Skilled labor jobs, and the other greatest myths of Olympic economics

The race is not to the swift, nor the battle to the strong it seems. In fact, as far as long term economic benefits go, the Olympics are a game not worth playing. Here are the five myths that most need debunking when it comes to lighting that eternal flame. 

1.      You’ll make the money back in tourism during the games

No you won’t. Mostly the tourists are coming anyway. They will simply change the timing of their visit to coincide with the games. Mable and Homer Tourbender from Rhode Island are going to go to London to see Buckingham Palace and meet Mary Poppins anyway. Now they’re going to do it while the games are on. They’re not going to make two visits. They were always going to make one visit. The net result – zero. What's more, the vast majority of attendees are your own locals, taking advantage of the opportunity of a lifetime. 

2.      OK, you’ll make the money back over the next few years in tourists

Been to a lot of professional synchronized swimming?
Photo: Tatiana Morozova / Shutterstock.com

Sounds logical. Trouble is it turns out there’s a huge amount of empirical evidence that points to the contrary. Studies of twin cities (cities nearby that are comparable to the host city in every respect other than hosting the games) suggest that the host city enjoys no greater increase in any trend afterwards.  Melbourne faired no worse than Sydney; Charlotte faired no worse than Atlanta. The only difference was the enormous bill that the twin city never had to pay.

3.      Local expenditure means local economic benefits

Yes OK, but beware the assumption that all the money spent locally is actually local. So you bought a product made in China and owned by a company head quartered in New York. How much is that really benefitting Atlanta? It’s not the $40 value of the sweatshirt, it’s the relatively small margin the shopkeeper is making. This applies to everything.

4.      You get all the new infrastructure to use in the future – that’s good right?

It is if you use it, yes. But exactly how valuable are the additional sporting facilities that you’re building?  Given that – rather obviously in all fairness – you didn’t need any of them enough to build them before you became an Olympic city, why will you need them afterward? Please see the Birds Nest in China (the birds have flown) or the many venues in Athens (that will soon resemble the Parthenon.)

There are sporting arguments that these facilities foster the future of non-central sports. For example, there are those who attribute the success of Britain’s gold medal (and Tour de France) winning cycling team to the development of major cycling facilities in Manchester ahead of the hosting of the Commonwealth games there in 2002. A case of ‘build it, they will come’? Maybe so, but just because there’s a sporting benefit, doesn’t mean there’s an economic one. All those sporting clubs and hopeful kids that spring up around your new velodrome aren’t paying you for it, and the cluster of people who come to watch aren’t filling the stadium for £100 a time once a week, which is what you need if you’re going to pay for it.   

5.      It creates a lot of skilled labor jobs during the infrastructure process

This, as you might expect, is my favorite one. You create  skilled labor jobs during the infrastructure process. And skilled labor jobs – mostly engineering jobs – don’t create jobs for the unemployed. They create new job options for those already employed. If you’re going to build a velodrome you need experienced welders, mechanics and design engineers. All of these guys are already working. What you’re actually doing is affecting local projects that were employing these people by encouraging them to leave those engineering jobs to join the higher profile Olympic jobs. As for the temporary Olympic jobs – security or administration at the games – they’ll all be gone as soon as the athletes are.

So here’s the bottom line. If you’re going to bid for the games, make sure you lose. There’s reasonable evidence to suggest that those who put out convincing $100m bids for the games actually get much better value for their money. They get the exposure of being associated with the Olympic brand, but they don’t actually have to build a planet sized swimming facility, which turns out to have all the long term value of… well, of a velodrome. 

Richard Spragg writes on various subjects including global engineering staffing and skilled labor jobs

Going abroad for work? Take a lesson from the Governor...

Former Governor and Presidential candidate Mitt Romney, 

Image: Chris Devers (Wikipedia Commons)

If you think you’re having a bad week, just imagine how Mitt Romney feels. We don’t do politics here (see many earlier blogs, about politics at work) but I know a guy having a bad week at work when I see one, and there are lessons to be learned from the Governor by anyone planning to spend time travelling abroad on business.

Engineers are as likely as anyone to find themselves flying somewhere for work. Almost all of us, whatever our role in the industry, are to some degree working global engineering jobs. Whether the global element is regular and demanding, or relatively infrequent, chances are you’re going to spend some time abroad at some point. Here are my Top 5 tips for making friends not enemies when you're on the road.

1.       Prepare.

Do your homework. There’s nothing worse than meeting someone who has made no effort to learn anything about you, despite having known in advance exactly where they were going and who they were seeing. Forgetting people’s names will not help you get on their good side.

