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.

Monday Bulletin: Telecommuting Turnaround at Yahoo; Sequestration Cuts To Come

Telecommuting Trend Turnaround at Yahoo!

At a time when many Silicon Valley tech firms are battling each other to attract and retain the best talent, the decision by Yahoo! Inc. to end its telecommuting program may prove to be shortsighted. The move, which was widely reported this morning after a leaked memo made its way to the press, stems from the belief that “speed and quality are sacrificed when people work from home.” Yahoo’s new CEO Marissa Mayer is determined to shake things up in an effort to turn the struggling company’s fortunes around. “To become the absolute best place to work, communication and collaboration will be important, so we need to be working side-by-side. That is why it is critical that we are all present in our offices. Some of the best decisions and insights come from hallway and cafeteria discussions, meeting new people, and impromptu team meetings. Speed and quality are often sacrificed when we work from home. We need to be one Yahoo!, and that starts with physically being together,” the memo reads. According to John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas, Inc., there is some wisdom behind the memo’s sentiment. “Yahoo is definitely in a fourth-and-long situation, so it needs to try new tactics. There is a collaborative advantage to having all of your employees in the office. However, there is also an advantage in having the best and brightest tech workers on your payroll. The question is whether this move will result in an exodus among the company’s top talent,” he said. Could the move to end telecommuting backfire for Yahoo? What are the pros and cons of telecommuting programs? Will other companies follow Yahoo’s lead and end or rein in telecommuting options?

Sequester Could Send Government Job Cuts Soaring

Will failure to reach a budget deal by March 1 ignite another round of government job cuts? Automatic spending cuts totaling $85 billion are scheduled to take effect Friday and will impact federal agencies, including transportation and defense, as well as cut aid to states. Instead of finding a solution, Democrats and Republicans are arguing the overall impact of the cutbacks, with Democrats taking a “sky-is-falling” stance while Republicans argue that the cuts, which amount to less than 3% of the $3.5 trillion budget, will barely be felt by most Americans. The truth, as usual, probably lies somewhere in the middle. “The thousands of federal workers forced to take unpaid furloughs will certainly feel the pinch in their annual budgets. Meanwhile, state governments will have to pass along the cuts by eliminating jobs. In Missouri, for example, the automatic budget cuts will slash about $12 million in school funding and will put about 160 teaching jobs at risk. That may not seem like a lot of jobs in the big scheme of things, but it’s everything to the 160 teachers who could ultimately find themselves unemployed due to political gamesmanship,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, Inc. Last year, announced job cuts by government agencies fell to 19,128 after reaching 142,503 in 2011 and 183,064 in 2010. What will be the overall economic impact of automatic budget cuts that kick in March 1? Will automatic budget cuts send government job cuts to 2010-2011 levels? Are consumers and businesses spending enough now to hold up the economy if government spending declines?

Telecommuting Could Save Time, Money Created by Monster Commutes

With a new report detailing the growing cost of daily commuting to and from work, one workplace authority wonders if it is time for the nation’s employers to make a serious commitment to expanding the use of telecommuting strategies.

“Right now, a very small fraction of the nation’s workers who could viably work from home on a regular basis are actually doing so.  By not expanding the use of telecommuting, employers are negatively impacting the environment, worker productivity, job satisfaction and, most importantly, their bottom lines.  And, it is not a lack of technology or other resources that is holding back this expansion.  It is simply a lack of vision, a shortage of trust and an irrational adherence to antiquated notions of how and where work should be done,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, Inc.

The call for increased telecommuting comes on the heels of a new report from the Texas A&M Transportation Institute, which revealed that increased traffic congestion is forcing the nation’s workers to build in extra time to their daily commutes to the tune of $121 billion in wasted time and fuel in 2011.

The longest commuting times are found in Washington D.C., where it takes drivers three hours to reach a destination that would be 30 minutes away with no traffic.  On average, commuters are giving themselves one hour for what should be a 20-minute drive with no traffic.

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.

Hurricane Sandy Impact To Be Felt Nationwide

Hurricane Sandy has not even made landfall yet, but the economic impact of the storm is already mounting.  The biggest financial toll will come in the wake of the storm, when the clean-up begins.  However, with thousands of companies along the eastern seaboard already closed in preparation for the storm, including the New York Stock Exchange and the NASDAQ, as well as thousands of flights cancelled and railway transportation halted, the storm is already costing the economy millions in lost output, productivity and consumer spending.  “The effects of the storm could be felt well after the last cloud passes, as power outages and structural damage take days or weeks to repair,” noted John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas, Inc.  “If there is any silver lining in all the destruction the storm is expected to cause, it’s that such storms tend to provide a boost to the economy in their wake.  After the initial shocks to the economy related to lost output and productivity, we will probably see an employment surge in construction, skilled trades and other professions needed to help repair the damage.  There will also be an increase in business and consumer spending and companies and homeowners replace damaged equipment, household items, etc.  While much of it will be paid for with insurance money, the injection of money into the economy will be beneficial nonetheless,” he added.  Are there any steps east coast companies can take to lessen the impact of the storm on productivity?  How will consumers and companies in other parts of the country feel the economic impact of the storm?  What opportunities for economic growth will exist after the storm?

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?

 

March Madness Is Here! Employers Use The Games To Their Advantage

Challenger March Madness Report

2.5 MILLION WORKERS SPENDING 90 MINUTES A DAY WATCHING BASKETBALL; IT MUST BE MARCH

The annual NCAA Division 1 men’s basketball championship tournament, affectionately known as March Madness, kicks off in less than two weeks and companies around the country know what that means: it is time once again to remind employees that streaming live video slows down everyone’s internet speed.

In its annual “study,” that gives legitimate scientific studies a bad name, outplacement firm Challenger, Gray & Christmas, Inc. predicts that while March Madness will not be the downfall of the American economy, it could result in millions of hours in lost productivity, or at least diminished productivity, as workers across the nation take time from their work schedules to watch games online, check scores and manage their office pool brackets.

Based on last year’s data, online March Madness coverage could attract more than 2.5 million unique visitors per day, each spending an average of 90 minutes watching games.  With private-sector workers earning an average of $23.29 per hour, Challenger estimates that employers will end up paying distracted workers about $175 million over the first two full days of the tournament.

Read on for tips to use the games to build morale.