Posted by: Susan Fronk

Can Small Business Owners Work Too Hard?

American's are working too hardIts vacation season here in Minnesota, which means that a lot of business parking lots will be virtually empty on Friday afternoon as workers cut out early and head for the golf course, the cabin, or simply their backyard to start the grille. Mondays in the summer will find Minnesota workers gathered round the water cooler with freshly sunburned faces swapping stories of golf, fishing, boating, camping, swimming, picnics, and trips.

“Summertime, when the livin’ is easy” are lyrics to one of Ira Gershwin’s most beloved songs. Everyone takes it easy in the summertime, right? No, not everyone. While millions of workers enjoy a more relaxed summer schedule, many American workers, especially small business owners, put in long hours, barely even noticing the change of seasons. And, they do it willingly, at least in the beginning, because they know it is part of the price they have to pay for success.

As a small business grows and the owner can afford to hire employees, they can start delegating some of the workload. But, many small business owners know that this is not the time to relax. They believe in the old farming adage, “you’ve got to make hay while the sun shines”.

Sooner or late, whether the business is doing well or not, small business owners need to regain a bit of balance in their lives. If they continue to put in long hours with little or no time off, it can eventually damage family relationships or their health. While it is critical that small business owners give their all to give their business the best chance to survive and thrive, many a small business owners make a bad bargain, trading a life for a living. There are many stories about a small business that survived but the founder’s marriage didn’t.

In a recent WCCO report titled, “Our No-Vacation Nation”, a study by John Schmitt, an economist at the Center for Economic and Policy Research was described comparing the amount of vacation taken by US workers and those from 33 other countries. While many countries with a standard of living almost as high as the US have laws that require employers to provide paid vacation and employees to take it, the US has no such laws.

In Great Britain, where Americans supposedly got their puritan work ethic, workers are guaranteed 20 days off. In France, its 30, in Germany its 22, and in Italy its 22. The average American worker has nine days off. Studies show that only 10% of Americans take a full two weeks off a year.  Approximately 25% of American workers do not have paid vacation. For part time workers, its worse.

A post titled, “Do Americans get less vacation than people in other developed countries?” published on an irreverent blog, “The Straight Dope; Fighting Ignorance since 1973 (Its taking longer than we thought), provided some interesting information on what other countries refer to as vacation loading. In Mexico, if you are supposed to receive 20 days vacation, you’re employer must pay you for the 20 days plus another 25%-the equivalent of 25 days pay. Often Mexican employers typically give more like 80%. Of course wages are lower. However, European countries have much higher wages than Mexico and they do the same thing.

In addition, there are a host of entitlements offered by other countries that support the quality of life for workers. Australian workers get 13 weeks paid leave after 15 years of employment. Muslim workers get extended leave for a once in a lifetime pilgrimage to Mecca. Indonesian workers get time off during the day to pray. Brazilian workers get one day off with pay to give blood. Italian workers get 15 days off to get married. Female workers in Japan, Korea, and certain Muslim countries get one day off a month to deal with menstruation issues.

Sometimes dramatic differences exist between members of the same country, company, or family about how hard to work. Take my house. My position on life and work can best be described as, “joie de vivre”, which is French for joy of living.  I want my work to include collegial relationships, fun, and a positive impact. My husband’s attitude is more “utilitarian”, which means he places value on an activity relative to the outcome. He wants his work to have a measurable impact on people, processes, and profits. When the going gets tough, which it usually does, instead of whining about having to work too hard, he simply does whatever it takes. And, although I joke about him wanting me to enroll in the “workaholic apprenticeship program”, I can’t imagine him not being able to achieve whatever he decides to do.

With my last job, I was thrilled to have a fabulous benefit package including close to five weeks vacation after the first year. But, even though the company promoted taking time off for work-life balance, did I take it? No. Why? Soon after I started, the economy tanked and it became pretty obvious that if I didn’t work more than 40 hours a week, virtually every week, I would never be able to make my numbers.

It wouldn’t have been so bad except the company would only allow employees to be paid for a small portion of unused vacation each year and/or to roll it over to the next year. In fact, many employees routinely forfeited a large portion of their vacation each year, not because they had to put in more hours to meet minimum requirements. They didn’t want to be perceived as slackers.

