What is 20 years of experience worth? Some ways to think about it:
§ More recent experience is more valuable then older experience
§ Is it 20 years of experience or 1 year of experience 20 times? No easy way to know.
§ Clearly different employers will weigh those years differently depending on their current needs
§ Experience supplemented with current education improves the weightings
I propose you think of it as if it were a series of money payments in the future where you discount them to reach their present value. In other words your most recent experience carries more weight than older experience.
So you might calculate as follows:
Years | Past value | Discount value | Present Value |
16-20 | 5 | - 75% | 5 * (1-0.75) =1.25 |
11-15 | 5 | - 50% | 5 * (1-0.5) = 2.50 |
6-10 | 5 | - 25% | 5 * (1-.25) = 3.75 |
1-5 | 5 | - 0% | 5 * (1-0.0) = 5 |
20 | 12.5 years |
Your 20 years of experience is now only worth 12.5 years. Of course, your weightings will differ.
If you have a break in employment, the calculation might look something like this:
Years | Past value | Discount value | Present Value |
21-25 | 5 | - 90% | 5 * (1-.9) = 0.5 |
16-20 | 5 | - 75% | 5 * (1-0.75) =1.25 |
11-15 | 5 | - 50% | 5 * (1-0.5) = 2.50 |
6-10 | 5 | - 25% | 5 * (1-.25) = 3.75 |
1-5 | 0 | - 0% | |
20 | 8.0 years |
A break in employment can have various levels of severity with respect to the freshness of you previous skills. Factors to consider include: stayed at home, changed specialty, worked in different industry, worked in a core corporate function, no continuing education, etc.
This sabbatical can be a good thing. When you return you can leverage your experience with a fresh outlook – the best of both worlds.
An older worker is never the same as someone just out of college, all other things being equal. Your most ancient experience still carries residual value today. You really do never forget how to ride a bicycle.
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