American Workers are Less Productive: No Job Security, No Motivation

American workers are not feeling the love. A lack of job security, combined with increasing responsibilities (and fewer resources) has resulted in exhaustion, low morale, lack of motivation and (drum roll please)…lower productivity.

The U.S. Department of Labor said last Tuesday, that productivity fell 0.5 percent in the second quarter of 2016, while labor costs rose by 2 percent. U.S. worker productivity has been weak for the past five years and stands at 1.2 percent, less than half of what it was before the 2007 recession, when it was at 2.6 percent.American Workers are Less Productive

Many economists say Americans are working more to create less, because workers have outgrown existing technology. As a result, we can expect “restraining” of wage growth and more layoffs. And so the epidemic of myopic economics continues.

Don’t these geniuses realize that reducing financial incentives and increasing employee workloads as the result of layoffs will only drive productivity down further? These “experts” may know the price of everything, but they know the value of nothing.

U.S. workers today are routinely being pushed to their mental and physical breaking points. Workplaces are toxic work environments staffed by people either in the midst of a psychotic break or on the brink of one. The stench of fear and uncertainty lingers in every cubicle, assembly line, water cooler, coffeemaker and non-subsidized vending machine.

It doesn’t help that employers like Disney, Toys ‘R Us, Xerox, Pfizer, and Microsoft are turning to “insourcing” of H1-B visa workers in order to lower their payroll costs, despite posting record earnings…and then they force their poor displaced American employees to train their “guest” worker replacements or forfeit their severance.

Corporate Hunger Games?

As an unwilling participant of the gig economy, I’ve been flitting in and out of different corporate offices for the past four years. The mass psychosis and/or post-traumatic stress disorder (PTSD) I see is alarming, but not surprising.

When you experience three or four (or more) reorgs a year and know that on any given day you could walk into work and be handed a severance package, even if you’ve been a rock star employee (damn those surprise mergers!), it’s bound to damage your psyche to some extent at some point. And at the end of the day, you become aware that there is no “i” in team, but there is one in “survive.”

This past year, I’ve had two assignments where the person responsible for training me held back information I needed to know in order to do my job. Both women were overworked and clearly needed my help, so I can only conclude that they felt that if I knew as much as they did, they wouldn’t survive the next reorg.

They obviously felt it was safer to be overworked to the point of mental and physical exhaustion than to have the well-trained help they desperately needed. How sick is that? Still, they survived round after round of layoffs and salary dumps, so I suppose it’s not an unrealistic fear to expect to be replaced by a contractor who probably made less than they did.

Needless to say, this epidemic of fear and loathing in workplace after workplace makes it hard to stick to a new employer, even when you do a good job under most challenging circumstances. It’s like an endless loop of different movies made with the same script. Sometimes, I feel like Bill Murray in Groundhog Day.

No rest for the corporate weary

This environment of perpetual job insecurity has scared workers into being on the job 24/7. According to a study by Project Time, more than half of U.S. workers left unused vacation time in 2015. In fact, over the past 15 years, American workers have been taking less and less vacation time.

These poor souls likely feel that if they take time off, their bosses might replace them with an intern or hourly contractor…or worse, that someone of importance may decide that their department functions just fine without anyone in their role.

These are the same people who make work calls after dinner and send emails at 11 p.m. on Saturdays in an endless quest for validation and job security. It’s madness! But this is exactly the frame of mind that bipolar CEOs value in their employees.

Rising labor costs? No shit!

Hiring people costs money, and when your business model involves having a revolving door of “talent,” even if you’re replacing 20 full-time employees with 10 gig contractors or H1-B visa guest workers, you’ll end up throwing a lot of good money after bad. Recruiters, equipment and training costs add up.

And then there is the learning curve. It takes a while (sometimes years) before most employees achieve optimal knowledge of their company and/or industry. Many employers learn the hard way that inexperience can be pretty costly, especially in industries that are heavily regulated.