So, as one of my favorite characters on Saturday Night Live says, “What up with that?” Did the reluctance to be seen as a slacker begin with the recession? I think not. My Dad, who grew up in the depression, told me the story of how he got one of the few jobs available by pushing his way to the front of a crowd of 300 other men who needed the job just as desperately. The hiring manager pointed at my Dad and said “Anybody willing to do what I just saw you do deserves to get the job”. My Dad never forgot that. To this day, the only person I have ever met with a work ethic as strong as my Dad is my husband.

According to Cornell University economics professor Steven Kyle, Americans may not be as rich if we took more time off, but, we might be happier and healthier. People need time away from work to rejuvenate. After all why do we want a good job if it isn’t so we can have a better quality of life?

American Express conducted a survey and found that 40% of the smallest business owners ($200,000 or less in annual revenue) have no plan to take any vacation in any given year. Those who do schedule time off rarely get away. A third will link vacation time to a business trip and half will check what’s happening at work once if not several times daily.

The reluctance these small business owners have to take time off is not without good reason. They probably don’t have anyone they can rely on to handle problems or make sound decisions. They cannot afford any mistakes that could jeopardize their relationships with customers or clients. I can personally verify the validity of this concern. Years ago, when my boss, who owned the small business where I worked, went on vacation, he left me in charge. Unfortunately, I made a mistake on a Request for Proposal (RFP) and lost what would have been our largest contract ever.

For some, an excessive absorption in work may be compulsive. According to Diane Fassel, PhD and author of “Working Ourselves to Death”, there is a fine line between working hard to achieve one’s goals and Workaholism. When work dominates a person’s thoughts to such an extent that they can’t turn them off to eat, sleep, enjoy their family, friends, leisure activities, or spiritual pursuits, they might be a workaholic. If you answer yes to three or more questions on this assessment, you may have this problem.

In summary, can small business owners work too hard? Perhaps, if they continue to push themselves and their employees so hard that they burnout, a condition that has mental and physical consequences.

What are your thoughts about working too hard? Do you have personal experiences where working too hard or not hard enough was a problem? I would love to hear from you!

If you would like to contact me, you can do so by visiting my LinkedIn page or emailing me at susan.fronk@bestbizpractices.org.

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Responses

Great conversation. I think vacation has changed for the worse in the last 2 years. Fear is motivating people to work differently in my opinion. The fear factor mentioned in the article was definitely felt where I work. We had five straight quarters of layoffs. While I actually did take 2 real vacations last year, before that time I had not taken much. Sick days are another aspect for workers with children. We have had to trade vacation days for sick days to stay home with our children because we both work.

In my last job I would use my days off as income. I was allowed to sell my vacation days back to the company for pay. I was feeling pressure to pay bills and not have debt so I used the money to pay the bills. I feel some pressure to keep the peace at work but many times its a financial decision. We feel if we had the time off we could not travel because its expensive. Then we may work on a house project which is not always appealing or restful.

Our company actually forces us to use the time or lose it. With planning against co-workers schedules, bosses schedules, projects schedules, spouses schedules, children’s summer vacations and weather seasons the prospect of time off to recharge can be more stressful that it would appear.

Paul,

I can understand your frustration!

The company I described in the article also had a use it or lose it policy for vacation. They also stopped allowing employees to trade the majority of their unused vacation for pay. What companies who scale back on benefits may not realize is that it may come back to bite them when it comes to recruiting.

Make no mistake about it while there are lots of talented people in the labor pool because of high unemployment numbers, there is a growing shortage of people with the kinds of skills companies want. People who have skill sets that are in demand will have many employment options. The best employees want to work for the best companies. And the best companies treat their employees well by offering the best benefits.

Susan

Good question? Sharpening the saw is very important isn’t it? On a recent trip to France, I was visiting with a politician who said that he wished France had more of the work ethic as Americans, and that as things get tougher and tougher, he was concerned that French businesses won’t know how to put in the extra time needed to bridge the gap. So how much work is too much? When it feels like too much work, I guess. Many americans own identity is tied into what they “do”; so they aren’t going to stop doing that, but as a small business owner, I know the value of weekends, but see the business flounder if I am not committed on a daily basis to it’s activity. Thanks for the question.

Mary,

My late husband used to teach stress management and he used the example of the bumble bee. If you put a bumble be in an environment where there is no gravity, like space, where it doesn’t have to work to fly, it dies. Maybe we are hardwired to work.

