October 3, 2013
THE OVEREMPLOYMENT PROBLEM:
Why productivity increased during the downturn (Anne Fisher, October 3, 2013, Fortune)
If you're a manager in a locale where unemployment skyrocketed during the recession, you might already have noticed something you didn't expect: The people under you who contributed the least in boom times suddenly started bringing their "A" game, in some cases even outshining your stars.That's the conclusion of a study from Stanford University's business school and the David Eccles School of Business at the University of Utah, published by the National Bureau of Economic Research. Called "Making Do With Less: Working Harder During Recessions," the study set out to analyze why productivity rose sharply from 2007 to 2009, according to Bureau of Labor Statistics data, while the recession was at its worst. [...]"Productivity increases were too big to be accounted for by changes in the composition of the workforce," Stanton says. Rather, "the people who had been the least productive, before the recession, started putting in much more effort. Star employees, meanwhile, did not increase their efforts or their output much, if at all."
Posted by Orrin Judd at October 3, 2013 1:54 PM
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