Nearly half of employees in the United States routinely work more than 50 hours a week, often without overtime pay. In New Zealand, careers expert Janet Tuck says many of her clients are also putting in long hours, with 50 plus hours a week not unusual. Long days of graft often have a debilitating effect on employees but there's growing evidence that "free labour" might not be a good deal for employers, either.
Employee output falls sharply after a 50-hour working week and falls off the cliff after 55 hours, with those putting in 70 hours producing nothing more in those extra 15 hours, according to a recent study by John Pencavel of Stanford University. He says long hours are also connected to absenteeism and high employee turnover, and there are ancillary costs to employers such as providing light, heat, ventilation, and supervisory labour during those extra hours.
Tuck says attempts to save costs are a reality of a competitive market, and having fewer employees directly impacts the bottom line. "Long hours are generally not expected when a person takes on a job, however the reality of retrenchment in staff numbers, restructuring, and increasing workloads means that longer hours become necessary to meet job requirements," she explains, and adds that depending on the job, the attraction of overtime pay can be very enticing for those on hourly rates in order to make ends meet.
Tuck is seeing greater numbers of people working at home even when they are on sick leave and in their weekends. This can mean people missing out on family time but, because they have to work long hours to pay the mortgage and the bills, they feel powerless to change their situation. Tuck says it's not unusual to hear, "We feel guilty, but what can we do?" when couples are both working and children are in care.
Technology is increasingly being seen as a driver of the culture of overwork. David Solomon, global co-head of investment banking at Goldman Sachs, says: "Technology means we're all available 24/7. And because everyone demands instant gratification and instant connectivity, there are no boundaries, no breaks."