Monthly Archives: March 2024

Employing globally versatile, highly skilled employees after their company’s downfall can serve as a tactical decision, notwithstanding a decrease in legitimacy

Recent findings published in the Global Strategy Journal highlight the strategic advantage of hiring workers with highly specialized skills who are globally mobile, especially those who have been laid off due to their previous employer’s failure. This perspective is novel because it considers the dual aspects of legitimacy and mobility that such workers bring, even after being part of a failed enterprise. The study reveals that individuals laid off under these circumstances often face a significant loss of legitimacy, mainly if they were part of a division or located in a region implicated in the company’s downfall. Despite their rare and sought-after skill sets, this association weakens their negotiating leverage with potential new employers.

The research conducted by Kristina Vaarst Andersen from the Technical University of Denmark, Mark Lorenzen of Copenhagen Business School, and Agnieszka Nowinska from Aalborg University Business School employed a case study methodology. It examined the aftermath of a bankruptcy in the global bunker industry (OW Bunker). Their work provides a theoretical lens through which to view the mobility of workers across multinational corporations.

This study was propelled by the abrupt and highly publicized bankruptcy of a large Danish firm with a global footprint, alongside findings from an Organization Science study detailing the adverse career impacts on displaced lawyers in Boston. The case of OW Bunker was particularly intriguing to Vaarst Andersen and her colleagues because, contrary to expectations based on existing literature, traders from the bankrupt firm were highly sought after in the industry. This discrepancy from previous research findings, which typically outlined negative career trajectories following organizational failure, sparked further investigation.

The research focused on the importance of specialized workers with crucial technical expertise, external knowledge, cultural experience, social relations, or other unique skills. Such individuals are integral to the performance of multinational corporations and are in high demand, creating a competitive hiring environment. This demand turns into a strategic opportunity when such workers are laid off from another multinational company.

By analyzing LinkedIn job data and conducting interviews, the research team could pinpoint that the loss of legitimacy was specifically significant among those traders who were part of organizational units or geographic locations blamed for the company’s bankruptcy.

The study outlines a strategic window for multinational corporations to hire these specialized, laid-off workers. The previous employer’s failure affects these job candidates’ legitimacy and negotiating power. Hiring a candidate with diminished industry legitimacy might initially impair their performance in roles requiring extensive trade, communication, or negotiation within the industry, and it also means these candidates may accept lower wages or fewer promotions than high-legitimacy candidates. Thus, while high-legitimacy candidates are likely to be hired first, managers have a unique opportunity to recruit valuable yet less-legitimate candidates at a reduced cost.

Vaarst Andersen advises managers not to be swayed solely by social evaluations during hiring. She emphasizes assessing candidates based on their merits rather than assumptions linked to their past associations with former employers, colleagues, or locations. This approach underscores the need for a merit-based evaluation system that can identify and leverage candidates’ unique skills and experiences, even those coming from failed organizations, as part of a strategic hiring strategy.

More information: Kristina Vaarst Andersen, Mark Lorenzen et al, Scarce resources or damaged goods? On the legitimacy of laid-off workers following MNC failure, Global Strategy Journal. DOI: 10.1002/gsj.1497

Journal information: Global Strategy Journal Provided by Strategic Management Society

How to discern if your manager is a ‘corporate psychopath’

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Research findings aimed at assisting the business community in pinpointing harmful ‘corporate psychopaths’ were showcased at the Chelmsford Science Festival.

Dr Clive Boddy from Anglia Ruskin University, a trailblazer in corporate psychopathy research, shared insights from his study published in the International Journal of Market Research. His work focuses on strategies the financial sector can employ to recognize, handle, and extricate such individuals from their organizations when needed.

It’s estimated that 1% of the adult population qualifies as psychopaths, characterized by a lack of conscience, shame, guilt, and the incapacity to love or empathize with others. Dr Boddy explained that these individuals might seem like capable leaders, detailing their ascent to power and actions upon securing leadership roles.

Corporate psychopaths are high-functioning psychopaths operating within business and political environments. Dr Boddy highlights the significant risk they pose to the stability of companies, industries, and, potentially, the global economy.

His research outlines red flags that financial industry researchers and investors, including pension funds and other sectors, should be aware of. Attributes to watch include an outward charm and intelligence, extreme rationality, deceitful nature, absence of regret, irresponsibility, and emotional superficiality.

As the Deputy Head of the School of Management at Anglia Ruskin University (ARU), Dr Boddy remarked, “Looking back, we can identify historical figures who have committed crimes or disrupted industries. Yet, it’s crucial for industries, especially those influential in the financial sector, to proactively recognize these individuals to protect our economy and society at large.

