According to the United States Department of Labor, the “U.S. is undergoing a demographic shift that is changing older Americans’ relationship in the workplace. The average and median age of the U.S. population is rising, and the composition of the workforce with it. By 2020, it is estimated that workers 55 and over will make up 25% of the U.S. civilian labor force, up from 13% in 2000.

In addition, individual workers are tending to remain in the workforce longer and retire later. The number of workers over the traditional retirement age of 65 is seeing a marked increase, and it is projected that they will make up even more of the American labor force by 2020. Employers rate older workers high on characteristics such as judgment, commitment to quality, attendance, and punctuality.” Smart companies have increased the interviewing and hiring of tax executives over 55 and it is a movement on the rise.

As tax executives privately wonder how companies really feel about their age, I assure my many clients they are highly respected for their tax skills and expertise. As long as the tax executive is technically strong and has strong verbal and written communication skills, they will edge out the less experienced competition easily. My interviews with thousands of tax executives over 55 have taught me how much more patient, thoughtful and committed they are to their employers. Their experience leads to better judgement, increased confidence in their tax technical skills and abilities, and they enjoy the work they do. There is notably less turnover when you hire a trained tax executive over fifty-five; if there is any turnover it is typically due to a merger or acquisition or change in management. They are less inclined to be looking for greener grass; they love the security of staying with one employer until they retire. I have tax directors who I placed at 55 who are still saving companies millions of dollars at 75.

Compare hiring a tax executive over 55 with someone in 20s, 30s and 40s and you are clearly in two worlds. It is the person early on in their tax career who is less likely to listen to your advice. If you have kids in their 20s you know what I am talking about as you live it every day. I am know tyro tax staff in their 20s may change their minds like the wind. They move from job to job within a period of 4-6 months quite never content to stick with their current tax role and grow in it over time. They are much more restless and think there is always something better out there so they move on quickly. When accounting firms conduct exit interviews with young staff these days the feedback is “I never thought the tax profession involved so many long hours and so many tax deadlines.” The message is very clear “The message is very clear in that today’s generation wants to make a lot of money and take more vacation time.” Compare that mind set a baby boomer tax professional born in the 1950s or 1960s with a very strong work ethic. The baby boomers are happy to work a forty hour work week and many work 55 hours or more.

What is important to note is that the tax profession is losing a large part of its talent pool by year three to five in the tax profession. At the same time, many companies are searching for that 5 to 8 year tax professional that is as hard to find as a diamond in a haystack. When you do find a tax manager with 5 to 8 years of tax experience their salary expectations are more than a tax executive with 25 years of experience. This is a trend I have observed in multiple searches and compensation discussions often stall many potential hires in tax organizations. The point is that many 5-8 year tax professionals are requesting compensation that is higher than tax professionals with more than twenty years of experience. It is a minefield, and if not handled properly will set a company back many months on a tax search. Compensation of tax executives is a discussion I will leave for another blog post.

As corporations, public accounting firms and law firms search for tax expertise, it is harder for them to find technically trained tax professionals as the pool of qualified tax candidates diminishes each year for many reasons including: 1) Increased demand on tax professional’s life 2) Higher education requirements 3) Software knowledge now required 5) Changing tax jurisdictions globally 7) And so much more…

Smart companies are moving towards more experienced tax executives who love their work and want to stay with companies. Many of the smartest tax folks I know are still working and they are in their 70s and 80s. There is great value in hiring a tax professional over 55 who has strong tax technical skills and knowledge; they bring better business judgement to the company; and they show higher commitment and reliability in a tax role. Companies are getting smart about hiring tax executives over 55 as they discover hiring tax executives in their golden years is found treasure.

TaxConnections encourages every tax executive over 55 who wants to work full-time or part-time to Join TaxConnections.

We want the world to discover you for your tax skills and expertise. There are many multinational corporations who would hire you!