Mid-Week Bulletin: Retirement Concerns; Napping At Work

Retirement Worries May Create Workforce Gridlock

 A new survey this week showing that older Americans are more pessimistic than ever when it comes to their ability to afford retirement could be a sign that an increasing portion of the workforce will opt to continue working beyond the traditional retirement age. While continued employment will help aging Americans avoid financial hardship, it could make it increasingly difficult for younger workers to climb the employment ladder. In the widely reported survey conducted by the Employee Benefits Research Institute, nearly half of all American workers and retirees were either “not too confident” or “not at all confident” about being able to afford a comfortable retirement. There is good cause for concern for many older workers, according to the survey, which found that 52 percent of those 55 and older have less than $50,000 in retirement savings. Despite the concern and the lack of savings, only 23 percent of survey respondents have sought professional financial advice to help them plan for retirement. These trends create a lot of problems in the workforce, according to employment authority John A. Challenger, chief executive officer of global outplacement and executive coaching consultancy Challenger, Gray & Christmas, Inc. “These older workers will want to…make that, need to stay in their jobs longer. And employers may oblige, since they value the experience and increased productivity these workers bring to the table. Employers may even be able to negotiate lower salaries for the prospect of increased job security. This is great for the experienced workers trying to delay retirement, but it significantly diminishes advancement opportunities for younger workers. Of course, this could backfire for employers when these older workers finally retire and they are faced with a wide experience gap between those leaving and those who remain.” What are the pros and cons of older workers staying on the job beyond the traditional retirement age? What can companies do to ensure that younger workers have opportunities to advance within their organizations? What other employment/second career opportunities exist for experienced workers who do not want to stay in their current job or want to re-enter the workforce?

March Madness: 1/3 of Workers Watch 3 Hours of Hoops at Work

With the first round of the 2013 NCAA Division 1 men’s basketball championship tournament set to tip off next week, the nation’s employers should be readying themselves for the inevitable drop in productivity that coincides.  One new survey found that nearly one-third of workers spend at least three hours per day following the Tournament during work hours.

In the annual “study” hated by working basketball fans everywhere, global outplacement firm Challenger, Gray & Christmas, Inc., estimates that March Madness will cost American companies at least $134 million in “lost wages” over the first two days of the Tournament, as an estimated 3.0 million employees spend one to three hours following the basketball games instead of working.

“At the end of the day, March Madness will not even register as a blip in the overall economy.  Sequestration is going to have a far bigger impact.  Will March Madness even have an effect on a company’s bottom line?  Not at all,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“But, if you ask department managers and corporate IT managers, March Madness will definitely have an impact on the flow of work, particularly during the first week of the Tournament.  Starting the day after selection Sunday, people will be organizing office pools, researching teams and planning viewing parties.  When the games begin around noon, eastern time, on Thursday, many companies will probably notice a significant drop in Internet speeds, as employees start streaming games and clogging up the network’s bandwidth.”

A survey just released by MSN and Impulse Research found that 66 percent of workers will be following March Madness during work hours, with 20 percent expecting to spend one to two hours following games, 14 percent spending three to four hours, and 16 percent saying they will spend five hours or more watching games instead of working.

Get the full report.

Super Bowl Absenteeism: Next Year, Schedule the Day Off

Super Bowl Monday, or Black Out Bowl Monday or Beyonce Bowl Monday, is likely to see hours of wasted time, as workers nationwide discuss the unusual, if not incredibly entertaining, contest between the San Francisco 49ers and Colin Kaepernick and the Baltimore Ravens, with MVP Joe Flacco. The blackout, the source of which is still under investigation by Entergy New Orleans which produces power to the stadium, was followed by a complete momentum swing in San Francisco’s favor but didn’t stop Baltimore from winning Super Bowl XLVII. Employees and management alike will have plenty to discuss…if they come in to the office.

Super Bowl XLVI in 2012 saw the most viewers of any American event with 111.3 million, according to Sports Illustrated and Nielsen, and Nielsen expects this year to have as many if not more viewers as last year’s contest.[UPDATE: viewership was slightly down to 108 million.] So many people watch the Super Bowl, and have perhaps too good of a time doing it, that a petition has been started on WhiteHouse.gov to declare the Monday after the Super Bowl a national holiday.