“Corporate psychopaths tend to climb to the top echelons of the corporate world, owing to their seemingly sociable personality traits. Nonetheless, their starkly self-interested actions could, in severe cases, lead to the downfall of entire sectors. Their relentless pursuit of money, power, and control makes corporate psychopaths a formidable force as they navigate their way to these ends with ruthlessness and efficiency.

“I intend to demystify these individuals’ motives and provide strategies for identifying them early to prevent significant harm. Recognizing these individuals is also crucial for making informed investment choices. Companies free of corporate psychopaths are more likely to remain stable, sustainable, and have a lower risk of failure.”

More information: Clive R. Boddy et al, Insights into the bernie madoff financial market scandal which identify new opportunities for business market researchers, International Journal of Market Research. DOI: 10.1177/14707853231173260

Journal information: International Journal of Market Research Provided by Anglia Ruskin University

Are we prepared to exchange remote work for lower pay?

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The COVID-19 pandemic has catalysed significant changes in the workforce dynamics, particularly in Australia, where nearly half of the workforce is open to reducing their annual income in favour of the ability to work from home.

Recent findings from the University of South Australia reveal that 45% of employees are ready to accept a lower salary to work remotely. This research, encompassing over 1100 Australian employees during 2020-21, highlighted that the typical employee who can perform their job effectively from home is inclined to forgo between $3000 and $6000 of their yearly salary (representing 4 to 8% of their income). Interestingly, a fifth of those surveyed were willing to sacrifice $12,000 to $24,000 annually (16 to 33% of their income).

Despite these findings, a majority (55%) of the respondents were not prepared to decrease their wages to work from home, citing no significant benefit to productivity or well-being, alongside various concerns regarding remote work.

Associate Professor Akshay Vij, the lead researcher, emphasised the need for further studies to fully grasp employee preferences towards remote and flexible working arrangements, considering the diverse attitudes and expectations. He noted that perspectives on the impact of remote work on personal relationships and interactions play a crucial role in these differing attitudes. Specifically, individuals less enthusiastic about remote work expressed concerns regarding their relationships with colleagues and supervisors and the potential missed opportunities for learning and career advancement.

The study also uncovered that experiences with remote work before the pandemic influenced attitudes, with those more accustomed to remote working expressing more reservations than their less experienced counterparts, who showed a more positive outlook towards working from home.

Differences were also seen across genders and age groups, with female employees and those in their 30s and 50s showing a higher appreciation for remote work than their male and younger counterparts. This variation is likely due to the younger demographic valuing in-person interactions for their career progression more highly.

Families, particularly those with children at home or those who had left home, were more inclined to reduce their salaries for the opportunity to work remotely than childless couples, single parents, or those living alone or with housemates.

The shift in working preferences is evident when comparing remote working statistics from Census data 2016, where only 2 to 8% of employees in major Australian cities worked remotely, to 2021, where this figure rose to 21%. This shift has prompted workplaces globally to adapt, creating the necessary protocols and processes to facilitate remote work.

While Associate Professor Vij believes it’s too soon to predict the long-term status of working from home, its prevalence will likely remain higher than pre-pandemic levels, albeit with significant variability among different demographic groups. The suitability of remote work varies from person to person, emphasising the importance of finding a balance that caters to employee and employer needs.

The COVID-19 experiment with remote work has had its share of pros and cons. On the downside, the potential for reduced interaction with colleagues and supervisors might impact motivation and productivity. Younger workers could find themselves with fewer mentoring opportunities, and being away from the office may hinder understanding of office dynamics, affecting career progression and salary increments. Additionally, working from home could lead to increased household expenses and necessitate investment in office equipment.

Conversely, the benefits of remote work are significant, including improved well-being, better work-life balance, and health advantages. Remote working enables employees to manage home-related emergencies more efficiently and enjoy meals with family. The flexibility and personal freedom, alongside savings on transport and daily expenses, are substantial positives of working from home.

More information: Akshay Vij et al, Employee preferences for working from home in Australia, Journal of Economic Behavior & Organization. DOI: 10.1016/j.jebo.2023.08.020

Journal information: Journal of Economic Behavior & Organization Provided by University of South Australia

A slight dip in health insurance provided by employers is connected to the increase in minimum wage

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An investigation spearheaded by a scholar from the Johns Hopkins Bloomberg School of Public Health has illuminated that a one-dollar elevation in minimum wages across the state and federal domains from 2002 to 2020 correlated with a modest dip in the share of employers providing health insurance.

This reduction, quantified at 0.92 percentage points in employer-sponsored insurance, predominantly emanated from smaller enterprises harbouring fewer than 50 workers and a substantial portion of low-wage earners. Further insights from the study revealed that a one-dollar surge in the minimum wage was also tied to a 1.83 percentage-point uptick in the frequency of insurance plans mandating a deductible, a trend observable across large and minuscule firms.

