Transitioning to a new career can be challenging under the best of circumstances. You're competing with candidates who already have experience in the field you're trying to enter, and so success typically requires an aggressive - and often lengthier - search. However, prospective career changers should be aware that in today's job competitive job market that challenge can be significantly compounded.
Due to the higher number of candidates in the market, employers today often have their pick of job seekers. According to a respected Atlanta recruitment firm, employers are frequently selecting candidates that meet 90% to 100% of their criteria, when historically that number was closer to 70%. That said, a strong resume, a positive attitude, and a solid job search campaign, can lead to a successful career change even in the midst of a recession.
How you approach your search may depend on your current situation. If you've been downsized or are uncertain about the stability of your employer company, you may want to consider conducting a dual search. Using this strategy, two resumes are created: one positions you for jobs in your current field/industry, closely aligned with your current/recent experience. The second "career change" resume targets the new field you hope to enter.
This strategy enables you to "test the waters" in a new field while still searching in your original area of expertise. The latter search is likely to generate faster results - which is of course what you'll want if finding employment as soon as possible is your primary goal. Results of your search may be the best indicator of how to proceed, whether to continue pursuing a change of careers now, or remain in your current field at least temporarily, until the economy picks up.
If however, you're currently employed and your position/company/industry are all reasonably secure, then you have the luxury of focusing solely on a career change job search. But be prepared to possibly move backwards a step or two in order to get your foot in the door. Target companies that have a reputation for rapidly advancing strong performers.
Also, plan to wage a diverse and aggressive search to maximize opportunities. Utilize all of the tools at your disposal: recruiters, networking, cold call marketing, and the Internet. Bear in mind that in some respects you're selling an untested product (you, who hasn't yet actually held the target job), so be diligent and persistent!
Wednesday, May 27
Diversifying the Job Search
When seeking a new position in today's challenging economic climate, a focused, diligent, and diverse resume marketing campaign is critical. To minimize the time required to land a new job, candidates should utilize all available marketing resources, and avoid relying too heavily on Internet-based job searches.
Online searches should be one of only many resources employed in your search. Diversify your search to include recruiters/headhunters, networking, and job fairs. For executive-level job seekers, connecting with recruitment firms can be critical, as traditionally online job search sites do not target the higher-level positions.
While the Internet can be a viable resource for posting resumes on job search sites, applying to open positions posted by employers, and researching potential employer companies, consider that less than 20% of candidates secure a new position via the Internet. Also consider that employers must pay a fee for every position posted on the job search sites, which means that due to cost constraints, many companies cherry pick which positions to post, and thus may have additional openings which are never posted online.
Cold Call Resume Marketing -- Another job search strategy is "cold call" resume marketing, which involves sending your resume to companies in which you have an interest but that do not currently have a posted position which matches your experience and background. Let's say your background is in a niche industry or you've heard of employee-friendly companies with a track record of sound business principles. Once you've identified the companies, search online to find the Human Resources contact information, then take it a step further and search for internal contact names, eg a Director or Vice-President, from online sources such as company press releases. Then send your resume to both the HR department and the management contact(s) you've identified. Be persistent, and resend your resume on a regular basis. You never know, your resume may land on the desk of a VP's assistant on the same day the person holding your target job gives notice!
Online searches should be one of only many resources employed in your search. Diversify your search to include recruiters/headhunters, networking, and job fairs. For executive-level job seekers, connecting with recruitment firms can be critical, as traditionally online job search sites do not target the higher-level positions.
While the Internet can be a viable resource for posting resumes on job search sites, applying to open positions posted by employers, and researching potential employer companies, consider that less than 20% of candidates secure a new position via the Internet. Also consider that employers must pay a fee for every position posted on the job search sites, which means that due to cost constraints, many companies cherry pick which positions to post, and thus may have additional openings which are never posted online.
Cold Call Resume Marketing -- Another job search strategy is "cold call" resume marketing, which involves sending your resume to companies in which you have an interest but that do not currently have a posted position which matches your experience and background. Let's say your background is in a niche industry or you've heard of employee-friendly companies with a track record of sound business principles. Once you've identified the companies, search online to find the Human Resources contact information, then take it a step further and search for internal contact names, eg a Director or Vice-President, from online sources such as company press releases. Then send your resume to both the HR department and the management contact(s) you've identified. Be persistent, and resend your resume on a regular basis. You never know, your resume may land on the desk of a VP's assistant on the same day the person holding your target job gives notice!
