The Employee Centric Corporation and the Birth of the Employee Agreement


Nurturing a New Idea, The Employee AgreementToday (Friday September 20, 2013) I am in New York City participating in the Work Revolution Summit. While I have many professional and personal reasons for participating, not the least of which is our new Social Business SaaS company Alynd and our desire to fix what is most broken with work, I am here focusing on one big, yet simple idea. That the shift in the balance of power we are experiencing as consumers in our relationships with brands will soon be coming to our work lives and the relationship we have with our employers.

More specifically, I believe it is time for us to go beyond the constructs of the employment agreement and begin to embrace a new vision for an employee centric corporation. A simple, yet profound movement in this direction is the creation of an employee agreement that makes plain the more important aspects of the employee-employer relationship from an employee centric point of view, instead of a liability limiting corporate perspective.

The employee agreement is designed to make visible each employee’s purpose at work, defining who they are, what they can uniquely contribute and what they expect to be doing in the time they devote to the corporate mission. This should not be written in legalese, but in easy to understand, plain English. It should be openly and transparently shared internally with other employees, and in some cases, perhaps even publicly. It should be written in such a manner so that every other employee may not only understand their purpose and motivations, but also understand their strengths and what activities they personally expect to be doing at work each and every day. If you have every participated in a team sport, this may sound familiar to you, it’s what we do to win – work together, aligned towards our common goals in mind, body and soul.

If you are an individual change agent who wants to ignite this part of the Work Revolution but don’t know where to start. Here is something you can start today, right now in fact. The concept of the employee agreement starts out as a simple post to your intranet, employee forum, social network or blog that answers the questions: Who am I? What unique value can I contribute? What is expected of me? and Why am I here?

This isn’t a new concept, it is a new call to action for doing something meaningful about it without requiring permission or systemic change. Bill Jensen, change agent and thought leader on the future of work has long called for a New Work Contract. From his perspective, he sees the new work contract as an asset revolution. Employees (aka humans) aren’t just resources to be managed, but their time, attention, and ideas are assets. With the new work contract, like all assets, employers must respect the intrinsic value of those assets and provide a proper return to their investor.

In Bill Jensen’s “Work 2.0: Ten Year Report”, he found that business is “at war with its workforce”. Executives may not feel that this is the case, but ask any cog in the machine that is a big corporation and they can not only validate this sentiment, but provide story after story from their experience that supports this finding.

It may be hard to remember, but it wasn’t always this way.

In the not too distant past, the corporation served a central and lasting role in people’s lives. At the birth of the industrial era, there were ‘company towns’ built literally to house the employee population near factories and provide for their needs. As recently as the 60’s and 70’s, there was the notion of the ‘company man’, where an employee invested their entire lives working for one company that helped them develop both personally and professionally. They looked after each other with the utmost loyalty. The employees looked forward to getting their watch and their pension plan on retirement, when they could finally relax and move to Florida. More recently, this has become less and less true, while many employees continue to hope for the best.

Over the past few decades, there has become an increasing understanding that we are each CEO’s of our own careers. In the modern world, we each need to take responsibility for our prosperity both professionally and personally. Of course, there is still professional development opportunities in many companies, where they pay for training with important skills, send key employees to conferences to learn the latest techniques of their profession, and may even put them into an executive MBA program – if they have been recognized as being ‘management material’, and are willing to exchange a few more years of their life as part of the reimbursement. Unfortunately, for the average employee, they don’t see these sorts of opportunities for growth. Instead they go through the motions of setting professional development goals when that time of year comes around, telling their managers what they think they want to hear instead of telling them what is really in their hearts and minds.

Indeed, many professionals have taken this advice to heart and left their corporate jobs in pursuit of greener pastures. During the dotcom boom, as with the “forty-niners” of America’s westward expansion, many courageous souls left comfort and security behind to pursue a chance to strike it rich. Over the past few decades, an increasing number of knowledge workers have taken their careers and their futures into their own hands to become independent consultants, to spend more time with their families, to start their own businesses, to begin early retirement, to serve their communities, or to pursue their other dreams.

In short, there has been a great migration of the best and brightest talent away from the corporation. The idea that employees might have jobs for life is now a distant memory. They have lost faith in the corporation as companies and their leaders have proven they don’t really believe ‘that people are their greatest assets.’ Worse, most leaders have created strategies and policies that prove they don’t trust their employees as far as they could throw them. This challenge is perhaps more localized to the US, but the pace of this migration is increasing as more and more talented professionals realize that many of their so-called leaders are incompetent at best and sociopaths at worst.

