Long working hours but low motivation

A recent study by the University of Latvia examines certain aspects of employment conditions, such as self-assessment at work and people’s attitudes towards working overtime. The report is based on the Survey on Human Capital in Latvia. Among its findings are that Latvian workers have long working hours and low pay. However, their work is not intensive due to a range of factors, including low motivation and loyalty, fatigue and obsolete technology.

In March 2008, the Institute of Social and Political Research (Sociālo un politisko pētījumu institūts, SPPI) at the University of Latvia (Latvijas Universitātes) published the ninth consecutive report on human development, entitled ‘Latvia: Human development report, 2006/2007: Human capital’. The report focuses mainly on human resources in Latvia. However, working conditions such as self-assessment at work and people’s attitudes towards working overtime are also considered in the report.

About the study

The assessment of working conditions is based on the Survey on Human Capital (SHC) in Latvia. A total of 1,001 permanent residents in Latvia, aged 18–75 years, were surveyed at 110 different locations across the country.

A stratified random sample was used, calculated on the basis of the Population Register of the Office of Citizenship and Migration Affairs of the Republic of Latvia (Latvijas Republikas Pilsonības un Migrācijas lietu pārvalde, PMLP). The composition of the respondents reflects the profile of the adult population of Latvia, according to sex, age, nationality and place of residence.

Overall, 110 survey locations were selected randomly from the list of all populated areas of Latvia, using the number of inhabitants in the populated areas as the measure of proportionality. At each survey location, not more than 10 households were selected in accordance with instructions that specified the route principle and the starting address.

The survey used the direct or personal interview method at each respondent’s place of residence. Respondents were surveyed according to 22 groups of questions, including: satisfaction with life in general and some areas of life; the capability of respondents in different situations; an assessment of the general economic situation in the country and the economic situation of the respondent’s household; economic activity; workload and intensity of work; opinions on the respondent’s employment situation; the general employment and entrepreneurship situation in Latvia; health; and healthcare habits.

In addition to the survey, case studies were conducted in four communities.

Low work intensity and low motivation

Overall, 62% of working people agree that work plays a very important role in life, and 33% agree that work plays an important role. Although Latvian workers have long working hours, their work is not intensive. The work intensity indexes in Latvia are the lowest in the EU. In this regard, the report refers to results of the Fourth European Working Conditions Survey (EWCS). According to the EWCS, only 39.5% of Latvian workers ‘work at very high speed’ and 51% ‘work to tight deadlines’. These figures are significantly lower than the EU27 averages of 59.6% and 61.8%, respectively.

The report indicates five reasons that might cause low labour intensity: greater employee autonomy and low management control; wages that do not provide the motivation to work intensively; fatigue and overwork; delays in the work process due to obsolete technologies; and a low level of involvement and loyalty to the business.

Based on the SHC, some particular findings are mentioned regarding the five reasons for low work intensity. In terms of wages, the report highlights the fact that the average hourly cost of labour in Latvia in 2005 was 13.1% of the average EU level, according to data from Eurostat, the Statistical Office of the European Communities. The SHC indicates that 60% of employed people are dissatisfied with their income and 22% are discontent with their work. Regarding loyalty to the business, the SHC shows that during the past year one third of respondents have considered changing workplace. In addition, 39% of the population believes that dishonesty is an important element in achieving success and 65% agreed that ‘honest work would not make you rich’. According to the report, this kind of attitude does not motivate workers to work intensively and diligently.

Furthermore, the study indicates that incentives to improve the workplace environment and work relations are weak. The survey respondents did not actually complain about a lack of opportunity to introduce their own ideas in the workplace; nevertheless, such initiatives are not common. Only 16% of workers have offered suggestions on how to improve working conditions, 13% on how to improve the way that work is organised, 6% on how to improve production technology and 5% on other ways of rationalising the work process. Meanwhile, 59% of workers have offered no suggestions to introduce improvements. Employed persons in small towns and rural areas are particularly passive in this regard.

Attitude towards overtime work

Due to low wages, the majority of workers have no objections to doing overtime, with 79% of respondents stating that they are willing to work overtime. Moreover, workers have low self-esteem – only 39% of respondents consider that they would be difficult to replace, while 37% consider that it would be difficult for them to find an equivalent job. For these reasons, employees might agree to unpaid overtime. Due to the shortage of paid employment in rural areas, more respondents in these areas tend to agree with the statement that ‘to make more money, most of my acquaintances are willing to work overtime’. In total, 85% of workers in rural areas gave this response, compared with 68% of respondents in the capital city, Riga, 80% in towns and 69% in major cities.

Commentary

The study was conducted before the period of rapid wage growth that occurred in 2006–2007. The tight labour market situation, where emigration served as an important accelerant, caused strong wage pressure. Employers had to revise their plans towards sharp wage increases, which left no room for improving working conditions.

At the same time, employers consider the demands of employees to be unjustifiably high. By using old technologies and cheap labour, many businesses in Latvia are capable of existing only if workers agree to work long hours for low wages. Many employers lack the ability and desire to invest in technology use or rising productivity, both of which would make it possible to improve working conditions.

Raita Karnite, Institute of Economics, Latvian Academy of Sciences