One year ago, Mattel chairman and interim chief executive Christopher Sinclair announced “disappointing” financial results. What followed next was a cut in the workforce. Eighteen American Girl Wisconsin employees lost their jobs in March 2015, accounting for about 2 percent of the company’s statewide workforce of 806. Revenues for the American Girl division were still well over $620.7 million for 2014. And of course, it’s likely that the work done by the laid-off employees was passed on to those who were still employed.
And it has happened again. Just this week, American Girl eliminated the jobs of 19 of the 463 employees at its Middleton headquarters. The reduction amounts to a 2.8 percent cut in the Wisconsin workforce of 684. “It’s all about controlling costs and aligning the workforce to best meet needs of the business,” spokeswoman Julie Parks said. Revenue was $572 million for 2015. Again, while it’s not stated, it is likely that the work done by the laid-off employees will be passed on to to those who are still employed.
This isn’t about picking on Mattel or American Girl: This is a symptom of a larger problem. People are more than a number on a spreadsheet, and they are more than a cost to be controlled. The amount of work that needs to be done does not go away when companies “cut costs.”
More than half of Americans (53 percent) feel overworked. There is an expectation that many employees always be available. One example: The majority of people (52 percent) who send a work-related email expect a reply within 12 to 24 hours.
It’s no wonder Americans are burned out.
According to a 2014 survey by Glassdoor:
While most employees may be using at least some of their earned vacation time, three in four (75%) are not taking all of it. Among employees who receive vacation and/or paid time off, 85% report taking at least some time off in the past 12 months while 15% report taking no vacation/paid time off. In fact, one in four (25%) report taking 100% of their eligible time off. Two in five (40%) employees report taking 25% or less of their eligible time off.
Plus, when employees are out of the office on vacation, that doesn’t necessarily mean they’re catching up on rest and relaxation. Of employees who took vacation in the past 12 months, one in 10 (11%) report they used vacation/paid time off to interview for another job. Employees 18-34 years old are doing this more than any other age group, as one in five (20%) admit using vacation/paid time off to interview for another job.
Why do we answer the phone and e-mails when we are out of the office?
- 33% No one else at my company can do the work
- 28% Fear of getting behind
- 22% Complete dedication to company
- 19% Want a promotion
- 19% Feel like they can’t be disconnected
- 18% Want a pay raise
- 17% Afraid of not meeting goals
- 17% Fear of losing job
- 16% Believe working is better than not working
- 13% Want to outperform colleagues
- 6% Afraid of the boss
And when Americans did take time off:
- 24% Were contacted by co-workers about a work-related matter
- 20% Were contacted by their boss about a work-related matter
- 17% Report having a difficult time not thinking about work
- 9% Report family members complained they were working
- 6% Admit consuming alcohol while attending to work
Even when we take time off, we still work — and a lot of that is due to the fact that there are fewer people doing the same amount of work. To top it all off, while our productivity has gone up, our pay has not.
From 1973 to 2014, net productivity rose 72.2 percent, while the hourly pay of typical workers essentially stagnated—increasing only 9.2 percent over 41 years (after adjusting for inflation). This means that although Americans are working more productively than ever, the fruits of their labors have primarily accrued to those at the top and to corporate profits, especially in recent years.
We work harder and longer than our parents did, yet we are not reaping the rewards of that productivity. We have to do more with less. If a co-worker is laid off to “control costs and align the workforce to best meet needs of the business,” guess what? Your workload just increased, and you are not getting a raise to do that additional work.
We can change this, but it will take sensible policies from our leadership, like raising the minimum wage and indexing it to inflation. Instead of weakening unions, strengthen then. Lawmakers can update overtime rules, and use tax policy to restrain incomes of those in the one percent (i.e. a maximum wage), just to name a few possible solutions.
We can change this.