Indeed, Super Bowl Monday is one of the top days for absenteeism, according to John Challenger, CEO of outplacement firm Challenger, Gray & Christmas, Inc. Absenteeism is difficult to measure, but could cost employers as much as 36 percent of their payrolls each year, according to a 2008 Mercer study “The Total Financial Impact of Employee Absences.” A 2005 Ciridian Institute study found that in any typical workplace, absenteeism rates range from 5 percent to 10 percent, with the greatest amount occurring in health related fields, known for long hours and stress.

Despite the inherent dangers of absenteeism for workplaces, the impact of the Super Bowl should be embraced. The discussion of the game builds camaraderie and morale, and should not be suppressed. Perhaps employers can let slide someone who comes in a little late. However, employers will probably be wary of those workers who skip out on work with unplanned absences, especially in those businesses, such as retailers, restaurants, and hospitals, that rely on shift work. For those that can, utilize technologies that let you work remotely, stay in touch with your bosses, employees, or customers, and next year, schedule the day off.

Worst Flu Season In 10 Years Could Cost Billions

With three months remaining in what is already being called the worst flu season in a decade, employers around the country are undoubtedly feeling the financial impact of increased health care costs and widespread absenteeism.  Making matters worse, according to one workplace authority, is the tendency of employees concerned about job security to keep coming to the office despite their apparent illness.

“The economy is still on shaky ground and many workers continue to be worried about losing their jobs, despite the fact that annual layoffs are at the lowest level since the late 1990s.  In this environment, workers are reluctant to call in sick or even use vacation days.  Of course, this has significant negative consequences for the workplace, where the sick worker is not only performing at a reduced capacity but also likely to infect others,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, Inc.

The Centers for Disease Control estimates that, on average, seasonal flu outbreaks cost the nation’s employers $10.4 billion in direct costs of hospitalizations and outpatient visits.  That does not include the indirect costs related to lost productivity and absenteeism. 

Beware Political Discussions At Work

With the presidential election fast approaching and the polar platforms of the two contenders making headlines, the debate over each candidate’s strengths and weaknesses is undoubtedly spilling over into the nation’s workplaces.

As the line blurs between employees’ work and personal lives, coworkers often become members of one’s social circle and therefore a sounding board for one’s political views and opinions.  However, while political talk in the office should not be discouraged, it is important that certain ground rules be followed, according to global outplacement consultancy Challenger, Gray & Christmas, Inc.

“Passions and tensions are high, especially with the general election so close, and with the Republican and Democratic candidates so different,” said John A. Challenger, CEO of Challenger, Gray & Christmas, Inc. “Political discussion is the hallmark of a free society, but when the debate enters the workplace, it can create some significant problems

2012 Fantasy Football Report

With less than two weeks to go before the opening kick-off in the National Football League season, the estimated 24.3 million Americans who participate in fantasy football leagues will undoubtedly spend several hours in the coming days fine-tuning their draft selections and opening-day rosters.  Unfortunately for the nation’s employers, some of the time spent on player research may come during business hours.

 According to a very rough, non-scientific, non-verifiable estimate, global outplacement firm Challenger, Gray & Christmas, Inc., if 22.3 million American workers spend one hour each week managing their fantasy football team during the average 15-week fantasy football season, the cost to the nation’s employers in terms of wages paid to unproductive workers could approach $6.5 billion.

“Before fantasy football players around the country launch a letter-writing campaign lambasting our numbers, it is important to realize that even if this figure was verifiable and accurate, it would not even register as a blip on the economic radar,” said noted John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“Employers will not see any impact on their bottom line and, for the most part, business will proceed as usual.  However, even if the economic impact is faint, it is important to acknowledge fantasy football’s overall impact as a societal and workplace phenomenon.  Companies that embrace the growing popularity of this activity could actually see a positive impact, particularly in terms of employee sentiment and loyalty.  Those that try to squash employees’ use of time and the company Internet for fantasy football could see consequences far worse than a few distracted workers,” he noted.

How did the firm reach its estimate?  It assumed that 8.2 percent of the 24.3 million fantasy football participants (as estimated by the Fantasy Sports Trade Association) are unemployed, leaving about 22.3 million employed team managers.  The latest Bureau of Labor Statistics data show that weekly earnings for all Americans in the second quarter averaged $773 or $19.33 per hour.  Assuming on the conservative side that fantasy football participants spend one hour each week researching stats and tweaking their rosters, the firm multiplied the $19.33 figure by the 22.3 million employed participants.  That results in a dollar amount of approximately $430.9 million each week in unproductive wages paid by employers to fantasy footballers.  Multiply that by 15 weeks and the total reaches $6.46 billion.