2.       Speak the language. (Two words will do.)

The vast majority of international business is conducted in English. While this is widely understood, you would be well advised to treat this as a luxury rather than an entitlement. A sincere ‘Bonjour’ or ‘merci’ will reset the expectation in any room. Conversely, forgetting that the country you’re visiting speaks the same language as your country and bashing them for, let’s say, inadequately preparing for the Olympic games, will also change the atmosphere in any room.

3.       Know your stereotype and push gently the other way.

We all know very well that international stereotypes are mostly unfounded and often just plain xenophobic. But they do exist. It does you no harm to be aware of what prejudices await you and to make sure you’re gently combating them out of the gate. If you represent a culture where others will expect you to be late for everything, arrive ten minutes early. I’m British, I’ve lived in America for years. Believe me I have a dentist on speed dial, I’m very outgoing and I drink my beer very, very cold.

4.       Say ‘Yes’.

I know you might be tired when you’re travelling. You may have started fantasizing about watching the game while you eat room service in your boxer shorts. You may be looking forward to your gym work out, but if you’re asked to go to the karaoke bar with your new acquaintances, you need to go. An offer of inclusion may not simply be a casual invitation because you’re there. It means something to people when they invite you to spend time with them. You’re not just turning down the happy hour beer, you’re saying no to them. Say yes. See the game on Sports Centre later.

5.       Follow Up personally.

If you spend personal time with someone, follow up personally. The business reason that you went will always be there, but if you made some personal progress, don’t forget to actively follow that up too. Thanking people is a great way to be liked. When you come back from your trip, make a point of thanking people, even for small things. Nobody ever objected to being thanked, especially publicly. (Unless your meeting was, for sake of argument, a secret meeting with the head of a country’s covert intelligent services.)

Business travel can be exciting, interesting, challenging, tiring, disappointing, boring and fascinating in every way. It can vary day to day and person to person, especially with the variety you find on most global engineering jobs. But if you take time to understand the place you’re visiting and make a real effort to create a good impression, it’s highly likely that you will create that impression and that the benefits will stay with you.

The negative effects of ignoring these rules will stay with you too. That’s a lesson I suggest you leave the Governor to learn on his own.

Richard Spragg writes on various subjects including global engineering staffing and global engineering jobs.

What get’s tweeted gets done. Can Social Media provide accountability for our businesses?

According to Seb Coe, the former British 1,500m Olympic champion, there’s a correlation between how much you tweet and how you perform.

Lord Coe expressed concerns
that tweeting is a distraction 
for Olympians.

Lord Coe, who is head of the British Olympic Organizing committee, noted this week that the people who find time to tweet, also seem to find time to lose.

“I have found quite a close correlation between the number of tweets at competitive times and the level of under-performance,” says his Lordship.

It’s an interesting question for sure. To what extent can social media updates, that require such a small input of time and energy, distract you from what you should be focused on?

Colleagues of mine spend a lot of time defending social media, because it takes so little to fire out a tweet, or update Facebook. I think it’s a reasonable defense.  The question is really what the wider cost is. What Seb Coe seems to be saying is that talking to your audience a lot, may put you at risk of disappointing them.

But if you think about it, there are also positive possibilities. To what extent do we alter our behavior in order to satisfy our virtual audience?

I know people who like to sound clever on Facebook updates. No kidding; I have had people confess to me after a couple of beers that they make a real effort to sound smart and engaged when they post. They feel like it’s a way to make a good impression, on friends, on family… they’re fueling their own ego. They will read news sites and newspapers, looking for the day’s smart story, so they can be seen to post it. If that sounds pathetic, OK – but they’re still reading the newspaper. They never did before. In their attempts to look engaged, they have accidentally become engaged.

Another friend of mine posts all his runs to Facebook, via the Nike + app. So-and-so has just completed his 3.01 mile run in 28 minutes. He claims to train more often and run faster because he knows it will be seen and measured.

In reality Social Media represents a great way to encourage accountability. What gets measured, gets done, right? So why not openly encourage your staff to post their successes on every social media? Even create your own social media networks inside your company to encourage bragging. It might help the staff reach to achieve for something to brag about.

So the end of the day, an Olympic athlete shouldn’t need Social Media to report on progress. They should have medals to wave around. They should have newspaper clippings.

But for the rest of us, there’s no harm in wanting to look better, especially if it encourages us to actually do better. 

Do you have thoughts? Can Twitter help with productivity? Should athletes put the smartphone down?

Richard Spragg writes on various subjects including global engineering staffing and global engineering jobs.