About Recruiters
Recruiters can be a great resource in your job search. But it's helpful to be armed with some basic information about the various types of recruiters, how they operate, and how to find the right professional to add value to your job search.
Corporate recruiters are employed by their employer company to find and qualify new employees for the organization, while third-party recruiters are subcontracted by a company. The main difference in third-party recruiters is in how they are compensated.
Third-Party Recruiters: There are two primary types of third-party recruiters: retained and contingency. Both types of third-party recruiters are paid by the hiring company, but retained recruiters typically have an "exclusive" with the company. They are paid a portion of their fee upfront with the balance paid when the search is over. Retained recruiters are typically used for executive-level positions.
Most third-party recruiters are contingency recruiters, who typically don't have an exclusive relationship with the company, but are paid a fee only if the company hires a candidate discovered through their efforts. Bear in mind that a recruiter is not working for you, the job seeker, but for their client - the company who has contracted with him or her to find qualified candidates for their open positions.
The hiring company pays well to have their recruitment needs met; third-party recruiters are typically compensated 20% to 30% of a placed candidate's first year's salary. Therefore, a professional, experienced recruiter will take the time to screen job seekers and align his or her experience with the specified requirements of his or her client. If the recruiter bombarded the company with unqualified candidates, he or she would not be selected for future assignments.
Market Impact: Another factor that influences which candidates a recruiter will submit to his or her client company is the current economic climate. An Atlanta area recruiter recently told me that as the candidate pool has grown, there are more qualified candidates applying for the same jobs, and so it has become more of a "buyer's" (the hiring company's) market. She said companies are now often able to find candidates that match 90% of the position criteria, e.g. qualifications in experience, education, etc., contrasted with as recently as two years ago, when companies frequently selected candidates who matched only 70% of the position requirements.
Key Questions to Ask: If a recruiter initiates contact with you and asks you to send your resume, ask questions about why he or she wants to see it:
---Is there a specific job you have in mind for me?
---Once you have my resume in hand, when can I expect to hear from you again?
---Will you send my resume to one of your clients without my knowledge or consent?
If a recruiter contacts you and asks for a resume before knowing anything about your professional background, don't send it. Also, avoid wasting time with an inexperienced recruiter who simply collects resumes.
Generalists vs. Specialists: Also consider that there are two different types of recruiters in terms of their area(s) of coverage. Generalists work in many industry sectors and functional areas, while specialists work in one or a small number of industry sectors or functional areas.
All Recruiters are not Created Equal: It's important to find a recruiter with whom you feel comfortable, someone you believe has your best interests at heart (as opposed to a recruiter motivated primarily by the prospect of an easy paycheck).
A truly professional recruiter will want to ensure that you are a viable candidate for his or her client company and will ask detailed questions, such as your motivation in making a change in jobs, what you are seeking in a new position, your background, salary expectations, geographic preferences, etc. Consider it a red flag if a recruiter is in a hurry to get you off the phone and submit your resume to a client.
A good recruiter will often serve as more of a career counselor than simply a headhunter. He or she will often provide feedback on various topics such as recommending changes to your resume to highlight skills required by the employer company as well as discuss your background, skills and salary requirements.
Finding Recruiters: Start by asking colleagues, friends, and family members for the names and contact information of recruiters with whom they've worked with successfully. If you are actively searching, submit your resume by email and be sure to mention the name of the person who referred you, your relationship with the person, and the successful outcome of this person's job search in working with the recruiter.
In the absence of referrals, search the yellow pages and the Internet for recruiters, but be sure to do some background homework. When contacting the recruiter, reference this information, e.g. his or her specialty area. Some recruiters will request that you submit your resume and cover letter via the company's website.
Corporate recruiters are employed by their employer company to find and qualify new employees for the organization, while third-party recruiters are subcontracted by a company. The main difference in third-party recruiters is in how they are compensated.
Third-Party Recruiters: There are two primary types of third-party recruiters: retained and contingency. Both types of third-party recruiters are paid by the hiring company, but retained recruiters typically have an "exclusive" with the company. They are paid a portion of their fee upfront with the balance paid when the search is over. Retained recruiters are typically used for executive-level positions.