And how many times have employers carelessly displaced long-time employees, only to find they also unwittingly displaced a lot of company knowledge that their low-cost millennial or H1-B visa colleagues didn’t have? Too many; but they repeat the process, anyway. Einstein said the definition of insanity is to do the same thing over and over and expect a different result. So, there you go.

And while we’re on the subject of insanity: If a company wants to treat employees like disposable widgets, then they should stop asking employees to participate in charitable drives in the company’s name. This is inconsiderate at best, and perverse (or even sociopathic) at worst.

Also, I’m not sure why this isn’t obvious, but it’s never a good idea to have leadership team members spew empty rhetoric about “teamwork” and “commitment” at employee or town hall meetings in the same breath that they announce layoffs. What is up with that? I can’t think of a better way to incite workplace violence or corporate espionage. Seriously.

When I worked at Philip Morris in the 90s, we were hit by lawsuits left and right while dodging regulatory challenges by the FDA. If our then CEO had followed today’s popular strategy of slashing headcount and hiring cheap labor, the company probably would have folded before the end of the millennium.

Instead, they doubled down on staffing up, paying above average salaries and they had the best benefits. They understood that if they were going to survive, they needed a knowledgeable and dedicated workforce. Not only did the company survive, but it thrived…the stock split multiple times during the 90s and they’re still around today.

If employees feel valued, enjoy support, and know that if they do a good job, they’ll not only stay employed but they can expect to be promoted and rewarded financially, well…there’s no end to the growth a company can experience. Until “leaders” rediscover the core fundamentals of entrepreneurial success, true growth and peak productivity will likely remain elusive.

Carly Fiorina: From HP Board Meetings to Iowa Bored Meetings

Carly Fiorina’s hapless bid for the presidency should serve as a warning to all self-important corporate executives: Your hubris may not play in Peoria…or Des Moines, Iowa. The exception, of course, is Donald Trump…but then again, Trump didn’t need to slide on his belly, kneecapping smarter coworkers out of his way on his climb to the top; his daddy handed him a successful real estate empire.Carly Fiorina's Presidential Run

After making her mark at AT&T by plowing through a (probably small) crowd of female wannabe executives (from secretary to CEO!!!), Carly Fiorina was tapped to lead Hewlett-Packard (HP) in 1999. Her bipolar self-importance, coupled with her intense, ferret-like gaze, allowed her to become an extremely well-compensated poster girl for diversity in the tech industry. How cool was she to head a company in an industry dominated by men?

Six short years and many bad (often heartless) decisions later (the Compaq acquisition and her penchant for outsourcing everyone and everything top the list), she flushed away 50 percent of the company’s value and 30,000 jobs. In the end, Carly’s greatest achievement at HP was her resignation; the stock shot up 7 percent when she announced she was leaving the company.

This former tech “mogul” didn’t even have the common sense to purchase her own domain name. Instead, one of the many former HP workers that she displaced snatched up carlyfiorina.org and used the site to mock Carly and expose the extent of her relentless need to destroy jobs…in her own words. For example, after being asked how she would handle the layoffs at HP if she had to do it again, she replied: “I would have done them all faster.” O-kay.

Carly has been running for office (and losing) ever since, trying to regain a large canvas on which to paint her human carnage. Such pluck is admired by corporate board members who love putting tenacious, self-centered people in charge of companies…people who don’t mind getting a little (or a lot of) blood on their hands to achieve “economies of scale,” but in the real world, people like Carly are rightly shunned for being the psychopaths that they are.

After a career of failure, scandal, and a complete lack of empathy for the people whose lives she carelessly destroyed as HP’s CEO, politics beckoned. As a former corporate CEO, she didn’t feel the need to start at the bottom, so she ran for senator of California against the Yoda of female politicians, Barbara Boxer (who quickly schooled the “secretary-to-CEO” upstart). And now she wants to fail up to president and become the Republican Party’s Hillary Clinton. Such hubris. The Onion humorously captured her delusional aspirations, as only they can.