The research is positioned as a pioneering endeavour to dissect how variations in minimum wage legislation might elicit divergent reactions from employers, depending on the business scale or employee wage distribution.

Published in the Journal of Health Economics on October 27, the study also dispelled the notion that hikes in minimum wage adversely affect overall insurance coverage rates. This stability is attributed to the increased enrollment in Medicaid by employees, particularly pronounced following the enactment of the Affordable Care Act (ACA). The ACA, which took effect in 2010 and began regulating the small-group, employer-sponsored insurance market in 2014, magnified the impacts of minimum wage adjustments.

Mark Meiselbach, PhD, an assistant professor at the Bloomberg School’s Department of Health Policy and Management and lead author of the study, stressed the critical role of alternative insurance avenues for low-income workers amid discussions on raising minimum wage levels nationally. His research collaborates with Jean Abraham, PhD, a professor at the University of Minnesota School of Public Health, further emphasizing the significant reliance of millions of Americans on their employers for health insurance. With an estimated 178 million individuals covered under employer-offered plans in 2022, wage legislation and employer health benefits provision have substantial implications for the workforce.

The analysis, leveraging data from the Medical Expenditure Panel Survey-Insurance Component (MEPS-IC) from 2002 to 2020, also delves into how shifts in minimum wage laws influence aspects like employee eligibility, benefit design, and premium costs out-of-pocket. By integrating state minimum wage data from the University of Kentucky Center for Poverty Research National Welfare Data, the study enhances the understanding of employer behaviour in response to wage policy alterations.

Significantly, the findings echo prior studies suggesting that minimum wage increases could decrease enrollment in employer-sponsored insurance, primarily due to employer decisions on plan offerings rather than employee eligibility or enrollment choices. The most pronounced effects were observed among smaller businesses, underscoring their sensitivity to insurance offering costs. The study notes that while deductible requirements saw adjustments, minimum wage laws primarily affected other benefit design dimensions.

Exploring the varied impacts of different magnitudes of minimum wage increases, the research indicates that both modest and significant hikes are associated with reductions in employer health insurance offerings. These effects intensify over time, especially after the third year following a minimum wage increase.

Meiselbach emphasizes the importance of ensuring accessible, affordable insurance options outside employer-sponsored plans in light of the tight coupling between employment and health insurance in the U.S. The study calls for policymakers to closely monitor the decline in employer-sponsored insurance among small businesses, highlighting potential long-term implications.

In response to potential coverage gaps, employers have mechanisms such as Qualified Small Employer Health Reimbursement Arrangements and Individual Coverage Health Reimbursement Arrangements, introduced under the 2016 21st Century Cures Act. These alternatives, alongside the expansion of Medicaid and subsidies for individual market insurance purchases, are presented as viable solutions to mitigate the impacts of minimum wage increases on health insurance coverage.

More information: Mark K. Meiselbach and Jean M. Abraham, Do minimum wage laws affect employer-sponsored insurance provision? Journal of Health Economics. DOI: 10.1016/j.jhealeco.2023.102825

Journal information: Journal of Health Economics Provided by Johns Hopkins Bloomberg School of Public Health

Do companies need to sell expertise, components, or entire systems? This is the primary question that product managers and entrepreneurs must address

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A team of researchers from American University, University of Arizona, University of Texas-Arlington, and Texas Tech University have contributed a significant piece to the Journal of Marketing that delves into a critical aspect of business strategy, explicitly addressing the pivotal question of “what to sell” that confronts companies and investors before making decisions on “how to sell.”

The paper, which will appear in the Journal of Marketing, is titled “A Theory of Product-Form Strategy: When to Market Know-How, Components, or Systems?” and features work by Kellilynn M. Frias, Mrinal Ghosh, Narayan Janakiraman, Dale F. Duhan, and Robert F. Lusch. This research spotlights a relatively underexplored area of technology commercialization: deciding how an innovation should be sold in the market.

The narrative of Apple’s evolution from intending to sell circuit boards to launching the Apple I and II, effectively kickstarting the personal computer industry, exemplifies the strategic pivot from selling components to systems. This anecdote underscores the significance of deciding on the product’s form—a decision that has broad implications not just in tech but across sectors.

While plenty of studies have examined the new product development process and how to bring products to market, the optimal form to sell an innovation—know-how, components, or complete systems—has received less attention. A case in point is the current reevaluation within the electric vehicle industry regarding battery design and the potential benefits of modularization, as discussed in a recent Wired article. This rethinking aims at optimizing design to minimize waste and improve efficiency, illustrating the strategic considerations involved in product form decisions.

