Tag Archives: March Madness

Productivity takes a hit with March Madness — but who cares

0309_KCSP_sp_uthoops9_0361_AL

The Big Dance is almost here and workers coast to coast will soon ignore their jobs to watch their favorite college basketball team battle in the annual NCAA tournament.
Millions of workers will watch games on office TVs, company computers and smartphones. An estimated 50 million Americans will participate in March Madness office pools.
The basketball frenzy is fun, but it’s also costly for businesses.
For every unproductive work hour during the first week of the tournament, companies nationwide will lose nearly $2 billion in lost wages, according to global outplacement firm Challenger, Gray & Christmas Inc.
“There are distractions every day at the office, but the first week of the annual men’s college basketball tournament is particularly hazardous to workplace productivity.  While March Madness distractions may not alter the nation’s quarterly GDP numbers, you can be assured that department managers and network administrators notice the effect on work output and company-wide internet speeds,” John A. Challenger, CEO of Challenger, Gray & Christmas, said in a news release.
In a 2012 MSN survey, 56 percent of workers said they would spend at least an hour a day on March Madness activities, according to the news release. This year that would mean more than 77 million workers will spent work time watching games, keeping up with their office pool and talking to co-workers about the tourney.
Based on an average hourly wage of $24.31 — as noted in the most recent employment report from the U.S. Bureau of Labor Statistics — that would mean “$1.9 billion in lost wages for each hour of work time spent on March Madness,” the release said.
Despite the productivity loss, companies should avoid the temptation to crack down on basketball activities, Challenger said.
“Department managers may notice that their workers are more distracted and the IT department may notice the loss of bandwidth.  However, at the end of the day, it is unlikely that a few days of March Madness distraction will impact the company’s bottom line,” Challenger said.
However, taking a hard line could hurt morale, which would have a long-term impact on productivity.
Companies would be better off trying to engage workers by promoting an office pool that’s free to enter, encouraging employees to wear their team colors or even serving a catered lunch on the first two days of the tournament, Challenger said.
Click here for the Challenger news release.

March Madness will cost companies $134M in ‘lost wages’

March Madness starts next week and that means productivity
will plummet as nearly one-third of U.S. workers will be watching basketball at
least three hours a day during work hours, according to an annual study by
global outplacement firm Challenger, Gray & Christmas

During the first two days of the NCAA Division 1 men’s
basketball tournament – when most games are played during work hours –
businesses will suffer at least $134 million in “lost wages the study says.

Not only will employees watch games during work hours, but
before the tournament begins , “people will be organizing office pools,
researching teams and planning viewing parties. 
When the games begin around noon, eastern time, on Thursday, many
companies will probably notice a significant drop in Internet speeds, as
employees start streaming games and clogging up the network’s bandwidth,” CEO
John Challenger said in a news release.

But will the annual hoops ritual really hurt the economy?
Will companies  feel the pain?

Normal
0

false
false
false

EN-US
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:”Times New Roman”;
mso-bidi-theme-font:minor-bidi;}

Continue reading

Crazy money in March Madness

b154a961a6560e070a0f6a70670063ec.jpgIn between watching basketball games this weekend, go online and check out
 BusinessofCollegeSports.com. The website offers some fascinating research on the truly big money involved in NCAA basketball.

Where does your favorite hoops team rank in total annual revenue? (based on the 2010-2011 season, Louisville is No. 1 with $40.8M; Tennessee is No. 13 at $13.8M, tops in the Southeasten Conference)

Which coach delivers the best “performance value per dollar of compensation”? (Jim Boeheim at Syracuse)

In the 2010-2011 season, how much money did the NCAA distribute to conferences and universities? ($478M. The Big East got the biggest slice of the pie — $24.9M, compared to $15.6 for the SEC).

Enjoy the games.

Photo: Murray State forward Edward Daniel (2) takes a charge from Colorado State forward Will Bell (23) in the second half of their tournament second-round college basketball game in Louisville, Ky., Thursday, March 15, 2012. (AP Photo/Dave Martin)

 

March Madness and business – Take 2

The NCAA basketball tournament is good for employee morale and does not hurt productivity — thus sayeth a survey by OfficeTeam, a division of Robert Half International, the global staffing service.

The OfficeTeam survey of 1,000 managers found that:  41 percent believe the tournament has a positive effect on employee morale and 56 percent believe partcipation in March Madness activies not impact production. Another 22 percent said the tourney actually boosted employee productivity.

Check out the OfficeTeam press release here.

(This is in sharp contrast to a previous post on a study by Challenger, Gray & Christmas Inc., a Chicago-based global outplacement consulting firm, that said the tourney would cost companies a ton of money in lost productivity.)

NCAA tourney will cost you money

If Tennessee’s mens team does well in the NCAA basketball tournament it could cost your company money — lots of it.

March Madness will cost U.S. employers an estimated $1.8 billion in lost worker productivity in the first week of the tourney, according to Challenger, Gray & Christmas Inc., a Chicago-based global outplacement consulting firm.

“For the nation’s employers, the men’s college basketball tournament, better known as March Madness, marks the arrival of several other annual rituals: employee-organized office pools, a potential dip in productivity and a marked decline in Internet speed, as workers soak up bandwidth watching live streaming broadcasts of the tournament games during office hours,” according to the firm’s press release.

Based on what happens around the News Sentinel, especially when the Vols are playing, Challenger, Gray could be underestimating the cost.

How much will it cost your company? Will you be watching the games? I will.

Continue reading