I suppose it’s easy to think you’re the cat’s pajamas when you spend years addressing a captive audience of employees who applaud and laugh at your bad jokes at town hall meetings. Still, there’s a big difference between addressing an audience of employees who depend on your approval to keep their jobs and addressing American voters, such as those at the Iowa caucuses this week, who you have to depend on to get the job.

Like all bipolar CEOs, when she does face rejection, she folds like a cheap suit. After a poor showing at the Iowa caucuses, she skipped town and her own party. No need to thank the few people who worked on her behalf; it was time to move on and be a world leader pretend at the next stop on the campaign trail…the New Hampshire primary.

Carly, like Hillary Clinton, are examples of what is wrong with too many women who achieve power. As a woman myself, I have to admit that I preferred working for men. Many of the women I worked for who had high aspirations viewed me as a threat (even though I never shared their C-suite aspirations) and felt it necessary to neutralize my contributions or even to take credit for my occasional good ideas. I can honestly say that I have inadvertently helped a lot of these women move up that coveted ladder without so much as a thank you from them.

I wish I could say that all women leaders are wise, gentle souls who have an innate desire to better the world and nurture the growth and development of other women, but that hasn’t been my experience. I can’t imagine what Carly did to her female coworkers during her meteoric rise up the corporate ladder at AT&T.

On some level, you have to blame the environment…with so few opportunities for women to break through the glass ceiling, I can see how an ambitious woman can turn into a psychopath trying to squeeze through the eye of the needle of achievement. Still, until we can level the corporate and political playing fields and the Lady Macbeth syndrome becomes the exception and not the rule, voters (and employees) need to proceed with caution.

This is the problem I have with identity politics. I’d love to see a woman become president (I wish Elizabeth Warren had decided to run), but I don’t support voting for a powerful woman just because she’s a woman. Hillary Clinton and Carly Fiorina are flawed, power-hungry, mentally ill women. And the reality is that after a life time of stepping on other women to get ahead, well…they don’t like other women, so why give them your vote, ladies? Neither would make a suitable first female president and it troubles me that so many women are blinded by ovaries wrapped in a power suit.

While it’s easy to single out Fiorina as a narcissistic, psychotic product of corporate dysfunction, the reality is that C-suites at companies nationwide are filled with Carly Fiorinas and even more bipolar or psychologically damaged men.

I wonder how different the corporate landscape would be if leaders were selected by employees, instead of by corporate board members who see personnel as “human resources.” A little more humility and a lot less hubris in leadership would be appreciated.

Psychic Ability: The Best Skill a Freelancer Can Have

Being a freelancer these days has a lot of perks: you make your own work schedule and you can work from the comfort of your home, thus you can avoid messy office politics, getting stuck in commuter traffic and blowing your ever-shrinking “gig economy” earnings on a “business casual” wardrobe and workplace lunches.

Sure, there are some challenges to freelancing, like convincing clients that your rates are reasonable while they plead poverty or hide behind budget cuts, or getting them to pay you on time (or at all), or having to diplomatically push back on their requests for additional revisions or input that they don’t feel they should have to pay extra for.

Still, the biggest challenge I’ve found as a freelancer is my lack of psychic ability.

If you’re a freelancer, you may have noticed that your clients tend to fall into two categories:

  • Small businesses that need to hire you because they don’t have the in-house talent to do what you do (e.g., marketing, Web development, etc.).
  • Middle managers in mid- to large-size companies that have downsized their marketing or IT departments into oblivion who need you to help them get the work done (without having to offer you a steady salary or benefits).

Champagne Dreams on a Spam Budget

Small business clients don’t like budgeting for anything outside of their company’s inventory, so when they reach the painful conclusion that they need to hire you to help increase their brand’s visibility, your biggest challenge is usually managing their expectations.

Even if you find yourself pricing their projects on the low end of your rate scale and they can only offer you a limited amount of work, some clients will expect your handiwork to deliver astounding results in record time.

This is when the fun starts. With some small business clients, you can expect one or both of the following outcomes:

(a) You will spend the next three months asking for your money.

