Age discrimination awards rose 600% last year, according to analysis.
The following contribution is from the People Management website and is written by Freddie Clemo, a team member.
An independent government report urges the UK to address the pervasive culture of ageism, while experts issue a stark warning to employers.
Awards in age discrimination cases have seen a sharp increase, rising 624% to an average of £103,000 in 2023-24, according to Fox & Partners analysis of Ministry of Justice data.
This is a substantial rise from £14,200 in 2022-23 and £18,600 in 2021-22. An independent report, «The Rights of Older People,» published by the Women and Equality Committee, found that ageism was «widespread and culturally embedded» in British society and was often perceived as less serious than other types of discrimination. The report described the culture in the country as «generally ageist.»
A third of people believe attitudes toward older workers have worsened, according to a survey.
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Lyndsey Simpson, CEO and founder of 55/Redefined, explained that ageism had become «normalized» in the workplace, with serious repercussions for both workers and businesses.
«From recruitment processes that favor younger candidates to workplace cultures that undervalue experience, age bias is often systemic rather than intentional,» she said.
He noted that companies that prioritize age inclusion will thrive, and that age inclusion «is not just about fairness, but a business imperative.»
Increase in compensation
Recent high-profile legal cases illustrate the high compensation awards. Last year, a senior executive at Vesuvius received £3.2 million after being described as an «old fossil» who «didn’t know how to deal with millennials» following the firm’s decision not to hire anyone over 45.
Similarly, in 2020, a former Citibank employee received £2.7 million in compensation after being described as «old» before being dismissed.
Ivor Adair, a partner at Fox & Partners, warned that the increase in compensation values should serve as a «stern warning» to employers, noting that, with an aging population, high-value claims could become more frequent in the coming years.
He added that many companies still have a mandatory retirement age, which poses a «real risk» when it is not based on evidence or justification.
«Companies that develop an appropriate succession plan that addresses immediate, medium- and long-term changes, but also contingencies for sudden and unforeseen departures, are much better prepared to deal with the challenges of an aging workforce,» he explained.
Paul Seath, employment partner at Bates Wells, said that because age discrimination carried less stigma, it tended to occur more frequently, and that older employees also tended to struggle to find new jobs or were likely to be in the highest pay bracket.
He advised employers to guard against age discrimination and actively prevent it, warning that «those who do so will be rewarded, and those who don’t will risk large prizes.»
Widespread Ageism in UK Culture
The Women and Equality Committee report highlighted that, under the Equality Act 2010, age discrimination laws permitted direct discrimination if “objectively justified” as a “proportionate means of achieving a legitimate aim.”
The report suggested that the negative perception of older people, whether as frail and helpless or as “wealth-hoarding baby boomers,” increased social divisions and led to the normalization of discrimination.
The committee recommended that the government commission the Equality and Human Rights Commission to review the effectiveness of age discrimination protections, suggesting a greater duty on employers to take reasonable steps to prevent it.
Ageism is occurring more frequently in the workplace, according to research from the Centre for Better Aging.
The study revealed that 37% of respondents aged 50 to 60 who experienced ageism in the previous year said it occurred more frequently in the workplace.
The charity also revealed that more than half of adults over 50 in England had experienced ageism in the previous year.
Tatiana Rowson, associate professor of organizational behavior at Henley Business School,
said that ageism is deeply embedded in language, social norms, and media portrayals, meaning that ageist comments and jokes remain socially acceptable.
“This not only generalizes discrimination but also contributes to the internalization of ageism, where people make life decisions based on age-related stereotypes. In its most pervasive form, it leads people to self-exclusion, feeling they no longer belong or are no longer welcome,” she added.
Stuart Lewis, CEO of Rest Less, agreed that ageism remains one of the last socially acceptable forms of prejudice.
“Rather than actively encouraging older workers to re-enter society and the workforce, they are too often infantilized or generally discouraged from participating. This strikes me as a huge waste of talent and resources,” he said.
