Tag Archives: Jobs

Why Managers Fear a Remote-Work Future

Like it or not, the way we work has already evolved.
By Ed Zitron – In 2019, Steven Spielberg called for a ban on Oscar eligibility for streaming films, claiming that “movie theaters need to be around forever” and that audiences had to be given “the motion picture theatrical experience” for a movie to be a movie. Spielberg’s fury was about not only the threat that streaming posed to the in-person viewing experience but the ways in which the streaming giant Netflix reported theatrical grosses and budgets, despite these not being the ways in which one evaluates whether a movie is good or not. Netflix held firm, saying that it stood for “everyone, everywhere [enjoying] releases at the same time,” and for “giving filmmakers more ways to share art.” Ultimately, Spielberg balked, and last month his company even signed a deal with Netflix, likely because he now sees the writing on the wall: Modern audiences enjoy watching movies at home.

In key ways, this fight resembles the current remote-work debate in industries such as technology and finance. Since the onset of the coronavirus pandemic, this has often been cast as a battle between the old guard and its assumed necessities and a new guard that has found a better way to get things done. But the narrative is not that tidy. Netflix’s co-founder and CEO, Reed Hastings, one of the great “disruptors” of our age, deemed remote work “a pure negative” last fall. The 60-year-old Hastings is at the forefront of an existential crisis in the world of work, demanding that people return to the office despite not having an office himself. His criticism of remote work is that “not being able to get together in person” is bad. more>

Should vaccinated people worry about long Covid?

Here’s what we know about long Covid — with some hope for the future.
By German Lopez – Over the past few months, experts and officials have tried to prepare the world for a future in which Covid-19 is here to stay. They predict the vaccines will by and large defang the virus. There will still be a few cases of serious illness and death, but the coronavirus will be reduced to the level of a seasonal flu — a disease we’d be much better off without, but mild enough we won’t shut down society to fight it.

But this optimistic vision has always left open a big question: What about long Covid?

Covid-19 is most known for causing acute illness, from a cough and fever to hospitalization and death. But in some cases it seems to cause longer-term complications, including breathing difficulties, fatigue, and brain fog, though the effects vary from person to person. While Covid-19 typically resolves in the span of weeks, long Covid can last at least months after an infection.

“Without treatment, we’ve seen individuals who got sick in February or March of 2020 and are still sick and still extremely debilitated,” David Putrino, who’s treated long Covid patients at the Mount Sinai Health System in New York, told me.

These long-term complications aren’t unique to the coronavirus; other viruses, including seasonal flu, cause long-term symptoms too, sometimes similar ones. But as more people have been infected by the coronavirus, and more have subsequently developed long Covid, the long-term problems have received more attention. more>

Updates from McKinsey

Running on all five sources: Actions leaders can take to create more meaningful work
Knowing about the five sources of meaning is a great start, but the real magic occurs when leaders begin to embed them into how the work gets done.
By Timothy Bromley, Taylor Lauricella and Bill Schaninger – Research shows that when people view their work as meaningful, their performance and job attitudes improve significantly. Previously, we proposed a strategy that leaders can use to create meaningful work: making the connection to and highlighting the impact their work has on society, customers, the company, team, and individuals’ personal success—otherwise known as the five sources of meaning.

Knowing about the five sources of meaning is a great start, but the real magic occurs when leaders begin to embed them into how the work gets done. There are three steps leaders can take to start integrating the five sources this week:

  1. Determine what matters most. Start a dialogue with your team to understand what sources resonate most. This can be done during one-on-one check-ins or as a group exercise during a team meeting.
  2. Hardwire meaning into day-to-day work. Once you know what sources of meaning resonate most for your team, find small ways to hardwire them into existing activities and communications. Perhaps it’s adding an “impact story” or recognition to the start of a meeting, encouraging team members to lead meetings and complete work autonomously, or sharing customer feedback in a weekly recap email.
  3. Create connections. A common thread across the five sources is the impact of the work on others. Providing opportunities for your team to assist, mentor, support, or simply spend time with customers, other teams, members of the community, and one another is key to providing a touchpoint for meaningful experiences—particularly as the workforce returns from remote work.

There’s no shortage of inspiration in how other companies put the five sources of meaning into practice. Many organizations have found creative and bold ways to integrate the five sources of meaning into their communications, talent processes, and day-to-day activities. more>

Updates from Chicago Booth

Booth Staff – Celebrating a Momentous Achievement
Here at Booth, we’d like to congratulate the Class of 2021 on the time, dedication, and perseverance they devoted to complete their MBAs and PhDs amid a uniquely challenging year. In honor of this momentous achievement, we invited a few of our brand new alumni to reflect on their experience at Booth and what they’ll miss most as they embark on the next chapter of their personal and professional journeys.

