Survivor – Heavy Lifting Episodes

While many U.S. manufacturing assembly lines may be well below capacity – requiring absorption before the next hiring wave – those in other capacities have seen their workloads skyrocket after their fellow workers experienced the recession-driven layoff meat axe. Is this a temporary phenomenon – pending better economic times which still remain elusive – or a reflection of a more permanent condition in the American workforce? Is this the way Americans have to make up for the increasing skill-sets and productivity in other countries… longer, harder work hours without any concomitant increase in pay… or indeed at a lower rate of pay?

A recent survey (May 7^th) of 800 individuals by employment services Right Management lets you know exactly how tough it is for the layoff survivors across North America (Right.com):

‘Employees are likely feeling the pressure of more streamlined operations, increasing demands and tighter competition,” said Deborah Schroeder-Saulnier, Senior Vice President for Global Solutions at Right Management. ‘Most employees, from all industries and company sizes, have been asked to step up and make a greater contribution. Without appropriate communication, many will feel unprepared and ill equipped to handle more responsibility.’

Among key findings:

• Employees at large organizations feel the heat more, with 68% saying their workloads have increased ‘a lot’ compared to only 33% at small organizations.
• Younger workers are experiencing increased workloads the most with 60% of workers 25-34 reporting their workloads have increased ‘a lot’ followed by 59% of those 18-24.
• Twenty-one percent of men believe their workloads ‘were about the same’ compared to only 14% of women.

Schroeder-Saulnier advises that management must pay attention to the new realities. ‘Acknowledge increased workloads and instill a spirit of collaboration and opportunity during tough times. Encourage employees to build new skills. Look for solutions together. Giving employees ownership and engaging them in the discussion enhances satisfaction and commitment. This will put the firm in a much stronger competitive position as the market improves.’

But there is a lot of push-pull in the American labor marketplace. As the service sector is about to experience more of the kind of “out-sourcing” that has moved product manufacturing overseas in droves, what happens if the volume of work that remains available to U.S. workers falls? Will there be new industries picking up the slack? Will our educational system adequately prepare the next generation for those new arrivals or will the growing educational standards in developing countries preempt that growth arena as well? Will we have to amortize a reduced volume of work in the U.S. and spread it among a growing number of people – hence applying fewer hours per person among a greater number to ensure maximum employment – or will there be fewer workers laboring longer hours, retiring later, while there is a much larger pool of marginally employed, under-employed or even unemployed Americans.

After World War II, with Asia and Europe reeling from the devastation of global conflict, the United States accounted for well over half the global economy. We’re still high – about 30% – but falling rapidly. The manufacturing sectors of the so-called BRIC economies (Brazil, Russia, India and China) have grown, but it is acceleration of middle-class consumers in these nations that will unseat the U.S. preeminence in this lofty economic dominating position. And with this increase in middle class consumers comes the increase in middle class educational skills and productivity. And it is productivity (value per work hour) that will determine the fate of the United States and its employment future. The future does appear to be slanting towards the highly skilled/educated with an inclination to loo k at a 60 hour week as pretty average. Graduates may face more than a few bursting balloons!

I’m Peter Dekom, and hold on tight for a very twisting ride.