How to elevate midcareer workers’ potential

[ResidentialBusiness]

Two powerful forces are dramatically reshaping the current world of work—artificial intelligence and an aging workforce. While we can see that the way we work is changing, we need to move quickly to effectively cope with both. 

Currently, AI, machine learning, digitization, automation, and other technology shifts are continuing to drive big changes in how we work and evolving the skills we need. In fact, new Workday research into the AI skills revolution shows that 81% of workers globally recognize that AI is changing the skills needed for their jobs. 

At the same time, throughout most countries, midcareer and older workers (people aged 45-64) make up a growing portion of the workforce, thanks to steady advances in health and longevity, and comprise 40% of the workforce in Organization for Economic Cooperation and Development countries.

For these older workers, especially those who are currently unemployed, advances in new technologies could be a concern. In fact, Generation, a global employment nonprofit organization, conducted research in 2023 in eight countries that showed nearly half of long-term unemployed people are aged 45 and up, and 60% of midcareer workers view their age as their greatest barrier to new employment—and their perception is correct.

With this worker demographic shift, a looming social and economic challenge is facing most countries around the globe. To ignite progress and elevate potential for midcareer and older workers, three imperatives stand out:  

1. Bust the myths: Age and performance

Many employers underestimate and are less likely to hire midcareer candidates than their younger counterparts. Not surprisingly for those who have encountered age bias, research shows that preference for younger candidates intensifies when considering roles that regularly use AI tools. Hiring managers are three times more likely to consider job applicants who are 35 or younger, compared to those 60 and older.

However, the 2023 Generation research also shows that 89% of employers who have hired people aged 45+ reported that these individuals perform as well as or better than their younger peers, and 83% of employers said they learned as quickly or even better than their younger counterparts. 

It’s imperative that employers stop clinging to persistent and harmful age biases.

2. Green shoots of opportunity: Where the jobs are

There are jobs out there already with the magic mix of an immediate hiring need and a large supply of enthusiastic midcareer candidates. 

Green jobs are an exciting and unexpected opportunity. In Workday’s collaboration with Generation in Spain, more than half of the program participants in our Solar PV Installer Program were over age 40, and most were non-degree holders (only 6% had a post-secondary degree). Within 6 months, 90% of them had been successfully placed in jobs. Green jobs are a clear win-win for candidates and employers.

3. Beyond degrees: Skills-based hiring and mobility

Moving to skills-based hiring and assessment, rather than relying solely on 4-year college degrees or very specific previous work experience, will open opportunities for older workers and qualified candidates of all ages. 

By focusing on assessing skills and giving all hiring teams exposure to interviewing older candidates, we can decrease the likelihood that talented individuals will be overlooked. Moreover, once workers are on the job, employers can—and should—measure job performance and use that data to bust myths around midcareer candidate potential. 

To get candidates into new positions, training and mentorship also play important roles. In Generation’s 2023 research, 48% of successful midcareer and older job switchers had recent and relevant training prior to being employed, versus only 34% of unemployed individuals. 

On top of training, mentorship can help smooth career transitions. Workday and Generation developed customized mentor support focusing on the midcareer experience—including cultivating a growth mindset and moving seamlessly to a new industry. It was well-received, helping midcareer candidates improve their resumes and better prepare for interviews, with 96% saying they had a positive mentorship experience. 

The path forward: A two-way street

Change takes collaboration, and both workers and employers should prioritize upskilling.

Embracing equity, being inclusive of age differences, and hiring for skills is also good for business. There is research which shows that hiring for skills is five times more predictive of positive job performance than hiring for education alone, and 2.5 times more predictive of success than hiring for past work experience. Additional research shows that those who are hired on based on skills have, on average, a 9% longer tenure at their organizations than traditional hires, saving companies money on turnover and backfilling. 

Supporting workers in their career journeys helps ensure that individuals, businesses, and societies all thrive. 

Carrie Varoquiers is the chief philanthropy officer at Workday. Mona Mourshed is the founding global CEO of Generation: You Employed.

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