(b) Your client will continue to ask/expect you to do more work outside of the scope of your original agreement until they feel they got an adequate return on their investment. Some of us foolishly keep feeding this beast in the hope that someday these clients will actually pay us for the original work.

If you were psychic, you could avoid a lot of aggravation by knowing ahead of time who won’t pay you or who will likely run you into the ground making you “earn” your money.

I May Not Know What I Want…But I Know What I Don’t Want

Sometimes it’s easier to work with mid- or large-size businesses, because the  manager who hires you is more likely to process your invoice…unless they are so overworked that they keep forgetting to do so (which happens more often than is acceptable). Still, as long as they have the budget, you’re not likely to get any push-back or experience unreasonable haggling.

The biggest challenge of freelancing for larger companies is that the mid-level managers who tend to hire you are so overworked that even though they desperately need your help, they often don’t have the time to provide you with what you need to do the job right.

As their hired gun, you’re priority No. 59 on their long to-do lists…way below assisting their VPs and other important business stakeholders, planning the company United Way drive, booking their vacations, arranging their bimonthly date nights with their spouses, finding babysitters for their children or getting their dogs groomed.

Sometimes these clients don’t even know what they’re asking for, while other times all they know is what they don’t want. And woe to the freelancer who receives limited guidance and inadvertently submits what they don’t want.

These clients expect you to have the skill to write or develop exactly what they would, if they only had the time. So what if they’ve had months or years to become well-acquainted with their company’s business objectives, and to attend company-sponsored training and meetings on a regular basis when you haven’t? You oughta know what they’re looking for, anyway, dammit!

The Phantom Lucrative Project

Another potential pitfall of being hired by a large company is one I call “the phantom lucrative project.” A typical scenario involves you blocking out weeks to do a job after being hired by a large, reputable company. Sometimes, you’ll be so happy you got the gig that you’ll celebrate by going on a shopping spree for laptops, patio furniture…or food, if things have been tight for you financially of late.

Then, you hear nothing more from them. When you contact your client, you are given excuses as to why the project is being delayed (e.g., they were on vacation, the project still needs approvals that your client wasn’t aware weren’t in place when he or she hired you, etc.).

The fact that you turned down smaller projects to work on their mega-project doesn’t resonate with them. After all, these people get paid even when they’re working on their tans in Cabo.

Sometimes, if you’re really lucky, you’ll wait for weeks to start the project only to be told that it’s been canceled (again, for any number of reasons from budget cuts, to the need to move resources to a more important project, or the project has been mothballed so long it’s actually now irrelevant…or the sponsor was terminated).

Having the psychic intuition to avoid these phantom projects would help keep you that much further away from financial ruin.

Having a pay-or-play deal in place would also help. Unfortunately, unless you have a waiting list of clients or you’re regularly profiled by the top trade media in your field, that ship won’t sail. Your prospective client will just move on to another freelancer who will agree to grant the company the option of leaving them hanging without compensation. Ah, the joys of working in the “gig economy.”

Since I wasn’t born with psychic ability, I’ve decided that the best gift I can receive this Christmas is a crystal ball that can offset my psychic shortcomings…or better yet, a winning mega-jackpot lottery ticket that would get me out from under the freelancer-client bus for good.

Smart CEOs Know That Paid Time Off + Good Wages = Growth

They say you can catch more flies with honey than with vinegar (although no one has ever explained why you’d want to). Apparently, you can also catch more revenue if you treat your employees like honeys.

Numerous studies have shown that fairly compensated workers are more loyal to their employers and more committed to growing their business. Research also shows that workers who are given, and encouraged to take, paid time off are more productive and enjoy better physical and mental health.

So, why are so many 21st century decision-makers hell bent on grinding their workers into pulp 24/7 at the lowest possible wage, stripping them of pensions and benefits, and outsourcing anyone they can? Did the “Successful CEO” handbook go out of print before an e-book could be produced?

Fortunately, there are a few visionary CEOs who get it, and they are reaping the financial rewards. Richard Branson tops the small, yet inspiring list.