But, what about the bumble bee who rests from time to time as they land on flowers. Of course, bees don’t land on flowers because of how beautiful the flowers are or how good they smell. they are there to perform a function!

Susan

Great post Susan.

As @paul mentions, covering everyone’s time off can be hard. Still, it’s important not only for employee wellbeing but also to maintain high levels of engagement and long term productivity.

Here in New Zealand, our standard annual holiday entitlement is 4 weeks. We can’t enforce a use it or lose it policy so managing leave is also important from a financial perspective.

I’ve seen so many small business owners that end up burning themselves out because they’ve worked so many hours a week and so many weeks a year. Even when they “go on vacation,” they will often continue to work mentally.

One of my most favorite books is “The Power of Full Engagement: Managing Energy, Not Time, is the Key to High Performance and Personal Renewal” by Jim Loehr and Tony Schwartz. The authors recommend balancing energy expenditure with intermittent energy renewal.

I believe small business owners should recognize the value of taking time out to renew their energy in order to more physically energized, more emotionally connected, and more mentally focused.

Interesting questions you posted. I am Danish 44 years been employed and self-employed over the years.

I believe that right now we got between 5 and 6 weeks of vacation time, the last week Is not for everybody. Beside of this we got 5 or 6 days called “omsorgsdage” (care taking days) for people to use if they need to take special care of our children without having the need of calling in sick. Beside of this we do have the child’s first day sick. Right now is the common working hour 37 hours a week.

The rules above goes for the large part of the workforce in DK, but as self-employed things look a lot different as you all might know. Working hours between 50 to 80 hours a week is not that uncommon. Is it a good idea, sure….work hard for a limited period that is fine, but to make it a part of your lifestyle will most likely backfire on you. A balance between your work life and your professional life is key to being successful in ALL arrears of life…but I agree that it it is really hard to follow that path as a self employed.

Taking time off is important for physical, mental, emotional and spiritual well being. And, employees should not feel guilty for taking time for themselves. Remember the old saying: “No matter how much you love your job it will never love you back.”

However, to compare US workers to European is bit of stretch. European economies are crumbling (yes, even worse than the US). While this is not the result of the average worker, it is the result of the culture which they work in.

This is a quick example from Greece, but it could be from any European nation. A man works as a waiter in a cafe, pays a large portion of his wage to taxes, receives gov’t subsidized health care, six weeks paid vacation per year, months of paid leave if his family expands, etc. After 30 years (he was 55) he retires and collects his gov’t funded pension for the rest of his life, including his health care.

Is the man in the example to blame for the fall of the Greek economy? Absolutely not. The culture that provides a cafe waiter these benefits is – i.e. consuming more resources than he produces.

Americans work harder than any other people on the planet because they can see fruits of their labor and because, ultimately, they are only ones responsible for their well being.

However, working yourself to death kind of defeats the purpose of working for success. So, balance your life and enjoy a summer vacation.

As a travel provider, of course I find it important for folks to take time off from work for a vacation! On a serious note, I was raised by parents who ALWAYS made time for vacation even when we couldn’t afford it. Camping was our main means of seeing the country, but one year when money was tight, we set the camper up in the back yard, roasted marshmallows at night and were only allowed in the house to use the bathroom. The point was to change your habits and patterns so that when you returned to work or school, you would have a fresh perspective, along with renewed interest and energy. From a day trip to a local park to that dream trip African Safari, do yourself a favor and take some time off. Your job will thank you when you return to it.

My husband and I are in our 17th year of retail. Our business has grown tremendously during that time, including the last several years while the economy has been poor. But this growth didn’t happen by chance. Last year, I worked 2,700 in 9 months. The average 40-hour-per-week person puts in about 2,000 hours in 12 months. So that’s a lot for 9 months. But we’re a seasonal business, so the work needs to be done in that time frame.

We close for 3 months off-season, and that’s when we enjoy spending time with friends and family. But when you figure how many days off the typical worker gets with weekends, holidays, etc., that 90 days is still less. But it’s all at once, and it gives us the chance to wind down and get back in the frame of mind to do it all again the next season.

If I cut back on the hours I spend working during that 9 months, we would not be as profitable as we are. A lot of that time is spent researching which distributor has the best pricing, freight policies, etc. A lot of time is spent keeping an eye on the competition’s pricing to make sure we’re offering our customers better prices, without going too low and cutting our own throats.