Most third-party recruiters are contingency recruiters, who typically don't have an exclusive relationship with the company, but are paid a fee only if the company hires a candidate discovered through their efforts. Bear in mind that a recruiter is not working for you, the job seeker, but for their client - the company who has contracted with him or her to find qualified candidates for their open positions.
The hiring company pays well to have their recruitment needs met; third-party recruiters are typically compensated 20% to 30% of a placed candidate's first year's salary. Therefore, a professional, experienced recruiter will take the time to screen job seekers and align his or her experience with the specified requirements of his or her client. If the recruiter bombarded the company with unqualified candidates, he or she would not be selected for future assignments.
Market Impact: Another factor that influences which candidates a recruiter will submit to his or her client company is the current economic climate. An Atlanta area recruiter recently told me that as the candidate pool has grown, there are more qualified candidates applying for the same jobs, and so it has become more of a "buyer's" (the hiring company's) market. She said companies are now often able to find candidates that match 90% of the position criteria, e.g. qualifications in experience, education, etc., contrasted with as recently as two years ago, when companies frequently selected candidates who matched only 70% of the position requirements.
Key Questions to Ask: If a recruiter initiates contact with you and asks you to send your resume, ask questions about why he or she wants to see it:
---Is there a specific job you have in mind for me?
---Once you have my resume in hand, when can I expect to hear from you again?
---Will you send my resume to one of your clients without my knowledge or consent?
If a recruiter contacts you and asks for a resume before knowing anything about your professional background, don't send it. Also, avoid wasting time with an inexperienced recruiter who simply collects resumes.
Generalists vs. Specialists: Also consider that there are two different types of recruiters in terms of their area(s) of coverage. Generalists work in many industry sectors and functional areas, while specialists work in one or a small number of industry sectors or functional areas.
All Recruiters are not Created Equal: It's important to find a recruiter with whom you feel comfortable, someone you believe has your best interests at heart (as opposed to a recruiter motivated primarily by the prospect of an easy paycheck).
A truly professional recruiter will want to ensure that you are a viable candidate for his or her client company and will ask detailed questions, such as your motivation in making a change in jobs, what you are seeking in a new position, your background, salary expectations, geographic preferences, etc. Consider it a red flag if a recruiter is in a hurry to get you off the phone and submit your resume to a client.
A good recruiter will often serve as more of a career counselor than simply a headhunter. He or she will often provide feedback on various topics such as recommending changes to your resume to highlight skills required by the employer company as well as discuss your background, skills and salary requirements.
Finding Recruiters: Start by asking colleagues, friends, and family members for the names and contact information of recruiters with whom they've worked with successfully. If you are actively searching, submit your resume by email and be sure to mention the name of the person who referred you, your relationship with the person, and the successful outcome of this person's job search in working with the recruiter.
In the absence of referrals, search the yellow pages and the Internet for recruiters, but be sure to do some background homework. When contacting the recruiter, reference this information, e.g. his or her specialty area. Some recruiters will request that you submit your resume and cover letter via the company's website.
Growth Occupations/Industries
If you're currently employed in a vulnerable industry and perhaps contemplating making a future career move that provides a greater level of job security, you may want to first take a look at the fastest growing opportunities with the highest salary/wage potential.
According to the Bureau of Labor Statistics (BLS), U.S. Department of Labor, consulting services, medical care, and government are among the top industries projected to offer the highest growth in wages and salaries over the next eight years:
The 10 industries with the largest wage and salary employment growth, 2006-2016
Management, scientific, and technical consulting services
Employment services
General medical and surgical hospitals, public and private
Elementary and secondary schools, public and private
Local government, excluding education and hospitals
Offices of physicians
Limited-service eating places
Colleges, universities, and professional schools, public and private
Computer systems design and related services
Home health care services
The 30 fastest growing occupations
Network systems and data communications analysts
Personal and home care aides
Computer software engineers, applications
Veterinary technologists and technicians
Personal financial advisors
Makeup artists, theatrical and performance
Medical assistants
Veterinarians
Substance abuse and behavioral disorder counselors
Skin care specialists
Financial analysts
Social and human service assistants
Gaming surveillance officers and gaming investigators
Physical therapist assistants
Pharmacy technicians
Forensic science technicians
Dental hygienists
Mental health counselors
Mental health and substance abuse social workers
Marriage and family therapists
Dental assistants
Computer systems analysts
Database administrators
Computer software engineers, systems software
Gaming and sports book writers and runners
Environmental science and protection technicians
Manicurists and pedicurists
Physical therapists
Physician assistants
The Department of Labor's Occupational Outlook Handbook (OOH) is a great resource for researching hundreds of different types of jobs. The Handbook provides detailed information on the job requirements, necessary training and education, average earnings, expected job prospects, and working conditions.