Olympic Games Compete For Workers’ Attention

Workday Olympic Coverage Could Sap Productivity

With the Olympic Games officially underway over the weekend, NBC Television is barely into its 5,535 hours of coverage, including 3,500 hours of live streaming of events online.  The network hopes to match the success of the 2008 Olympic coverage that attracted an average of 27 million American viewers each day over the 17-day event.  While most viewers will catch the most popular sports during the network’s prime-time coverage, the five- to eight-hour time difference between London and America’s four time zones (11 hours for those lucky enough to live in Hawaii), means that many fans who want to watch live events will do so from their work desks.  According to workplace expert John Challenger, CEO of global outplacement firm Challenger, Gray & Christmas, it is difficult to pin down a monetary value of the lost productivity that could result from employees watching the Olympics.  “In reality, it will have no measureable impact on the overall economy.  Where it will be most noticeable is the IT department, which is likely to observe a significant slowdown in company Internet speeds, as bandwidth is eaten up by Olympic fans watching streaming videos from their desks,” he noted.  “At the end of the day, productivity will be no worse for wear, as employees who slacked off during the workday, stay later to complete their projects or take work home using their growing arsenal of portable technology that has helped virtually erase the line between our work lives and personal lives.”  What can employers do to ensure that the Olympic Games do not sap office productivity?  What other events are notorious for stealing employees’ attention during the workday?

Summer Productivity Sappers Include Holiday, Heat Wave

MID-WEEK HOLIDAY CRIMPS WORKPLACE PRODUCTIVITY

While difficult to measure the economic impact in dollars and cents, the mid-week Independence Day holiday will most definitely have an impact on workplace productivity, according to workplace authority John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas, Inc.  “The economy at large probably will see any discernible effect from the mid-week holiday.  It will be felt more at the company or even department level, as workers take off the two days before, the two days after, or both,” he noted.  How workers decide to make the most of the mid-week holiday will depend on the nature of their occupation and the generosity of their employers.  Many employers experience a slowdown in business during the summer months, which might make them more inclined to grant the extra days.  Even those who plan to work on the days straddling the holiday may find their workloads a little lighter, as key decision makers, associates and customers are absent.  What can employers do to make sure the mid-week holiday does not have an impact on the bottom line?  Are workers still reluctant to take long vacations due to concerns over job security?  Why is it important for employers to make sure workers take advantage of vacation time?

 

BIGGEST PRODUCTIVITY LOSS THIS SUMMER MAY BE HEAT RELATED

While the mid-week holiday may have a temporary impact on workplace productivity this week, the biggest contributor to declining output across the nation this summer could be the heat.  The eastern United Statesis currently baking under temperatures in excess of 100°F, in the wake of severe storms that have left millions without power.  The Midwesthas been experiencing record heat with more high temperatures expected this week.  Across the nation, nearly 2,500 high-temperature records were broken in the month of June.  With most of July and all of August still ahead, most experts are forecasting more heat waves to come.  Heat definitely has an impact on workplace productivity, not only for the millions of workers whose occupations require them to be outside most of the time, but for office dwellers as well.  “People just move slower in the heat,” said John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas, Inc.  “Add to that the impact of power outages and workers staying home to deal with heat-related issues, such as broken air conditioning units, and it becomes a significant drain on productivity.”  A 2003 study by researchers at the Helsinki University of Technology and the Lawrence Berkeley National Laboratory found that once temperatures rise above 77°F, productivity decreases by 2.0 percent per degree.  So, when the temperature reaches 97°F this week in Chicago, employers can expect a 40 percent drop in productivity.  What can employers and employees do to keep productivity up during heat waves?  Should employers relax dress codes when temperatures soar?  Is increased telecommuting one solution to battling the impact of heat waves?