The Journal of Marketing article extends these discussions by exploring the strategic choice between selling know-how, components, or systems. This decision influences everything from venture funding pitches on shows like Shark Tank to the fundamental approach of established firms entering new markets. The product-form Strategy (PFS) is integral to a firm’s development and commercialization process, impacting revenue models, market positioning, and competitive dynamics.

For instance, a company selling sensor-embedded baseball bats has to consider whether its direct customers are players and clubs or if it should target bat manufacturers by selling the know-how or components. The PFS decision influences how a firm positions itself in the market and its survival, especially for new ventures.

The research findings, derived from interviews with entrepreneurs, investment proposal analyses, and experimental scenarios, highlight that the challenge of technology integration influences the choice of PFS, the ability to market the product to end-users, and the protection of intellectual property. The study reveals a preference for selling complete systems over components and components over know-how when integration and IP protection are concerns and marketing capabilities are vital.

This comprehensive study distinguishes itself by separating the “what to sell” decision from the “how to sell” question, arguing that the former is a foundational strategic choice that must precede considerations of market entry strategy. It advises product managers, entrepreneurs, and investors to carefully weigh the implications of each product form, considering both the costs and the strategic positioning relative to competitors and the broader market.

In sum, this research provides a nuanced understanding of the strategic decisions surrounding product forms, urging businesses to assess their capabilities, market position, and the competitive landscape. It emphasizes that choosing whether to sell know-how, components, or systems is not merely tactical but fundamental to a firm’s strategic orientation and long-term success.

More information: Kellilynn M. Frias, Mrinal Ghosh, Narayan Janakiraman, Dale F. Duhan, and Robert F. Lusch, A Theory of Product-Form Strategy: When to Market Know-how, Components, or Systems? Journal of Marketing. DOI: 10.1177/00222429221149437

Journal information: Journal of Marketing Provided by American Marketing Association

Variable compensation plans may lead to employee illness

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The rise in cases of employees being incapacitated due to mental health concerns such as fatigue, depression, sleep disturbances, and burnout has seen a significant uptick in recent years. This worrying trend, particularly pronounced within the corporate sector, has yet to escape the attention of Professor Sascha Alavi of the Sales Management Department (SMD). His critical observation of societal trends, particularly in corporate environments, led him to collaborate with Dr. Kim Linsenmayer, his former PhD student, and Professor Johannes Habel from the University of Houston. Their research, published in the Journal of Marketing, sheds light on the detrimental impacts of performance-based pay schemes on employees’ health, a finding reported by Rubin, the science magazine from RUB.

The trio conducted a field experiment in a medium-sized German company that operates in the consumer goods, tools, and services sector, catering to the construction and automotive industries. Over a year, they observed the company’s shift from a remuneration model dominated by variable pay (80%) to one primarily comprised of fixed income (80%), analyzing data from over 800 employees. Their time series analysis unveiled a direct correlation between heightened performance incentives and increased absenteeism due to sickness.

Dubbed the “J-effect,” this phenomenon outlines an initial boost in employee performance with the increase in variable pay, fueled by the motivating potential of sales commissions and bonuses. However, the data also revealed a subsequent rise in stress levels, leading to more sick leaves and diminished performance. Professor Alavi explains that when variable pay constitutes around 30% of the total remuneration, the pressure to perform spikes, inversely affecting performance. The research underlines the negative health consequences of variable pay schemes, highlighting their potential to foster stress and insecurity, thereby exerting undue pressure on employees.

Further investigations by Alavi and his team validated the J-effect and contributed to the broader understanding of stress theories. A survey encompassing 400 sales personnel from various companies and sectors indicated that a higher proportion of variable pay correlates with increased emotional exhaustion. Symptoms such as fatigue, feeling drained, burnout, frustration, or tiredness at the end of a workday or week were commonly reported when variable pay exceeded 30% of the total compensation.

The study also differentiates between employee groups, noting that the impact of performance incentives is not universally negative. Certain individuals showed greater resilience, particularly those with specific personal, mental, and social competencies or extensive experience. Alavi pointed out that employees who have consistently performed well or possess considerable work experience face less difficulty dealing with performance pressure. Furthermore, maintaining positive relationships with supervisors and team members can significantly mitigate the adverse effects of increased pressure.

In essence, the research not only elucidates the harmful health implications of performance-based remuneration schemes but also offers practical insights and recommendations for management. Understanding employee resilience factors and fostering supportive work environments can be crucial in mitigating the negative impacts of performance pressure.

More information: Sascha Alavi et al, Variable Compensation and Salesperson Health, Journal of Marketing. DOI: 10.1177/0022242921993195

Journal information: Journal of Marketing Provided by Ruhr University Bochum

Managers practising active listening can diminish the sense of job insecurity among employees

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Amid the financial upheavals triggered by the COVID-19 pandemic and the ensuing instability across a rapidly evolving global economy, many workers will likely encounter job insecurity at various career stages.

