Why do startups want their employees to work long hours?
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I'm working with a start up and as per my legal duties I shouldn't exceed 40 hours a week (as an international student intern in the US on CPT). However, the company is coaxing me to work for longer hours, without pay. For interns the legal rules are that anything beyond 40 hours is liable for an overtime pay - not applicable for full time employees though. I don't mind putting in more time but I have other academic work and a family who needs my time and attention. I've told them a few hours here and there should be okay but not a 60 hour work week. However, they seem a bit stubborn on that front saying all their employees are working 12 hours a day and some with much less salary or no pay (i.e., everyone is coaxed/coerced into working long work hours) I know that they have the desire to want really cheap labor equivalent to an FTE but this is just unfair IMHO. I have other time commitments and academic work and I just can't give in to the demands of the company. How best to address this? Why do startups really want their employees to stick around for as long as possible, when research shows that timeboxed diligent work is more productive than long hours! I agree if you're passionate about it, it doesn't feel like work. But that doesn't imply burning yourself out at the cost of the other things in life. PS: I don't mind quitting if it gets out of hand, but that's not the solution I'm looking for. My question is why do startups do this and what's the solution?
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Answer:
There are several reasons I see for this. I think therefore you do too For the founder, to whom the startup is often something she/he is passionate about, is also under great pressure to ship a product and start making money. If you are bootstrapping or have investors, you always have great pressures to break even and stop bleeding cash. So some founders might not realize that not everyone thinks or feel the way they do and expect the others to put in the same hours as they do. I'll rest when I'm dead... or when I make it When you are under such pressure and things are not moving as fast you want it to, the easiest solution is to work longer hours. Especially if you don't have the money to hire another engineer, squeezing more out of the ones you have is the logical solution, not mentioning the time it takes to find, hire and train a new recruit. Considerations for the employees work life balance are put on hold. The thought is that "we just need to launch, and then we can breath" and thus there will be time later to rest. When you are at war and bullets are flying, you don't stop in the middle of a battle and think "Hey, I think I need a nap for optimal performance". What many don't realize that pulling long hours is only effective for a few weeks, beyond that you are less effective than if you just worked 8 hours within a balance work-life framework. The glamour of long hours Working long hours has being glamorized lately. It's cool to say you work 12, 16 hours days. Actually 18 hours is the new 12 hours. So some people might think this is a good way, or the norm, without realizing that they are actually killing creativity and problem solving quality and loosing productivity. The same goes to multi-tasking. This gets to the point where there is an inflation of what people say they do. People increase the hours they say they do, while it's often a lot less. It's amusing when the exaggerations get to the point where the math doesn't make sense anymore.
Peter Kovacs at Quora Visit the source
Other answers
Startups by definition are rarely profitable, so money is tight, and adding new employees can be hugely expensive in many ways (recruiters can charge five figures for a new engineer, training new employees is expensive, incremental overhead for a new employee versus others working harder is nontrivial, etc). So, for better or worse, early-stage employees in a startup will work long hours, typically more for stock than for salary. Fairness is no more relevant in the startup world than it is in a gambling casino: if the company is a hit, the early-stage people may be set for life. If not, you have a bunch of paper and hopefully a T-shirt, and at least useful knowledge and experience for your next gig. That said, some startup founders take the work-till-you-drop culture to extremes, and companies that develop this sort of culture aren't all that great for employees with families and children unless you're one of the principals (and willing to make the large personal sacrifices to do this sort of thing). If you aren't one of the founders, you need to figure out the culture of the company and make sure it fits with your work-life requirements before you join the company as it's hard to change once you're there.
Greg Kemnitz
This is a side point, but it's a dangerous myth that all full-time salaried employees are exempt from overtime pay requirements in the United States. Under federal law, whether or not a salaried employee needs to be paid for all time worked beyond 40 hours in a week depends entirely on the nature of that person's work; only a few limited classes of work meet the exemption requirements. The most commonly exempt worker types are: Corporate executives Administrative employees Learned professionals Certain computer professionals, including programmers, systems analysts, and systems designers; most helpdesk support personnel, technicians, and systems administrators/operators do not qualify for this exemption. Outside salespeople (traveling salesmen) Highly compensated white collar workers (total compensation of over $100,000 per year). Some states have even more stringent laws, requiring that nonexempt workers be paid overtime for all time worked in excess of 8 hours in any single day. That said, many business owners either don't know or don't care about these laws, but that can come back to bite them in the ass if it's later determined that they should have been paying overtime all along, resulting in thousands of dollars in back wages and fines that have to be paid out.
