June 2005
The Good News/Bad News Scenario
for Older Workers in a Job Search
By
President of Workforce Associates
and author of
NetWork: Maximizing Your Career Resources on the Internet
Available online and in print from Author House
May was filled with numerous articles about the subject of older workers. There seems to be all kinds of anecdotal and contradictory information about whether older workers are increasingly valued for their experience and expertise or whether they are discarded by employers for being too expensive and too set in their ways. What do you think?
It used to be that if you were fired later in life, you’d probably land on your feet somehow. According to John Helyar in the May 2, 2005 issue of Fortune magazine, workers nearing the end of their earning years face some "pretty scary prospects". "They are becoming members of an unwelcome fraternity, that is, the involuntary retiree."
According to Mr. Helyar's article, "50 and Fired," an estimated 3.5 million people between the ages of 40 and 58 left the workforce in the U.S. from 2001 to 2004. The Bureau of Labor Statistics says that those who are 55 to 64 and fired or laid off are less likely to find new jobs than 25 to 54 year-olds. In fact, they are more likely to drop out of the workforce permanently. If older workers do get rehired, they take a bigger pay cut than their younger counterparts.
Helyar suggests that there are several factors that are driving these trends:
- A broad (mis)perception by employers that older workers lack certain skills or the ability to adapt;
- Cutting costs, particularly those for high priced labor, at most companies;
- Outsourcing of certain white collar jobs to less expensive workers in countries such as India and China who are just as well-educated.
A quite different perspective came from a May 5, 2005 article in The Wall Street Journal, which reported on those at the opposite end of the spectrum – older executives at the top of the corporate ladder who don’t seem to want to retire ever, even well into their 80s. In "You Retire, You Die," Carol Hymowitz, Joann Lublin and Joe Flint look at "CEOs, activist investors and other business leaders staying in the game long past the traditional retirement age of 65."
That list includes 87-year-old investor and billionaire casino owner Kirk Kerkorian, who recently offered to buy a significant stake in troubled General Motors; 74-year-old Warren Buffett, CEO of Berkshire Hathaway; and 74-year-old Rupert Murdoch, chairman of News Corp. However, "None of this means that top jobs in business aren't going to younger people," the writers say. "The growing demands of the top jobs – global travel, fast-changing technology, 24/7 communication with employees – favor young executives with energy, flexibility and openness to fresh ideas."
Whether workers are forced into early retirement or hang on to their jobs until their dying days, many who don’t have the wealth of Kerkorian or Buffett are wondering what they’ll have to fall back on in their golden years. According to a new study by international banking group HSBC, reported on May 11 in The Financial Times, more and more older workers are seeking new opportunities to extend their working careers. This study was a result of a survey of 11,500 adults in Brazil, Canada, China, Hong Kong, France, India, Japan, Mexico, the UK and US. Although there were considerable differences between those surveyed from developed and developing countries, the US respondents tended to be the best prepared for retirement. What was also interesting was that most of those Americans surveyed intended to work beyond the traditional retirement years on new careers and opportunities compared to older workers in other parts of the world. This report is entitled "The Future of Retirement."
If you’re feeling quite discouraged after reading these three articles, I have three antidotes. The first is The Career Navigation Handbook that is edited by Christopher Hunt and Scott Scanlon. It includes punchy articles by twenty-three leading executive recruiters who offer their invaluable insight and professional advice on choosing and changing career paths. With leading headhunters like Gerard Roche of Heidrick & Struggles and Peter Crist of Crist Associates, you’ll get the kind of inside look at the executive search process that you can’t find anywhere else. From spotting the opportunities that exist to making yourself more attractive to employers, The Career Navigation Handbook covers many general topics in the job search process. For more information, go to http://www.josseybass.com/WileyCDA/WileyTitle/productCd-0471648507.html
Another book by two of my favorite authors in job searching is called The Best Home Businesses for People 50+ by Paul and Sarah Edwards. Like their earlier tome, Do What you Are, this book offers opportunities for older workers to start nearly 100 businesses. There are concrete examples of pricing, challenges in this field, and marketing opportunities. This is an excellent guide for anyone who has an entrepreneurial bent or wants to acquire one quickly and successfully.
The third remedy against bad news for older workers is Peter Weddle’s new Guide to Employment Sites on the Internet 2005/06. It is brand new and chock full of 400 pages of excellent Web sites for job searchers to consider — from sites that are geographically specific to those that target certain industries to the innumerable possibilities through professional associations. Check out www.weddles.com for more information about this indispensable guide. One of the best parts of this guide is that you will receive free updates from Peter when you buy this book. Peter is well regarded in the world of Internet job searching so you’ll be kept up-to-date with one of the leaders in this field.
Summary:
Hope that you’re feeling a bit more upbeat about your own possibilities as someone 40+ with a lot of experience and patina to buffet yourself against being declared redundant or too expensive for an employer. Although the press often likes to present only the negative side of news and trends, there are plenty of reasons for anyone who is young at heart to feel confident about working in the field they want to work in for as long as they like!
Have a wonderful early summer. I’ll be back to "talk" to you next month about more new developments in using the Internet in your job search as an older worker.
Jane M. Lommel, Ph.D.
jlommel@WorkforceAssociates.com
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