Why Is the Ceiling Silver? Uncovering the Role of Potential Appraisals in the Age–Promotion Relationship

In this research, we set out to uncover why silver ceilings exist in organizations. Drawing on systematic–heuristic processing theory and recent psychological findings, we propose that "older" workers (aged 45 or more) are less likely to receive promotions because these decisions are based on potential appraisals, which are susceptible to managers' heuristic (stereotypical) thinking. We test our hypotheses using two‐wave field data (Study 1) from a large financial organization and an experiment (Study 2) in which we manipulate age while holding all else equal. Both studies show that employee age has a negative effect on promotion likelihood and that this relationship is mediated by managers' potential appraisals. Moreover, Study 2 also provides evidence for our theoretical rationale showing that the central effect is driven by managers' heuristic processing and work‐related age stereotypes. Across both studies, our results provide consistent support for our hypothesis that appraisals of potential constitute a potent pathway via which managers' age stereotypes can affect promotion decisions in organizations. We discuss theoretical contributions to the literature on workplace aging, employee appraisals, and personnel decisions, and formulate practical recommendations to help organizations tackle silver ceilings in the workplace.