How employers are wrecking lives


By Linda McSweeny

Spring is upon us, Australia's collective well-being is booming, and our economy is the envy of the world. Yet far from enjoying the fruits of their labours, many workers - even those in well-paying professional jobs - are living in fear that their livelihoods may disappear.

Whether it be the post-Global Financial Crisis unemployment horror stories filtering through from overseas; the rapid rate of technological change that has meant workers can be "on tap" 24 hours a day, or the rapid pursuit of material benefits, many workers fear that the only way they can stay afloat is to work harder and longer - often at the expense of their health.

Psychologist Dr Tim Sharp says work-related angst in Australia is very real. He says the GFC has shaken the confidence of many workers, particularly in industries such as banking, but he also says the modernisation of the workplace means we no longer have "jobs for life" and people are struggling to adjust to this new reality.

Edward* is 40. He has two university degrees, a loving family, and what appears to be the textbook life he craved as a young boy. But beneath the rosy surface lies a man sweating about job security. The operations manager for a global company rarely switches off from work, toiling from home at night and on weekends, juggling his smartphone and laptop and waking in the small hours to answer phone calls from clients. He often can't sleep because work issues pull him from his slumber.

Edward rarely engages in social activities or sport but tries to spend any spare time interacting with his two young children and partner, who works part time. He contemplates scrambling out of his work-heavy hole but can't fathom an exit plan. He says he has already made one career switch and doesn't fancy another.

"I know it's not sustainable for myself or my family to keep working around the clock and fixating on the fear that I could lose my job, but if I say no to my boss when he needs me, he'll find somebody who will do it," Edward says. He admits his fears were heightened after he watched three of his close work colleagues made to move on from their jobs in recent months.

The fear of job loss is real, even in Australia's reasonable economic climate, and researchers say there's mounting evidence of mental health issues arising from organisational downsizing and global economic crises.

Tony*, a 30-something finance worker, says he works about 70 hours a week to ensure he maintains his "high performer" status. He's also responsible for implementing downsizing operations and sees firsthand scores of colleagues increasing their work hours and input and/or turning to alcohol to cope with the fear of being the next worker asked to leave.

"I know that if I overperform and stay ahead of the pack, I'll be reasonably safe, though you can never really be sure of these things," Tony says.

But he feels battered by the consistently long hours, work-related travel and reliance on alcohol to alleviate stress. "I'm in my mid-30s but I feel like I'm 50 actually, I honestly do."

Those employees left standing in organisations or industries facing cuts often start to show signs of mental and physical stress as they fear being the next one to find themselves unemployed, according to studies cited by University of NSW psychiatrist and Black Dog Institute researcher Dr Samuel Harvey. Some push themselves into productivity overdrive simply out of fear of job loss.

Downsizing may increase sick leave and the risk of death from cardiovascular disease in employees who keep their job, according to a paper in BMJ (the former British Medical Journal). The results of the study, conducted in four towns in Finland during a severe economic decline from 1991 to 1996, were so stark, the authors called on policymakers, employers and occupational health professionals to recognise that downsizing may pose a "severe risk to health".

There was a clear rise in suicides after the GFC of 2008, with almost 5000 more suicides - primarily men - across 54 countries in Europe, the Americas and Asia in 2009, according to a new study published in the British Medical Journal.

"We know that just being in fear of losing your job is also associated with poorer mental health. Those people who feel less secure in their job have higher rates of mental health symptoms and lower rates of mental well-being," Harvey says.

Goldman Sachs boss Lloyd Blankfein recently highlighted what he saw as a mismatch between Australia's economic status and the attitude of its workforce.

"I've been coming here for a long, long time and during the past two decades of growth, growth, growth, people are always distraught, overwrought, wringing their hands about how horrible things are and, to my observation, they don't look that bad."

Real or imagined, a perception of job losses affects productivity, stress levels and family life, and researchers are trying to find evidence on which tools are best to help people deal with their fears, such as e-health and resilience programs supported by employers.

"What drives that perception is sometimes reality, but it's sometimes more about that individual and their way of viewing the world and their place within it. Some people are just worriers and we know that's a risk for mental health problems. But there's a lot of work going on now about whether you can help people build their levels of resilience and teach them techniques to alter the way they view some of these risks and the extent to which they ruminate on them," Harvey says.