Alex Brewer, ’21 A graduate of the Full-Time MBA Program, Alex Brewer will move to Los Angeles after graduation to work as an associate brand manager for Johnson & Johnson on their skincare and beauty brands.

John and William Swee, ’21 John and William Swee graduated from the Evening and Full-Time MBA programs, respectively, as Wallman Scholars, Booth’s high honors distinction. John also received the part-time programs’ Award for Finance. The brothers are both partners at boutique investment firms and aspire to continue building their respective firms using the skills they honed at Booth.

Anne Tong, ’21 Anne Tong is graduating from the Full-Time MBA Program. After graduation, she plans to move to Seattle, where she’ll serve as an associate brand manager for Nestle’s Starbucks and Chameleon Cold Brew brands. more>

Is Your Portfolio Positioned for These Three Megatrends?

Increased consumer spending, an expanding digital economy and an emerging class of millennial investors could power stocks in the years ahead. Learn how you can prepare.
By Daniel Skelly – While investors often focus on daily headlines about the post-pandemic reopening and economic recovery, it’s important to step back and think about the longer-term impact of COVD-19. For investors, the question is not always what it means for the stock market next week, next month or even next year, but what are the implications over the next two to three years?

My team at Morgan Stanley Wealth Management sees three megatrends for investors to watch in the years ahead—and they are bullish for stocks:

1. A Surge in Consumer Spending

Perhaps the most immediate driver of both economic growth and stock prices is a continuation of strong consumer spending, thanks to additional fiscal stimulus hitting the wallets of lower-income U.S. consumers. The vaccine rollout and resulting reopening of the U.S. economy could also drive further spending on a variety of services, especially from higher-end consumers. Indeed, in June, Ellen Zentner, Morgan Stanley’s chief U.S. economist, forecast this year’s GDP growth at 7.1% as rising labor income boosts the buying power of U.S. households and excess saving remains an important cushion.

Conditions today contrast with 2008, when the housing market was the epicenter of the financial crisis. This time around, most consumers are not dealing with high debt or defaults, and banks remain financially strong and ready to lend to both business and individual borrowers. That could help drive faster economic growth.

Consumer Savings Hit Historic Highs

Many American consumers socked away cash during the pandemic, pushing the savings rate from 7.2% in December 2019 to a record high of 33.7% in April 2020. more>

Restoring the manufacturing base in the US is the key to our prosperity

By Tom Conway – Eager to capitalize on opportunities in the dynamic renewable energy field, the manufacturing company Rotek secured incentives, hired additional workers and successfully launched production of the huge metal rings that keep wind turbines spinning.

But the boom quickly faded. The Aurora, Ohio, plant struggled to compete with unfairly traded, foreign-made products and ended up eliminating many of the jobs it created just a couple of years before.

Ensuring future prosperity will require not only stimulating a manufacturing resurgence but also stabilizing long-term markets for domestically produced goods and raw materials.

Fortunately, President Joe Biden’s American Jobs Plan provides an unprecedented opportunity to do exactly that.

The plan calls for historic investments in American infrastructure, including roads and bridges, schools and airports, locks and dams, water-treatment systems, communications networks, the electric grid and renewable energy projects, like the wind farms that workers at Rotek strived to supply. more>

Bad stimulus: Government payments to individuals are a terrible way to solve America’s structural economic problems

By Albena Azmanova and Marshall Auerback – The new Democratic administration is poised to make its first proud step in delivering on its electoral promise to build back (America) better: the successful adoption of a $1.9 trillion stimulus package, the main components of which are a third round of stimulus checks, a renewal of federal unemployment benefits, and a boost to the child tax credit, as well as funding for school reopenings and vaccinations. It will probably not include a federal minimum wage hike.

Biden’s stimulus is not the stuff of economic revolution—it’s a mix of common sense and keeping the lights on. And the fundamental thinking behind the stimulus approach reflects a continuation of neoliberal policies of the past 40 years; instead of advancing broader social programs that could uplift the population, the solutions are predicated on improving individual purchasing power and family circumstances.

Such a vision of society as a collection of enterprising individuals is a hallmark of the neoliberal policy formula—which, as the stimulus bill is about to make clear, is still prevalent within the Democratic and the Republican parties. This attention to individual purchasing power promises to be the basis for bipartisan agreement over the next four years.

The reality is that social programs on health care and education, and a new era of labor and banking regulation, would put the wider society on sounder feet than a check for $1,400.

There are very few federally elected officials who behave as though they understand that economic insecurity can breed political instability and governing paralysis.

