Cyber Monday's Productivity Loss Is Questionable
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How bad of an impact will slacking employees engaging in online shopping over the holiday season have on workplaces? It depends on whom you ask. Some estimates are near a half-billion dollars. Challenger, Grey and Christmas, a Chicago-based executive outplacement firm, estimates that on the Monday following Thanksgiving, also known as Cyber Monday, online shoppers could cost employers $488 million as they kick off their holiday shopping season from their cubicleson company time. Productivity loss will be big, says Challenger, basing its estimates on average salaries and the average number of minutes spent surfing the Web. But others say it ain't so. In 2005, BusinessWeek called Cyber Monday a "marketing myth," as the Monday after Thanksgiving is actually the 12th biggest online shopping day of the year, according to ComScore Networks. It's not even the first big day of the season. For most online retailers, the bigger spending day of the season to date was way back on Nov. 22, three days before Black Friday. What's more, most e-tailers say the season's top spending day comes much later, between around Dec. 5 and Dec. 15. However, in what psychology would term a self-fulfilling prophecy, Cyber Monday is beginning to fulfill its own marketing hype, as some people respond to "news" that it's a big shopping day by doing just that. So does this mean that every employee will have their heads down at their desks on Monday? Far from it, even Challenger admits, saying it's really no big deal. "In the real world, workers are not paid by the minute and are not expected to be producing outputwhatever that may beevery minute of every day. If someone actually misses a deadline on Cyber Monday, chances are that employee has bigger issues than online shopping," said John Challenger, CEO of Challenger, Gray & Christmas. |
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Comments (5)
There seems to me to be a great fallacy in the assumption that "Cyber Monday" or other time spent for on-line shopping is causing great disruption to business and productivity. One actually avoids absenteeism that otherwise would be much more prevalent if on-line shopping were not an available option during lunch breaks or other small chunks of time.
And I cannot resist pointing out the irony that these findings of lost productivity were reported by the firm of Challenger, Grey, and Christmas. Could it be that we will be challenged with a grey Christmas if moderate amounts of on-line shopping were curtailed?
Posted by Richard LaShier | November 27, 2007 12:33 PM
As with most enterprise systems use "crises", the solution to this one is simple. Effective management and engagement with your staff will eliminate any potential damage from too much time spent shopping on line. It would be interesting to evaluate the corrolary to this phoenomena. How many more hours are employees willing to work because they have the opportunity to do things like buying that one rare toy for their 9 year old while sitting in their cubicle at work, instead of using a "sick" or "personal" day to run over to Toys R Us and wait in line for 5 hours? We have now turned the corner back in to the realm of trying to manage every minute of every employee. That way lies the death of creativity, and borderline insanity for many middle managers. We need to trust our tools and reasonable oversite to catch those who are egregious office layabouts and remove them. That will allow us to treat our coworkers like adults and not try to put them in a cage that will stifle their most important contribution, creativity.
Posted by J. Kevin Michel | November 27, 2007 12:38 PM
I don't like this article, I believe this type of thinking leads to dehumanization in the long run.
Consider, do you expect us to believe that people putting $488 million back into the economy(an unproven sum by the way) is going to COST employers that much just because they will likely be shopping?
Why not just multiply every holiday by some fudged number, throw in some embellishment of adding up the smoke breaks, lunches and water cooler chat, internet surfing, meetings about meetings, time on the phone, time getting to and from work, and eventually reach the reasonable conclusion that COMPANIES CAN'T AFFORD TO EMPLOY HUMANS after all.
I can't wait to see the invented numbers coming after the holidays, when we'll hear cries from retailers that not enough people bought useless gift items, which we'll be expected to accept as proof there MUST be something wrong with our economies as well.
Posted by RealityCheck | November 27, 2007 12:47 PM
If you manage your employees by what they do, not what or how much time they spend doing it, who cares if they shop on line?
If employees have to juggle their schedules by shopping on line at work, then take a project home to finish it on time, who loses? Nobody, that's who.
I think this research firm needs to account for the hours spent by employees working after 5 PM or on weekends and subtract that from the $488M.
Posted by Rich | November 27, 2007 1:13 PM
Whether or not shopping is occurring on Monday or any other day is its own question.
However the assumption that time spent in ordering at work can be equated to dollars lost is a fundamentally flawed concept.
We can assign a number to how much a company is spending for payroll. This is basically a constant. So the only loss is if there is a reduction in income due to the non-productive activity. So the underlying assertion is that revenues will drop if everybody is not 100% productive. This is categorically false.
This is the basis of cost based acounting which has been repeatedly proven as a bogus concept. The lack of fundamental understanding of how work relates to income is the root of a lot of very poor business decisions.
So I invite Deb Perelman to study Lean and Theory of Constraints to see how far off the mark this "crisis" truly is.
Posted by Regis | November 28, 2007 1:09 AM