As corporations have demonstrated their preference for at-will employment, many of their leaders have also clearly said they care more about shareholders and their personal bonuses then they do about the well being of their employees and the markets they serve. This is natural of course, because just like Pavlov’s dog, they will act in the manner in which they are rewarded and avoid the behaviors which cause them pain. Even though competitive strategy guru Michael Porter has pointed out the need to think about prosperity over profitability and shift our focus to creating shared value, it’s not a topic that has reached many boardrooms.

Further to this point, we have read recently that many corporate leaders see people merely as a ‘cost’. To some, they are merely resources, and not recognized as human beings. For too many leaders in the elite towers of power, ‘human resources’ are fungible, easily replaced by less expensive, and less experienced, humans, thus enabling greater profitability (and ensuring their personal bonuses). While people may be equal under the law and god, they are not fungible, each is unique and each brings a unique value to the work they perform, and to the dynamics of their teams. Just ask any manager that has tried to hire a skilled replacement for one of our aforementioned workers that promoted themselves to CEO of their own career.

At the same time we have seen incredible gains in productivity over the last several years. While they are surely driven in part by technological advances and other gains in global market efficiencies, I believe that there is another driver. There is a fear among those who remain in the corporation, who have not yet realized they are their own CEO, that the proverbial axe may fall at any moment, leaving them without an income and without security for themselves and their families. They have less resources, but put in 120% effort in order to keep their jobs, and hopefully get a promotion and/or a raise, which often times simply doesn’t come. Worse, some of these individuals do not have ‘new world skills’ as they have been too busy working as cogs in the machine, sustaining the status quo, and trying to look after their loved ones, their communities and their own personal interests.

These symptoms unfortunately speak to a more fundamental unraveling of the status quo of the socioeconomic foundations of our society that is creating a future that few senior executives are able to comprehend, and to which even fewer will be able to adapt. Meanwhile, individual employees are being forced to adapt to a world of constrained resources and increased expectations. Over the past several years, their personal technology became vastly superior to that provided by their employers. So they started bringing their own devices to work, raising expectations and demands on their IT departments. Douglas Neal and John Taylor of Leading Edge Forum identified this “Consumerization of IT “as an emerging trend over a decade ago, and yet many corporations are still in reactive mode, with many treating it as if it is a foreign and unworkable concept.

Now there is not only more access to thousands of channels of entertainment, but access to more information, from media outlets, from trusted friends and from familiar strangers. All available on demand, in real time. The advancement of our connected society has been reaching into all organizations, of every size, from every sector. Still, few corporations have been quick to embrace the idea of becoming a connected company or deploying social business technologies. Even as their customers, and the dollars they provide as their wellspring of life, demand it of them.

As Dell Hell and many other examples since has shown, this demand is not one to be taken lightly. Corporations have been forced to respond, with few prepared or willing to embrace it as an opportunity, and the majority being reluctant to even consider its impact on operations beyond the use of social media as another marketing and support channel. Even still, brand managers are perplexed with their new roles in a world where they fear that the consumers control their brand, and their jobs by proxy. The truth is that this idea is a misnomer. Consumers don’t control the brand, but they do help shape it, and they have a greater degree of influence on how others perceive the brand then ever before. Ultimately, the corporation controls whether or not they are delivering on their promise and whether or not their marketing and communications efforts are an accurate reflection of the reality of the brand experience. This is what has actually changed. The market will not be deceived through false statement and exaggerated claims in a connected society. In this way, both the consumer and the corporation share control of the brand.

Fundamentally, in the market itself, we have recognized a shift in the balance of power from companies to their customers. If a company, or a disgruntled customer service representative unhappy with their employer, treats a customer poorly, or has a policy that is clearly unfair, that customer is likely to turn to Twitter or Facebook or their blog to complain. Whether they have 5 or 500 or 500,000 followers may indeed change the speed and nature of the response, but increasingly, they may actually get a response that is different than if they had called the company’s customer service line, waited on hold for 30 minutes and gotten nowhere.

