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In my old corporate job, upper-level management stressed the importance of work/life balance and flexible working arrangements. The idea of work/life balance stems from the idea that most corporate employees recognize that working in a cubicle is not all there is to life, and despite pressure from supervisors and bosses, family life is important, too. Ignoring unemployment, most households are two-income families, and in order for a family to survive, there must be some consideration for a family’s needs during the day. Often, the message of work/life balance doesn’t survive as it is passed down the ranks from the upper-level executives to the mid-level managers, whose job is to put business needs ahead of just about everything else.

That was the case in my old company when I was there. Upper management saw the benefit of allowing people to work from home occasionally. This flexibility increases productivity and morale, and there’s a new study that proves this assumption, as I’ll describe below. Nevertheless, some responsibilities in that environment could not be done from a location other than the office. That’s an understandable reason for limiting the availability of telecommuting options, but many managers do not trust either the studies or their employees.

Home office deskI’ve had managers who believe that without a line of sight, employees would simply not work. They follow corporate guidelines and allow employees to occasionally work from home, but they’re grumpy about it, and those who do opt to take advantage of flexible working arrangements like telecommuting or alternate hours are viewed as less dedicated to the company and more likely to miss out on rewards like raises and bonuses regardless of performance.

Researchers at Stanford University developed a method of testing theories about working from home to determine, in a controlled environment rather than through anecdotal evidence or less-rigorous testing, whether telecommuting and other working arrangements such as flexible hours are beneficial to a company. The researchers, in a presentation labeled “very preliminary,” note that although work/life balance is used in recruiting, prior to the study there has been no evidence showing a cause and effect relationship between flexible policies and employees or employers. Most of what we “know” about work/life balance today relies on case studies (anecdotal evidence) and human resource surveys. This Stanford experiment set out to change that.

In this experiment, the researchers used a Chinese travel agency with 12,000 employees and a corporate culture modeled after American companies. The sample included call center workers, some who would be allowed to work four out of five shifts from home and others who were not. From a statistical perspective, those who worked from home were significantly more productive. Both quantitatively (number of calls) and qualitatively (judged by call quality assessments), working from home benefited the company. The quieter environment of the home increased concentration and the healthier environment resulted in fewer missed workdays.

From the employee’s perspective, they are more satisfied with their working experience at the company. The firm involved with the test has been so impressed with the results of the study that they are rolling out the plan to the rest of the company.

The next time you have the opportunity to discuss working from home with your manager, be sure to share the positive data.

Do you work from home? If so, are you more productive than you would be in an office?

Photo: C G-K
Stanford University [pdf]

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The Securities and Exchange Commission, an organization designed to regulate and oversee the financial industry, is charged with acting in investors’ best interests. Most of the time, however, the SEC works on behalf of the large financial companies under its purview. As a result, when consumers demand that companies be held accountable for misleading investors or playing a role in a systemic collapse of the economy, the regulators tend to look the other way. Some companies get by with a slap on the wrist, settling lawsuits with a paltry penalty.

That appeared to be the case recently when Citigroup and the SEC came to an agreement whereby the company would pay $285 million, or 7.56% of that quarter’s profit, to settle a lawsuit that charged that the company did not properly disclose the risk when selling collateralized debt obligations (CDOs) and bet against the same investments the company sold to investors. The benefits of a settlement like this would be that Citi could pay the small fine from its cash reserves without admitting wrongdoing, promise they’ll never break the rules again, and continue to operate business as usual.

Judge Jed S. Rakoff of the Federal District Court in Manhattan was not pleased with the resolution or collusion between Citi and the SEC. The judge rejected the settlement because it was not fair, reasonable, adequate, or in the best interest of the public. He demanded the company and the regulator to shed light on the facts of the case, something this settlement might have avoided, protecting the company from any real criticism. A settlement would mean that affected investors could not sue Citi, but if the SEC were to successfully win a case against Citigroup, proving the company was in the wrong, that decision could be used by harmed investors who sue the bank. At the core of the matter is whether a company should be allowed to avoid admitting guilt.

The trial will begin in July 2012.

DealBook

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From a retail perspective, this holiday weekend was successful. The National Retail Federation — an organization that represents retailers and is always happy to report good news in the industry — says that total spending over the four-day weekend from Thanksgiving to Sunday increased 16 percent over the same time period in 2010 when measured by total dollars spent. The total number of shoppers increased 6.6 percent and the average spent by each shopper increased from $365.34 to $398.62, or 9.1 percent.

