Raymond Noe
About this Executive:
Name:
Raymond Noe
Company:
The Ohio State University
Interview Topics:
Higher Education
Region:
Region 1 - Central Ohio
I have been exploring the possible business implications of Ohio's promise of perfect balance. I believe balance is a key to sustainable performance excellence, and have been trying to absorb as much knowledge on the subject as possible. When I was presented with the opportunity to speak with Dr. Raymond Noe, a distinguished professor in the Fisher College of Business at The Ohio State University, I leapt at the chance to ask him for his thoughts on many of my questions. Dr. Noe is a Robert and Anne Hoyt Designated Professor in Management and Human Resources. He is a well-respected author and serves on the editorial boards of several journals focused on organizational behavior and human resource management. I found our conversation fascinating and educational. I know you will as well.
Q: Studies have started to emerge that suggest a positive work:life balance can improve shareholder value for companies. Do you believe that work:life balance can help deliver increased profit?
A: Yes, I do believe work:life balance positively impacts profit performance. But the definitive studies to demonstrate the cause and effect relationship are yet to be published. The literature is reporting on studies that evaluate proximal criteria versus distal factors. However, these studies provide convincing directional evidence that a connection exists. For example, a study by Vanderbilt University and Hewitt Associates found companies on the Fortune "Best Places to Work" list substantially outperformed the S&P 500 over a three-year, five-year and ten-year time frame. The published material suggests employees who have a positive work:life balance deliver real benefits to their employer through productivity gains, higher retention rates and increased honesty. Each has a cost avoidance component associated with it that can also translate into improved shareholder value. There also are studies showing a positive correlation between work:life balance and customer satisfaction.
Q: I've been reading medical literature indicating that long-term stress has negative health implications. I also read an interesting report that looked at Boeing Aerospace and Lockheed Martin retirees that suggests the longer you work past age 55, the shorter your life span. One hypothesis is that the body is not able to recover as easily from the health damage of sustained stress. What are your thoughts on the potential impact a life with balance in Ohio might provide?
A: There is no doubt that work:life conflict leads to stress and that stress has a negative impact on health. Over the long run, the implication is a greater utilization of health benefits by employees. Therefore, if you can replace work:life conflict with work:life balance, an employer should realize a reduction in health care costs over time. This would clearly provide an opportunity for improved shareholder value.
To my knowledge there have not been any specific studies run to look at the health impact of Ohio's lifestyle as it relates to stress. But, logically it makes sense that the ability to achieve work:life balance in Ohio would have a positive effect. Top-of-mind, a key reason why work:life balance is easier to achieve in Ohio is that the pace of life is less frantic. The transportation infrastructure makes it easy to get places, so travel stress is reduced. The infrastructure is "right sized" for the population density so it can handle the traffic flow. You only have to drive once in L.A., D.C., Chicago, Boston or New York City to appreciate how much stress can be induced because the transportation infrastructure isn't sufficient to accommodate the demand on it. Another reason may be that in Ohio, people are transparent and honest to deal with. There is less "gamesmanship" in interactions and people can be themselves. It can be very stressful to always have to "be on" in every interpersonal interaction for fear of being taken advantage of. You don't have to do that in Ohio because there is genuineness to the interactions here.
Q: I have been hearing from the experts that the best and brightest of Generation Y value a location's ability to deliver work:life balance when selecting a job. Is this consistent with what you are hearing and reading?
A: When it comes down to having a job versus not having a job, then location isn't the driving factor. But when we talk about recruiting the "best and the brightest," these graduates have options and the ability to have the time to enjoy life is a key consideration in their final decision. I believe Ohio has great appeal. You can essentially choose the lifestyle that best suits your personal needs in Ohio. If we just consider Cleveland, Columbus and Cincinnati, each has very unique characteristics and cultures. However, they all have a lot of cultural and academic resources that can contribute to a balanced life. Another reason I believe Ohio has appeal to Generation Y is that we have a hard time convincing graduates from our university to leave Ohio. Their desire to find employment in Ohio is a great testimony for the ability to find work:life balance, but it doesn't help our university's goal of creating an even stronger national image. Another phenomenon I find telling is that many of the graduates from Ohio colleges and universities who do leave the state come back when they get married and want to raise a family. It speaks highly to Ohio as an ideal place to create a well-rounded life.
Q: Do you think that an executive who chooses Ohio is in any way disadvantaged in his or her professional career?
A: I don't think making the choice to live and work in Ohio presents a disadvantage. The state has a very diverse population that provides cultural exposure and an exchange of ideas. In part, the number of colleges and universities in Ohio that seek to enrich the international representation of their student population drives this. At The Ohio State University, we have a strong focus on ensuring our graduates have a global perspective and the opportunity in their academic career to study abroad. Additionally, Ohio is home to 59 Fortune 1000 company headquarters. These companies have a global footprint and recruit employees from around the world to work in their headquarters. These professionals contribute to the diverse tapestry of Ohio communities. Finally, it is so easy to travel from Ohio to anywhere that professional seminar and learning experiences are within reach. I really do not believe an executive is disadvantaged at all if he or she chooses to live and work in Ohio.