We have known for over a century that worker productivity declines when the work week exceeds forty hours. Henry Ford was not a benevolent softy when he set this limit in 1914 — he knew this was the way to maximize profit. And that is what he did — profits doubled in the year following his move. New York Times, 1914
Why have so many companies forgotten this lesson? Insisting on very long work hours week after week not only reduces productivity. Mental and physical health, families, and relationships also suffer. Too often, it seems that the optics (why is the parking lot empty at 6pm?) take precedence over rationality.
From a pure, hard-hearted business point of view only short sprints of a couple of weeks to meet an immovable deadline make any sense. The productivity increase is short-lived followed by reduced productivity in the following weeks. Shown graphically:
Source: lunar.lostgarden.com
If “crunchtime” happens repeatedly or continuously, the price a company pays will be even higher. Loss of the best people is the inevitable consequence of employee frustration and disengagement.
What is a company to do when crunch time inevitably arrives?
In an established company, repeated crunch time is almost always a failure in management: overcommitment, poor planning, or failing to control expectations. So, admit it. Then, present to employees a plan on how a two-week crunch period will produce the desired result, along with a plan for how to avoid the situation in the future (and follow through.) Offer a benefit such as a celebration or a day off with pay for the end of the crunch. If a two-week crunch will not solve the problem, then an alternative solution better be found because a longer crunch will only be counter-productive.
Startups are another story. They may have less control over the causes, but they can’t escape the fact that excessive, long working hours will decrease productivity. They still need to keep the crunch times limited in duration and make sure the team has enough recovery time.
The startup needs to hire team members with a clear understanding of the commitment required. Connecting the greater purpose of the company with the work will help to motivate the employees. An equity stake will ensure a sense of ownership in the results. The company should:
- provide for flexible schedules to allow for other life commitments
- insist on breaks for fitness and fun
- create a cohesive team environment of mutual support