Plus time has to be spent dealing with advertising and marketing, payables and receivables, keeping the computer updated with existing products, researching and adding new products, determining what to stock and what not to stock, etc. This can’t be done during business hours because the customers need that personal touch they expect from a “mom & pop” store, and you’re with them in the store or service department most of the day. So the rest gets done after hours, often until midnight or later, and sometimes working around the clock.

We have other people working for us, but they do service work & repairs, customer service, etc. I won’t put the behind-the-scenes aspects of the business in someone else’s hands for a couple of reasons…

#1 – I want my thumb on the pulse of the business so I always know what’s going on. You can’t manage it if you’re not following it. I know what my customers want, and when they need it, so I’m the best person to decide what, when, and how much to order. And how many businesses go under because a trusted employee has been stealing for months or years without the owner being aware of it?

#2 – Employees are paid the same amount whether or not the business buys smarter, prices things correctly, and puts the advertising dollars in the right place. That few bucks here and there adds up, and the difference between what we bring in and what goes out is how I increase my income. (We don’t pay commissions — Our focus is getting the customer the right product for their needs, not upselling. Customer satisfaction is our bottom line, not sales figures… When you’ve built customer loyalty and a good reputation, financial success becomes a given.)

Working long hours for 9 months is how we can afford to close for the 3 months off-season. That 3 months vacationing in Florida and wherever else we want to be makes the long hours worth it.

By Jody Imars, President at Harbortown Marine & Harbortown Flag, Inc.

On their death bed, no one ever said “I wish I spent less time with the kids and more time working”. No matter how much my drive to succeed and make money is, I know my time with my kids is limited and to be treasured.

There’s a guy called Brad Burton who authored a book called ‘Get off your Arse‘.

In it he says ‘ the beauty of being a small business owner is that you can choose which 18 hrs a day you want to work?!

Finding a balance can be a challenge for some, especially in start up phase!

Automation is the key when you can use technology and organize your methods that are profitable for you as much as possible then you will have more time to relax,so to speak.

When and at what time do you make the final decision to shut down the computer and go home?
I ask myself this question every night before I leave my office.

Did I get everything done that I wanted to? No.

Did I prioritize? Yes – the best I could, taking into account the last second client emergencies that popped up during another client’s meeting.

Are any of my deadlines life-threatening? No.

Will staying just a little bit longer help with my workload tomorrow? Yes.

Will leaving at a reasonable time (after working for 9 or 10 straight hours) leave me less stressed when I arrive home? Yes.

Will working a little longer help move a project forward and thus closer to a finished job and billable? Yes.

Is working smarter considered working harder? I believe it is.

I believe that right now small business owners are working hard because we don’t want to be left at the end of the line while other similar businesses pass us by.

Have “information overload” along with the desire to digest as much multi-faceted data as we can, begun to have an effect on how much time we continue to work? Absolutely.

Entrepreneurs and small business owners have many choices as to how hard they want to work and what they want to achieve while they are working.

No one wants to burn out.
Doing what it takes to get the job done and doing it to the best of ones capabilities may take a little longer. Competition is fierce. To stay in the game I work a little harder and reward myself for it later.

Thanks Susan for opening an interesting dialogue.
Thanks Marcia for the book recommendation.

Life is a balancing act.
I think many of us just never expected to have so much habitation on our balance bars.

Alison Drake
AD Marketing, Advertising & PR
Florida

Susan,

Working out of my own home with no employees, I created my own company, “Many Colors of Ink”.

Ohhhhhh…. I work maybe 24/7, sometimes I eat and sleep though ;-)

I never planned on living in Central NJ. After 25 years with a major corporation, multiple re-locations with them, got laid off, and here I am today! I fault no one; it is just how life turned out.

With no family/close friends nearby, my only son living in China, through various ways I tried to create my own non-blood family locally. I did end up one day, my car broken on the side of the road…. I think that was my lowest point.

It has taken a long time (7 years?) but I think I finally found a family to adopt a 58 year old woman (me!). I volunteered to take on the advertising and promotion functions as a Friend of the Ewing Library. It is something I have never done before, but I’m intelligent, I can learn, and they need me as much as I need them.

We all need some real (non-virtual) people in our lives. People we can see with our own two eyes, and who you actually can call for help when you are stuck on the side of the road. Good thing I have always kept up my membership with the triple AAA club!

