At-work Olympics viewing wastes $650M
Productivity experts predict that the London Games could result in a summer slowdown perhaps unlike any other in history.
This post comes from Charles Passy at partner site SmartMoney.
Forget the narrow defeat suffered by the U.S. men's swim team in the 400-meter freestyle relay over the weekend. Or that Jordyn Wieber, America's best hope for all-around gold in female gymnastics, failed to even qualify for the event.
When it comes to this Summer Olympics in London, the real loss may be felt much closer to home.
Productivity experts are predicting that this year's games could result in a summer slowdown perhaps unlike any other in history, with millions of American workers devoting portions of their day to track and field instead of, say, tracking customer orders. The wasted time could result in a $650 million hit for U.S. companies, according to an estimate by Captivate Network, a digital media company.
Much of that loss will come from employees watching games during work hours on their computers or mobile devices. Some 12% of American workers said they plan on viewing the Olympics at the office, according to a survey commissioned by Captivate. A similar survey by Yahoo Sports showed a figure as high as 43%. In addition, Yahoo Sports found that 25% of workers planned to leave early to follow the games. (Post continues below.)
Either way, it amounts to a lot of goofing off. Compounding the problem for businesses: Viewing by streaming -- NBC is making all the events available over its streaming channel -- taxes office networks by using up valuable bandwidth. In other words, even if workers aren't watching the preliminary rounds of Olympic badminton, their computers may be running slower because of the badminton buffs sitting next to them.
"It brings us back to the age-old question, 'Why is the network so slow today?'" says Jim Melvin, the chief executive officer of AppNeta, which specializes in helping companies monitor their networks. And when you add the slowdown situation to the mix, the Olympic hit becomes all the larger for companies. "I would say this is a billion-dollar event," adds Melvin.
The productivity issue has come up before with sporting events. The NCAA men's basketball championship -- aka March Madness -- is a frequently cited example (this year's estimated hit to businesses: $175 million -- for just the first two days of the tournament).
Several analysts have also found fault with so-called productivity surveys, and warn against reading too much into calculations drawn from them.
But experts say the Olympics is in its own category -- not only because it's an event of global significance, but also because this year's games are being held in a time zone that's most conducive to daytime viewing in America. And regardless of what you make of these productivity surveys, the ability to easily stream the events, something not possible as recently as four years ago, raises the potential for more slacking on the job.
For business owners, minding the Olympic-viewing habits of their employees too closely may be a mistake, says John Challenger, chief executive officer of Challenger, Gray & Christmas, a leading outplacement firm. Instead, they should recognize that many of today's workers are plenty productive when not at their cubicles, whether it's checking emails on the run or completing projects at home.
"If employees don't get it done now, they'll get it done later," Challenger says.
More on SmartMoney and MSN Money:
Even more simple solution, let Obama voters only watch. We all know they don't work. Solved.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
A new survey reveals Americans are most embarrassed to admit their amount of credit card debt.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'