shelter in Cheshire Homes, it is necessary for the older generation to have ample money in their hands. Since employers are not much interested in employing them, old people may have serious financial problems. It is unethical to deny employment to older generation, considering the fact that they had contributed heavily to the buildup of the society in the past. Nobody should forget the fact that whatever the advancements one sees at present, they are based on the contributions of the previous generations. Older workers have limited exposure to latest technologies. On the other hand, younger workers have been into a technology world. For example, an older worker may not be comfortable enough to operate a smartphone like iPhone 5 or Samsung Galaxy S3. On the other hand, a younger person may operate such latest phones easily. This is because of the amount of exposure to the latest technologies the young are getting. Considering this point, employers often ask the older workers to compete with younger generation to prove their abilities. Older workers often fail in such tests and are forced to give way to the younger generation. Employers are usually targeting older generations when they consider the layoffs to reduce overhead expenses. Recent recession caused huge problems to many of the organizations in America, and majority of these organizations dismissed a substantial portion of their older workforce to reduce their expenditures. Most of the older workers are highly paid professionals, so companies are targeting older workers during layoffs. In most of the layoff-related employment cases, the employers escape from punishment with the help of the loopholes in employment laws. Whenever an employer feels he/she will lose in a case, he/she tries to settle the issues with the employee out of court. Thus, many of the genuine employment discrimination cases with respect to old workers are not reaching the courts. Older workers usually ask for better salaries because of their experience in particular field. For example, it is not necessary that a young system analyst and an experienced system analyst may ask the same salary. The experienced one usually asks a much higher salary compared to the salary asked by the young person. Current employers are looking for every opportunity to increase productivity and reduce expenditure. Therefore, they will give preferences to the younger job seekers at the expense of the experienced job seekers. Another belief prevailing in the organizational world is that many older workers may not be able to work well with younger bosses due to the age and generational differences between them and may feel uncomfortable working for a less experienced boss. It is not necessary that all the experienced workers may show reluctance in working under younger ones. Instead of age, abilities of the superior officer are often considered by the older workers. Another reason which prevents employers from giving employment to older workers is the concern about their retirement benefits. It is a fact that older workers may have less time to serve an organization. At the same time, the organization is forced to give all retirement benefits to that employee irrespective of the length of the service of the employee. No employers like the idea of spending too much for the retirement benefits of the employee who served the organization for a limited period of time. Employers are getting more interested in contract workers, and only partly because of a reluctance to make full-time commitments. A survey earlier this year by the Society for Human Resources and AARP showed more than seven in 10 U.S. employers were concerned about the loss of talented older workers and that 30 percent were hiring retirees as consultants or for part-time jobs. Independent work has become much easier and less expensive due to the Internet and low-cost office technology that permits contractors to work from home. The MBO study found that most of these employees can set themselves up with an initial investment of $5,000 or less (Miller, 2012). Part-time work and online work are encouraged by the employers at present to reduce overhead expenses. It is necessary to provide employment benefits to the full-time workers. On the other hand, part-time workers need to be paid only for the jobs they completed. Therefore, seeking the services of part-time workers reduces the salary burden of the employers. It should be noted that full-time workers need to be paid irrespective of the works completed by them. In a dull season, majority of the workers may not have much work to do and still the company needs to pay all of them. Plenty of part-time workers are available in the job market, and companies are looking for the services of such workers instead of keeping highly paid experienced workers. Conclusion Older workers in America are facing many challenges at present. The recent recession has forced many employers to consider layoffs of many of the experienced and talented employees to reduce overhead expenses. Modern employers are giving preference to youth when there is a tossup between younger job seekers and experienced job seekers. No company can develop properly with the help of young employees only. The careful blending of the young and the experienced ones may help the organization to stay competitive all the time. References Cravit, C.R. (2012). 7 job search tips for older workers. Retrieved from http://www.50plus.com/employment/7-job-search-tips-for-older-workers/2467/ Dazio, S. (2012). Older workers face challenges in D.C. job market. Retrieved from http://www.washingtonpost.com/local/older-workers-face-challenges-in-dc-job-market/2012/04/08/gIQAFEkA4S_story.html Jeszeck, C.A. (2012). Unemployed older workers. Retrieved from http://aging.senate.gov/events/hr245cj.pdf Johnson, T. (2012). Challenges for older employees. Retrieved from http://womenforhire.com/advice/career_obstacles/challenge_for_older_employees/ Many experience challenges regaining employment and face reduced retirement security. (2012). Retrieved from http://www.gao.gov/products/GAO-12-445 Miller, M. (2012). Older workers find livelihood in temping. Retrieved from http://www.reuters.com/article/2012/09/21/us-column-miller-temps-idUSBRE88K0YT20120921 Older low-income workers face historic crisis (n.d.). Retrieved from http://www.experienceworks.org/site/PageServer?pagename=Overlooked_and_Underserved Johnson R.W. (2010). Older workers: Opportunities and challenges. Retrieved from http://www.urban.org/UploadedPDF/412166-older-workers.pdf Read More