Rediff India Abroad
 Rediff India Abroad Home  |  All the sections


The Web

India Abroad

Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article

Home > Business > Special

Drinking helps your career? Maybe, CEOs say

Peter Hoy, | October 16, 2006

While many were quick to dismiss the findings of a recent study showing that drinkers make more on average than those that abstain from alcohol, a number of CEOs cite a direct connection between socialising and career advancement.

Regular drinkers make 10% to 14% more money than those who do not drink, according to the study, conducted by the Journal of Labor Research, published quarterly by the Department of Economics at George Mason University, and the Reason Foundation, a Los Angeles-based think tank.

The study also concluded that men who drink socially -- defined as visiting a bar at least once a month -- earn an additional 7% more than those who do not. The same correlation was not found for women, however.

Simply wishful thinking? Perhaps not. CEOs, particularly those running smaller, fast-growing companies, say that social and professional networking is an essential business tool. And while Johnnie Walker and Grey Goose may not actually be career wonder-tonics, the reality is that a significant amount of this networking takes place at company happy hours and other social events involving alcohol.

Edward Stringham, co-author of the study and professor of economics at San Jose State University, concluded that drinking is a productive activity because it increases social capital -- an economist's way of saying that going out for a beer after work and schmoozing will form useful relationships, both social and professional, that can turn into job opportunities.

CEOs say they see merit in the theory. "I would definitely agree with that," said Paal Gisholt, CEO of SmartPak, a 125-employee pet-supply company based in Plymouth, Mass. "The days of command-and-control management are over. Nowadays, influence has everything to do with developing relationships."

At SmartPak, managers are encouraged to take their employees horseback riding, bowling, or out for the occasional happy hour. The company hosts Halloween parties and a monthly barbeque -- even renting a mechanical bull for one event.

"Socializing underlies strong selling skills, and in a company like ours, success is tied to your ability to sell," Gisholt said. "Alcohol can induce confidence, and that helps with people skills."

But there are, of course, drawbacks of emphasizing drinking as a part of company culture.

"It has the potential to be unfair for those who don't drink," Gisholt acknowledged, noting that he saw both positive and negative effects of social drinking at a consulting firm where he worked before founding SmartPak in 1999.

It also doesn't help your career to show up for work with a hangover, not to mention the long-term health risks that alcohol carries.

The National Institutes of Health, based in Bethesda, Md., has numerous studies showing the detrimental effects of alcohol on physical and mental health, including correlations between alcohol use and birth defects, neurological disorders, violence, stress, liver disease, and brain disease.

A spokesman at the National Institute on Alcohol Abuse and Alcoholism, which is part of the NIH, said that although the group had not yet reviewed the study, it remained dubious of its claims.

Mary Naylor, CEO of VIPdesk, a corporate concierge service, agreed that social networking within her company is vital. "In terms of a sense of belonging and value, it is especially important as your small company grows larger," said Naylor, whose Alexandria, Va.-based firm now has 200 employees.

Naylor maintained, however, that "alcohol has not been a core component of company events," and insisted that positive relationships can be achieved just as easily without it.

"I'm sure there are many people who will disagree with my hypothesis," Stringham conceded. "But decisions about alcohol are choices individuals have to make, and my study points out some beneficial effects -- economic effects -- that have been largely ignored by other researchers."

Powered by

More Specials

Share your comments

 What do you think about the story?

Read what others have to say:

Number of User Comments: 16

Sub: Useless research

It is very silly and useless. Definetely drinking is not going to improve anybody's skill or attitude instead it destroys them. Drinking aiding career means, ...

Posted by girish

Sub: Bonding

Social drinking is the best way to bond with people. You can learn whats happening in ur firm. who is hitting who etc. Also informaly ...

Posted by Vish

Sub: Sounds funny

This sounds really funny to me. There are many ways of socialising than to opt for drinking alone. May be this option is true, so ...

Posted by Pradeep Amalraj

Sub: Very true...

I am a teetotaller myself, but have seen this very fact happening. This is even truer with European organizations, where office politics plays a central ...

Posted by NL


Smoking also needs to be included in this as well. But I am neither a smoker nor a drinker, so I make less money. :) ...

Posted by Sudu



Copyright © 2006 India Limited. All Rights Reserved.