I haven’t learned the real art of tweeting yet. Joined FB in late Feb of this year!

Enjoyed recently meeting some smiling facings in a Linked In discussion about Copyright Matters! ;-)

Thanks for putting out this post.

Ginny

Jody,

Thanks for taking the time to share your perspective-especially in the middle of the night (or so early in the morning as it were)!

You seem to have found a way to make it all work. A small business owner needs to work as hard as it takes to make the business successful. However, as in your case, it is important to have a break.

Susan

Brad,

You are correct! I wish I had been as wise as you when my kids were small!

Susan

Alison,

Thank you for sharing your perspective. Your description of the tough choices a small business owner must make each and everyday is as honest and accurate a one as I have ever read!

Susan

Brad,

At one time my consulting work generated the primary source of our family’s income. When my mother was dying of emphysema, I had an opportunity to make an extra $1200 or fly home to Minnesota (we lived in Arizona at the time) to see her. When I arrived in Minnesota a week later, she was in a coma. That $1200 helped pay one month’s bills. But, I will regret making that choice the rest of my life.

Years later, when my Dad was dying and I had an opportunity to make several thousand dollars, I turned the project down. I have never regretted making that choice.

Nick,

Amen to that!

Ginny,

I love what you wrote about adopting a 58 year old woman (yourself)! And the point you made about needing non-virtual people in our lives is a good one.

Yes. Many work harder, not smarter. Today’s small business owner will work themselves into a frenzy instead of looking to others to help. This will only cause problems sooner than later.

As a small business owner I know that there are internships available from colleges in many areas and sometimes volunteers can help.
There are also programs available through Junior Achievement, the Boys and Girls Clubs and other organizations that are seeking places for young people to learn from the business community. Many small businesses can play a big part in the life of a young person who needs mentoring or tutoring and can exchange a few hours of work for a few hours of learning.

We have much to impart to our younger counterparts. This valuable time with them can keep many from making poor decisions. Senior citizens also need places they can interact with others. Volunteering or working an hour or two for a small business can be invaluable to both the senior and the owner. Since most just want to stay active this could be a good fit for the senior and the owner.

Everyone needs some time off – otherwise, we’ll all go crazy with all work and no play. Burnout is never good – for your health and for your business. We need to have a healthy balance of life.

I understand for small businesses, this may be more challenging. I myself tend to work too much, but I find that having even a “small vacation” rejuvenates me and keeps my mind fresh and alert again for work.

To help small business owners feel better about taking some time off, I think it’s vital that you have good processes and systems implemented so that your business can continue running even while you’re on vacation. This way, you won’t feel like you’re wasting time and money.

A great way to do this is to do the proper delegation. If you can’t afford to hire permanent staff, you can opt to hire virtual assistants. Hire them as you need them, without having to pay for the extras you will need to pay permanent employees (vacation leaves, sick days, benefits, etc). You can even hire them on a part-time basis or for one-off projects. The possibilities are endless but I assure that you this will help grow your business faster and keep yourself sane. :)

Great article, Susan! The key is to find that happy medium where companies benefit from providing time for employees to recharge and come back to work refreshed, clear headed and ready to do great things again. The other side of that issue is how to keep the company moving forward smoothly and profitably while employees have those extremely high levles of off time.

While I can’t envision myself taking off the equivalent of a week or more a month, and still achieving anything at all, would love to have a bit more time off than I’ve taken in the past.

The US, for the most part, does have a work ethic that is enviable for many other countries and their corporate leaders. The concept of ‘take it or lose it’ seems a good way to assure that the vacation time is used for relaxation and re-charging, and not just another way to increase one’s income.

Terri,

Thanks! It certainly has triggered some interesting dialog. I agree with you about the purpose of “use it or lose it” policies. However, many people have not seen increases in their income commensurate with the increases in the cost of living so they have to decide which is more important, paying the bills or taking time off.

Taking time off from work, once in a while, should not be a big deal. Taking time off from work is not just good for an individual’s psychological health, but is essential to their entire well-being.

We are under almost constant stress and pressure coming from school, work, parenting, and maintaining relationships. The office cubicle has become a toxic space that we need to take a time-out from once in a while. Maybe, if we gave ourselves permission to take a break, we would feel a lot better.

Lewuga,

I couldn’t agree with you more. If only the workaholics who dominate the culture in Corporate America could see it this way!

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