The Ugly Truth about Employment Relationship, or How the Fabric of Work Should Be Rethought

Several events in the past months have prompted deeper reflection on what underpins the core of the employee-employer relationship. One phenomenon was the widespread layoffs that affected various industries globally, with the Tech industry, which once saw itself as invulnerable, being hit the hardest. Another event was my job change, which exposed me to a different mindset and culture centred around a mission, in contrast to my previous experiences with private companies. This change also introduced me to new interactions with parts of the world I hadn't engaged with before. Lastly, I discovered the power of AI through both direct interactions with ChatGPT and its assistance in my daily work, as well as witnessing the astonishing work our teams are accomplishing.

These collective experiences have led to a clearer articulation of the essence of the relationship between employers and their workforce. Before delving into the heart of this topic, let's align on certain concepts I intend to use.

Firstly, 'relationship,' as defined by the Cambridge Dictionary, refers to the way in which two or more people are interconnected or the manner in which they behave with each other. While relationships can extend to interactions with entities, it's interesting to note that examples tend to revolve around relationships between humans and other humans playing various roles within those entities. This, in my view, leads to a common error where institutions and brands are anthropomorphised, with the expectation that human needs will be satisfied by the organisation. In reality, it's the responsibility of leaders at all levels to address these needs. Failures, if they occur, are personal, and should not be attributed to an abstract 'entity.'

The next concepts to clarify are 'codependency' and 'interdependence.' A healthy interdependent relationship involves mutual give-and-take; both parties offer and receive support, encouragement, practical help, and the like. On the other hand, codependent relationships feature one party providing most of the support without receiving much in return. In the natural world, organisms and populations depend on interactions with other living entities and non-living factors in their environment, any of which can impose limits on their growth. Competitive, predatory, and mutually beneficial interactions differ across ecosystems, yet the patterns remain consistent. If we apply these concepts to the employment relationship, my stance is to advocate for an environment that values mutually beneficial interactions, urging both business leaders and employees to cultivate an interdependent, constructive, and healthy rapport.

Let's start by considering what business leaders can do for their team members. I strongly believe that one foundational principle of the employment relationship should be to 'solve for need.' To illustrate, let's take a look at human needs

Basic Physiological Needs: These are the fundamental requirements for survival and include necessities like air, water, food, shelter, sleep, and clothing.

Safety and Security Needs: Once physiological needs are met, individuals seek safety, stability, and protection from physical and emotional harm. This includes personal security, financial security, health, and having a stable environment.

Belongingness and Love Needs: Humans are social beings, and they have a need for social connection, relationships, love, and a sense of belonging to groups or communities.

Esteem Needs: This category includes both self-esteem (confidence in oneself) and the esteem and recognition received from others. People have a need to feel respected, valued, and appreciated.

Cognitive Needs: Human beings have an inherent curiosity and desire to understand the world around them. This includes the need for knowledge, learning, and intellectual stimulation.

Aesthetic Needs: Aesthetic needs involve the appreciation of beauty, whether in art, nature, or the environment. This need is linked to emotional and sensory experiences.

Self-Actualization Needs: This is the desire to reach one's full potential, to pursue personal growth, self-improvement, and to become the best version of oneself.

Transcendence Needs: In some theories, individuals seek to connect with something beyond themselves, whether it's spiritual, moral, or a sense of purpose beyond individual interests.

I believe that organisations that intentionally educate their leaders to consider these needs in building sustainable relationships with their team members will ultimately succeed in the long run. I could easily summarise that business leaders are responsible for creating the right environment where people can EARN to help them satisfy basic physiological and safety needs. This isn't about creating dependency, but rather fostering independence, that's why it should be more than just for survival. Another crucial aspect is the responsibility of business leaders to create a context for LEARNING and GROWTH, where team members can continuously learn and realise their potential. Additionally, business leaders need to facilitate the BUILDING of AUTHENTIC RELATIONSHIPS, where team members experience affection, recognition, and appreciation. Finally, if business leaders aim for their employees to thrive and be fully committed, they must articulate a MISSION that attracts individuals with a shared sense of purpose, fostering a strong and united team.

In summary, this employee value proposition cultivates robust teams and even stronger organisations. Importantly, this isn't merely the Employee Value Proposition of a brand; it's the Employee Value Proposition of its leaders.

Now, shifting the lens to employees—after all, a healthy relationship should be mutually beneficial. Let's start with needs. What are the business needs of an organisation, particularly its leaders, founders, investors, and executives?

The Need to Accomplish Its Mission: The foremost priority of a business is to successfully fulfil its mission and overarching objectives, with all strategies and actions oriented towards achieving these fundamental goals.

The Need to Be Financially Astute: By practising sound financial management, a business ensures prudent resource allocation, effective cost control, and strategic decision-making that guarantees sustained profitability and long-term viability.

The Need to Excel in Its Industry: Aspiring for industry leadership, a business wholeheartedly embraces innovation, adapts to the market, and offers unique value propositions. This not only ensures survival but also positions it as an industry frontrunner.

Return on Investment (ROI): Through strategic investments and sensible resource allocation, a business seeks a favourable return on its ventures, ensuring that every resource committed yields substantial value and contributes to overall growth.

The Need to Meet Stakeholder Expectations: By consistently meeting the expectations of stakeholders—investors, customers, employees, and partners—a business upholds its reputation for integrity, quality, and social responsibility, fostering trust and solidifying its standing as a reliable entity.

I believe that a team member contributes to a business by bringing VALUE to the table. This VALUE transcends time, knowledge, and skills. This VALUE is not solely about time, as we were tempted to believe for a couple of decades. It's not merely knowledge, as we witness AI taking the lead in that realm. It's also not solely skills, as these become obsolete with the evolution of industries and technology. Instead, it's the fusion and RELEVANCE of all these elements in combination. It encompasses ATTITUDE and PRINCIPLES as well. Why these? Because they form the bedrock of work environments that attract talent capable of delivering VALUE and aiding business leaders in achieving their objectives. This dichotomy separates environments—those that breed fear and insecurity from those that invite individuals to bring their best selves, foster growth, and contribute creatively and innovatively.

To conclude, a couple of? thought-provoking questions emerge: Business leaders, do you recognise your capacity to transform the lives of your team members? What tangible steps have you recently taken to actualise this for your people? And employees, do you grasp your value to the organisation? What proactive measures are you undertaking to preserve your value, understanding that it's not a given?

In essence, the dynamics of employment relationships are not confined to a simple transaction of labour for compensation. They are a symphony of mutual needs, values, and aspirations, orchestrated by both employers and employees. As we navigate the ever-changing landscape of work, let us remember that the evolution of this relationship is not a one-way street. Rather, it's a harmonious interplay, an interdependence that forms the bedrock of thriving organisations.

The lessons gleaned from recent events and the realisation of these intricate dynamics beckon us to transcend the confines of traditional paradigms. Leaders, grasp your power to create environments that foster growth, authenticity, and purpose for your teams. Employees recognise the value you bring, not as isolated components, but as a multifaceted force driving innovation and progress.

In our pursuit of better workplaces and brighter futures, we stand at the crossroads of shared responsibility. Each leader's decision reverberates, as does every employee's dedication. Together, we can forge a new era of employment relationships, one where trust, shared purpose, and a commitment to mutual growth shape our journey. It's a journey not just of personal and professional advancement, but of collective empowerment that resonates far beyond the confines of any organisation. Let us seize this opportunity to redefine the very fabric of work, and in doing so, redefine the future.