Leadership Thought #484 – Regaining Leverage in The Employer-Employee Relationship
Employee engagement doesn’t mean coddling or succumbing to every employee’s need or whim. Employers typically have more leverage in the relationship. Lately, I’ve watched as many of you have allowed the power dynamic to shift unexpectedly. Given the scarcity of talent and the limited supply of qualified candidates, you may inadvertently be giving too much power to specific individuals and making unnecessary concessions. We have authors and speakers who have built careers on advising you to treat the younger workforce differently. The gist is to focus on their needs, not yours. Yes, the Millennials are different in certain respects from preceding generations; however, they still rely on you to provide their employment—don’t ever forget this. They need you more than you need them.
The most successful relationships are mutually beneficial. Both parties contribute, and they should both benefit. However, it is naïve and even dangerous to think that both sides carry equal weight in the discussions. Of course, “A” players have options. They are also a minority of the population and equally subject to geographic and market constraints. You should treat them well because the ROI is obvious. Losing them often causes business pain and involves some short-term discomfort. Even given this reality, my experience is that most organizations survive their departure anyway and that time heals the organizational wound. Moreover, it is always advisable to view every job opening as an opportunity to advance to that position.
All employees aren’t created equal when it comes to their workplace performance and commitment. This holds true regardless of the generation they represent. What employers need to do is create an environment that acknowledges and rewards the performance of the few while also setting standards of appropriate behavior for all. It is not only acceptable but also necessary for companies to establish clear behavioral and performance expectations for all employees. Most employees aren’t and never will be “A” players (15-20%). If your “B” players (50-60%) do what’s asked, keeping them is smart, but they can be replaced if they ask for too much. Your “C” players (15-20%) should be identified and removed from the organization promptly. They are a toxic drag on everyone else and chip away at your leadership credibility whenever they can.
The employer-employee relationship is inherently transactional in nature. Companies expect their staff to fulfill their job responsibilities, and in exchange, they receive payment. No one would stay at a workplace for long where they weren’t getting paid. And, why would you continue to pay someone who isn’t performing the role they were hired to do? Despite what the media and some thought leaders say, they need you more than you need them. This doesn’t mean you take advantage of this fact, but you understand that being an employer implies a certain responsibility because of this dynamic. To paraphrase an adage, “you can judge a person’s character based on how they act when they have power over someone else.”
Employees require eight basic things: 1) clarity on what’s expected of them; 2) the tools/training to do their job properly; 3) the ability to work in a safe and ethical environment; 4) regular constructive feedback on how they are performing; 5) a fair wage for a fair day’s work; 6) being surrounded by colleagues committed to doing their jobs properly (who are being held to this standard); 7) opportunities for advancement and growth should their interests and efforts warrant this consideration; and 8) to work for a leader who makes business decisions sufficient to reasonably secure their future employment.
If you meet the above requirements, you are in decent shape because most companies aren’t. If you have employees with extensive experience working elsewhere, they will likely share this information with you. Instead of worrying so much about everything else you’re not doing, focus on these basics. Employee perks are nice, but rarely game changers. The fact is that even good employees seldom stay with one company for the entirety of their career anymore. Employee turnover is an unpleasant fact. Accept it and manage it. Don’t overcompensate or yield your authority in hopes of being different.
Just as a good parent sets clear expectations and creates healthy boundaries with their children, employers need to do the same. The major difference is that, unlike our children, we can decide to exit the relationship at our choosing (as can they). Additionally, as previously mentioned, the relationship is founded on a transaction. Like it or not, if you allow your employees to push your boundaries, they will, and unless you take action, this will teach them that it is acceptable to do so. Selective listening will emerge if active listening isn’t encouraged. Accountability will wane if discipline and personal responsibility are viewed as optional rather than essential requirements. Acting out behaviorally will become acceptable if it is left unaddressed.
Employees now, more than ever, have unrealistic expectations about what you should provide for them. If they believe themselves to be extra talented, which many of them do, then they will want special treatment. If they know there is a labor supply issue in your market, they may try to hold you economically hostage. Please do not succumb to unrealistic expectations. It is your responsibility to be transparent with them from the outset about the employer-employee contract in your organization. “This is what we expect of you, and this is what you get in return with minimal exceptions.” The guardrails should be visible and enforceable from day one. Don’t start by losing. The goal should always be win-win, but the balance of power is weighted in your favor (the employer’s).
Talented individuals seek to collaborate with like-minded colleagues in a supportive environment that fosters meaningful work and provides numerous opportunities for growth and learning. They want to know what success is and how they contribute to this outcome. Boundaries are not just okay but critical for this to happen. Pushback beyond the scope of these issues is a waste of energy on all sides. Everyone, including you as the leader, is replaceable. Most employees want a leader who is confident, clear, consistent, fair, and intelligent in their actions. Employers want employees who consistently perform their job well with minimal drama while adhering to the organization’s values. Anything beyond the norm is window dressing….