 

Retention At Issue With A Workplace Bully

TOXIC WORKPLACES COULD LEAD TO EXODUS OF TALENT

Civility in the workplace is an ever-growing issue, as animosity between coworkers stemming from personality conflicts, differing work styles, or competition can result in a wide variety of workplace problems, ranging from lost productivity and higher turnover to increased and open hostility. Managers can no longer afford to look the other way during office conflict, says workplace authority John A. Challenger, CEO of global outplacement consultancy Challenger, Gray & Christmas, Inc. “Hostility can lead to childish behavior, unreasonable requests on co-workers or managers, unfinished projects, and in the extreme case, workplace violence. Additionally, as hiring slowly begins to pick up, talent will start to look for greener pastures, especially if their current workplaces are toxic. The issue really becomes about retention.” According to a 2012 survey from the Workplace Bullying Institute, 68 percent of workplaces do not have a policy regarding workplace bullying. How can managers control an outbreak of incivility? What can employers do to boost morale in the office?  

Job Stress Could Be Big Problem For Troubled Airlines

Update 4/2/2012: U.S. airlines are performing at the highest level in 22 years, according to a joint study by Purdue University and Wichita State University http://www.chicagotribune.com/business/ct-biz-0402-airline-ratings-20120331,0,4579423.story

Yesterday, a JetBlue flight originating in New York and heading to Las Vegas made an emergency landing after its veteran pilot Clayton Osbon began acting erratically. Earlier this month, a flight attendant for American Airlines, which is currently in bankruptcy and just announced it would need to cut 13,000 employees pending approval from the bankruptcy court, disrupted a flight from Dallas-Fort Worth to Chicago, ranting about the plane’s crashing and making references to 9-11. Both incidents come after years of turmoil in the airline industry, due to the high cost of fuel, competition, cost of increased security – the bulk of which the government passed to the airlines – and many airlines merging or folding. “Both of these events could be medical in nature and have nothing to do with the current state of those airlines. However, the industry has seen massive changes and huge job cuts announcements in recent years. Workers are worried about their jobs, and with the situation overseas, possibly worried about their security. No doubt workers in the transportation, specifically air transport, are feeling increased amounts of stress, and incidents such as these only add to the pressure,” said John Challenger, CEO of Challenger, Gray & Christmas. Since January 2011, airlines have announced over 18,000 job cuts, mostly due to acquisitions, bankruptcy or cost-cutting. How can employees cope with uncertainty in their jobs? Workers can take control of their situations by shoring up their resume, reconnecting with their professional networks, and seeking solace from their colleagues. Additionally, workers can display their indispensability to their employers. “Showing employers you are indispensable is good for job security. However, if workers are feeling stress to the point of breaking, it may be beneficial for their employers to survey the workforce or implement programs to gauge and boost morale. While these incidents may be isolated, it would be best to know for sure that it is not widespread.”

For employers:

Bring people together. It’s best not to ignore negative situations. An informal social gathering or meal together will allow workers to develop a new sense of team and purpose.

Check with individual employees. Meet with each of your employees as soon after an incident. Take time to explore their emotions and see how they are adjusting.

Take Employee Pulse. Boosting employee morale starts with knowing where morale stands. Find out how workers are feeling or what areas of the job are causing stress. Create a plan to combat these issues and ease job stress. It may be necessary to involve a professional counselor.

Give rewards.  A little praise goes a long way. Acknowledge and praise past contributions to the organization. Institute “Summer Fridays” allowing workers to leave early, give gift cards for outstanding work, use sporting events to start office pools, wear jerseys or order pizza.

For employees:

Bring people together.  Today, diversity is more than a buzzword.  Companies value people at all skill levels who can ameliorate differences among groups.  Often the ability to resolve conflicts comes from experience in community and volunteer work.  Companies rely on coalition builders in an increasingly team-oriented workplace.

Look for trouble.  Adopting an employer attitude towards problem solving and seeking out difficult assignments is a sure way for employees to get noticed.  Individuals who gear their work lives in this direction can help make themselves “untouchable” during a downsizing or reorganization.

Non-stop learning.  Enthusiastic employees who are eager to learn, especially in the areas of technology and global business issues, are more likely to find a secure niche within their companies.  Employers place high value on an employee who soaks up new information and uses it to enhance the job.

Cross job borders.  People who display flexibility and perform several tasks well often can do the jobs of two or more employees, saving payroll.  The most valued employees, no matter the size of the company, take the initiative to obtain additional work assignments; they do not wait to be assigned extra tasks.