While we haven’t seen this shift occur widely in the employer – employee relationship just yet, I contend we stand on that precipice. This is certainly the case in Silicon Valley, where rising salaries, benefits, flexible work schedules and seemingly outrageous perks are the norm. In fact it has gotten so ridiculous that it is nearly impossible for new companies to recruit top programmers in the valley and many are actually considering setting up development in far away cities. Of course, the developing world sees this as an opportunity, with outsourced software development being performed in Russia, China, Poland, Chile, India, Phillipines, and other far flung corners of the globe.

The war for talent is a complicated issue. The need for corporations to win this war is obvious. If you are to compete in a world where invention and intelligence are your best weapons for winning market share and earning the trust and loyalty of customers, it is a war that must be won. Hence the win at all costs approach of the largest companies in the largest markets, and the very visible way in which top talent is disproportionately rewarded.

But it’s not all about perks and cash. For an increasingly growing number of employees, it’s as much if not more about connecting with a deeper purpose in their lives. As with consumers who are making purchase decisions based on how green or socially responsible a company is, employees too are now choosing employers who are more closely aligned to their purpose and their interests. Those who realize they are the CEO’s of their own careers, but who dislike the multitudes of hats they must wear as an independent contractor, are seeking enlightened employers where they can earn a good living while living true to their purpose. Organizations who are realizing this and building organization structures and policies to attract and retain top talent are winning. Dave Gray in his book The Connected Company calls out many examples; among them well known names like Amazon, Semco, Nordstrom, SAS and Whole Foods.

While not all corporations are able to adapt fast enough to this changing world, there are some simple steps that can be taken in the right direction. An invaluable first step is recognizing the importance of purpose at work, and nurturing employees to find and connect with what matters most to them. There is no place where this reality is seen more clearly then at Zappos, where they cultivate individuality by helping employees realize as much happiness and success in their life away from work as they do at work. While many more, like my former employer Deloitte do this through sabbaticals and integrating community service opportunities via paid volunteer programs and pro-bono services, there are other simple ways this can be accomplished.

As mentioned at the onset, there is a very simple step that anyone can take right now towards bringing their purpose to the forefront of their work. It requires no permission, and should not require forgiveness. First, you must do the somewhat harder effort to get clear about what your purpose is, so you feel it as your truth as much as you can intellectualize and rationalize it. Then you merely need to share your purpose with others inside, and potentially even outside of your company. Share it on your internal employee profile, across the enterprise social network, in speeches at all hands meetings, and most especially in more intimate settings with the teams on which you work.

This is something I did personally while working at Deloitte Consulting, and it really felt incredibly liberating. While I can say that it shocked some, it also generated a great deal of trust and respect for my willingness to be transparent, and to be so clear in declaring my purpose for why I was working at the firm. I made it clear and stated plainly that I had taken the job at Deloitte for two reasons. First was a matter of urgency, I took the job to advance their social media and social business efforts because I needed the money. After several years running a non-profit community organization, it was time to find financial security, pay off my debt, and get into a position where I could once again become an entrepreneur.

But money alone was not my purpose, just a reason and an impetus. What moved me to choose Deloitte over several other options was a desire to have a front row seat to the great restructuring that would allow me to understand how large, traditional organizations were adapting to the great restructuring being forced on them by the advent of our connected society and widespread market adoption of social technologies. More importantly perhaps, was getting a chance to help them with that transition, to convince them of the necessity and opportunity. While a few scoffed at these statements and fixated on my stated financial need, those who came to know me, who heard the passion and truth in my voice, realized that it was a deep desire to be part of the change I have long sought to see in the world.

In this way I earned the respect of many, particularly the large millennial work force at Deloitte. Not only for the higher purpose I had communicated, but for my willingness to state it so clearly and openly. Regardless of what your thoughts may be on the recent millennials at work discussion, I can tell you with absolute certainty that what they and all other members of our work force want is to be told the truth. They crave someone who will shoot straight with them and not pretend that a challenge or unpleasant fact is untrue when it clearly is. They also crave leaders who can inspire and support, not managers who will nitpick and obfuscate.

I did more then declare my purpose at work though, I also declared what I did well, and what I did poorly. I made clear who I was, as a human being, as a member of the industry I helped cultivate and as an employee of the firm. It gave me back a great deal of energy I would have normally wasted, because I was able to be myself and not pretend to be what I thought others expected of me – I didn’t waste emotional energy being someone I was not. While in some cases it didn’t necessarily serve my better interests, it freed me to live my truth, to give my best and to find greater meaning everyday. It also kept me connected with that purpose on a regular basis, staying focused on why I was there everyday, enabling me to get through the rough days and really celebrate the great ones.

