Olympics: have london businesses dropped the ball?

Olympics business opportunities speed past.

With just days to go until the start of the Olympics, London is heading down the home straight. But as athletes settle into the Olympic village, many businesses and their employees have yet to begin their preparations.

London expects 5.3m visitors over the next few weeks. Already overstretched, the capital’s transport system could face nearly a million extra journeys per day. But despite repeated warnings of unprecedented disruption, a Populus poll commissioned by Global Action Plan has found that businesses nationwide are unprepared, with only a fraction putting in place contingency plans to avoid the expected commuter and delivery chaos. Just one in five employees say their company has a strategy for the transport of essential goods and services crucial to keep their business running. In London, only a quarter of employees say their business has plans to help them get to work.

How will companies and commuters cope? Worst case scenarios – involving people sleeping in offices – are perhaps not as unrealistic as first assumed, with several lines already closed for many hours before the Games have even started. Yet despite these travel difficulties the reality is that businesses are missing the opportunity offered by the Olympics to boost productivity, reduce costs, cut the damage they cause to the environment, and radically change travel and work patterns.

Telefonica O2 recently held a flexible working day at their head office to prepare for this summer’s disruption. Just 109 cars arrived in the car park that day compared to an average of 1,100. By taking so many cars off the road carbon emissions were cut by 12,500kgs. For staff, a survey found that 88 per cent of employees felt that they were as least as productive as normal on this flexible working day. A third felt they were more productive, with over half of respondents saying the time they spent commuting was used for working instead.

The Olympics are a once-in-a-lifetime opportunity for businesses to revolutionise the way they work and travel. Although the Olympic clock has reached its final countdown, it is not too late for businesses to prepare for the chaos. Our five point plan offers businesses clear, practical and simple steps they can take to avoid the chaos of the next few weeks and the longer term.And it’s not just the athletes at the Games that should compete. Offering prizes and providing quarterly feedback of miles travelled and carbon saved can foster a friendly spirit of competition and collective responsibility to reduce commuting and business travel.

It’s a win-win situation for both employers and employees, changing work and travel patterns for good. Even if plans are not put in place in time – the Olympics can be the catalyst to thinking about doing things differently.

12 years ago in Sydney, the Olympic Games resulted in 24 per cent of Sydney employees changing their working hours and 22 per cent worked remotely during the games. Replicated here, businesses can create a meaningful green Olympic legacy, not just in London but throughout the UK.

Have london businesses dropped the ball? Photograph, Getty Images

Trewin Restorik is the CEO of Global Action Plan.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”