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Companies are overlooking benefits of hiring older employees, says Wharton professor Peter Cappelli.

April 01, 2025 / 01:22

This episode discusses age discrimination in the workplace, focusing on why many older employees want to continue working but face barriers. Topics include employee discrimination, management challenges, and the benefits of older workers.

The conversation highlights that 77% of employees at retirement age wish to keep working, yet only about half can. The discussion points to age discrimination as a significant factor, particularly with younger supervisors feeling uncomfortable managing older subordinates.

Key points include the advantages older workers bring to the table, such as better attendance, lower turnover, and superior social skills. The episode emphasizes that older employees are often more skilled and require less onboarding, making them valuable assets to employers.

Furthermore, the episode addresses the disconnect between employers seeking skilled workers and the older workforce that desires flexibility and continued employment. The need for better connections between these two groups is emphasized.

TLDR

Age discrimination prevents many older workers from continuing their careers despite their desire and qualifications.

Episode

1:22
00:00:00
The problem is that 77% of employees at retirement age said they wanted to keep working and only maybe half of those
00:00:07
people are ever able to do it. Why is it not happening? Well, it looks like employee discrimination, age
00:00:12
discrimination. Some part of that is because we are getting younger supervisors don't feel comfortable
00:00:19
having older subordinates. Can I manage somebody who looks like my dad? They're
00:00:23
just saying, "No, I don't know how to do that." Some of it is because frankly
00:00:26
they don't really know how to manage people and they think they have to know
00:00:30
more than the person that they're directing. The reason this is such a problem is that older workers have
00:00:36
everything that you would think employers want. They're better on virtually every aspect of job
00:00:42
performance measures. Their attendance is better. Their turnover is actually lower. Their social skills are better.
00:00:48
They know what they're doing. They don't need to be onboarded in a big way.
00:00:51
They're not competitive with other people. They actually get along with younger people better than other younger
00:00:57
people do because they're not competing with them. Employers who constantly complain there's nobody to hire and want
00:01:02
flexibility and you got this skilled workforce that also wants flexibility and they would like to keep working.
00:01:08
It's a real opportunity and we wish somebody would help them connect better than is happening right now.

Episode Highlights

  • The Age Discrimination Dilemma
    77% of retirement-age employees want to keep working, but many face discrimination.
    “Why is it not happening?”
    @ 00m 07s
    April 01, 2025
  • The Value of Older Workers
    Older employees outperform younger ones in attendance, turnover, and social skills.
    “They know what they’re doing.”
    @ 00m 48s
    April 01, 2025

Episode Quotes

  • Why is it not happening?
    Companies are overlooking benefits of hiring older employees, says Wharton professor Peter Cappelli.
  • They actually get along with younger people better than other younger people do.
    Companies are overlooking benefits of hiring older employees, says Wharton professor Peter Cappelli.

Key Moments

  • Employee Discrimination00:11
  • Younger Supervisors' Concerns00:17
  • Older Workers' Advantages00:34
  • Opportunity for Employers01:08
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