A collaborative research effort by academics from Penn State, MacEwan University, and the University of Central Florida has delved into the impact of managers’ active listening on employees’ perceptions of job insecurity during challenging organizational periods. The study reveals that managers who engage in active listening can enhance employees’ feelings of control over their career paths, thereby mitigating their fears of potential job losses.

The phenomenon of job insecurity, characterized by the anxiety over potential redundancies, poses as much of a threat to employees’ mental health as actual job loss. The constant worry about being laid off can precipitate chronic stress, with numerous studies highlighting the detrimental effects of stress, such as sleep disturbances, unhealthy eating habits, and elevated blood pressure. In the workplace, this stress translates into reduced job satisfaction, reduced adherence to safety protocols, and diminished performance. Prolonged exposure to job insecurity progressively erodes an individual’s well-being over time, making it imperative for employees and employers to seek ways to minimize the duration of such experiences.

Phillip Jolly, the Elizabeth M. King Early Career Professor and assistant professor of hospitality management at Penn State, and his research partners conducted a study within a large corporation that had announced but still needs to implement layoffs. Their findings were published in the Journal of Occupational Health Psychology.

Jolly notes that managers often have limited control over layoff decisions or identifying employees to be laid off. Given their limited insight into future developments, the impending uncertainty surrounding layoffs can lead managers to retreat. However, managers can play a crucial role in supporting their employees’ well-being through increased active listening to their concerns.

Active listening involves three fundamental components: attention, comprehension, and acceptance. It requires the listener to pay careful attention to the speaker, often reflected through body language, demonstrate understanding by paraphrasing the speaker’s words, and exhibit openness to the speaker’s perspectives and concerns. This form of engagement fosters a deeper connection than passive listening, which is commonly encountered in everyday conversations.

Active listening benefits employees in several ways. It makes employees feel supported and valued, fostering optimism about their employment prospects. Furthermore, by offering a safe space for employees to express and process their thoughts and concerns, active listening enables them to recognize available resources, both within and outside the organization. This awareness can empower employees to feel more in control of their circumstances.

Mindy Shoss, an associate professor of psychology at the University of Central Florida, emphasizes that actively listening to employees reassures them of their value and counters feelings of helplessness amidst uncertainty.

The research highlights that while active listening is always crucial, its significance is magnified during periods of insecurity when it affects employees’ thoughts and emotions. According to Tiffany Kriz, an assistant professor at MacEwan University, employees are particularly attuned to even minor changes in their managers’ listening behaviours when their jobs are at stake, with a shift in listening quality sending a potent message and aiding in processing their current situation.

Originating from counselling psychology, the concept of active listening is touted as beneficial in any scenario where individuals confront anxiety.

Jolly concludes that active listening holds transformative potential in corporate settings and within families, non-profit organizations, and any group facing uncertainty. As the world anticipates post-pandemic changes, managers hope to acquire the necessary skills to support their employees through unpredictable times, recognizing the profound impact of listening across all walks of life.

More information: Kriz, T. D., Jolly, P. M., & Shoss, M. K. Coping with organizational layoffs: Managers’ increased active listening reduces job insecurity via perceived situational control, Journal of Occupational Health Psychology. DOI: 10.1037/ocp0000295

Journal information: Journal of Occupational Health Psychology Provided by Penn State

Why women leaders contribute more to family businesses

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Family enterprises contribute significantly to the global economy, representing over 70% of worldwide GDP. Recent surveys indicate these businesses demonstrate a notable openness to female leadership: approximately 55% include women on their boards, and 70% are contemplating female candidates for their next CEO role. This trend towards gender parity is often attributed to a focus on long-term objectives and familial values. However, a groundbreaking study featured in the Strategic Entrepreneurship Journal offers a fresh perspective, suggesting that the success of women in leadership positions within family-owned businesses is fundamentally linked to employee perceptions of their leadership approach.

Remedios Hernández-Linares from the Universidad de Extremadura in Spain, a contributor to the study, highlights that family firms prioritize inclusivity and support for their internal community, fostering a workplace that extends beyond the traditional sense of a company into a more familial and communal environment. This ethos significantly benefits female leaders, framing their leadership as centred on relationship-building and the propagation of core values.

This approach to leadership is more in line with Western gender stereotypes that describe women as empathetic and cooperative, contrasting with the competitive and assertive traits often associated with men. The researchers clarify that the effectiveness of female leaders in family businesses is not merely a result of adhering to these gender norms but stems from a strategic emphasis on areas traditionally deemed suited to women’s competencies.