To view the 2008-2009 Edition of the Occupational Outlook Handbook (OOH) visit the DOL site at http://www.bls.gov/OCO.
According to the Bureau of Labor Statistics (BLS), U.S. Department of Labor, consulting services, medical care, and government are among the top industries projected to offer the highest growth in wages and salaries over the next eight years:
The 10 industries with the largest wage and salary employment growth, 2006-2016
Management, scientific, and technical consulting services
Employment services
General medical and surgical hospitals, public and private
Elementary and secondary schools, public and private
Local government, excluding education and hospitals
Offices of physicians
Limited-service eating places
Colleges, universities, and professional schools, public and private
Computer systems design and related services
Home health care services
The 30 fastest growing occupations
Network systems and data communications analysts
Personal and home care aides
Computer software engineers, applications
Veterinary technologists and technicians
Personal financial advisors
Makeup artists, theatrical and performance
Medical assistants
Veterinarians
Substance abuse and behavioral disorder counselors
Skin care specialists
Financial analysts
Social and human service assistants
Gaming surveillance officers and gaming investigators
Physical therapist assistants
Pharmacy technicians
Forensic science technicians
Dental hygienists
Mental health counselors
Mental health and substance abuse social workers
Marriage and family therapists
Dental assistants
Computer systems analysts
Database administrators
Computer software engineers, systems software
Gaming and sports book writers and runners
Environmental science and protection technicians
Manicurists and pedicurists
Physical therapists
Physician assistants
The Department of Labor's Occupational Outlook Handbook (OOH) is a great resource for researching hundreds of different types of jobs. The Handbook provides detailed information on the job requirements, necessary training and education, average earnings, expected job prospects, and working conditions.
To view the 2008-2009 Edition of the Occupational Outlook Handbook (OOH) visit the DOL site at http://www.bls.gov/OCO.
Thank You Letters Matter!
Just how important is sending a thank you letter after an interview? In a poll by Vault, a leading provider of career and human resource information, 78% of hiring managers said thank you notes either always help a candidate's prospects or could help when deciding between two or more qualified candidates.
Despite recommendations of career experts, statistics show that on average 50% of candidates fail to send a post-interview thank you letter.
24- to 48-Hour Rule: It is standard protocol to mail a letter thanking the interviewer within 24 to 48 hours after your meeting. During the interview, remember to ask for the hiring manager's business card, so you have his/her name, title, and mailing address.
A thank you letter serves an important purpose beyond merely observing protocol. It gives you the opportunity to get your name in front of the interviewer again and reiterate your interest in the position.
Template or Tailored Letter: A standard computer-generated, template-style thank you letter will satisfy basic interview protocol. For example: "It was a pleasure meeting with you yesterday. Thank you for the time you spent with me. I am very interested in the Account Manager position and believe my background and qualifications prepare me well for the challenges and responsibilities we discussed."
Customizing the Letter: Tailoring your letter to include items discussed during the interview tells the interviewer you're serious about the opportunity. Reference specific points addressed during the conversation and connect it to a career achievement to emphasize that you're a good match for the position.
For example: "I'm very excited at the prospect of joining your Business Development Team to help roll out XYZ Company's new XYZ product line. As noted when we talked, as Account Manager for ABC Company, I launched ABC products successful in capturing the leading market position within 18 months of release."
Handwritten Letters: Very few candidates take the time to hand write a letter, so hiring managers tend to take note of them. How do you decide whether or not to hand-write the letter? If the job for which you've interviewed meets some, but not all, of your desired criteria, use a standard (or partially customized) typewritten letter. However, if you just interviewed for your dream job, then go the extra mile and hand-write your letter.
