The Role Reversal: Are Employees Commoditizing Their Organizations?

The Role Reversal: Are Employees Commoditizing Their Organizations?

Earlier this week, I attended a wonderful session organized by Human Future of Work (thanks to Frank Congiu and Moses Berkowitz ), where Professors Rita McGrath and Hitendra Wadhwa from Columbia University shared some of their latest thinking on the future of work, leadership, and organizations. While the professors enthralled us and provoked our thinking, some of the in-table discussions within my peer group (a wonderful blend of both academic and professional colleagues) were just as delightful and profound.

One of the most thoughtful questions that arose during the peer group discussions: Are employees commoditizing organizations? The statement implies that gone are the days when employees considered an organization as a source of pride and identity—now organizations serve a very clear transactional purpose—a paycheck, a stepping stone, an experience shaper—and when that purpose is done, employees move to another organization without losing their stride.

Over the last few years, I have been observing, with certain despair, how organizations have commoditized their employees. They are merely skills, to be hired and fired after their skills are no longer of use. When they need to hire them, they are called ‘talent’, when they need to fire them, they become ‘headcount’. A couple of years ago, there was talent ‘scarcity’—now there is headcount ‘bloat’, often let go by a cold email and by shutting you out of the company systems without even giving you the opportunity to say goodbye.

But the discussion made me think that it is not just the employers who are commoditizing their employees; employees, in turn, are commoditizing their employers. More and more employees are staying for just one or two years in their jobs, more and more are opting to go gig—there seems to be a clear shift from corporate-based identity to self-determined identity. The modern employee has seen their previous generations go through hell by surrendering themselves to organizations which have not stood by them. “Enough is enough”, they seem to say, “I chart my own course”, seems to be the new mantra.

As this discussion evolved, Prof McGrath pointed out, paraphrasing a quote she had heard as, “Organizations have done a fabulous job of showing their employees that they are not loyal to them—and now the employees are reciprocating that feeling generously.”

Food for thought?

Madiha Ferjani

Associate Dean on Strategic Initiatives and Associate Professor at Mediterranean School of Business

5 个月

It is absolutely true for most employees. IT is like a contract. Once the organization sets performance review based on criteria that are do not prone teamwork, collaboration, integrity, belonging and impact (not easy to use and subjective, the results is commoditization. Organizations tend to use productivity, output, ... numbers! No body would de-legitimize numbers and objective metrics. However, they put much pressure on employees who then will compete with their peers. When we talk about Faculty performance as well it is the same. Are there any reliable and fair performance review approach that tries to consider this belonging, value, and promote collaboration.

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Hitendra Wadhwa

Professor-Speaker-Founder | Leading from your Inner Core

6 个月

Thanks Raghu! Very thought provoking. And simultaneously, the employees that used to be commodities - just a title/corporate logo on a business card - are now brands unto themselves, on social media, not only owning their identity but also shaping their public persona...

Thank you sharing this Dr. Raghu Krishnamoorthy. This seems to be more evident in the US markets, and it’s exactly what Prof McGrath said about how employees are basically embracing and riding the tide wholeheartedly. Companies are to be held responsible for the situation as they served it on a platter with its ‘talent’ and ‘headcount’ approach you alluded to. Was there any view on the shareholder value vs stakeholder value? Of course, assuming that employees are one of the key stakeholders. Will the lens then change for both parties? Do you and your peers believe that this shift could stem or at least minimise the commoditisation of companies? When the focus is on stakeholder value I believe it will build a culture of collaboration, innovation, and long term value. Then employees and other stakeholders would gladly embrace short term adjustments due to headwinds or circumstances beyond control while huddling together to brace the winds and steer together for mutual success. Would you agree or would you have a different pov, Raghu?

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Rita McGrath

C-Suite Strategist | Thinkers 50 Top 10 | Best-selling author | Columbia University Business School Professor

6 个月

A profound and potentially disturbing observation Dr. Raghu Krishnamoorthy. It also gets at what an organization's role really is - just like the movie business where it temporarily aggregates skills, or something more? Food for thought, indeed.

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Katy Goldwater

CHRO/CPO/Regional and International HR Leader.

6 个月

I remember about 15 years ago whilst at GE, someone offered a workshop on LinkedIn, what it was and how to use it; I remember at the time being quite shocked that we were being encouraged by our own employer to spend time building our external profile, that ultimately might (gasp) help us find another opportunity externally; I was confused but it was the new thing; better to be in it than miss out on something (it wasn’t quite clear at the time exactly what). Now it’s expected that you manage and maintain that profile whilst gainfully employed with the support and often active involvement of your employer (and their social media team). The internal job market overlaps with the external and it’s a full time job managing them both concurrently. Inevitably the perception of the green grass elsewhere has become a reality and you are constantly reminded of the (heavily pushed) perception it might be true. I think social media and the virtual talent market has made the job market far more visible to everyone and in a volatile economic climate people see movement and the loyalty issues you describe, and this fuels more movement.

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