He added that this contributed to a “self-fulfilling prophecy for society, where older people choose to leave the workforce en masse, feeling unwanted and undervalued.”
The need to address ageism
The Women and Equalities Committee report highlighted that those with more positive perceptions of aging lived, on average, 7.5 years longer than those with more negative perceptions, revealing the impact of ageism on health.
Another report from Unmind found that half (51%) of older workers avoided using mental health resources due to stigma, compared to just 29% of Gen Z.
Michael Middleton, author and founder of 360 Rejuvenate, said the impact of ageism could include a loss of self-confidence, status, and self-esteem.
These emotions also coincide with fear of the future and aging, raising concerns about whether they’ll be able to enjoy the life they want in retirement or whether they’ll simply reach a point where they worry about whether they’ll still matter.
«Meaning and purpose are critical to our mental and physical health, regardless of age,» he added.
Simpson told People Management that «the idea that older workers are approaching retirement effortlessly is outdated and damaging» and that companies that embrace multigenerational workforces «outperform their competitors, benefiting from broader perspectives, better decision-making, and increased productivity.»
In an economy where longevity is redefining careers, those who don’t support older workers will simply be left behind.
The question isn’t whether we should support older workers, but whether companies can afford not to, she said.
Steps Employers Should Take
Adair said employers should review their employment policies to ensure they implement robust anti-discrimination measures, thereby contributing to a better work environment and reducing the risk of costly litigation for companies.
According to Age Without Limits, one in three people over 50 believe they have been rejected for a job because of their age, and one in five employers believe ageism exists in their organization.
Simpson explained to People Management that addressing ageism requires a shift in mindset. He added that the best organizations are moving beyond diversity exercises based on specific requirements and integrating age inclusion into their workforce strategies.
“Recruitment must evolve, with job descriptions free of ageist language, structured interviews that assess skills rather than assumptions, and hiring managers trained to spot and address bias,” he said.
Addison Barnett, principal consultant at Inclusive Employers, agreed that addressing ageism requires a strategic and cultural approach.
“Hiring processes must be audited to ensure bias is minimized, and, crucially, employees must be trained to address their own ageist assumptions and behaviors, as well as those of others.
As skills shortages affect many industries, retaining and attracting older workers must be a key aspect of any company’s talent strategy,” he added.
Emily Andrews, deputy director of work at the Centre for Ageing Better, said employers should focus less on fears of breaching age discrimination legislation and more on how to maximize the benefits of having multigenerational teams and how to remove the barriers their organization faces in recruiting, training, and retaining older workers.
She urged companies to recognize that the attrition of older workers due to family responsibilities and health issues could often be avoided with the right support from skilled and confident line managers who can explore flexible working options.
Middleton concluded: “Talent diversity is crucial for any business. Teams with shared goals, but diverse experiences and skills, almost always triumph over teams with very similar capabilities, perspectives, and experience.”
Confronting Ageism and the Gender Wage Gap in 2024
The following contribution is from Indeed and is written by Ashley Zlatopolsky, an editor and writer covering health, wellness, lifestyle, and cultural topics.
As we reflect on how a better world for women can function better during Women’s History Month and beyond, it is important to draw attention to the persistent ageism and gender pay gap that continues to plague society and leave older people and women at a disadvantage.
During the turbulent years of the COVID-19 pandemic, the transition to remote work, layoffs, burnout, and the Great Resignation have highlighted numerous workplace issues.
These issues include ageism or age discrimination in the workplace.
A 2022 AARP study revealed that nearly one in six working or job-seeking adults reported not being hired for a position they applied for because of their age.
Fifty-three percent of recent job seekers also indicated that an employer asked for their date of birth, while 47% were asked for their graduation date.
This same study also revealed alarming data:
– 62% of working adults age 50 and older believe that older workers face discrimination
– and an overwhelming 93% believe that age discrimination against older workers is prevalent in today’s workforce.
While age discrimination can undoubtedly seriously harm older workers of any gender, research shows that women between the ages of 55 and 64 are most affected by wage gaps in the workplace.