George Glynn
they want long hours because they just want to get their company up and running as fast as possible. also because at the beginning of the company there is a lot of things to do right. every time you need to fix little glitches. the faster a startup takes of,f the higher chance it has to become successful. thats why they need to put in ong hours, and a lot of times they dont pay. check out the website http://www.sproutr.coif you want to talk to entrepreneurs from all around the world
Cristian Garrido
I think that the question is a bit of a generalization - not all startups necessarily "want" or "force" their employees to work excessively long hours. This is my third startup and third time as CEO, and I've always believed in open hours - it is up to my staff to decide when they want to work. Of course, 9 AM to 5 or 6 PM is the "norm," but if they chose to spend more time in the office, it is because they enjoy the work, they are passionate about what they do, and they are invested in seeing the company do well. I don't "require" them to stay here any longer than they want to, and for their part, they get all their tasks done, whether it is during "normal" hours or during "extra" hours (at which point, it is by choice). If you have a boss who is "forcing" you to do more work than you can handle or than you want to do, I think you can just let him know that, while you respect the breakneck culture of startups, you, for one, would like him to respect your personal needs. Just keep in mind that though startups may generally have longer hours by virtue of their business model, it is not holistically true with all startups, and that moreover, overtime is often a choice made by employees who are particularly dedicated to the company.
Jerry Jao
The why has been already answered. The what is tricky and more or less depends on the specifics. At the end of the day though, the solution always converges to a single one - set up your personal priorities. Evaluate your situation, identify your priorities depending on all externalities and stick to them, firmly. Then, if you have to argue with the CEO, do it. If you have to quit, do it. If you have to sue them for legally breaking your contracts, do it. You should stand your grounds and not deviate from your own principles manifested in the chosen priorities. People are different, objectives are different, lives are different, so why should you be bound by what a start-up - a corporate entity led by a subjective human being - wants you to do? You have to make the impression that you know what you want, how you want it and why you want it. Your confidence in knowing your own desires and firmly sticking to them is what will differentiate you and what will (presumably) solve the long-hours problem. For example, if you have X stock and Y salary and T time and N activities you like doing, you should be able to redistribute portions accordingly and rank them; say that your own nature tells you that you must have at least 20% of T for activities outside of work (#1) and that the particular X+Y combination cannot take more than 64% of your T (#2). So, you have a first-order approximated solution - you cannot work more than 10.24 hours a day for these given benefits (assuming 16 hour day). But if you have a X+x and Y+y combination, this may go up to 11 hours. But this may be in a contradiction with a higher-ranked priority (#1), so it immediately becomes a no option (or a low probability option). And so on. The important thing is given the initial data and your principles to set up a concrete framework of priorities that you feel confident about. If quitting is not a part of your solution, that means that quitting should not be placed in your priorities (or could with a low rank and minimal fraction/probability) or "not quitting" should be placed high in your priorities list. You always negotiate low-ranked priorities first and almost never want to negotiate the highest-ranked priorities. Have everything laid out and logically connected and be open to a detailed, constructive discussion with the start-up decision-makers. Remember, people are different and one-to-one comparison is hard to be drawn unless ALL of the variables X, Y, T, N, etc AND the respective personal priority lists are equivalent for the different people. Since this is often impossible, your personal priorities are nothing but ... yours and in any discussion they should be considered for nobody's but ... your specific case only. If an employee Joe or CEO Mark can/likes/wants to work 17 hours a day that doesn't mean it is an argument for why you should work the same number of hours. Joe may simply have a different framework of personal priorities (even with exactly the same stock, salary, etc, ... even though that case may be hard since an identical similarity metric is usually required). If the start-up does not differentiate you from Joe as a separate human being, than you are just a name on a list of paper for this start-up, and obviously you should not want to work there at all. Finally, you should make it very clear to them that long hours do not equate to higher productivity. You can always stay 2 hours more a day and just keep staring at your monitor during that time ... They gain nothing and you gain nothing. Lose-lose situation.
Anonymous
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