Age Discrimination Employment Age Discrimination

Age Discrimination Employment Age Discrimination The issue of age discrimination is one that continues to grow in prominence across industries as a globally aging workforce confronts the stigma of their age in many industries globally (McMahan, Sturz, 2006). Despite the Age Discrimination in Employment Act of 1967 (ADEA) being passed that seeks to protect applicants, employees, and prospects who are 40 years old or older, there is abundant evidence that it is regularly practiced (Posthuma, Campion, 2009).

The Equal Employment Opportunity Commission (EEOC) enforces ADEA and investigates cases of compensation, hiring, firing and conditions of employment as it relates to age. Many empirical studies have been completed that provide insights into which industries experience the most and least age discrimination (Bibby, 2008) as a result of ADEA being past. The intent of this paper is to analyze how pervasive age discrimination is in the finance industry specifically, and illustrate how company values and cultures drastically impact its prevalence in a company.

Age Discrimination Varies Significantly by Industry In analyzing the impact of age discrimination by industry, it was found that older employees are more valued and not discharged due to age alone in government and manufacturing industries (Quan, Dattero, Galup, 2008). Contrary to these industries and their cultures, finance and IT do differentiate in their hiring practices relative to workers, favoring younger, less expensive, and according to one study, more efficient workers (Crampton, Hodge, 2007) over those beyond the age of 40 (Quan, Dattero, Galup, 2008).

Finance companies including AIG Insurance, Experian, Goldman Sachs, and many others are known for discriminating on age over qualifications (Posthuma, Campion, 2009). In addition the IT industry, which has long had a bias for younger workers due to their more recent acquisition of new technology, and mastery of those skills, has been the subject of research showing that quantifies how stark the practice of age discrimination is (Quan, Dattero, Galup, 2008).

Experian, which combines IT for managing credit analysis and reporting, in addition to a strong finance focus, is particularly known for its internal cultural bias of choosing younger workers over older ones, with one market research manager in her 40s remarking how she excelled on a phone interview only to be rebuffed when she interviewed in person (Posthuma, Campion, 2009). Experian also is a company that as employees age seeks to move them outside the company either into other divisions or out of the company altogether.

Contrasting this mentality are those manufacturing companies including Boeing, who has a culture that hires older workers based on their expertise and knowledge, in addition to process-centric expertise for making the entire company more efficient. This is common to manufacturing companies (Crampton, Hodge, 2007). The stereotype of the older worker in manufacturing is valued vs. discriminated against (Posthuma, Campion, 2009). Conclusion Age discrimination is a reality every worker over 40 faces in the United States and globally. The Age Discrimination in Employment Act of 1967 (ADEA) is often enforced by the EEOC.