María Concepcion Lopez-Fernández, another study author from Universidad de Cantabria in Spain, points out the importance of CEOs as role models. She discusses how perceived discrepancies between female gender roles and leadership positions can engender bias and prejudice against women leaders. The research delves into how CEOs encourage entrepreneurial spirit—a domain often seen as masculine—within their company culture. Through a regression analysis of data from 322 Spanish small businesses, focusing on 198 family firms and 133 non-family firms, the study examines the influence of CEO gender on a business’s entrepreneurial orientation, considering various aspects of social learning.

Kimberly A. Eddleston from Northeastern University, who contributed to the study, notes that leadership’s impact on a firm’s entrepreneurial orientation is not determined by the gender of the CEO alone but also by the nature of the business—whether it is a family or non-family enterprise. Female leaders in family businesses are particularly adept at harnessing their firm’s commitment to learning and openness, thus fostering an entrepreneurial spirit more effectively than their counterparts in non-family businesses.

Another author, Franz Kellermanns from UNC Charlotte, emphasizes that while women are well-positioned to lead family businesses, gender biases still impede their ability to translate learning into a stronger entrepreneurial orientation in non-family firms.

This research provides valuable insights into the complex interplay between gender, leadership, and business culture, challenging decades of conflicting studies on the impact of female leadership on business outcomes. It suggests that women’s leadership can be particularly impactful in environments that value traditionally feminine attributes, recommending that framing leadership styles around empathy and relationship-building can enhance the effectiveness of women business leaders.

More information: Remedios Hernández-Linares et al, Learning to be entrepreneurial: Do family firms gain more from female leadership than nonfamily firms? Strategic Entrepreneurship Journal. DOI: 10.1002/sej.1482

Journal information: Strategic Entrepreneurship Journal Provided by Strategic Management Society

Studies illuminate the effects of gender disparities within the media sector on employee job satisfaction

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A study spearheaded by scholars at the City University of London unveils the detrimental effects on job satisfaction caused by perceived gender inequities and the widespread issue of workplace sexual harassment within newsrooms globally. Despite being a common issue across various professions, newsrooms are not spared from this troubling trend.

The investigation into job satisfaction within the media field has covered several factors, including organizational size, wages, types of employment contracts, the balance between professional and personal life, and the demographic characteristics of employees like gender, ethnicity, and the political orientation of their employers. Notably, in many parts of the globe, women are significantly underrepresented in media roles and tend to have shorter career spans than their male counterparts, often as a result of societal and cultural hurdles, including discrimination, wage disparities, and entrenched gender stereotypes.

This new research, carried out by Dr Lindsey Blumell, Senior Lecturer, Dr Rana Arafat, Lecturer in Journalism at City, and Dinfin Mulupi from the University of Maryland, examines how media personnel from Sub-Saharan Africa, Southeast Asia, and the Arab world assess their job satisfaction in light of gender equality and experiences of sexual harassment.

The study focused on regions known for their gender wage gaps, fleeting careers for women in media, and monopolization of leadership positions by men. The findings indicate that men across these regions report significantly higher levels of job satisfaction than women. Still, this disparity does not extend to individuals who do not conform to traditional gender norms. Moreover, men have a more positive perception of gender equality within newsrooms, often accessing more opportunities and senior positions than their female colleagues. This trend again does not significantly differ for gender non-conforming individuals.

Female journalists were found to be more susceptible to both verbal and physical harassment, whether in the newsroom or while on assignment than their male counterparts across all regions studied. Physical harassment was notably more common in Sub-Saharan Africa compared to Southeast Asia and the Arab region, which did not significantly differ from each other. However, the frequency of verbal harassment did vary, with Sub-Saharan Africa recording the highest incidents, followed by the Arab region and Southeast Asia. The study underscored that experiences of sexual harassment, both verbal and physical, considerably diminish job satisfaction.

The survey, conducted between July 2020 and April 2021 across the three regions, comprised 33 structured questions and one open-ended question. It garnered responses from 1,583 participants, including males, females, and gender non-conforming individuals.

Dr. Blumell emphasized the pressing need for a cultural transformation within the global news industry to address these findings. She pointed out the industry’s predominant male dominance, often institutionalized by societal norms that discourage or even prevent women from pursuing long-term careers in media post-marriage or childbirth due to domestic responsibilities or qualifications barriers, leaving most senior and decision-making roles to men. This imbalance fosters a culture where stereotypes and male power dominance prevail, paving the way for sexual harassment and deteriorating working conditions for women.

The study calls for structural and organizational reforms to mitigate these gender-based inequalities, urging media organizations to adopt comprehensive policies against all forms of sexual harassment and to implement ethical codes that clearly define and address gender discrimination.

