December 3, 2013

Employers taking steps to prevent worker burnout

Some companies are beginning to set limits on the demands they place on employees’ time, recognizing that successful workers must be able to escape from work.

By Danica Kirka
The Associated Press

LONDON — Volkswagen turns off some employees’ email 30 minutes after their shifts end. Goldman Sachs is urging junior staff to take weekends off. BMW is planning new rules that will keep workers from being contacted after hours.

click image to enlarge

Shirin Majid, center, talks to co-workers at Quirky headquarters in New York recently. Majid, a new mother, recently took advantage of the company’s “blackout week” policy in which employees may take off one week a quarter. Company founder and CEO Ben Kaufman instituted the policy to experiment with ways for people to work smarter and to prevent burnout.

The Associated Press

This surge in corporate beneficence isn’t an indication that employers are becoming kinder and gentler: It’s about the bottom line. After years in which the ease of instant communication via e-mail and smartphones allowed bosses to place greater and greater demands on white-collar workers, some companies are beginning to set limits, recognizing that successful employees must be able to escape from work.

“Industry is now responding,” said Cary Cooper, a professor of organizational psychology and health at Lancaster University, who says the imperative to be constantly reachable by iPhone or tablet is taking a toll on the work delivered at the office. “Employees are turning up, but they’re not delivering anything.”

After seeing colleagues lose their jobs during the Great Recession, workers are more inclined to come in to work, even when sick, surveys show. After hours, physical presence is replaced by the next best thing — a virtual one. Many employees fear switching off, instead deciding to work on vacation, during dinner and in bed with the help of smart phones, laptops and tablet computers.

People also have more data than ever to process — whether they ask for it or not. Information overload cost American businesses just under $1 trillion in employee time lost to needless emails and other distractions in 2010, according to Jonathan Spira, chief analyst of the New York research firm, Basex.

The cost of replacing employees who leave in search of better work conditions is also a concern. A study from the Center for American Progress put the cost of turnover at just over a fifth of the employee’s salary for people making up to $75,000 a year. That goes up exponentially for top managers, with turnover costs as high as 213 percent of salary for very highly paid positions.

After worrying about trimming staff numbers during the recession, employers are focusing on how to keep those who are left from burning out.

JOB SAFETY

One strategy, which Goldman Sachs has been trying, is to make people feel less at risk in their jobs. That’s not easy in most companies, much less so in investment banking, infamous for its competitive environment and grueling work hours.

To keep junior analysts from burning out in the attempt to prove their worth, the bank has decided to start hiring first-year analysts as permanent employees, instead of taking them on as contract workers. It is also encouraging them to not work weekends.

“The goal is for our analysts to want to be here for a career,” said David Solomon, global head of investment banking at Goldman Sachs. “This is a marathon, not a sprint.”

Work conditions in banking came under scrutiny after an intern at Bank of America Merrill Lynch in London died from an epileptic seizure that may have been brought on by fatigue. The case prompted the bank to review work conditions for junior employees.

But it isn’t just the junior staff. Last month, Hector Sants, a senior executive brought in to help London-based Barclays bank overcome a costly scandal, resigned after a leave of absence due to stress and exhaustion. The chief executive officer of Lloyds Bank, Antonio Horta Osorio, took time out in 2011. The CEO AkzoNobel, a Dutch paint and coatings company, did the same last year.

“The HR people now talk about regrettable turnover. We cannot afford to lose our best people because we have fewer people,” said Cooper, the professor. “We will lose them to companies with better work/life balance, where they don’t have to work 19-hour days.”

(Continued on page 2)

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