Women Remain at a Disadvantage
Although laws like the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 were passed to protect women and equalize their pay in the workforce, much remains to be done. The Center for American Progress published a comprehensive fact sheet in 2023 showing that women remain at a wage disadvantage compared to men, despite recent progress.
This research revealed that younger female workers, ages 16 to 24, earn 8% less than men each week.
It also found that women ages 25 to 54 earn a staggering 16% less than men.
Even larger is the 22% wage gap between men and women ages 55 to 64 (another issue related to age discrimination).
Furthermore, there is concern that women’s incomes are stagnating. Data show that working women do not experience a pay increase after age 55, and their wages remain virtually the same as they received between ages 25 and 54.
On the other hand, men’s income continues to rise into middle age and declines only slightly after age 65, while women’s income declines by nearly 20% for adults 65 and older.
While the gender pay gap and ageism are not equitable, the problems go beyond injustice and create obstacles for those affected.
Increased income can allow people to save for retirement, pay off debt, start a family, continue their education, and enjoy a better quality of life.
The wage gap primarily affects women—especially those who are widowed, divorced, or single—and leads to higher rates of poverty in old age.
These issues are just a few of the many arguments that support eliminating the gender wage gap and ageism in the workforce.
Furthermore, recent data from the Federal Reserve Bank of San Francisco show that older women job seekers have lower return rates, especially in the retail sector (almost 30% for women between the ages of 29 and 31, compared to approximately 18% for women between the ages of 64 and 66).
Addressing Ageism and the Gender Wage Gap
With men earning 83 cents for every dollar, according to 2022 data from the Department of Labor, it’s clear there’s still work to be done.
So, what steps can we take to address ageism and the gender wage gap? Here are some suggestions that might help alleviate these problems.
Get Informed
First and foremost, staying informed about workplace issues affecting older adults and women is the most important step you can take in the fight for equality, and that’s because change starts with you.
Read articles from reliable sources and reputable publications, listen to podcasts, watch documentaries, and consult books to stay up-to-date on workplace or corporate culture. You can also stay abreast of state or federal legislation that may affect pay equity, or set up Google Alerts to notify you when new legislation is introduced.
Raise Awareness
Next, it’s important not to keep this information to yourself. Informing your closest circle, such as friends, family, and colleagues, is a great way to bring awareness to ageism and the gender pay gap.
It’s easy to forget that these issues exist, especially if they don’t affect you personally.
A gentle reminder can go a long way in reminding others (and making them aware) that many women and older adults remain disadvantaged in the labor market.
You can also share content on social media to spread the message beyond your immediate circle.
Use your voice
Your voice can reach beyond your immediate surroundings. If you’re passionate about solving ageism and the gender pay gap for good, consider using your voice on a broader level, such as joining a demonstration, writing to legislators, or visually alerting people to the problem by placing a sign in your yard or leaving a visible sticker (e.g., on your car, front door, or next to your desk at work). Create new policies
Employers and business owners have the advantage of creating new workplace policies that can help reduce the gender pay gap and age discrimination.
Interviewers can be instructed to avoid requesting interviewees’ birth or graduation dates, and online job postings can include a salary or salary range to promote salary awareness.
This way, job seekers are not unaware of the salary of a potential job, and a fixed salary or salary range significantly reduces the scope for salary discrepancies. Increasing the minimum wage can also be effective.
Conducting a Salary Equity Analysis
Sometimes, pay inequality and hiring practices go unnoticed, intentionally or unintentionally.
If you are a business owner or a senior manager, conducting a salary equity analysis (or asking your superiors to conduct one) can be an excellent way to identify known or unknown pay gaps.
Based on the information obtained, you can make an informed decision about how best to address any issues affecting women or older adults. Practicing Diversity and Inclusion
Change from the Top Down
Promoting equal pay from the top down is one of the most effective ways to positively change company culture.
Focusing on diversity and inclusion can be instrumental in educating empl