Even “Small Business Saturday,” which I still see as a self-serving marketing campaign on behalf of American Express, has produced anecdotal evidence of success from mom-and-pop small business owners, while some customers have expressed frustration that some of American Express’s advertising did not clearly mention that registration in advance was necessary to receive the $25 credit.

I can’t overlook the unseasonably mild weather, at least in the New York metropolitan area, as a contribution to people’s willingness to leave the house and shop this year.

On Friday, I spent most of the day on an airplane, traveling from Los Angeles to Newark. I did not have the desire to wait outside a store in a line Thanksgiving night, the eve of Black Friday. Over the weekend, once home, I did not completely refrain from shopping. I purchased a gift for my girlfriend as we passed an item of clothing she liked, as well as a few discounted items of clothing for myself. For myself, I spent about $50 for items that normally would have cost about $100 without the “one-day-only” discount.

This past week leading up to Thanksgiving, while I was spending time with family in California, I gave into pressure and purchased myself a few toys. I grew up playing the original Nintendo Entertainment System, and Legend of Zelda was my favorite game. After the great reviews of the latest iteration in this series, a few in my family decided to take a look at the game. After getting a chance to play it, I decided I wanted to have a copy of my own. I find that I don’t have the time to spend playing video games, but I splurged on the game for myself, anyway — without paying full price.

I have more shopping to accomplish over the next few weeks before the holidays approach. I think giving into the retail frenzy during the days after Thanksgiving is generally a mistake. I’ve seen this happen in past years; the hottest items, even those deeply discounted during Black Friday, can often be found at even better prices later.

Before you consider me overly frugal, take note that I plan to spend quite a bit of money on myself in the near future as I continue exploring my hobbies and interests with full force as I find the time.

How much money did you spend this weekend?

CNN Money

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It’s easy to focus on the personal policies that help improve your net worth immediately. Saving money, investing thoughtfully, and earning income affect your bottom line immediately. This view can be shortsighted occasionally. Focusing effort on your personal human capital can have a greater affect on your net worth over the course of the rest of your life. There are certain things anyone can do to improve the probability of being financially secure in the future. Focusing on your health can ensure you’ll have many income-earning years in the future.

There is much about your finances you can control, but some circumstances, while they can be prepared for, are difficult to predict. The same is true about health. The best anyone can do is take good care of his mind and body to reduce the chance that health will be a major concern.

Get health insurance. If you do not have a job that offers group health insurance and do not have access through a family member, finding coverage can be expensive. When I left my corporate job last year, I investigated prices for individual health coverage in New Jersey, and coverage similar to what I had at the company cost over one thousand dollars a month. Basic coverage was significantly less, but the benefits were not as comprehensive as what I had with my prior HMO plan. When I left the job, I had access to COBRA coverage, which extended the same coverage I had, but the premiums were no longer subsidized. The monthly fee was expensive, but manageable.

Jogging GirlsDon’t make any insurance payment mistakes. If you are paying for health insurance coverage on your own, create an automated payment plan. One missed payment can give the health insurance company cause to cancel your coverage.

Reduce your intake of unhealthy food. You don’t have to be a health fanatic. You can make some easy changes to your diet that should improve your health over the long term. For the most part, I no longer drink soda, opting for water instead. I don’t consider myself a health expert, and there are still many improvements to my diet that could result in increased health, but my plan for now is to be more conscious about the food I eat.

Stay active. If you’re not an athlete, there’s no need to undertake a massive campaign for exercise. If you have a job that keeps you sitting at a desk for most of the day, though, consider compensating for a sedentary lifestyle by taking some time to keep your muscles active. I joined a gym recently and I’m still looking to find a routine that works for me. I have lost some weight and I feel healthier in general. The challenge is maintaining this with a work and travel schedule that keeps me busy, making it difficult for me to set aside regular time.

I don’t always recommend joining a gym, though. Some people may find the environment motivating, but for others, it will cost less money in the long run to exercise independently, without a monthly fee. The most important aspect is to stay active, regardless of how it’s accomplished. Even if you find the best way for you to stay active is to join a gym, spending that money now to stay in shape could pay off in the future through improved health.

