There’s No Such Thing as Free Labor

Free-market economist and Nobel laureate Milton Friedman’s oft-quoted book title, “There’s No Such Thing As A Free Lunch,” reminds us to be wary of things appearing to come at no cost. 

The same might be said of the notion of “free” labor. Employers who believe they are benefiting from greater productivity when employees habitually put in long hours and skip vacations, studies say, are most likely hurting their businesses.

“In today’s knowledge-driven economy, the best measure of productivity is no longer how much time people invest,” says Tony Schwartz, CEO of The Energy Project and author of the book, “The Way We’re Working Isn’t Working.” Rather, it’s how much energy they bring to whatever hours they work — and the value of the work they produce as a consequence.”

The Energy Project and Harvard Business Review collaborated on a 56-question survey administered online to some 20,000 employees at all levels working in organizations of various sizes in more than 25 industries. The resulting “Quality of Life at Work” assessment underpins Schwartz’s mission to “reinvent the workplace.”

Schwartz’s research, along with several recent articles in the business press, call into question whether working for some of the “Best Companies to Work For” is, in fact, all that desirable. The reason: a culture of intensity that Facebook co-founder Dustin Moskovitz, in his essay about the tech industry, says is ruining the personal lives of employees and compromising work product. But long working hours, even at the Best Places to Work For, are not limited to tech companies. In a recent Gallup Poll, 4 in 10 Americans said they work more than 50 hours every week; and 2 in 10, more than 60 hours. It’s all too common to hear employees across a range of industries, discussing that they are overwhelmed, exhausted, and burnt out. 

While some of the Best Companies to Work For boast impressive employee perks such as gourmet lunches and state-of-the art gym facilities, what makes a great place to work, Schwartz’s research indicates, is something more fundamental: a culture focused on the whole person that enables people to bring the best of themselves to the job. 

“The simplest measure of a great place to work is how it makes employees feel to work there day in and day out,” Schwartz says. “That requires meeting the four core needs of their employees: physical, emotional, mental, and spiritual. Is there any question that if people feel healthier, happier, more focused, and more purposeful at work, they will perform better?”

Less makes more

For the last decade, many in business have assumed that grueling hours and a work ethic that erodes personal life is the price you pay for growth and innovation. According to Fortune, in 2014 Americans left 429 million vacation days on the table. For many companies, workweeks of 55 hours or more are the rule, not the exception for exempt employees. Research that attempts to quantify the relationship between hours worked and productivity, however, proves the opposite to be true. Too much time at work saps the energy required to be effective and creative. A study by John Pencavel of Stanford University found that employee output drops significantly after a 50-hour workweek and drops like a stone after 55 hours. Humans are not computers. We need time away from work to rejuvenate. To emphasize that point, Schwartz cites the work of sociologist and sleep researcher Nathaniel Kleitman that demonstrates how the human body “moves in 90-minute ultradian cycles throughout the day, during which we move from higher to lower alertness.”

The solution: lead by example

The most important thing a company can do to change behavior is to set an example through leadership. You can advocate for people to leave work on time and have dinner with their families, but if managers stay late every evening sending emails to staff and perhaps calling them at home with questions, people may feel insecure about leaving work on time. If supervisors work weekends, employees may feel obligated to also work, or at least take time away from their families, to respond to emails. If leadership eschews vacation time, then some employees will feel obligated to do the same. 

In short, leaders must demonstrate that success is better achieved with a reasonable work/life balance. At HR Works, several managers choose not to have their emails synced to their phones. They find it more productive to look at emails when they are focused on work, not just anytime day or night. 

It’s not fair to blame the trend of overwork completely on employers. Employees need to acquire the discipline to focus on priorities and not be distracted by social media and the Internet at work. As anyone with a smartphone knows, technology can be addictive with the effect of increasing work hours by distracting one from 

tasks at hand and blurring the lines between home and the workplace. In a recent Pew Survey, 35 percent of adults say the Internet, email, and cellphones increased time spent working. For office workers, the number rises to 47 percent.

Striking a balance 

Long hours can stem from direct reports having to juggle day-to-day responsibilities and multiple strategic initiatives simultaneously. Increased productivity is achieved when leaders invest the time to carefully prioritize key initiatives and avoid assigning direct reports more than one or two of these initiatives at a time, on top of existing job responsibilities. 

Updated time-management training that incorporates ideas for handling the distractions and demands of the digital age can help everyone gain a fresh perspective. For example, focus suffers when there is a continuous stream of emails popping up on computer screens throughout the day. Encourage workers to set times when they check and respond to emails and voice messages. 

Suggest to your employees that they also set limits on the amount of time spent working on a particular task. Remember the adage “work expands to fill the time available for its completion.” Finally, encourage staff not to send emails on weekends or after hours, unless it’s an emergency. No one needs to be connected 24/7.

If you’re managing an accounting firm during tax time, an employee-benefits business during open enrollment, or a retail business during the Christmas holiday, chances are you and your employees will have to work long hours. However, leaders must be wary of allowing long hours to become habitual all year long.         

Candace C. Walters is founder and president of HR Works, Inc. (www.hrworks-inc.com), a human-resources outsourcing and consulting-services firm based near Rochester that also has a DeWitt office.