How companies could save money by sending employees home on time

Independent

2 days ago

Many employers are demanding more from workers these days, pushing them to log as many hours as possible.
Google, for example, told all its employees that they should expect to spend 60 or more hours in the office every week. Some tech companies are demanding 12-hour days, six days a week, from their new hires.
More job applicants in health care, engineering and consulting have been told to expect longer hours than previously demanded due to a weak job market.
On the other hand, companies such as Cisco, Booz Allen Hamilton and Intuit have earned a reputation for supporting a strong work-life balance, according to Glassdoor employee ratings.
To promote work-life balance, they offer flexible work options, give workers tips on setting boundaries and provide benefits to promote mental and physical well-being, including mindfulness and meditation training and personal coaching outside of work.
As a psychologist who studies workplace performance and well-being, I've seen abundant evidence that overworking employees can actually make them less productive. Instead, research shows that when employees have the time and space to lead a fulfilling life outside work, such as being free to spend time with their families or pursue creative hobbies, it improves their performance on the job.
Falling prey to the 'focusing illusion'
For example, a team of researchers reviewed 70 studies looking at how managers support workers' family lives.
They found that when supervisors show consideration for workers' personal roles as a family member, including providing help to workers and modeling work-family balance, those employees are more loyal and helpful on the job and are also less likely to think about quitting.
Another study found that workers who could take on creative projects outside of work became more creative at work, regardless of their own personalities. This was true even for workers who didn't consider themselves to be very creative to start with, which suggests it was the workplace culture that really made a difference.
When employers become obsessed with their workers' productivity, they can get hung up on tracking immediate goals such as the number of emails sent or sales calls made. But they tend to neglect other vital aspects of employees' lives that, perhaps somewhat ironically, sustain long-term productivity.
Daniel Kahneman, the late psychologist whose research team won a Nobel Prize in economics, called this common misconception the 'focusing illusion.'
In this case, many employers underestimate the hidden costs of making people work more hours than they can muster while maintaining some semblance of work-life balance.
Among them are mental health problems, burnout and high turnover rates. In other words, overly demanding policies can ultimately hinder the performance employers want to see.
Taking it from Simone Biles
Many top performers recognize the value of work while also valuing the time spent away from it.
'At the end of the day, we're human too,' said Simone Biles, who is widely considered the best gymnast on record.
'We have to protect our mind and body, rather than just go out there and do what the world wants us to do.'
Elite athletes like Biles require time away from the spotlight to recuperate and hone their skills.
Others who are at the top of their professions turn to hobbies to recharge their batteries. Albert Einstein 's passion for playing the violin and piano was not merely a diversion from physics – it was instrumental to the famous and widely beloved scientist's groundbreaking scientific insights.
Einstein's second wife, Elsa Einstein, observed that he took short breaks to play music when he was thinking about his scientific theories.
Taking a break
I've reviewed hundreds of studies that show leisure time isn't a luxury − it fulfills key psychological needs.
Taking longer and more frequent breaks from your job than your workaholic boss might like can help you get more rest, recover from work-related stress and increase your sense of mastery and autonomy.
That's because when employees find fulfillment outside of work they tend to become better at their jobs, making their employers more likely to thrive.
That's what a team of researchers found when they studied the workforce at a large city hospital in the U.S. Employees who thought their bosses supported their family life were happier with their jobs, more loyal and less likely to quit.
Unsurprisingly, the happier, more supported workers also gave their supervisors higher ratings.
Researchers who studied the daily leisure activities of 100 Dutch teachers found that when the educators could take some of their time off to relax and engage in hobbies outside work, they felt better and had an easier time coping with the demands of their job the next day.
Another study of German emergency service workers found that not having enough fun over the weekend, such as socializing with friends and relatives, can undermine job performance the following week.
Finding the hidden costs of overwork
The mental health consequences of overwork, spending too many hours on the job or getting mentally or physically exhausted by your work are significant and measurable.
According to the World Health Organization, working more than 55 hours per week is associated with a 35% higher risk of having a stroke and a 17% higher risk of developing heart disease.
Working too many hours can also contribute to burnout, a state of physical, emotional and mental exhaustion caused by long-term work stress. The World Health Organization officially recognizes burnout as a work-related health hazard.
A Gallup analysis conducted in March 2025 found that even employees who are engaged at work, meaning that they are highly committed, connected and enthusiastic about what they do for a living, are twice as likely to burn out if they log more than 45 hours a week on the job.
Burnout can be very costly for employers, ranging anywhere from US$4,000 to $20,000 per employee each year. These numbers are calculated from the average hourly salaries of employees and based on the impact of burnout on aspects such as missed workdays and reduced productivity at work. That means a company with 1,000 workers could lose around $4 million every year due to burnout.
Ultimately, employers that overwork their workers have high turnover rates.
One study found that the onset of mandatory overtime for South Korean nurses made more of them decide to quit their jobs.
Similarly, a national study of over 17,000 U.S.-based nurses found that when they worked longer hours, turnover increased. This pattern is evident in many other professions besides health care, such as finance and transportation.
Seeing turnover increase
Conservative estimates of the cost of turnover for employers ranges from 1.5 to two times an employee's annual salary. This includes the costs of hiring, onboarding and training new employees. Critically, there are also hidden costs that are harder to estimate, such as losing the departed employee's institutional knowledge and unique connections.
Over time, making workers work extra hours can undercut an employer's performance and threaten its viability.
Abundant evidence indicates that supporting employees' aspirations for happier and more meaningful lives within the workplace and beyond leaves workers and their employers alike better off.