Americans Working Longer Hours, Especially in Small Businesses

Suzanna De Baca -- Expert Business Source, 1/4/2008 7:23:00 AM

Do you seem to be working longer hours and still not getting everything done?  Are you paying employees overtime simply because you can’t fill job slots?  If so, you have plenty in common with owners and employees of small businesses across the U.S.

Americans are putting in more hours at work, about 42.5 hours in 2006, compared to about 37.5 hours in 2003, according to a January 2, 2008, Pittsburgh Tribune Review article by Joe Nashua, which cites time-use surveys by the federal Bureau of Labor Statistics. Workers in small businesses were among those who regularly put in a work week in excess of 40 hours, the survey reported.

The article, “American workers are laboring longer hours,” goes on to say that the “extra hours are a result of fewer employees to do work, fears of job security, a need for overtime pay and a hope for advancement, experts say. Drawbacks include burnout, and an impact on health and quality of life.”

The average work week differs for men and women, with men skewing the numbers upward.  In 2003, the average workweek for men was 40 hours; in 2006, the average increased to about 45 hours.  While women worked an average of 35.1 hours in 2003, 2006 saw an increase to slightly more than 40 hours in 2006.

These numbers represent the average, which means that a significant percentage of workers are actually putting in much longer hours. According to "Working Time around the World" study released in June by the International Labor Organization in Geneva, a global research organization, 18 percent of American workers put in more than 48 hours a week, the fifth-highest percentage among developed countries. 

According to the survey, many employees work longer hours because the culture dictates it.  If a few key employees work past quitting time, others may see long hours as the way to maintain job security.  Others extend their workday in order to earn overtime pay, to qualify for a bonus, or in hopes of getting promoted. 
What do these long hours mean for you as a business owner or as a worker?  If you are a business owner, it may be difficult to see any choice but to put in the long hours necessary to maintain your business.  And while it may be nice to have dedicated workers, many experts agree that people who chronically work longer hours suffer health problems and are prone to burnout.  

“Forty percent of American adults get less than seven hours of sleep on weekdays, reports the National Sleep Foundation, up from 31% in 2001,” reports an October 2005 Business Week cover article entitled “The Real Reasons You’re Working so Hard.”  The article goes on to say, “About 60% of us are sometimes or often rushed at mealtime and one-third wolf down lunch at our desks, according to a survey by the American Dietetic Assn.”

Unhealthy health habits add up over time.  Business owners know that an unhealthy work force is an expensive workforce, from a health insurance standpoint; similarly, turnover has a high cost.  If you can implement measures to curb excessive overtime, on your part or on the part of your employees, ultimately it may be more cost-effective.

Suzanna de Baca is President of Private Capital Solutions Group.  She is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004, (888) 600-4667.  Securities products/services and advisory services are offered through PAS, a registered broker/dealer and investment advisor. Private Capital Solutions Group is not an affiliate or subsidiary of PAS.
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Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice.