Efficiency of the Overworked

(Written circa 2012)

A rather interesting photo has been circulating on Facebook.

It shows the front door of a large accounting firm. A notice was posted, proclaiming that “OUR OFFICE HOURS STARTS AT 8:30AM NOT 9:00AM, 9:30AM, NOR 10:00AM”, apparently signed by “your longest serving partner”. A brave soul managed to put up a sly response: “OUR WORKING HOURS END AT 5:30PM, NOT 12:00AM, NOT 3:00AM, NOT 6:00AM”, a reference to the ridiculously long hours the rank-and-file accountants have to endure.

I’ve been thinking about the same issue lately (independent of the photo), and with some recently read economics-ish books fresh in mind, I somehow came to realize that it’s not an arbitrary “culture of the company/industry/society” thing that determines the working hours and the perks, but the nature of the job itself. In short, neither the partner or the firm is to “blame” for the long hours. The accounting/auditing industry (among others), however, is doomed to such a fate.

In retrospect, it seems extremely obvious: if the job could be done by a person without a full brain, then the employer has a natural incentive to make employees work until they don’t have a full brain. (And since there’s an endless supply of people without full brains in the job market, there’s no “employee satisfaction” problem, because those “employees” are fully replaceable.)

If that sounds too cynical, be reminded that the converse holds: if the job requires a sober and alert person, then the employer has an incentive to ensure the employee gets enough sleep. If the job taxes the employees’ mental facilities, then they usually do have a bit more flexibility in their working hours. After all, if over-worked, sleep deprived employees result in crappy products, then employers have every incentive to make their employees fully rested and happy.

At first glance, this sounds like a great argument to ask for better treatment regardless of your job, but the fact is in most industries, sleep deprived, grudgingly working, unsatisfied individuals are actually good enough to perform the tasks1. From there on, it doesn’t take an evil conspiracy among the “bourgeoisie” to push their employees to their absolute limits.

In retrospect, this really is f**king obvious to anyone who learned basic microeconomics.

So despite those 80+ hour workweeks, there’s a perfectly rational explanation to the insanity.

Moral of the story: If you want a 40 hour work week, choose a job that requires you to use your brains. If you want to be well treated as an employee, don’t choose a job where the quality of your work is largely unimportant. There are no “9-5 boring office jobs” now, because the efficient market just wouldn’t allow it.

And if you want an explanation of why those in upper management get to show up in office at random times – it supposedly takes a brain to perform those tasks of management and strategic planning. Of course, many fail their duties despite the relatively better hours and perks, but then, that’s just because there are too many people around without a full brain.

Similar corollaries applying the same line of reasoning: