Startup culture promotes organizational strategy that emphasizes open-communication and has a relatively flat hierarchical structure, the primary benefit being a less stuffy work environment. Stereotypically, this laid-back vibe is usually accompanied by amenities ranging from office happy hours to video games to ping pong tables and beyond. On the surface, it's the ideal workspace, an area in which frequent breaks aren't just allowed, but encouraged. As long as you get your work done, you're free to do as you please. With just 15% of 2015 graduates preferring a job at a large corporation it would seem that this Disney World-ification of the business world is beginning to stick. That said, when these practices are implemented, reality doesn't always live up to the ideal.
For all of startup culture's attempts to make the workplace fun, they often run into various issues regarding, you know, business. When a company spends money on cool perks, this often means one of two things. On the one hand, it's possible that the company is doing so well that they have the extra cash lying around to host sushi lunches and have FIFA tournaments (more on this later). On the other, this can be a telltale sign of a company that's mismanaging its finances and chasing a luxury office life that it can't afford. There's nothing sexy about balancing the books, but that's the thing that keeps the lights on.
Some offices even offer their employees games - like foosball
Sometimes though, the scenario is such that a company can provide all of the comforts associated with the typical startup without bankrupting itself. While it sounds great, this isn't necessarily a good thing. Obviously, everyone wants their job to be fun. They want a flexible schedule that allows them to decide when and how their work gets done. But the problem is, when there isn't a fixed schedule or the office is full of toys, it's pretty easy to get distracted, and employees often end up working long hours to compensate for all of the nonessential work events. On top of this, when there isn't a rigid hierarchical structure, people assume there aren't rigid power dynamics. This is a mistake, and when the lines between boss and co-worker start blurring, it becomes a particularly difficult tightrope to walk. Especially since America puts a pretty low premium on work-life balance, and our social lives tend to be spent mostly with our coworkers. This intermingling can feel rather constricting, considering that it leaves very little time to not be on. It can also lead to nauseating conversations with not-your-managers in which they say things like I'm putting on my friend cap. The power dynamics in this world tend to resemble that of a school playground rather than the fixed, almost militaristic structure of 20th century corporate America.
This isn't the only way in which startups buck corporate trends. While they lack in work-life balance and financial stability, startups make up for this by providing people the opportunity to be a part of something from the get-go, allowing people to feel as though they're an integral part of their team. As said and repeated ad nauseum, millennials want jobs that give them purpose, and startups are particularly good at facilitating this desire. This changes the fundamental structure of what a work environment is. Work is no longer a place where one goes and receives payment in exchange for his/her services. The world of the startup is predicated on making its workers' jobs an extension of themselves.
Team building at the office
The 2017 film The Circle, while so terribly written that it may have destroyed Emma Watson's career, attempts to deal with the problem surrounding tech companies and the cult of personality that tends pervade within them once they hit critical mass. If you ignore the plot, horrible acting, and bad writing, the film actually gets one thing right. It portrays a tech company in which employees' identities are so firmly linked to their roles at work, that they pursue the company's goals without ever thinking of their (the goals) effect on the outside world. The result is surveillance technology that places an extreme amount of extrajudicial power in the hands of the company's CEO, Tom Hanks. What this film tries–and mostly fails– to portray, is a neo-feudalistic society, in which workers live on an isolated compound with only their fellow employees, living solely for their company, as if it were its own nation with managers acting as vassals.
Emma Watson in "The Circle"
The road to corporate feudalism isn't going to be paved by guys who look like Don Draper. Suits and ties and constriction are the ways of the past. The real way to trick someone into spending 100% of their time working, is to convince them that they're not working at all. It's important notice how plenty of already successful companies, noticing their employees' envy, are starting to implement the same types of incentives as their smaller competitors. This isn't to suggest that there's some sort of worldwide conspiracy to turn workers into slaves, but rather to shed light on an important trend; namely, that startup culture is being co-opted by plenty of companies as a means of convincing their employees to work longer, harder, and at a rate that doesn't correspond to their pay. Now more than ever, potential employees have to be vigilant during the interview process. When in doubt, fall back on the old edict: if it sounds too good to be true, it probably is.
Matt Clibanoff is a writer and editor based in New York City who covers music, politics, sports and pop culture. His editorial work can be found in Pop Dust, The Liberty Project, and All Things Go. His fiction has been published in Forth Magazine. Website: https://matthewdclibanoff.journoportfolio.com/ Twitter: @mattclibanoff
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.