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114.331 Contemporary HRM & Er Topic 3: Contemporary Issues in HRM & Er
114.331 Contemporary HRM & Er Topic 3: Contemporary Issues in HRM & Er
114.331 Contemporary HRM & Er Topic 3: Contemporary Issues in HRM & Er
Source:
https://www.statista.com/statistics/66694
6/asia-pacific-average-working-hours-
by-country/
WORKING HOUR DISPARITIES
Long hours found in some developed
nations (LMEs and Asia), but
Higher rates of long/excessive working
hours found in developing and lower-
income nations.
On average, adults in the developing world
work about 50% more hours per week than
adults in rich countries.
Average hours worked are higher in developing
countries both for men and for women, for all
age and education groups.
This raises concerns re income and social
inequality
Bick et al, 2018
Ethnic/racial differences
Blacks have higher multiple jobholding rates than White, Asian or Hispanic workers
LACK OF LEAVE PROVISIONS – USA
“Most of the countries in the world have laws setting the maximum length of the work week, except
the United States. The US is the only industrialized country in the world that has no legally
mandated annual leave and does not guarantee its workers paid vacation.
European countries establish legal rights to at least 20 days of paid vacation per year (some even
go higher to 25 and even 30 or more days). Australia and New Zealand require employers to
grant at least 20 vacation days per year, and Canada and Japan mandate at least 10 paid days
off.
In addition to mandated paid annual leave, workers also get paid time off for public holidays.
For instance, the US offers none, but most of the rest of the world's rich countries offer at least 6
paid holidays per year (while some countries like Cambodia and Iran offer 27 paid holidays).
In the absence of government standards, 23 percent of Americans have no paid vacation and
no paid holidays. According to government survey data, the average US worker receives only
about 10 days of paid vacation and about 6 paid holidays per year - less than the minimum legal
standard set in the rest of world's rich economies” https://clockify.me/working-hours
WORKING HOURS – UNITED KINGDOM
Full-time employees in Britain worked an average of 42 hours a week in 2018
2 hours more than the EU average; equivalent to an extra 2 ½ weeks per year.
Sweden
Average male works 38 hours (only 9% work long hours); max 13h/d, 48/wk)
WORKING HOURS – EUROPE
Denmark
98% work regular hours
only 2% work very long hours vs OECD avg 13%
https://www.weforum.org/agenda/2017/03/denmark-best-work-life-balance-oecd/
France
35 hour working week mandated in 2000 (orgs >20 ees) (max 12/d, 48/wk) - the Aubry Law
FT hours fell from 39.6 in 1999 to 37.7 in 2002, but back up to 39.1 in 2016
Annualization of working hours > flexible allocation of work hours to cater for seasonal demand
The law also regulates the minimum working hours
part-time jobs should not allow for less than 24 hours per week without a collective agreement
https://www.brookings.edu/articles/frances-35-hour-work-week-flexibility-through-regulation/
WORKING HOURS – ASIAN NATIONS
High prevalence of excessively long working hours in most Asian nations
South Korea
Employees work 400 hours more a year than the average among the OECD group of advanced economies
Approx 40% of annual leave goes unused.
China
China Labour Watch (US) report claims that 71.1% of Pegatron workers (Apple’s 2nd largest iPhone
manufacturer) work > 60-hour weeks
Japan
High rates of excessive hours by office workers (‘salaryman’); hours often not recorded; culture-bound issues
SHORTER HOURS, PRODUCTIVE, BUT STRESSED?
Despite enjoying the shortest working hours among OECD member countries,
Germany manages to maintain high productivity levels. In fact, the average German
worker is reported to be 27% more productive than his or her British counterpart.
EU nations have significantly lower hours than LMEs and Asia, and workers reported
to be happier, healthier… but, a 2014 Eurofound report found 30% of employees
feel stressed by specific working time arrangements
30% work irregular schedules; 20% from working long hours
Some EU nations also have some of the highest anti-anxiety (Germany) and anti-
depressant use (Sweden, UK, Denmark) (see the WEF Denmark article)
TRENDS IN
WORKING
HOURS
WORKING HOUR TRENDS – USA
TRENDS IN WORKING HOURS
In most developed nations there has been a gradual decline in average annual hours of
work per person in empt over recent decades
However, some countries have seen an increase in average annual hours
E.g. The United States and Sweden
Why?
OECD 2001
DRIVERS OF CHANGE IN WORKING HOURS
Why have working hours reduced?
