
THE FORGOTTEN WORKERS
Were talking about the ones who are older-and often a lot wiser
By Elizabeth Seay
In The Shadow of a downtown shaped by corporate downsizing, one business thrives on
hiring the downsized.
Entrepreneur Antoinette Allocca has built her technical-writing business, Essential
Data Corp. of Stamford, Conn., by hiring mostly people over 45, the group hit hardest by
layoffs. The average age of her dozen salespeople is 50. The "baby" of the
office is 37, and the oldest worker is 63. With the help of this sales force, the
companys most crucial tool for expansion, revenue has zoomed to $5.2 million in the
latest fiscal year from $869,347 in the year ended Jan. 31, 1996.
Even among her nonsales staff, there are plenty of older people: Ms. Allocca estimates
that more than half are in their 40s, 50s, and 60s.
Hiring older people isnt charity, says Ms. Allocca: Its her secret weapon.
"Im shocked no one knows about the mature market," she says. "These
people have so much to offer."
Experienced and Available
That isnt to say Ms. Allocca rules out younger workers. In this tight job market,
small businesses cant afford to restrict their hiring to any particular age group.
Rather, Ms. Alloccas strategy stems from expediency: Its easy to hire older
workers since they are so heavily represented among job applicants and are overlooked by
many other employers.
And once hired, she says, older workers offer several advantages. They are experienced
and more stable, and have little interest in job-hopping. "It takes very little to
manage them," she says. "You have to teach young people how to treat people, how
to listen, how to relate to other people."
Other small companies are starting to discover the older work force. The Association of
Career Management Consulting Firms International, based in Washington, D.C., recently
surveyed its 120 members and found that many companies were looking for older workers.
Still, hiring older workers remains an innovation in sales, traditionally a field where
older people often are considered over the hill. "There is a stereotype that people
dont want to hire older (sales) workers, says Bob Penney, president of Sales
Consultants of Westchester of Hawthorn, NY, a division of recruiting company Management
Recruiters International. "If youre out selling copiers, making 50 stops a day,
you tend to hire younger people who are willing to work hard."
Ms. Allocca, who at 44 is younger than many of her workers, happened on her hiring
strategy by trial and error. She started providing technical writers to financial-service
and technology companies 10 years ago, aiming to feed the growing demand for people to
help computer-system designers communicate with users. She chose Stamford because it was
close to her home and 45 minutes from New York Citys giant market.
But drumming up business was tough with just two employees Ms Allocca and her
husband. She needed good marketers, but couldnt afford to lure industry stars from
New York at salaries of $100,000 to $150,000.
Like many sales managers, she started out thinking younger workers were her best bet.
The first person she hired was a women in her mid-20s, "a trophy saleswomen,"
Ms. Allocca says. But the new employee couldnt deliver. "She just didnt
have the ability to get close to people, the savvy, the ability to employ strategy,"
says Ms. Alloca.
A Dangerous Gamble
The entrepreneurs conclusion: Hiring inexperienced people at lower salaries is
"Russian roulette. You could go through 10 people" and have few successes. And
as a busy small-business owner, she didnt have time to give such workers extra
training.
The solution to her problem, it turned out, was all around her, in the lost community
of downsized people around Stamford.
Ms. Allocca got the idea while taking a course at the local Womens Business
Development Center, where a teacher suggested there was a large market of retirees and
laid-off people whom smaller businesses could afford to hire Ms. Allocca took a chance on
one 59-year-old salesman, Dick Haeffele (who had been downsized from Dow Jones & Co.,
publisher of The Wall Street Journal) He brought in billings of a half-million dollars in
six months, and the business took off. Essential Data moved from a 200-square-foot office
to a 3,000-square-foot office-and it began hiring others like Mr. Haeffele.
Better Relationships
Ms. Allocca also says older sales representatives are better at building relationships
with corporate clients. "Companies decision-makers are mature," she says.
"The first thing I look for is experience of a particular type, marketing to big
corporation on the executive level." Among her 130 employees are Mark Fazzinga, 42,
who weathered a downsizing from Nynex, the phone company thats now part of Bell
Atlantic Corp., and Rick Doepper 52, who took early retirement after 30 years with
International Business Machines Corp.
Even Lisa Benne, Essential Datas youngest salesperson, say she felt old and
overlooked at her previous job, especially after she was passed over for a promotion.
"They want them young and cheap: Getem out of college, work em to death,"
she says.
Ms. Allocca is cagey about how much she pays, citing competitive issues, though some
salespeople at Essential Data say some salespeople at Essential Data say they earn more
than $200,000 a year. Sales people start of earning a small base salary, with the bulk of
their compensation coming from commission tied to a percentage of their production. The
base salary is at the low end of industry averages, but Ms. Allocca says the personal
financial rewards for producing business are relatively large.
That isnt to say her strategy is foolproof. Only about half the people she hires
remain there after a year, though she says that ratio is better than average for sales
staff. Ms. Allocca says she has hired people who were too old. "In the above-60
crowd, there are people who dont need the money but want the sense of I have a
job. Im not tired," she says. And some people feel they have progressed
too far to go back to sales. "They say, Well, I ran a whole
division,"
Ms. Allocca says, retorting to an imaginary employee: "Well, you were let
go."
No Favors
Ms. Allocca, unsentimental and canny, doesnt see herself as doing anyone any
favors. And she carries her preference for mature workers over into her personal life,
where she eschews aupaires in favor of a 58-year old nanny for her four kids.
She started her first company, a snow-shoveling business in Long Beach, NY, at eight
years old, and worked through her teenage years, mostly in sales. She and her 56-year old
husband, Mark Greenspan, now share a small office, undecorated other that artificial
plants and a stack of impressionist posters leaning against a wall. But she prefers to
spend her time in the large room where her salespeople work on the phones.
As they talk, Ms. Allocca, a casually dressed women who wears her hair in a long, brown
braid, paces around like a stage manager, softly giving directions and whispering tips.
"Anything good, Sheila?" she says. "How ya doing today Mark?" Several
minutes later, Sheila Klatzky hails Ms. Allocca. A project manager has said he needs a
writer, and Ms. Klatzky is going to send him some resumes. Ms. Allocca gives her a high
five.
Ms. Klatzky, who is a single mother in her early 50s, not long ago was renting out her
house and "tens of thousands of dollars in debt."
Casualty of Merger
She had been director of sales and marketing at Choice Drug Systems Inc., a pharmacy
that contracts with institutions such as nursing homes and prisons. But when the company
merged with two others in 1995, "I was among the people who were redundant," Ms.
Klatzky says. Despite experience in jobs from teaching to selling real estate, she
couldnt get back on her feet.
When she finally found work as an analyst for a company specializing in small business
consulting, life on the road was hard, she says. "I reached a point where I was in
motel room in Bromley, VT, staring up as wooden beams on the ceiling" and thinking
about ropes. "It was a passing thought," she says.
Ms. Allocca jumps in: "She gets $2 million worth of business a year." She
says proudly. "She has a teacher persona. People trust her."
Ms. Allocca concedes that she benefits from the hunger of people like Ms. Klatzky.
"These people are motivated," she says. "They have a lifestyle to maintain.
Theyre thinking of retirement. Its not that close for the younger
people."
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