Employers are being urged to help with the mental health of workers via the Mentally Healthy Workplace Alliance partnership between business, community and government. One of its aims is to find out what works and what doesn't when it comes to a mentally healthy workplace.

"Sometimes [job losses] have to happen, but certainly if people pause and think about the way they happen and the support given to individuals, we might be able to prevent some of these problems," Harvey says.

Sharp says the first step for workers is to seek information from their employer if they fear job loss to ensure they know what they're dealing with. Sometimes they can improve their performance, but other times, it may be beyond their control while an organisation seeks to downsize. For employers, they should reassure their workforce as best they can, to give employees a sense of security and stability.

Job loss was real for Sydneysider Nigel Marsh, who found himself "fat, 40 and fired" in 2003 and was so affected by the upheaval, he wrote a book about his experience, which is poised to become a TV series.

"For me, it was absolutely devastating," Marsh says. "I was a 40-year-old man with four children under the age of five and a wife who didn't have a job, so I thought my life was over. I thought I may never work again. It was totally devastating."

Marsh says he had an inkling of impending doom when talk of a merger involving the company that employed him began. Since the release of his book, he has received harrowing emails about people's job-loss stories in a society that he says glorifies overwork.

"You get this thing where people say, for example, 'Oh Amanda, she's so wonderful, she's always the first in, she's always the last to leave, she works every weekend, and she never takes any of her holidays', and you go, 'Well why are we holding that up as heroic when it's moronic or tragic?' It shouldn't be held up as, 'Oh yippee!', it should be seen as sad. Let's give her some help," Marsh says.

While his situation felt disastrous when it happened, the job loss gave him time to change his life. He took a redundancy package, wrote his book, lost weight, got fit, gave up alcohol and became more present in his family's life. He says any anxiety he has about job loss is now manageable.



"I've embraced the fear. I've tried to turn anxiety into anticipation. Until 40, I was taking a conventional approach to work; since then, I've been trying a different route," says Marsh, who now works in the corporate world, as well as being the author of three books, founder of the Sydney Skinny swim event, and a public speaker.

The key for employers to help in the mental health of their workers is to share information and ensure there are no surprises, says the University of Sydney's Workplace Research Centre director, Professor John Buchanan.

"If people get advanced notice, it makes a huge difference to their capacity to adjust and minimise the negative impact," he says.

*Names withheld

Read more: http://www.canberratimes.com.au/lifestyle/life/when-the-work-day-never-ends-20130920-2u42c.html#ixzz2fi3gI2Kf

The Fed keeps the insane party going and why this is bad news for (nearly) all of us


By Neil Patrick

Investors have been stressing since the spring about the autumn prospect of Ben Bernanke printing just a few dollars less than before. Whole economies, like India, have wobbled before the threat that the Fed might print ‘just’ $75bn a month instead of $85bn.

And just as they were getting used to the idea, he goes and bails out at the last minute. This astonished almost everyone.What is going on?

Is this what Bernanke wants to leave behind?

I don’t wish to sound smug, but I wasn't as surprised as some people by this latest Fed stunt.

Why? Well primarily because the U.S. economy remains so weak that there are serious risks in actually initiating this move. Of course, the time must come when the Fed will begin to reduce its dollar printing. It seemed fair to assume that with all the advance warnings, the markets had already priced it in. And so I suspected the Fed might be much less aggressive than almost everyone anticipated.

But you can easily argue that the financial markets have become so accustomed to the Fed’s easy money policy that the quantitative easing (QE) addiction is now seriously ingrained. In other words, the stock market has consumed so much booze that the hangover will be so severe that it’s really preferable (not to say easier) to stay drunk.

However, I did think they would at least do something. After all, the market has been given so long to get used to this idea.

If the Fed actually ever intends to stop printing money, now looked a good time to make at least a small gesture in that direction. Even a 'tiny' reduction of $5bn would not have upset the markets too much, and would start getting them used to a slightly more sober environment with just a little less QE.

But no. Even with US stock markets at a record high, $5bn was too much for Bernanke. The Fed will keep printing $85bn a month…for now. And there’s no obvious prospect of this changing before the end of the year.

Markets were both stunned and cheered. Hurrah…even more free money! Gold soared. Emerging markets jumped, developed markets too. Pretty much everything jumped except the US dollar.

