A new study conducted by Visier, a leading provider of talent management solutions, finds systemic ageism exists in tech hiring practices.
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Despite receiving more “top performer” ratings as they age in comparison to their non-tech counterparts, Gen Xers and Baby Boomers in tech are hired far less often than Millennials for technology positions.
Study Findings
The study, based on an analysis of 330,000 employees from 43 large U.S. enterprises, finds what has been suspected: strong tech skills are incorrectly associated with younger workers.
While Visier finds the average age of tech workers to be younger than their non-tech counterparts (38 years old, compared to 43 years old for non-tech workers), the report clarifies some key misconceptions related to the perceived value of older workers, as well as salary lifecycle and resignation rates.
One of the study’s key findings is that experience and maturity are more valued in tech than in non-tech industries: From age 40 onwards, non-manager workers in tech enter what Visier calls the “tech sage age” and are increasingly likely to receive a top performer rating as they age, mature, and gain experience, compared to non-tech.
Nevertheless, sages aren’t always hired. In tech, 41 percent of available talent is associated with Gen X; however, only 27 percent of new tech hires are from this generational cohort.
Be that as it may, newly hired older tech workers are on average paid equitably. The study finds they are paid the same average salary as more tenured workers, across all age groups
Visier research also shows that older tech workers resign at lower rates. In tech and non-tech industries, resignation rates are highest for Millennials, dropping as workers age, and stabilizing at an average rate of 10 percent for Gen Xers and Baby Boomers. The message to employers, according to Visier, is that hiring more Gen X and Baby Boomer talent will provide more stability in their workforce and reduce turnover costs.
“Balancing a team’s skills and experience is critical for tech leaders, and can make or break a company,” says Dave Weisbeck, chief strategy officer at Visier. “As our Visier Insights research shows, tech companies that design a recruitment strategy around Millennials alone are shortsighted, overlooking the performance and experience that Gen Xers and Baby Boomers bring to the table.”
Rooting Out the Risk
In connection with the release of research findings, Visier provides tips to help root out the risk of ageism in the workforce.
The company points out that there are a number of important steps employers can take to acquire the best and brightest talent available, regardless of age:
- Review your workforce data to understand the current state of age equity within your organization to find any signs of potential bias in hiring, promotions, salary levels, turnover, and performance ratings.
- Keep in mind that, as with ethnic and gender equity, age equity is a cultural issue – if pockets of ageism exist within your organization, you will need to devise plans to address them not only via better HR practice and policy rollouts, but through culture change.
- Consider implementing a version of the Rooney Rule for age, specifically for teams or roles where the workforce is less diverse in age: for every position you have open to fill, consider one or more older candidates (or candidates that will help create a more diverse team, in general).
- Develop hiring practices that reduce the potential for intentional or unintentional bias in the screening out of older applicants.
