A field experiment, simulation and interviews were used to assess
the selection process from multiple perspectives and enable a thorough consideration
of both the process and outcome of recruitment and selection decisions. The
research also attempted to assess the impact of industry talent shortages, using
current immigration service listings of skills shortages in New Zealand to target
jobs with high, medium and low skill shortages. The study assessed employer
preferences (were the applicants seen as suitable), employment outcomes (were
applicants short-listed) and employer rationales (why were some candidates preferred
over others).
Our findings indicate that younger workers were seen as more
suitable and were significantly more likely to be short-listed. In particular:
For low demand (HR administrative) positions, the resume of
a 25+ year old worker was six to twelve times as likely to be short-listed as
the equivalent resume of a 55+ worker.
For medium demand (sales) positions, the resume of a 25+ year
old worker was six to ten times as likely to be short-listed as the equivalent
resume of a 55+ worker.
Age effects are heightened by gender preferences, particularly
in lower demand job categories.
Even though employers may harbour preferences for younger workers,
acute labour shortages result in discriminatory short-listing being over-ridden
by skills-based procedures that result in positive responses to all candidates
regardless of age or gender.
Recruiters may amplify employer biases, being more discriminatory
than employers in low shortage areas, and less so in high demand areas.
Rationales for discriminatory selection are stereotypical, incorrect
and very openly expressed, demonstrating limited awareness of ageism in employment,
even amongst recruitment and selection professionals.
For both managers and HR specialists, this research should serve
as a reminder that employment discrimination may be a continuing problem, both
from a social perspective, as well as from an employment perspective. No employer
can afford to overlook talent; an inability to see skills and abilities across
all applicants is unsustainable. At a more fundamental level, these results
suggest that there is a substantial legal risk for companies, demonstrated by
both anecdotes and the research results. Not hiring on the basis of age is not
just bad business, it is clearly illegal.
Barriers to entry for the older worker
Those over 40 years of age make up approximately 44 percent
of New Zealand’s population. By 2051; this will increase to 54 percent
of the population, with over 25 percent of the population aged 65 and over (Statistics
NZ 2004). Labour force participation rates show similar trends; most notably
in the 55+ age groupings. For example, labour force participation by those aged
60-64 increased by 22.6 percent between March 1996 and March 2006 (Statistics
NZ 2006). The steady rise in the number of older workers in the labour force
has been accompanied by increased evidence of discrimination against them, both
in New Zealand and internationally. For example, recent studies have demonstrated
increased periods of unemployment for older workers, and perceptions by older
workers - often based on statements by employers - that age was the primary
barrier to employment (McGregor & Gray, 2001; 2003). Internationally, research
has highlighted that age-based stereotypes distort employment markets, and reduce
the perceived employability of older workers who are seen as less adaptable
(Smith, 2001). These stereotypes also limit New Zealand employment for older
workers, resulting in characterizations of those over 45 as less adaptable,
creative and flexible than their younger counterparts (McGregor, 2001). Internationally,
older workers are more likely to be made redundant, less likely to be upskilled
and/or retrained, and increasingly face barriers to employment entry (Taylor
& Walker, 2000).
As a nation, however, New Zealand relies on full participation
in the labour force, and in an era of critical labour shortages, the deployment
of scarce skills and accumulated knowledge capital is central to both economic
and social development. Assumptions regarding full employment during years of
peak earnings (typically 40 plus) also underpin the social welfare and superannuation
planning of the country, as they do for most individuals and families. Age-based
discrimination undermines both personal and national productivity, and limits
the growth and productive capacity of firms. It is indefensible on moral, ethico-legal
and socio-economic grounds. The assumptions behind age-based discrimination
are largely false as well; older workers are not less adaptable, often possess
rare and complex intellectual capital, provide longer and more reliable service
to their employers, and have fewer accidents, injuries and occasion fewer workplaces
losses than their younger, and often more expensive, colleagues (Campanelli,
1990). Despite this, older workers encounter an increasing number of barriers
in employment. These barriers may be overcome, however, both by legislative
means and through education of employers. In many contexts the “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. The moderating effect of talent shortages on barriers to job
entry is particularly well-documented in the healthcare industries throughout
the OECD, where worker shortages have dramatically increased workforce diversity
(in terms of gender, ethnicity and age) in a very short period of time (Buerhaus,
Staiger and Aurbach 2000; Buerhaus, 2001)
This study explores the nature and rationales for age-based
discrimination, as moderated by talent shortages in the New Zealand labour market
in 2006. This is an exploratory study in three parts: a field study of matched
resumes (of differing ages) mailed to advertised sales and nursing jobs in the
North Island; a short-listing simulation for sales, nursing and HRM positions,
placing the matched resumes amongst a broader group of resumes to allow us to
see not just whether candidates “made the cut”, but also how they
are evaluated by managers in these sectors, and finally, a policy capturing
study that involved a review of the resumes with managers and recruitment consultants
to surface considerations and concerns related to age.
