- BDAILY PREMIUM -
As Bdaily’s latest feature, Entrepreneurship Week draws to a close, we hear from Brandon Bichler, partner at award-winning global consulting firm Elixirr, on how entrepreneurialism is shifting the dynamic between employer and employee. Read on to find out more…
In an era marked by rapid technological advancements and a fluctuating global economy, the traditional relationship between employees and employers is undergoing a profound transformation.
This was heightened during the pandemic and subsequent economic turmoil, when many took a step back and reevaluated what they wanted from their professional and personal lives.
Until now, one of the main raisons d’etre of employers has been to look after the wellbeing and social welfare of employees solely through company programmes, pensions and benefits.
However, this model is changing as employees rethink their reasons for working. Many employers are now finding that their people have higher expectations of work and a desire to extract greater value from their jobs.
The once-firm boundaries between employees and employers are blurring and giving rise to a new paradigm that prioritises autonomy, collaboration, and shared success.
The reason? Entrepreneurialism
Entrepreneurialism is inspiring a shift in mindset, encouraging people to view their work as more than just a means to a paycheck.
With explosive growth in the startup arena in recent years, more people have been exposed to entrepreneurial companies and in turn, an entrepreneurial/shared ownership working model. In order to retain and hire the best people, businesses must reflect this changing dynamic.
What is an entrepreneurial mindset?
The rise of entrepreneurialism is redefining the very essence of how individuals engage with work. Previously, it was true that permanent employment was the only way people could receive benefits such as pensions, holidays and training.
In return for providing these benefits, the employer would ask for commitment and loyalty. However, in a new world of work and with entrepreneurialism on the rise, this dynamic is changing.
Where once entrepreneurialism was reserved for founders, it’s now become a mindset for people of all levels and while work benefits such as free lunches, gym memberships, or casual Fridays were once considered effective tools for attracting and retaining talent, today these types of perks are increasingly perceived as short-term fixes that fail to address the deeper motivations of today’s workforce.
With periods of economic turmoil having an effect on salaries, career progression and job safety, employees are looking for something more than simply being a cog in the corporate machinery, appeased by the promise of a free lunch.
Demand is rising for jobs that allow employees more equality and autonomy as employees seek more than just material comforts.
We are seeing a desire from employees to have a more meaningful connection to their work and a sense that their contributions make a difference. It’s therefore vital that businesses tap into this appetite for purpose if they are to succeed in retaining and attracting the best talent, and ultimately, to drive long-term business growth.
How management can create a new dynamic
Business models based on entrepreneurial vision, ownership and equity provide stability, long-term incentivisation and personal gratification for employees. It’s time businesses prioritised the creation of this model alongside their purpose and financials.
Already smaller companies are waving goodbye to traditional hierarchical structures and are embracing flatter, more collaborative models. These models value open communication, cross-functional collaboration, and the democratisation of ideas.
By adopting and implementing shared ownership models, employees feel empowered as they have a direct impact on the company’s direction, irrespective of their position. This approach also fosters and powers innovation among teams.
However, creating shared ownership structures is easier said than done. While smaller more nimble companies have the flexibility to adapt to these changing working patterns, larger organisations do not. As a first step, it’s important businesses work to identify and remove the barriers to creating a sense of purpose.
The first barrier is often management. Changing dynamics will undoubtedly challenge leaders to rethink their management styles. A workforce imbued with an entrepreneurial mindset requires leaders who are adept at fostering creativity, encouraging independent thinking, and providing the guidance necessary to channel innovation effectively.
It also requires managers to listen to and ask for the opinions of their employees. Without effective management, the implementation of a model that offers ownership and equity won’t succeed.
The second is reevaluating employee rewards and benefits. Offering employees a stake in the business or having bonuses be tied to company performance can be a good motivator for achievement. There’s both an emotional and financial connection, not just a financial/transactional one like in a traditional business model.
Employees are able to recognise how their work tangibly impacts the wider business and understand that they will get back what they put into making the business successful. Ultimately, companies that adopt these models will encourage higher performance in their employees, leading to higher performance for the company itself.
The rewards of a changing employer/employee relationship
The convergence of entrepreneurialism and the employee/employer relationship is something which shouldn’t be ignored. If companies are competing for talent solely on compensation and benefits, it’s an arms race; all it takes is one competitor to offer more money.
A shared ownership model gives businesses the chance to offer something more. It has the power to unlock untapped potential in both the individuals and the business, drive innovation to new heights, and shape a future of work fueled by the limitless possibilities of collective creativity.
Companies that recognise the significance of purpose-driven work and foster a sense of belonging and loyalty will increase job satisfaction and longevity. They will attract more purpose-driven individuals who are focused on long-term impact rather than short-term financials.
These businesses will sustain consistent growth, navigating market volatility and changing workplace trends to thrive in the long term.
—– By Matthew Neville – Senior Correspondent, Bdaily