Writing a thank you letter may seem a small detail in the overall job search process, but 1) it is protocol and so expected and 2) it could be a factor in the hiring scorecard. If the race is narrowed to you and an equally qualified candidate (who didn't bother to write a thank you note), sending a thank you letter may tip the scale in your favor!
Despite recommendations of career experts, statistics show that on average 50% of candidates fail to send a post-interview thank you letter.
24- to 48-Hour Rule: It is standard protocol to mail a letter thanking the interviewer within 24 to 48 hours after your meeting. During the interview, remember to ask for the hiring manager's business card, so you have his/her name, title, and mailing address.
A thank you letter serves an important purpose beyond merely observing protocol. It gives you the opportunity to get your name in front of the interviewer again and reiterate your interest in the position.
Template or Tailored Letter: A standard computer-generated, template-style thank you letter will satisfy basic interview protocol. For example: "It was a pleasure meeting with you yesterday. Thank you for the time you spent with me. I am very interested in the Account Manager position and believe my background and qualifications prepare me well for the challenges and responsibilities we discussed."
Customizing the Letter: Tailoring your letter to include items discussed during the interview tells the interviewer you're serious about the opportunity. Reference specific points addressed during the conversation and connect it to a career achievement to emphasize that you're a good match for the position.
For example: "I'm very excited at the prospect of joining your Business Development Team to help roll out XYZ Company's new XYZ product line. As noted when we talked, as Account Manager for ABC Company, I launched ABC products successful in capturing the leading market position within 18 months of release."
Handwritten Letters: Very few candidates take the time to hand write a letter, so hiring managers tend to take note of them. How do you decide whether or not to hand-write the letter? If the job for which you've interviewed meets some, but not all, of your desired criteria, use a standard (or partially customized) typewritten letter. However, if you just interviewed for your dream job, then go the extra mile and hand-write your letter.
Writing a thank you letter may seem a small detail in the overall job search process, but 1) it is protocol and so expected and 2) it could be a factor in the hiring scorecard. If the race is narrowed to you and an equally qualified candidate (who didn't bother to write a thank you note), sending a thank you letter may tip the scale in your favor!
Americans Work Hard and Play...When?
Each year, Americans work two weeks longer than the work-till-you-drop Japanese and a full two months longer than Germans (who receive up to 15 weeks paid vacation), according to a global HR consulting firm in an article on vacations around the world by Julie Rosenberg (www.Vault.com).
Compared to most other industrialized countries, Americans work longer and harder and vacation the least. In the U.S. -- unlike 127 countries that have minimum paid-leave laws protecting vacations -- employers are not legally obligated to provide vacation time.
The U.S. is ranked second from the bottom in paid time off among other developed countries--tied with Canada and Japan at 10 days. Mexico comes in last, with only six days of vacation.
In Japan, death from overwork has become so common there's a word for it: karoshi. The country maintains a national karoshi hotline for what is classified as an occupational disease. In 2008, a court ruled that a 30-year-old Toyota worker died from overwork, and the government was ordered to pay compensation to his family. A new generation of salarymen" is openly rebelling against the practice of long hours and unpaid overtime, and are switching to less demanding jobs.
Guaranteed Time Off: Full-time workers in much of Europe typically take seven to eight weeks of vacation and holidays each year. The European Union requires its members to set a minimum standard of four weeks paid vacation (which also covers part-time workers). Finland and France require six weeks paid vacation. Unions in Europe and other rich industrialized countries--whose contracts cover up to 90% of the workforce--typically negotiate additional time off.
According to Joe Robinson, author of Work to Live: The Guide to Getting a Life, almost 50% of Americans work more than 50 hours per week, and 25% receive no paid vacation or holidays. Employees who do receive paid time off average 9 vacation days and 6 paid holidays each year, but often have a tough time using them. Instead, the long weekend has become the standard American holiday.
Living to Work: Robinson said he believes the American work ethic has been hijacked by a culture that encourages overwork. "We say we like to work hard and play hard, but we don't leave much time for play. We survive layoffs only to be saddled with multiple jobs. Then, hoping to protect those jobs, we put in late nights and long weekends and defer comp time or time off. In the process, we become, if not workaholics, then lousy employees: tired, depressed, mistake prone, resentful, and eventually burned out."