Get good sleep, quality and quantity. I combined a good mattress, good sheets, and good pillows and was halfway towards improving my sleep. Throughout my life, I had never really achieved quality sleep. As far back as middle school, I often stayed up late at night computer programming and running a bulletin board system. This lasted throughout high school. In college, I spent my days in class, studying, and practicing, while spending many nights designing and maintaining websites. Later on, my time outside of my day jobs was also spent working on websites. All of this left very little time for sleep, and the sleep I did get wasn’t comfortable.

I didn’t have to spend a lot of money to fix this problem. Finding the right mattress took some time, but I’m satisfied with the one I have now. I discovered that “memory foam” pillows don’t bother my neck and back as other pillows. Someone introduced me to cotton jersey knit sheets, and I find these much more comfortable than other cotton or satin sheets. Once I was able to combine this with seven to eight hours of uninterrupted sleep every night, I wake up refreshed and I can get through everyday without becoming exhausted.

From Forbes:

Talking of getting a good night’s sleep — critical for boosting memory — the key is to let melatonin do its trick. That’s a versatile hormone produced by the brain. It synchronizes the biological clock, regulates sleep and is a powerful antioxidant. Scientists believe it strengthens the immune system and has a strong link to preventing depression, cardiovascular disease, some cancers and sexual dysfunction.

Visit your doctor and dentist. Just having insurance isn’t enough. Visit the doctor twice a year for check-ups and get any tests appropriate for your age. The same applies to the dentist. When I was in college, I don’t think I visited a dentist once. I returned to my home state of New Jersey several months after graduating to work at my new job, and after receiving insurance, I made my first appointment with a dentist in years. It was a good thing my teeth and gums weren’t in worse shape than they were. Flossing and brushing keeps gums healthy, and healthy gums help increase the chance of maintaining the health of the rest of your body.

Quit smoking (or don’t start). While everyone seems to have an anecdote to share about a two-pack-a-day smoker who lived beyond 100 years, this isn’t the norm. You can improve your health — and your short-term finances — by quitting smoking. You’ll save money today, you’ll be healthier so that you can continue earning money, and you’ll feel healthier. Quitting may not b an easy feat, but all ex-smokers I know are happy they made the decision.

Manage your stress. I’ve never been more stressed in my life than I have been as a business owner. I’ve made my way through my life until this point generally avoiding stress, not letting myself get too emotionally involved in my work. It’s different when it’s my own business, and dealing stress has been difficult for me. I use relaxation techniques to help deal with stress, particularly when I know the situations that cause stress can’t be avoided.

Staying healthy can reduce your downtime at work and help you make the most of your income-earning years. Your health might help you extend those years, as well. While I get the impression that the media emphasize health too much, to the point at which unhealthy individuals as marginalized. In order to be healthy, you don’t need to look like an actor or athlete, but paying attention to these few core health principles can be worthwhile for anyone interested in being financially secure. A good attitude towards health and a few healthy habits can increase your human capital.

Photo: mikebaird

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Citi Settles Lawsuit for $285 Million

by Flexo

Without admitting any wrongdoing, Citigroup has settled a major lawsuit. The Securities and Exchange Commission claimed that Citi misled investors, and to settle the claims, the financial behemoth was ordered to pay $285 million to customers. The issue focuses on collateralized debt obligations (CDOs) in 2007. The bank packaged subprime mortgages, loans with a good ... Continue reading this article…

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J.P. Morgan Misled Investors, Will Pay $153.6 Million

by Flexo

As the market was collapsing, J.P. Morgan Securities continue to convince clients to invest in a complicated investment made up of credit-default swaps, even though the underlying investments were selected by a hedge fund, Magnetar Capital LLC, that would benefit from seeing the investment fail. Allegedly, J.P. Morgan was knowingly selling an investment designed to ... Continue reading this article…

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Newark Liberty International Airport Has the Highest Fares

by Flexo

The same day I purchased airfare from New Jersey to California for what I thought was one of the better rates I’ve found in the past decade or so, I came across statistics showing that New Jersey’s Newark Liberty International Airport sports some of the highest fares in the country for the past two years, ... Continue reading this article…

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Podcast 100: National Financial Capability Challenge

by Flexo

Today’s guest on the Consumerism Commentary Podcast is Carrie Schwab-Pomerantz, President of The Charles Schwab Foundation, which is sponsoring the National Financial Capability Challenge as well as the Make Change Count program. Consumerism Commentary Podcast #100 National Financial Capability Challenge: S04E22 / 124 Adobe Flash required Download – RSS – iTunes Table of contents [00:00] ... Continue reading this article…

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