Dr Arafat highlighted the need for a greater understanding among employers regarding the impact of these gender-biased attitudes on job satisfaction. She criticized the common misperception that sexual harassment is merely a rare occurrence of flirtation or banter, underlining that what might seem harmless can be profoundly damaging and constitute verbal sexual harassment. The researchers advocate for enhanced awareness and training within news organizations and among employers to recognize the severe psychological and performance-related consequences of sexual harassment, thereby encouraging more proactive measures to counteract it.

More information: Lindsey E. Blumell et al, The Impact of Sexual Harassment on Job Satisfaction in Newsrooms, Journalism Practice. DOI: 10.1080/17512786.2023.2227613

Journal information: Journalism Practice Provided by City, University of London

Studies show that revealing salaries combined with minimal oversight expenses aids in bridging the disparity in pay between genders

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According to the latest findings published in the Strategic Management Journal, publicising salaries could be crucial in narrowing the gender pay divide. However, the costs associated with publicly tracking these salaries must be minimised. Elizabeth Lyons from the University of California, San Diego, and Laurina Zhang from Boston University embarked on a study investigating whether making salaries transparent could lessen gender-based pay discrepancies and, if so, by what means. Their research centred on tenured and tenure-track faculty within Canadian universities, utilising the Ontario Public Sector Salary Disclosure Act of 1996 as a case study. This legislation, which mandates the disclosure of salaries for public employees earning above $100,000, includes an online database that significantly eases the public’s ability to access salary information, thereby lowering the costs of such endeavours.

Zhang emphasised the importance of the legal framework and its effectiveness in genuinely decreasing the public’s costs to observe gender wage disparities across various organisations. The researchers compared this situation to a policy in another Canadian province that, lacking an equivalent publicly accessible online database, did not reduce the gender pay gap.

Their findings indicated that easy access to salary information puts considerable pressure on well-known organisations to diminish the gender pay gap and evade public critique of their salary structures. However, the study did not find evidence of women successfully leveraging this salary transparency to negotiate higher wages.

Zhang pointed out that improvements in bridging the gender pay gap are primarily driven by organisations, particularly those that foresee public scrutiny and potential backlash, prompting them to implement widespread changes.

The study also contrasts the Ontario policy with other policies that mandate salary disclosure at an aggregate level for sizable firms. Zhang argued that such policies are less effective as they only reveal average salaries for males versus females without detailed breakdowns, making it harder to assess gender inequality accurately. In contrast, Ontario’s detailed database facilitates more precise comparisons.

Nevertheless, salary transparency adoption and the consequent narrowing of the gender pay gap come at a cost, especially for organisations with a significant existing pay disparity. These organisations may face higher expenses to ensure equal pay across genders. Zhang highlighted the challenges in implementing salary transparency widely, noting the considerable pressure it places on organisations to initiate change.

Zhang also speculated on the potential for salary transparency to enhance competitiveness, particularly in the private sector, where employee movement between companies is more common. However, in academia, where the study was focused, the likelihood of increased competition due to salary transparency is lower because transitions between higher education institutions are rarer. This research sheds light on the complex dynamics of salary transparency, its impact on gender pay inequality, and the organisational and societal factors influencing its effectiveness.

More information: Elizabeth Lyons et al, Salary transparency and gender pay inequality: Evidence from Canadian universities, Strategic Management Journal. DOI: 10.1002/smj.3483

Journal information: Strategic Management Journal Provided by Strategic Management Society

Entrepreneurship at the margins: navigating between unstable employment and the quest for a purposeful existence

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The research project titled “The crisis viewed from the periphery: striving for social mobility at the edges of (il)legality,” spearheaded by Leonardo de Oliveira Fontes with the backing of FAPESP (grant numbers 19/13125-2 and 21/13970-4), aimed to understand the coping mechanisms of the impoverished communities in Brazil amidst the economic downturn that hit the country in 2014. An article resulting from this research has been published in the International Journal of Urban and Regional Research, showcasing the findings of this in-depth investigation.

Leonardo de Oliveira Fontes is a faculty member in the Sociology Department at the State University of Campinas (UNICAMP) in São Paulo and conducts research on Urban Ethnography at CEBRAP, a research centre based in São Paulo City. During the study, he discovered that entrepreneurship emerged as a significant strategy among low-income people to engage with the economy during the crisis. This observation was derived from qualitative research and supported by quantitative data. A 2021 survey by the Global Entrepreneurship Monitor (GEM) indicated that 50 million Brazilians were interested in starting their businesses within the next three years, a 75% increase from 2020, a rise attributed to the economic crisis worsened by the COVID-19 pandemic. This surge in entrepreneurial interest reflects, at least in part, a lack of better employment alternatives, as evidenced by the decrease in average monthly income for informal workers from BRL 2,200 in 2014 to BRL 1,991 in 2022, compared to BRL 2,472 for formal workers in 2022.