Branson is not only reaching for the stars with Virgin Galactic, but he is a star to his employees. In a recent Inc. interview, Branson said you should “put your staff first, your customers second, and your shareholders third,” and his actions support these words. Branson’s latest act of employee generosity is to give new “Virgin” mothers and fathers up to a year of paid leave.

So, while most corporate leaders are “lowering admin costs” and dodging angry, unmotivated workers and frustrated shareholders, Branson is high-fiving his happy staffers and getting ready to fly to outer space…thanks to the buckets of money his motivated employees help him earn.

Then there’s Dan Price, CEO of Gravity Payments. This generous leader decided to raise the minimum annual salary of all 70 of his employees to $70,000 a year (nearly doubling the salary of many). Price bankrolled the move with three-quarters of the company’s profits and by cutting his own salary from $1 million per year to $70,000. He won’t give himself a raise until profits allow him to increase it.

Price would get along swimmingly with Centro CEO Shawn Riegsecker. His company offers employees with four years of service three-week paid sabbaticals. After taking a rejuvenating sabbatical, Riegsecker had an epiphany that his employees (and Centro) would benefit from enjoying a similar experience. Centro employees also get 10 “Ferris Bueller” days— they can take these vacation days for any reason.

Is Centro’s generous vacation/sabbatical policy hurting their bottom line? Actually, no. The ad software agency employs 600 people and enjoys continuous, impressive revenue growth.

Branson, Price, and Riegsecker aren’t just nice guys, they are good businessmen. As Riegsecker explains it: “I firmly believe that we’re moving in the world to a place where focusing on the happiness, health, well-being, and fulfillment of your employees is the number one determinant of success.”

True enough, especially when you consider that we have ample evidence that the “penny wise, pound foolish” business model is nothing more than economic cannibalism. Eventually, it eats everyone, even those at the top. At some point, CEOs of U.S.-based companies have to invest in their employees, so we can build a healthy, productive workforce that has money to spend.

In the interim, in the name of consistency, the reorganization/outsourcing junkies at the top of the corporate food chain should apply their “reorganization” plans across the board; not just to lower wage earners.

Since one of them is worth hundreds or more of us, their final act of corporate efficiency should be to outsource themselves in favor of cost-effective, innovative executives. And maybe, if we’re lucky, they will be replaced by leaders who follow Branson, Price or Riegsecker’s recipe for growth and enterprise-wide satisfaction.

Disney Slips its U.S. Employees a M-I-C-K-E-Y

If your Mickey Mouse ears are burning, it’s probably because you heard that Disney just committed the ultimate act of corporate douchebaggery.

Yes, the Mickey Mouse Club has closed its doors to 250 of its tech workers at Walt Disney World in Orlando, Florida. No, their jobs weren’t eliminated; they have been replaced by contract workers imported by a company, HCL America, that helps U.S. companies hire cheap labor from overseas. HCL has been contracting with Disney since 2012.

The story doesn’t end there, though. According to the New York Times, the displaced U.S. workers were told to train their replacements; and if the new hires couldn’t perform their new duties after said training, the discharged employees would lose their severance pay and benefits.

The Times reports that 85,000 H-1B visas are issued in the U.S. each year, but it looks like that’s about to change. Companies like Microsoft, Facebook, and Google are lobbying to increase the number of visas issued, claiming that there aren’t enough “highly skilled” workers available to fill critical positions.

Well, since Disney just displaced a few hundred “highly skilled” tech workers, why not start there, Microsoft?

Too many of us have found ourselves on the losing end of an H-1B visa, often more than once. With Disney pushing the sweatshop envelope even further, it looks like things are about to get a lot worse.

Meanwhile, for those of us who are running out of financial and employment options, there’s only one thing left to do. We need fly to Mexico, walk across our wide open border, and pretend to be from another country. We may not be able to make as much money as we used to, but at least we can secure a nice, low-paying job and free healthcare (right, Obama?).

It’s a small world after all….