The Fed provided a few excuses for its inaction. It doesn't like the fact that bond yields have jumped so quickly in recent months. It’s worried about the impact of this on the housing recovery. And there’s also the threat of another big crisis over government spending, as the debt ceiling hovers ever closer.

As Paul Ashworth of Capital Economics pointed out, the Fed is probably “also increasingly concerned… that Congress could trigger a Federal shutdown within the next month.”

But if Ben’s really worried about the politicians not getting their fingers out to try and agree on something, then he should take away the security blanket of less QE. As Heidi Moore noted yesterday, he should “force the economy, the markets and Congress to think for themselves.”

So it’s all a load of shabby excuses. If this proves anything, it’s that Ben Bernanke doesn’t want to be remembered as the man who pulled the plug on the recovery too early, plunging the US into the Great Depression of the 2010s.

I guess he’d rather risk being remembered as the guy who acted too late to prevent the Hyperinflationary Collapse of the 2020s…

So what can we expect to see now?

It seems reasonable to assume from this that when it eventually happens, the actual process of tapering will be slow and gradual with the goal of minimizing any potential market disruptions.

But this is exactly where the difficulty lies. After all, everyone knows that the Fed cannot continue expanding the money supply at the current rate. Therefore, the challenge is how to taper with the least amount of market disruption.

I suspect this will include an increase in market ‘signals’ from the Fed to gauge the market’s reaction to various possible Fed actions and having contingency plans in place to try to control any unforeseen reactions and consequences which arise.

Tapering will mean higher interest rates

Most believe that tapering will result in an increase in interest rates, especially at the higher risk end of the market (like your mortgage, especially if it’s large or your earnings and credit history are anything less than dazzling). So, in this scenario, the housing market recovery could be stopped dead in its tracks.

Some claim that the delay on the part of the Fed may be politically motivated as it helps the Democrats by keeping interest rates low. Only a few people actually know the truth. The rest of us are left to speculate.

So, if the Fed does eventually get around to tapering, interest rates rise, the housing market recovery stalls, and the federal government deficit and debt spike, at election time, the Republicans will surely have all fingers pointed at the Democrats.

However, since the Republicans couldn't pull off victory in the last presidential election when the unemployment rate was at 8.2%, and given that Obama was the first incumbent in the modern era to be re-elected when the unemployment rate was above 8.0%, I’m not convinced that the Republicans would automatically benefit.

But the fact remains that higher interest rates will hurt everyone. Everyone that is except investors who rely on interest income.


So what does all this mean for most of us?

Even when the Fed does eventually begin to taper, I think they will remain “highly accommodative.” In other words, they will not raise short-term interest rates sharply for quite some time. Recently, when the Fed merely hinted that they might begin to taper, stocks sold off sharply.

So when will the Fed begin to taper? Some say December, but that’s during the holiday season, a period when the economy typically sees a brief uplift. This seasonality makes it difficult to determine if the economy is really healing or just experiencing a Christmas boost. Therefore, even though it’s possible the Fed will taper later this year, I don’t believe they will until at least 2014.

Despite the fact that many U.S. stock markets are reaching record highs, investors need to have a plan in place to protect themselves against a very possible and very nasty collapse. We are a long way from being out of the woods yet. In the interim, with GDP under 2.0%, stock values are continuing with their unwarranted inflation and I think the prospect of a severe correction in equity values just keeps on getting more and more frightening.

So investors need to keep a sharp eye on their assets and protect them against the very real threat of a severe market correction. Keep in mind that at some point, the Fed must take away the punch bowl, the party will end, and the probability of a collapse in not just stock values but other asset classes too is high. Really high.



What does this mean for investments, jobs and your financial future?

If you are an investor, hold your course. If you were happy with what you were doing before the 'vapor taper', you’ll be fairly pleased this week – almost everything you own has gone up in value (for now). Cheap Eurozone stocks still look good, Japan is still doing the business, and if you still have any, you should hang on to gold, specifically as a hedge against the real risk of systemic collapse which hasn't retreated from view.