Fontes’s study focuses on the entrepreneurs residing in the peripheral suburbs of major Brazilian cities inhabited by low-income families. These entrepreneurs fall into two categories: those operating entirely within the informal economy and those entering the formal economy by registering as “individual micro-entrepreneurs” (MEIs) benefiting from a simplified tax regime. The number of MEIs has surpassed 15 million nationwide, with over a million in São Paulo city alone.

Fontes’s qualitative and ethnographic research involved conducting in-depth interviews and participating in observations at strategic locations, including trade shows and entrepreneurial meetings. His analysis addresses two primary perspectives in the sociological literature on entrepreneurship: one views it as a component of a neoliberal capitalist strategy, emphasizing the “Uberization of labor.” At the same time, the other sees it as an ideological mechanism that isolates and blames individuals for their success or failure, undermining their identity as workers and their collective bargaining power.

Fontes aimed to transcend these views by exploring the origins of entrepreneurial spirit among São Paulo’s peripheral residents and the extent to which neoliberal practices have been integrated into their behaviours and social structures. He argues that accepting entrepreneurship and neoliberal values among these communities has historical and social roots beyond mere ideological persuasion.

The article presents the stories of five individuals from three different families to explore how gender roles influence entrepreneurial attitudes, identifying fundamental moral values such as a “worker’s ethic,” a “getting-by ethic,” and a “provider’s ethic.” Fontes highlights the adaptability and resourcefulness of these individuals, who strive for economic survival and seek meaningful work despite the challenges posed by the labour market and societal expectations.

Fontes’s findings suggest that while neoliberal ideologies have permeated these communities, there are also elements of resistance and alternative perspectives on entrepreneurship that avoid the pitfalls of precarity and dissatisfaction. He concludes that the complex relationship between neoliberalism and the values of entrepreneurs in the periphery warrants further sociological analysis, recognizing both the influences of neoliberal reason and the potential for resistance and change within these communities.

More information: Leonardo Fontes et al, BETWEEN DREAMS AND SURVIVAL: The (Dis)Embeddedness of Neoliberalism among Entrepreneurial Workers from São Paulo’s Peripheries, International Journal of Urban and Regional Research. DOI: 10.1111/1468-2427.13218

Journal information: International Journal of Urban and Regional Research Provided by Fundação de Amparo à Pesquisa do Estado de São Paulo

Telecommuting offers advantages and disadvantages for employee wellness

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Telecommuting can enable employees to lead more fulfilling lives, boasting improved mental health and greater engagement in their work. However, recent research from Cornell University’s ILR School reveals that this positive outcome hinges on the work being performed during the employees’ scheduled hours. The study highlights the adverse effects of working remotely outside these hours, noting that such practices are especially detrimental to women.

The surge in remote work triggered by the COVID-19 pandemic has sparked considerable interest in its effects on employee satisfaction and attitudes towards their jobs. Duanyi Yang, an assistant professor specializing in labour relations, law, and history, and her colleagues have produced research with nuanced results on the implications of home-based work for employee wellbeing. Their forthcoming paper, “Working from Home and Worker Wellbeing: New Evidence from Germany,” in the ILR Review, differentiates between substituting office hours with home-based work (replacement work-from-home) and adding to regular work hours from home (extension work-from-home).

Drawing on a survey of 7,857 employees across 814 establishments in Germany, Yang’s study indicates that working from home beyond regular hours correlates with diminished mental health, an increased likelihood of employees leaving their jobs, and more conflicts between work and family life. In contrast, working from home during regular hours (replacement work-from-home) is linked to higher work engagement and does not increase work-family conflict or turnover rates.

The research particularly underscores the negative ramifications of extended work-from-home for women, revealing that their psychological well-being is 11% lower compared to women who either do not work from home or those who adhere to their regular working hours.

Yang points out the importance of establishing labour standards and management practices that prevent the extension of work-from-home from harnessing the benefits of remote working for both employees and employers. She references France’s 2016 legislation that grants employees the right to disconnect from work communications after hours as an example of how to protect personal time from work encroachment. Similar initiatives are underway in Australia, where public sector unions negotiate the inclusion of disconnect rights in collective agreements.

In the United States, Yang suggests an opportunity for managers, executives, and worker representatives to mitigate the expectation of constant availability and foster norms that support remote work while maintaining a clear distinction between professional and personal life. She argues that employers might be more inclined to implement temporal boundaries to prevent employee burnout and reduce turnover in a competitive job market.

More information: Duanyi Yang et al, Working from Home and Worker Well-being: New Evidence from Germany, ILR Review. DOI: 10.1177/00197939221148716

Journal information: ILR Review Provided by Cornell University