According to Robinson, studies show that vacations can dramatically cut the risk of heart disease and cure burnout, the last stage of chronic stress. He explained, "The time away from stressors helps re-gather crashed emotional resources, such as a sense of mastery and optimism. But it takes two weeks for this process to occur, so you need to have real time off to get the recuperative benefits."
Compared to most other industrialized countries, Americans work longer and harder and vacation the least. In the U.S. -- unlike 127 countries that have minimum paid-leave laws protecting vacations -- employers are not legally obligated to provide vacation time.
The U.S. is ranked second from the bottom in paid time off among other developed countries--tied with Canada and Japan at 10 days. Mexico comes in last, with only six days of vacation.
In Japan, death from overwork has become so common there's a word for it: karoshi. The country maintains a national karoshi hotline for what is classified as an occupational disease. In 2008, a court ruled that a 30-year-old Toyota worker died from overwork, and the government was ordered to pay compensation to his family. A new generation of salarymen" is openly rebelling against the practice of long hours and unpaid overtime, and are switching to less demanding jobs.
Guaranteed Time Off: Full-time workers in much of Europe typically take seven to eight weeks of vacation and holidays each year. The European Union requires its members to set a minimum standard of four weeks paid vacation (which also covers part-time workers). Finland and France require six weeks paid vacation. Unions in Europe and other rich industrialized countries--whose contracts cover up to 90% of the workforce--typically negotiate additional time off.
According to Joe Robinson, author of Work to Live: The Guide to Getting a Life, almost 50% of Americans work more than 50 hours per week, and 25% receive no paid vacation or holidays. Employees who do receive paid time off average 9 vacation days and 6 paid holidays each year, but often have a tough time using them. Instead, the long weekend has become the standard American holiday.
Living to Work: Robinson said he believes the American work ethic has been hijacked by a culture that encourages overwork. "We say we like to work hard and play hard, but we don't leave much time for play. We survive layoffs only to be saddled with multiple jobs. Then, hoping to protect those jobs, we put in late nights and long weekends and defer comp time or time off. In the process, we become, if not workaholics, then lousy employees: tired, depressed, mistake prone, resentful, and eventually burned out."
According to Robinson, studies show that vacations can dramatically cut the risk of heart disease and cure burnout, the last stage of chronic stress. He explained, "The time away from stressors helps re-gather crashed emotional resources, such as a sense of mastery and optimism. But it takes two weeks for this process to occur, so you need to have real time off to get the recuperative benefits."
Older Workers: Myths and Realities
Employers who have discounted the value of older workers due to long-standing – and erroneous – stereotypes, are increasingly being bombarded with statistics and studies which not only disprove the myths, but in many cases reveal an opposite scenario.
Myth - Older workers are a poor investment because they do not stay with a company for very long.
Reality - Older employees tend to stay with a company longer than younger workers. They have an extremely strong work ethic and sense of loyalty to the organizations they work for. Today's younger workers tend to change jobs more frequently, while older workers developed their work ethic at a time when professional loyalty was highly valued. A survey of workers over 40 by AARP found that 76 percent intend to keep working and earning after the traditional retirement age of 65.
Myth - Older workers cannot readily adopt new technology.
Reality - "Despite the youth focus in IT, despite the notion that youth and technology go together, older people are eminently trainable and are growing more and more interested in technology," Goldberg says. "In fact, the fastest-growing group of Internet users today is people over 50." The percent of seniors who are Internet users has jumped by 47% between 200 and 2004 (4), so they are clearly not averse to adopting technological advancements.
Myth - Older workers take off more days for illness than younger workers, have more on-the-job injuries and file more workers' compensation claims.
Reality - Older workers have better attendance records than younger workers (80% of older workers have no chronic health problems). Senior workers seldom miss work for personal reasons other than legitimate illness. Employees over 50 file fewer workers' compensation claims than younger workers. Older workers account for only eight percent of workplace injuries. Then tend to take fewer risks and statistically have lower accident rates than other groups.
Myth - Older workers can't or won't learn new skills.
Reality - Studies show only negligible loss of cognitive function of people under 70. While older workers sometimes do take longer to absorb completely new material, their better study habits and accumulated experience actually lower training costs. Those over 50 are proving their ability to learn new skills by becoming the fastest growing group of Internet users.
