When it comes to capturing a photo with a celebrity, people are often driven by the desire to enhance their social currency rather than being die-hard fans. Similarly, the correlation between employee and employer can be understood through the lens of social currency. Building this intangible asset becomes a lifelong pursuit, as individuals seek validation and acceptance from others. However, in the absence of clear KPIs (Key Performance Indicators), both employees and employers can face challenges in their relationship. In this article, we delve into the significance of defining expectations and implementing a mutually beneficial agreement that promotes transparency, fairness, and productivity.
The Employee Perspective
Low-performing teams often experience a breakdown in the employee-employer relationship. Employees feel the need to safeguard their social assets, especially after receiving negative performance reviews that they perceive as unjust or inaccurate. Managers' subjective evaluations can erode an employee's social standing without valid reasoning, which may have long-term implications. Consequently, organizations witness a decline in productivity and profitability, leading to a precarious situation where managers struggle to balance the need for improved performance with limited resources.
The Employer Perspective
To avert the deterioration of company culture and prevent a cold war scenario, proactive measures must be taken. In high-performing organizations, visibility plays a pivotal role. Establishing a mutual agreement between managers and employees, driven by clear expectations, can significantly impact the overall dynamics. While such agreements may not entirely eliminate productivity challenges, they pave the way for self-evaluation and objective feedback, sparing employees from the depletion of their social assets. Furthermore, addressing exceptions and conflicts within the agreement ensures the satisfaction of both parties involved.
The Buyer-Seller Agreement
To foster a fair agreement, it is crucial to define the roles of both parties - the company as the buyer and the employee as the seller. By embracing a buyer-seller mindset, clarity emerges regarding expectations, pricing, deliverables, and accountability. The buyer (company) outlines what they require and how they will assess the value, while the seller (employee) communicates what they offer, the associated cost, and the guarantee of delivering on those commitments. This approach eliminates ambiguity and aligns the interests of both parties.
Redefining the Employment Relationship
Failing companies often lack a robust agreement that clearly defines the buyer-seller relationship, leading to misunderstandings and conflicts. In addition, companies tend to focus on buying the employee rather than emphasizing the deliverables they expect. Traditional fixed salaries, detached from performance metrics, fail to serve the interests of employers or employees. Moving forward, it is essential to shift towards outcome-driven agreements, where payment aligns with deliverables and tangible results.
Realizing the Potential
A case in point is the digital marketing department, where the focus should be on generating leads and increasing sales. By adopting a buyer-seller agreement with employees, companies can define specific deliverables, set prices per lead, and establish conversion rate guarantees. This approach empowers employees to demonstrate their value and, ultimately, allows organizations to achieve their desired outcomes. The dedication payment further ensures commitment and prevents potential conflicts of interest.
Conclusion
The traditional approach of buying employee time rather than focusing on deliverables hinders productivity in today's dynamic work landscape. Employers must embrace a buyer mindset, emphasizing the importance of outcomes, while employees should view themselves as sellers offering valuable services. Implementing result-oriented agreements fosters transparency, aligns incentives, and motivates employees to excel. By redefining the employee-employer relationship, companies can unleash their true potential, creating a thriving culture of productivity and success.
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StemeXe is a comprehensive productivity software that can help you manage employee relationships and seamlessly communicate and track KPIs and objectives. Learn more about StemeXe and see how it can transform your business today.