Included in yesterday’s reports of falling UK unemployment was a statistic that a record number of people are self-employed. You cannot help wondering what this really signifies. An optimist might say this is positive and shows increasing enterprise and budding entrepreneurship that bodes well for the future of the economy. On the other hand, a pessimist would argue that this shows an increasing desperation as it simply means people are giving up on trying to find a job and doing whatever they can to earn a livelihood.
As ever the truth probably lies somewhere in the middle. The report, however, rekindled a pet theme of mine: that ultimately everyone works for themselves. After all, bar a fortunate few, we are all compelled to earn a living. For the majority of us that entails “getting a job”. Nothing, however, compels us to take, or continue in, the job we currently have. So you could say that the work we do is largely a matter of personal choice, which effectively means that everyone is actually working for themselves.
Recognising that could profoundly change the way you look at things.
For instance, if everyone is working for themselves, why do you need to have employees at all? You could just as easily replace your employment contracts with individual business to business contracts and leave your contractors to meet the terms or else face the termination of the contract. Yet fundamentally that is what an employment contract is – only things have become distorted by standardisation and convention. This has increased demands for employers to look after their employees and their well-being. At the end of the day employment has simply become something that is increasingly shaped by legislation, popular practice and political or social pressure.
However, before you get all excited and go gung-ho with the idea of replacing all your employees with contractors, you need to think what benefits employment offers.
One of the strongest is that it creates a tie – a sense of belonging that might not otherwise exist – which fosters a team ethos that makes strategy implementation easier. Without this it is extremely difficult to create an organisational culture or deliver a superior customer experience that exceeds anything your competitors can offer. It is employees who create your brand. And, of course, it is your brand that distinguishes you in the market place.
Consequently you need your employees. More importantly, however, you need engaged employees, because that is the heart and soul of your brand. It is what creates new customers and keeps your existing ones coming back.
So, what you need to be asking yourself is, “How does this idea that everyone is really working for themselves fit with this?”
You won’t be surprised to hear that my answer is, “Through employee ownership.” It is only by giving your employees ownership in your business that you can align your objectives with theirs. Employee ownership cements the fact that they are working for themselves, but simultaneously creates the common purpose that also means they will be working more effectively for yours as well.
You will be even less surprised to learn that my model of business ownership offers the best means of achieving this. To find out why, give me a call or drop me an email now.