Myth - Older workers are more expensive.
Reality - The costs of more vacation time and pensions are often outweighed by low turnover among older workers and the fact that higher turnover among other groups translates into recruiting, hiring, and training expenses. And while individual health, disability and life insurance costs do rise slowly with age, they are offset by lower costs due to fewer dependents. Overall, fringe benefits stay the same as a percentage of salary for all age groups. While workers with tenure are entitled to more vacation time and pension costs related to the number of years worked, replacing workers is not cost free.
Myth - Older workers are less productive.
Reality - Productivity is not a function of age. In fact, mature workers produce higher quality work, which can result in a significant cost savings for employers. Stories abound of highly committed older workers finding others’ potentially costly mistakes regarding everything from misspelling of client names to pricing errors and accounting mistakes.
Myth - Older workers are not as creative or as innovative as younger workers.
Reality - Eighty percent of the most workable and worthwhile production ideas are produced by employees over 40 years old.
Government entities are increasingly touting the benefits offered by seasoned employees, such as this 2006 statement by The Committee on Economic Development: “… employers rate older workers high on factors such as judgment, commitment to quality, attendance and punctuality. These qualities, coupled with their “old fashioned employer loyalty,” make older workers an attractive resource for employers seeking workers and possibly mentors for younger workers.”
Myth - Older workers are a poor investment because they do not stay with a company for very long.
Reality - Older employees tend to stay with a company longer than younger workers. They have an extremely strong work ethic and sense of loyalty to the organizations they work for. Today's younger workers tend to change jobs more frequently, while older workers developed their work ethic at a time when professional loyalty was highly valued. A survey of workers over 40 by AARP found that 76 percent intend to keep working and earning after the traditional retirement age of 65.
Myth - Older workers cannot readily adopt new technology.
Reality - "Despite the youth focus in IT, despite the notion that youth and technology go together, older people are eminently trainable and are growing more and more interested in technology," Goldberg says. "In fact, the fastest-growing group of Internet users today is people over 50." The percent of seniors who are Internet users has jumped by 47% between 200 and 2004 (4), so they are clearly not averse to adopting technological advancements.
Myth - Older workers take off more days for illness than younger workers, have more on-the-job injuries and file more workers' compensation claims.
Reality - Older workers have better attendance records than younger workers (80% of older workers have no chronic health problems). Senior workers seldom miss work for personal reasons other than legitimate illness. Employees over 50 file fewer workers' compensation claims than younger workers. Older workers account for only eight percent of workplace injuries. Then tend to take fewer risks and statistically have lower accident rates than other groups.
Myth - Older workers can't or won't learn new skills.
Reality - Studies show only negligible loss of cognitive function of people under 70. While older workers sometimes do take longer to absorb completely new material, their better study habits and accumulated experience actually lower training costs. Those over 50 are proving their ability to learn new skills by becoming the fastest growing group of Internet users.
Myth - Older workers are more expensive.
Reality - The costs of more vacation time and pensions are often outweighed by low turnover among older workers and the fact that higher turnover among other groups translates into recruiting, hiring, and training expenses. And while individual health, disability and life insurance costs do rise slowly with age, they are offset by lower costs due to fewer dependents. Overall, fringe benefits stay the same as a percentage of salary for all age groups. While workers with tenure are entitled to more vacation time and pension costs related to the number of years worked, replacing workers is not cost free.
Myth - Older workers are less productive.
Reality - Productivity is not a function of age. In fact, mature workers produce higher quality work, which can result in a significant cost savings for employers. Stories abound of highly committed older workers finding others’ potentially costly mistakes regarding everything from misspelling of client names to pricing errors and accounting mistakes.
Myth - Older workers are not as creative or as innovative as younger workers.
Reality - Eighty percent of the most workable and worthwhile production ideas are produced by employees over 40 years old.
Government entities are increasingly touting the benefits offered by seasoned employees, such as this 2006 statement by The Committee on Economic Development: “… employers rate older workers high on factors such as judgment, commitment to quality, attendance and punctuality. These qualities, coupled with their “old fashioned employer loyalty,” make older workers an attractive resource for employers seeking workers and possibly mentors for younger workers.”
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