I've been thinking about the importance of developing sustainable relationships in business. The most important of which is the relationship between the employer and employee. The term sustainability has increasingly become commonplace in our language. However, this term is usually intended to mean what other people do, what corporations do and what government requires us to do. I'm using this term in a very different context, I'm using it in the context of the sustainability of your own livelihood. In the context of the employment relationship sustainability means developing Win-Win relationships.
As an employment consultant I am constantly discussing with jobseekers and employers what they hope to gain from the employment relationship. The employer is seeking to solve a problem and a get a job done, while minimizing their costs. The jobseeker hopes to maximize his or her income and be employed in a role which they enjoy. Rarely, does either party give much thought to the needs of the other.
The only relationship that gives both the employer and employee what they want is the Win-Win relationship. The Win-Win relationship is defined by the fact that both parties are benefiting from the transaction. The employee earns income that adequately compensates them for their time and effort while performing a duty that they find rewarding. The employer gains the services of an employee that exceed the full cost of employing the employee. This includes, the cost training, supervision and any financial costs. This relationship is sustainable.
The Loss-Win Relationship is one where the employee is not maximising their income or enjoyment in the role. This relationship is extremely common. This can occur when an employee gets a promotion without pay, is taken away from duties they enjoy performing for the short term benefit of the workplace. Or where an employee feels trapped in a role that they don't enjoy or feel is underpaid due to the state of the labour market or their own fears. Often, companies fall in the trap of overburdening their better workers or not providing enough growth opportunities for such people.
An example of a Loss-Win relationship happened a few years ago to a friend of mine who realized she was being underpaid and asked for a wage increase in line with a market rates. This person was told that she was an older woman and would not be able to find a better offer. She did, and when the employer finally offered the pay increase, she wasn't interested.
The Win-Loss Relationship is the opposite, In this relationship the employee benefits from pay and conditions that exceed the market value of their work. These kinds of can happen when the employee slackens off or benefits from asymmetric information about their work to do less then they are paid for. These kind of relationships can happen when an employee becomes demotivated and decreases their productivity or in situations where the cost of low productivity can be passed onto a third party. While sometimes employees in a Win-Loss relationship may consider themselves lucky, they are really in an unsustainable position and will in the long-run find themselves far less employable then people who operate on the basis of win-win relationships.
The Loss-Loss relationship is also very common where neither the employer or employee is benefiting from the employment relationship. A common example of this kind of relationship is where an employee has stopped being productive and is unhappy in their position but doesn't find another position. Unfair dismal laws can make it difficult for employers to terminate the employment relationship with such employees. However, this situation is terrible for both parties and I recommend anyone in this situation look for another position or if you're the employer have an honest conversation with the employee and assist them to find another position.
Developing Win-Win relationships is not just something that happens at the beginning of the relationship. It’s a constant ongoing practice. It requires employees to operate with honesty, integrity and diligence. It’s the acceptance of the fact that the only increase in pay and conditions come from increased productivity. Likewise employers needs to create an environment where win-win relationships are possible, people can grow and acceptance that increases in productivity and quality work must be rewarded.
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