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What’s It Worth To You: Experience vs. Compensation

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Given today’s uncertain business climate, if you’re looking to fill a position, you naturally want to keep expenses down in case of an economic reversal.

A growing part of the available talent pool is made up of a seasoned population of age 55 and older, experienced in business processes and problem solving.

That experience commands a certain price tag.

And — given the aging of the overall U.S. population and the baby boomers (born between 1946-1964), according to the Bureau of Labor Statistics — the share of older workers in the labor force is only expected to increase (view PDF of full report: “Employment outlook: 2008–18”.

So, if you’re hiring, two questions:

  • Do you pay more for knowledge with the expectation of gaining quicker contributions?
  • Or do you pay less up front, betting that a less-experienced person can still meet your expectations?

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