Employer vs. Employee

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I’ll make this quick.

Two weeks ago I was inspired by a viral tweet, which led to writing a three week series I named “Tug of War”. Read here and here if you missed it. The series talks about some of the push and pull between employees and employers. This week I wrap that series with how we could start to put this war to rest.

Tug of War: Part 3

How did the relationship between employer and employee become a tug of war?

I didn’t grow up thinking these groups were in opposition. Back in the 80s, I watched my parents and other family members show a great sense of pride for where they worked. It was a big deal to work at the local steel mills, hospitals or school districts where I grew up (outside of Pittsburgh).

This feeling crossed the country and applied to companies of all sizes – smallest to biggest. Ever talk to someone that worked at GE or Microsoft back then? They will still beam telling you about it!

There was loyalty.

From employers, loyalty came in the form of regular raises and pensions. From employees, their loyalty came in the form of time – usually a 25-30 year career with the same company – and work ethic.

People were happy.

I experienced a similar type of balanced loyalty as an employee myself in the mid-to-late 2000s, before the financial crisis. I felt fairly compensated, if not a tad overly compensated as a 20 something (worked in investment banking back then). The benefits offset the long hours or other less glamorous parts of the job. I was happy. My employer was too.

Why does it feel like we are so far from finding that balance now?

Percolating Tensions

Truth be told, there is a long history of tension between employer and employee.

Like centuries long!

I put together an overly simplified version of this historic relationship, that I decided to omit in favor of keeping this short – hit me up if you are so intrigued to see it!

Long story short: Tension is always percolating between employee and employer.

No better example of that than the years leading up to the pandemic. Massive shifts in the work environment -- from technology to corporate spending, social media, and shifting societal norms, among other things -- inched us ever closer to a new era in this tug of war.

The pandemic was simply the tipping point.

At Odds with Each Other

The problem today is that we both want more than the other can give.

What we want:

• Employee: wants purpose, fulfillment and a job that’s wages reflect their extended responsibilities and the increased cost of living.

• Employer: wants a lean organization, increased productivity and expanded profitability to please shareholders who have become accustomed to such things.

Those two things are at odds with each other. A better balance must be found.

Finding Balance

This is not a problem that can be solved overnight.

To get back on the same page, I think we need to get back to basics.

At the end of the day, we are all trying to solve our customer’s problem. In its very basic form, work is a contract between employee and employer to work together to reach that goal. Within that contract there is an exchange of time and service for money and community.

If done right, the employer gets more than time and service from the employee. They get brand ambassadors, better productivity and loyalty which is worth its weight in gold.

When I look back at the periods when there was less tension between employee and employer it was because this equation was pretty balanced.

In the 80s/90s and mid-2000s employees were compensated well for the time they contributed. They felt their hard work was valued and they were cared for. That created pride and loyalty.

Companies also had lower margins and were OK with that.

Balancing the equation in this day and age is more complicated than ever.

To me the time and money part of the equation are out of whack, for many reasons. Time spent or money paid could be adjusted to create more balance. Maybe both should be? All I know is, well paid employees are typically more motivated to work hard and have greater job satisfaction.

As Ray Dalio has put it, “pay north of fair” and you will receive a high level of mutual care, respect and commitment.

I’d bet a sense of pride will emerge too.

How cool would that be?

Let’s make The Shift!

Lindsey