This experience got me thinking about the nature of the employment agreement, and how it defined the legally necessary aspects of the contract designed to protect my employer, and how little of the employment agreement was designed to serve my interests. In fact, while I negotiated a salary that was to my liking, none of the other terms of that agreement was negotiable. The rest of it, from intellectual property assignments, to sick leave and benefits, was a take or leave it proposition as it is in virtually all large corporations. Now, to be clear, Deloitte has awesome benefits (really) and there was little I would seek to be changed in that regards, so I willingly entered into the agreement with a full understanding of its terms, even the few with which I disagreed. This point is being raised relative to the general nature of the employment agreement itself rather than a complaint with the one I signed.

Ultimately, what I realized was that the shift in the balance of power, the war for talent and the coming changes to the structure of the corporation will necessitate that the employment agreement, and how we enter into it, will change too. While corporations will fight back saying they can’t efficiently manage different contracts with different terms for each of its employees, the current state of compliance by fiat will not survive as it is in the future of work. Soon, I hope, we will reach a tipping point where there is a true balance of power between the employee and employer that is more the norm then the fringe.

The employee agreement expects the employee to fully and deeply answer the questions “Who am I, why am I here and what value can I offer others with my time, experience and ideas?” By making the answer visible to others, and enabling them and their employer to enter into a truly two-way relationship, the employee will not only be better aligned with the company, but also with other employees. In this way, while they are getting their work done and contributing their unique value, they are also able to connect more directly and consciously with their purpose for entering into the agreement, increasing their level of engagement, increasing their value contributed and decreasing their emotional energy wasted.

While the idea of the  employee agreement template I suggest here is a simple one, where we collectively go from here, remains to be seen. In fact, I look forward to your thoughts and comments here so that we might together begin to redefine the employee-employer relationship. If we begin to take these small personal steps, we can all begin to better see our colleagues at work and improve our collaboration with each other. In this way, through these straight forward but powerful questions, we might not only be able to make our work more meaningful, but we might just find a better path to living our lives in alignment with our unique purpose.

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2 comments
samfiorella
samfiorella

What I'm hearing is a suggestion that employees take the lead in reclaiming the employer-employee relationship of old. A symbiotic relationship where each party serves the others' needs beyond the linear do-this-get-paid-that transaction.    

However, an employer-initiated reinvention of this relationship, which would be an evolution of sorts, would require a culture change that very, very few corporations would dare risk in my experience. Thus a revolution is required, which necessitates a change from the rank and file. 

I want to make a joke about the inevitable "social unions" that would arise but in all seriousness, posting comments and blogs on internal networks answering who they are and why they're there won't make significant strides in this effort. What external plays could be made? What tools are available to employees that would help make the strides you advocate?  

As always, you make me think. And I like it.  

jonhusband
jonhusband

Interesting take.


I believe what you are suggesting is 'opening up' the job description used by so many organizations to the employee's side of "the deal" .. and suggesting they make public to colleagues their agreements (degree of engagement) and their strengths & weaknesses.  All things that are implicit by having agreed to employment.

I think (as you do) that this can be powerful and liberating .. and potentially make workplaces more employee- or human-centric.  Which is a good thing.


But for work to really change, and for corporate / organizational cultures to really change on a sustainable basis, the 'employee agreement' as proposed will eventually have to tie in to / connect with an organization's HR policies and it's cultural ways of expressing and acting out management processes and styles.


And I think that is where things will get tricky .. again.  It's like an onion .. many layers to peel.  The design of work in today's workplace goes deep, in terms of embedding issues like division of labor, specialization, remuneration and performance management philosophy.


If an employee agreement such as you suggest is to have real and lasting potency, there will have to be logic and explanations as to how that agreement will relate to work and organizational design, and also have some intelligent answers as to how the structures and protocols around that employee and her or his agreements begin to change as the deeper and more fruitful aspects of the employee agreement take hold.

It's a bit dated, but you might find this essay from a few years ago pertinent ?


<a href="http://www.entreprisecollaborative.com/index.php/en/articles/518-why-social-business-initiatives-are-likely-to-remain-difficult">"Why E2.0 and Social Business Initiatives Are Likely To Remain Difficult"</a>

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