The days of staying with the same employer in corporate America for your entire career are over. In the modern workplace, job security just doesn’t exist anymore. According to the Bureau of Labor Statistics, as of 2018, the median years of tenure with current employer for employed wage and salary workers aged 45 to 54 is 7.6. Corporate employees who reach a certain age find that their career is either stagnating or at risk. A few key factors impede a long-term successful career for those who choose to stay in corporate America.
Ageism Pure and Simple
The truth is that the older an employee gets the more age can count against him. Corporate America values youth and discounts seniority and experience. A recent study on ageism in the workplace found that 21% of the respondents experienced age-related discrimination. While the Federal Age Discrimination in Employment Act and state law equivalents are supposed to provide employees protections against discrimination, it is often a “second class” protection. In fact, a recent Fast Company article noted that the majority of employers don’t provide employee training around ageism. This means that older employees are at risk for mistreatment or termination even though it is illegal.
What’s more, changing jobs to another corporate position won’t necessarily solve the problem. Another study discussed in Market Watch noted that “Workers over 40 are only about half as likely, or less, to get a job offer than younger workers if employers know their age.” In other words, ageism is alive and well in the hiring market.
The Cost of Seniority
Employees who have been around longer cost the company more. Regular raises and promotions mean that they earn more than the entry-level employees. There’s little doubt that experience is a valuable asset, but it may not be as valuable as it costs when two junior employees can do the same or more work for less than the cost of a senior. This fact makes senior employees less attractive both in their current employment and when looking to make a lateral transition. When corporations look to trim the fat, one of the first places they look is their workforce. If they decide to go for layoffs, the more an employee costs in terms of salary and benefits, the bigger the target on his back.
Up or Out
Not everyone can make it to the C-Suite. This reality is a matter of simple math. As employees rise through the ranks, the number of positions lessen, becoming more competitive and subjective. Anyone with an interest in continued growth and experience is going up against their fellow employees as well as outsiders for coveted promotions. It is a catch-22: employees are expected to show improvement and development, but there are only so many positions available. At some point, it’s time to look at the writing on the wall and recognize that, if you aren’t getting promoted, you are at risk for termination.
So what can older employees do? Rather than stick with corporate America, take control of your career. Use the knowledge, skills and experience you’ve acquired over the years and apply it to your own enterprise. If starting from scratch doesn’t appeal, investing in a successful franchise can be the right transition into being a business owner. A good, professional mentor can guide you towards the right fit for your needs, make the introductions and facilitate a smooth transition into this opportunity.
At Joschco Partners, we work with senior employees looking for something better. Contact us to discuss your options.