Globalization, deindustrialization, the contraction of the public sector, and the rise of contract labor via the gig economy have made individuals feel insecure in their private circumstances. This has contributed to the appeal of populist politicians, whose tenures generally are corrosive to liberal democracies. Moreover, these tendencies have together undermined our social contract as a whole, depriving governments of the means and resources to tend to the public interest. more>

To Tackle Inequality, We Need to Start Talking About Where Wealth Comes From

Thatcherite narrative on wealth creation has gone unchallenged for decades.
By Laurie Macfarlane – Do people in Britain resent the rich? According to two new studies published this week, the answer to this question is: not really.

The studies, one commissioned by Trust for London and another by Tax Justice UK, explore public attitudes towards wealth based on focus groups held across England. Both found that most people are relatively content with people getting rich, and that attacks on the wealthy are often viewed negatively.

This presents a dilemma for progressives. In recent years left-wing leaders on both sides of the Atlantic have taken a more confrontational approach towards the super-rich. In Britain, the Labour Party’s war cry under the leadership of Jeremy Corbyn has been ‘For the many, not the few’, while in the US Bernie Sanders has made no secret of his contempt for billionaires.

But what if it turns out that ordinary people don’t agree? One response to this dilemma, as outlined by Sonia Sodha in the Observer, is to accept that “the belief that Britain is a meritocracy is ingrained in our collective psyche”, and adjust policies and narratives accordingly. This would mean ditching the class-war rhetoric and instead putting forward solutions designed to appeal to a meritocratic worldview. This might include, for example, closing tax loopholes and increasing particular taxes on grounds of fairness and efficiency.

Sodha is right to point out that this strategy is more likely to chime with people’s existing attitudes towards wealth. As the authors of the Tax Justice UK report note: “The participants in our focus groups largely believe in meritocracy. Those with wealth were seen as having acquired it through hard work.” Participants in the Trust for London research expressed similar views.

But does this mean that progressives should accept the way things are and move on? Not necessarily. As a well-known philosopher once said: “The philosophers have only interpreted the world in various ways; the point, however, is to change it.”

People’s views aren’t formed in a vacuum: they are shaped by social and political forces that evolve over time. Margaret Thatcher’s neoliberal revolution wasn’t just successful because it reorganized the economy – it was successful because it embedded a particular narrative about how wealth is created and distributed in society. This is a world where, so long as there is sufficient competition and free markets, every individual will receive their just rewards in relation to their true contribution to society. There is, in Milton Friedman’s famous terms, “no such thing as a free lunch”. It’s a world where businesses are the “wealth creators” who create jobs and drive innovation, and business owners are entitled to the financial rewards of success – regardless of how enormous they are.

The problem, of course, is that it bears little resemblance to how the economy actually works. While it is true that working hard will generally help you earn more money, this causality doesn’t hold in reverse: not all wealth has been attained through hard work. In practice, the distribution of wealth has little to do with contribution, and everything to do with politics and power. more>

Updates from Chicago Booth

India’s economic recovery from its COVID-19 lockdown
By Chuck Burke – In response to COVID-19’s rise, India ordered most of the country’s 1.3 billion residents to stop working and remain indoors starting in March 2020—the world’s largest lockdown. The government began relaxing restrictions in June, and research finds that while India’s economy improved rapidly in the following months, the outlook for a return to prelockdown levels remained unclear.

In a report for Chicago Booth’s Rustandy Center for Social Sector Innovation, Booth’s Marianne Bertrand and Rebecca Dizon-Ross, Centre for Monitoring Indian Economy’s Kaushik Krishnan, and University of Pennsylvania’s Heather Schofield examined household-level survey data to establish a more comprehensive view of India’s initial recovery than national economic indicators could provide. These charts and maps highlight a selection of their main findings. more>

Related>

Gig workers: guinea pigs of the new world of work

Most discussion of gig workers has focused on their material insecurity. More attention also needs to be paid to what goes on in their heads.
By Pierre Bérastégui – The ‘gig’ economy has grown to become an intrinsic part of our society and yet the benefits and risks of this new way of working are still much debated. Understandably, the employment status of gig workers captures most public attention.

Most European Union member states lack clear regulations on this, so a platform’s terms and conditions determine the status of its ‘users’, based on the existing regulatory framework. Although there are instances of platforms offering employment contracts, most consider gig workers as self-employed.

This is often referred to as ‘bogus’ self-employment: workers are treated as such for tax, commercial and company-law purposes, yet remain subject to subordination by and dependence on the contractor and/or platform. As new forms of work outpace regulation, the key legal challenge is to ensure no workers are left outside of the regulatory framework.

That should, however, not hide the fact that gig workers deal with unique challenges when it comes to working conditions. In addition to the specific hazards entailed by the different types of activities mediated through online labor platforms, there are also risks related to the way gig work is organized, designed and managed. Addressing these is essential, to safeguard working conditions and ensure a socially responsive transition to the new world of work. more>