But I wouldn't expect an easy ride in the coming months. Once the delusional euphoria of ‘QE forever’ wears off, there are going to be a lot of confused investors in the markets. As Eric Green at TD Securities told the FT: “The Fed had the market precisely where it needed to be.” This delay ” “ultimately makes that first step in the tapering process harder to achieve.(My emphasis)

It also puts a lot of pressure on Mark Carney at the Bank of England. On the one hand, Mr Carney will be pleased. The Fed’s 'vapor taper' might take some of the pressure off global interest rates in the short term. On the other hand, the slump in the dollar has pushed sterling higher. Carney won’t be too happy about that.

Anyway, what does this all mean for the outlook for most of us? Not investors with big investment portfolios but people with normal jobs and normal financial commitments. You probably know what I’m going to say.

The impact of this for business and hence jobs is hardly encouraging. The outlook for federal sector employment remains bleak and only confident growth in the private sector can offset this. But whilst share prices continue to inflate, significant GDP growth and business confidence remain elusive. So while growth in earnings remains subdued, employers will remain cautious about increasing workforce overheads.

We are likely to see a continued expansion of all the things employees dread like short term contracts, outsourcing, cut backs on management and support teams, in other words, growth in low paid, short term jobs, but contraction of secure, well paid jobs.

So we can all expect our basic costs of living to keep on rising at a scary rate amidst a really tough job market. And as I've talked about previously, slashing our outgoings, reducing our borrowings and increasing our income level through the acquisition of income generating assets is now more important than ever.

The crazy Fed party will end soon hopefully with a whimper not a bang.

4 tips to enhance your professional relationships with a LinkedIn “audit”



By Anthony Juliano 

I wrote this for the Greater Fort Wayne Chamber of Commerce Emphasis blog after presenting at this year’s Chamber Social Media Summit. Have you taken a close look at your connections lately?

One of my favorite things about LinkedIn is the degree to which it serves as an inventory of each user’s professional relationships. In one location, at a glance, we can see who we’re connected to and evaluate the strength of that connection. This allows us to do something incredibly simple while also incredibly powerful: we can “audit” our professional relationships to see whether there may be an opportunity to strengthen a connection. This is something I try to do every few months, and it usually reveals opportunities I may have missed otherwise.




What are the keys to making this audit worthwhile? Here are a few tips:

  • Put it on your calendar, giving yourself at least an hour. A LinkedIn relationship audit could easily fall into the “when I get around to it” pile if you don’t make it a priority. Putting it on your calendar serves as a commitment of sorts, making it more likely it will happen. It’s also important to allot enough time to the task. An hour may be adequate depending on how many connections you have, but you may need even more time. 
  • Focus on the task at hand. Closely study each connection’s profile to understand what opportunities may exist for you to strengthen your relationships. Don’t skip anyone; some of what you discover may surprise you. Has a connection changed jobs? Have they joined any groups that might reveal a shared interest? Have they posted any status updates that open the door to a conversation? Approach this effort like an archeologist would approach a dig site, meticulously looking for artifacts of value. 
  • Use “tags” to identify actions to take in the future. LinkedIn allows you to “tag” your connections in a way that makes them sortable beyond the search feature. Use this to categorize contacts based on actions you want to take in the future. For example, let’s say you want to have lunch with some of the connections with whom you’ve lost touch. You’ll only be able to schedule so many lunches immediately, of course, but you can always plan ahead. Apply a “lunch” tag to those contacts you want to meet up with and revisit it every couple weeks and you’ll continue benefitting from your audit long after it’s completed. 
  • Keep score. To get the most out of your audit, make sure you measure success. How many of your connections did you reach out to? How many responded? Most importantly, what opportunities did you realize that may not have otherwise emerged? Evaluating the outcome will help you make this effort even more worthwhile in the future. 

Conducting a LinkedIn audit may seem daunting when you consider everything else already on your to-do list. Look at it this way, however: nothing in your professional life is more important than relationships. Why not take the time, then, to make them a little stronger?

Anthony Juliano is an experienced LinkedIn trainer and strategy consultant. He has developed and taught several LinkedIn classes, presented about LinkedIn at national conferences, and provided LinkedIn training for a wide variety of individuals and businesses. Anthony writes a monthly column about social media for Greater Fort Wayne Business Weekly and has written about LinkedIn for a variety of publications and blogs, including Convince and Convert, “the world’s #1 content marketing resource.” Anthony approaches his work with one simple goal: to help others understand today’s changing communication environment.