Why does bad management even exist? Not only does it make you miserable: It makes you no money either.
Bad management leads to bad morale and bad results. Anyone who’s worked for a badly run organization has seen this in action. And fresh evidence comes from some amazing new research on mutual-fund companies from Elias Ohneberg and Pedro Saffi at Cambridge University’s Judge business school.
In a nutshell, they found that if the employees at a fund company are unhappy, the company’s mutual funds are likely to produce poor investment results. If the employees are happy, there’s a good chance the funds will perform really well.
“Mutual-fund managers [who] work for companies with higher employee satisfaction perform better,” they say.
Saffi tells me that the performance gap between funds at the happiest companies and those at the unhappiest works out at around 1.44 percentage points a year.
This is the result of a deep and detailed analysis. The pair looked at 437 mutual-fund companies managing a total of 3,266 funds. They studied them over a full 10-year period, from 2009 to 2019.
How did they measure employee satisfaction? They looked at all the reviews that staff posted at Glassdoor.com, a website on which employees give job seekers the inside dope on what it’s actually like to work somewhere. They focused specifically on employees who had job titles relevant to mutual-fund performance, typically meaning titles related to research, trading and fund management.
And then they looked at the performance of the companies’ funds against their benchmarks.
Just a 1-point increase on the 5-point scale of average employee satisfaction leads to 0.36 percentage point in “alpha” or higher investment performance, when adjusted for things like investment style and objectives.
This was only true when they measured the satisfaction of employees working on asset management jobs, and not for those in the rest of the company, they found.
Do the funds perform better because the employees are happier — or are the employees happier because the funds are performing better? Saffi tells me he and Ohneberg can’t be sure, but they ran a clever test to see if they could find out. They looked at mutual funds at fund companies that were taken over by happier companies. The result? Those funds ended up doing better — much better.
It’s a heroic research study. And it’s intuitive. With apologies to Tolstoy, who once wrote that “every unhappy family is unhappy in its own way,” unhappy organizations tend to share a lot of similarities, including “busywork,” bad processes and self-serving bosses who are deeply cunning morons. The employees work longer hours but achieve less. A lot of energy is wasted on internal conflict.
The question is why these organizations persist. As Ohneberg and Saffi show, they are bad for business as well as bad for everything else.
Personally, I blame management consultants. (I used to be one.) They help keep client firms alive that should be allowed to die.
Oh, and the U.S. came out on top of all the regions in the world. Just 14% of European workers felt engaged at work. A third of workers in India and adjacent countries felt a lot of anger during the workday.
Gallup estimates — guesses — that low employee engagement costs the world $7.8 trillion annually, lowering GDP by 11%. Well, maybe. But, according to the new research, it costs money.
Ohneberg and Saffi don’t say which fund companies have the happiest employees. But before investing in a mutual fund, it might be worth checking the employee ratings at Glassdoor.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