Ageism and Discrimination
The term “ageism” was first coined by Dr Robert
Butler in The Washington Post in 1969. According to Butler, ageism is “a
process of systematic stereotyping and discrimination against people because
they are old, just as racism and sexism accomplish this for skin colour and
gender”. From the psychological perspective, stereotypes and prejudices
are socially rather than biologically determined. It is the social construction
of old age that is more damaging to the elderly than is the biological ageing
process (Duncan, 2001). It is also human impulse to assign objects, events and
people to meaningful classes with prior disposed beliefs and expectations (Cuddy
and Fiske, 2002). Negative images of aging are instilled by process of socialisation
through language, religion, literature, the media and the practices of medical
institutions and social services. From this perspective, Branine and Glover
(1997) offered their definition of ageism as “a form of prejudice which
abuses perceived chronological age in forming judgements about people, and age
discrimination as acts based on such prejudice.”
Discrimination based on age may occur in many aspect of life,
including access to education and training, credit, transport, housing, services
and employment. Discrimination research often concentrates on employment related
discrimination, including stereotyping, undervaluation of ability and potential,
and denial of development opportunities (Duncan, 2001). In addition, the literature
tends to focus on ‘older workers’, particularly those 50 years of
age or above (McGregor, 2001; OECD, 2000). Fiske et al (1999, 2001) note that
stereotyping and the resulting discrimination can have both positive and negative
consequences; in the context of age discrimination at work, the effects may
enable or hinder the older worker. Positive discrimination on the basis of age
may include favourable treatment relating to physical activities, such as exemption
from heavy lifting, and reduced or non-compulsory overtime and non-sociable
hours of work. Additionally, age may help older employees to receive recognition
in relation to experience, knowledge and skills built up over the years. Some
studies suggest that older workers are favoured in their access to certain types
of work, particularly managerial or supervisory roles (see Perry & Finkelstein,
1999). Negative discrimination, however, is typically associated with restricted
access to training and development opportunities (Gray & McGregor, 2003),
or to employment overall, particularly for non-managerial posts, including projects
and promotions that may be seen as “wasted” on an older worker who
is well qualified (McGregor, 2001). These disadvantages are particularly impactful
in the recruitment and selection process, as an older worker who struggles to
achieve any meaningful employment is effectively barred from development, productivity
and ongoing experiences and development within the workplace (which may also
be discriminatory).
Shen and Kleiner (2001) suggested that discriminatory behaviours
occurred in the hiring process as a direct result of the prejudices and stereotypes
employers hold with respect to chronological age. In a youth oriented society,
older workers – particularly females – are seen as less attractive
and less likely to be selected for positions (Bennington, 2001). A typical negative
stereotype across both males and females associates increasing age with decreasing
levels of performance and/or productivity; this stereotype is not evidence based;
there are no documented performance deficits based on age, except in jobs requiring
high levels of physical stamina or endurance. For example, Yearta and Warr (1995)
have determined that there are no differences in the overall sales performance
of older and younger employees.
While physical capacity does decline with age, in a knowledge
economy these considerations relate to a small (and decreasing) proportion of
jobs and workers. Indeed, the accumulated knowledge and networks of older workers
should have considerable value in knowledge and service-based firms. Therefore,
age becomes a major function in determining the value of individual’s
human capital – the logic being that an older person would have accumulated
greater human capital in both education and experience. This may be countered,
however, if the knowledge or other capital resources become “obsolete”.
From a human capital perspective, older and more experienced
workers would be preferred when considering firm’s human capital accumulation.
However observations of labour market activities reveal the opposite. An increasing
number of older personnel are made redundant during economic downturns, and
younger applicants are hired when demand for labour increases (Urwin, 2006).
The human capital theorists explains that this is due to each time that economy
suffers a technology shock, previous experience tends to become less valued
and higher relative value is placed on more recent qualification - hence the
observed labour market activity. This situation directly impacts on the relative
prospect of employment for older workers, inevitably creating discrimination
in the market place. Human capital rationale also leads to the employers favouring
the young as younger workers represent a longer future income stream and greater
development opportunity than an older worker.
Our research question pursued both stereotyping and its outcome
in selection decisions in the New Zealand labour force. We were interested in
whether there were any differences in selection preferences between workers
of different ages, and whether these varied in industries with critical talent
shortages. We were also interested in the role of agents in the process, and
whether recruiters differed from employers in the recruiting and selection preferences.
Finally, we were interested in what influenced employers in their consideration
of older candidates; particularly what considerations and concerns informed
their evaluation of older applicants. Our hypotheses were that, consistent with
the popular press and prior New Zealand research, older applicants might experience
some slight disadvantage. Give human capital theory, we expected this to be
lessened if there were talent shortages in the field, and heightened if there
was an oversupply. Further, we expected recruiting agencies to reflect employer
profiles and to demonstrate similar patterns of selection and short-listing.
Report : Barriers to entry for the older worker
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