Technological advances – makes work processes more efficient
Productivity has been increasing exponentially for more than a century. An average worker today needs to work a 11h/week to produce
as much as one working 40h/week in 1950.
Improvements in wages & standard of living – don’t need to work as long to make as much $
Dropping fertility rates – fewer hours need to be worked to support children/families
Increase in part time work (lowers the average – note that averages can hide differences)
Result of institutional arrangements, e.g. CB and social dialogue and outcomes, esp in European countries
Result of legislative changes – France and Japan; EU working time directive 2003;
UK – opted out of the EC WTD, but hours have decreased due to reductions in FT hours, not an increase in
PT hours
Implications
increased job insecurity (fixed term or casual contracts)
(sometimes) lower wages
Differential access to benefits
higher workload, more hours, more pressure (intensification)
Job satisfaction
Productivity
poor work-life balance
work-related stress
poor health and social outcomes in both industrialized and developing countries.
WORKING TIME… WHY IT MATTERS
“Working time, perhaps second only to wages, is the working condition that has the
most direct impact on the day-to-day lives of workers.
The number of hours worked and the way in which they are organized can
significantly affect not only the quality of work, but also life outside the workplace.
Working hours and the organization of work can have a profound influence on the
physical and mental health and well-being of workers, their safety at work and
during the transit to and from their homes, and their earnings.
The International Trade Union Confederation (ITUC) emphasizes the importance of
regulating working hours in order to ensure that the hours worked are safe and
productive.”
ILO, 2018 p.2 www.ilo.org
WORK DEMANDS: PSYCHOSOCIAL HAZARD
Extensification – hours are extended > long and/or unsocial hours (e.g. shift work)
Intensification – high degree of work intensity, increased work load, emotional labour > stress
Role overload
Discrepancy between job demands and the resources available to a worker (time, knowledge, skills,
machinery etc) (see Veldhoven et al, 2005).
Often seen as a workload issue - Having too much work to do in the time available
Time demands
expectations to use personal time (outside normal hours) for work (Macky and Boxall, 2008)
FWAs create blurred boundaries – can you ever leave work at work?
Sources - Eurofound research on work-related stress (2010); See also Lippel & Quinlan, 2011; Cox & Griffith, 2005
EXCESSIVE WORKING HOURS
~ A KEY ER/HR ISSUE ~
In developed nations, excessive hours are most common in certain
industries (primary industries and hospitality) and occupations
(management)
Australia (2015)
1.4 million work >50 hours per week
270,000 work > 70 hours per week.
Managers have the longest hours - 82,000 put in >70 hours per week
Excessive hours (> 50 hours/week) found in mining (34%), agriculture (34%),
construction (25%)
Some workers 50
consistently
work in excess 40
of 48-hours
per week 30
10
0
EXCESSIVE WORKING HOURS (OECD DATA, 2015)
Reflect…
• Which nations have the most excessive hours?
• Where are LME nations?
• Where are CME nations?
• Why are they different?
LONG
WORKING
HOURS IN
JAPAN CNBC News US, June 2018 (5 min)
click here
Limited vacation
A study by Expedia found that Japanese workers on average didn’t use 10 of their paid vacation
days, and 63% of respondents felt guilty for taking paid leave
Low productivity
Long work hours don’t necessarily mean high productivity.
Japan has the lowest productivity among G-7 nations, according to OECD data
Outcomes
Significant psychosocial health implications: Karoshi – death by overwork
EXCESSIVE WORK HOURS: ADVERSE OUTCOMES
Individual
Disrupts the balance between work and family life
Health risks
Increases fatigue, injury hazard risks
Stress, anxiety, mental health (depression)
Stress + poor behaviours > stroke and heart disease
Researchers found that working 55 hours or more per week is associated with a 33 percent higher risk of stroke and a 13 percent
greater risk of developing coronary heart disease when compared to people who work 35 to 40 hours a week
Watch: CBS News (Aug 2015, 3 min)
Substance use / abuse
Little time for physical exercise – exacerbates the problem
EXCESSIVE WORK HOURS: ADVERSE OUTCOMES
Organisational costs
Presenteeism, absenteeism > reduces productivity (see ILO report p.91)
Health risks for others - colleagues, customers, service users
Compensation, litigation
PriceWaterhouseCoopers estimate that mental health conditions have a substantial impact on
Australian workplaces - Approximately $11 billion per year
Costs to family and society
NZ & USA were the first to adopt 48 hour working weeks (early 20th century), but have
fairly high working hours compared to European countries
France – new law barring work emails after hours (Jan 2017)
Germany – IGMetal: employees have the right to 28 hour/weeks for 2 years
RESPONSES TO WORKING HOURS IN THE UK
Attempts to address low (zero) hours
The Working Time Regulations (1998) implement the European Working Time Directive
into GB law.
See: Eurofound country profile: United Kingdom link
Adams & Prassl (2018). Zero-Hours Work in the United Kingdom. Geneva: International Labor Organization.
link
Although overtime pay is required by law, prior to 1990 some orgs had taken
employees to court over their requests for overtime or other legitimate compensation.
WORKING TIME REGULATION – JAPAN
HISTORICAL DEVELOPMENTS
2014, June
Japanese govt passed the “Act on Promotion of Preventive Measures against Karoshi and
Other Overwork-Related Health Disorders” (enacted Nov 2014) to develop a national initiative
of prevention of overwork-related disorders15)
The Act clarified the State is responsible for promoting preventive measures including policies
against overwork related disorders, and contributing to a society where people can work
healthily and actively with an adequate work–life balance
Comprehensive prevention strategies should involve central and local govt, employers and other
relevant orgs
November – awareness of overwork month, incl Labour Thanksgiving Day (Nov 23)
Established “Principles of Preventive Measures against Overwork-Related Disorders” (June 2015)
– see next slide
(Yamauchi et al, 2017)
WORKING TIME REGULATION – JAPAN
RECENT DEVELOPMENTS
Additional guidelines
2017, August - the Govt adopted further guidelines aimed at addressing long work hours
in the construction and transport industries who work longer hours b/c of serious labor
shortage
Construction companies were required to secure two days off a week for workers
Transport – guidelines seek tougher administrative penalties incl suspension orders on operators who have
drivers work illegally long hours
See www.japantimes.co.jp/2017
WORKING TIME REGULATION – JAPAN
RECENT DEVELOPMENTS
Voluntary initiatives
In 2017, 40% of orgs surveyed said they have already or will look at reducing working
hours.
Many businesses have implemented hatarakikata kaikaku - requiring employees to leave
earlier, turning out the lights in the office at a certain time, or requiring employees to get
advance permission for working late.
Enabled employees to telework
Promoting women in the workplace
Offering support to working parents such as reduced hour work schedules.
PR firm SunnySide Up “Premium Friday” employees receive a one-time 3,200 yen ($28)
cash payment as they left at 3 p.m.
WORKING TIME REGULATION – JAPAN
RECENT DEVELOPMENTS
June 2018 – the "Work Style Reform Law” (“The Revolution In The Way [People] Work” bill)
Passed in June 2018, effective April 2019; Violation is subject to fines
Purpose:
restricting overtime hours (capped at 100 hours/month)
improving treatment of non-regular (such as temporary and part-time) workers
increasing productivity of the economy
Individuals
Better balance between work and personal lives
Improved gender equality (work, income & family)
Positive attitudes
Improved workplace morale
Improved physical and mental health and well being
IS LESS MORE?
Working fewer hours (but not too few!) is better for cognition and health
Watch: Time.Com (Oct 2016, 1 min)
Reduced hours initiative - Perpetual Guardian (NZ) trialled a 4-day working week
Productivity increased by 20% - same work being done in 4 days, but still paid for 5
Watch TedX talk (12 min)
Read more www.4dayweek.co.nz and www.businessinsider.com
RESPONSES TO WORKING TIME
SEE THE READING BY EUROFOUND 2020, CH 2 LINK
NOTE: This reading focuses on part-time and short working hours in the EU, the implications of this on
individuals and orgs, and policy responses to this at different levels (e.g. EU and national level
initiatives). It also considers long working hours briefly on page 29a, and 36.
As you read, consider the following questions:
Why do orgs and individuals want flexibility in working time structure?
What are some negative effects of short and/or unpredictable work hours?
What are some negative effects of long working hours?
What are some policy responses to help achieve desired and predictable working hours (see p.29)
EU initiatives (p.30)
National level initiatives (see the table 7 on p.31)
See in particular the summary of policy changes related to working time on p.36
READ & REFLECT…
Remember to use the study questions to guide
your reading and reflection.
Select 2 countries from different regions to
explore in more depth and identify -
Prevalence and trends in working hours (duration
and configuration)
Drivers (incl how working hours are set, see Berg et
al)
Implications (for orgs, individuals and society)
Responses (how are different international and
national orgs and govts addressing these issues)