But none of the new approaches offered so far have really taken hold.
We are not the first to point this out or to propose solutions. private sector they are in varying degrees of disarray elsewhere. These changes demolished the traditional employer-employee compact and its accompanying career escalator in the U.S. Adaptability and entrepreneurship became key to achieving and sustaining success. Stability gave way to rapid, unpredictable change.
Then came globalization and the Information Age. Corporations, for their part, enjoyed employee loyalty and low turnover. And in the white-collar world, careers progressed along an escalator of sorts, offering predictable advancement to employees who followed the rules. Jobs at big corporations were secure: As long as the company did OK financially and the employee did his or her job, that job wouldn’t go away. In the war for talent, such a compact can be a secret weapon that helps you fill your ranks with the creative, adaptive superstars who fuel entrepreneurial success.įor most of the 20th century, the compact between employers and employees in the developed world was all about stability. These are (1) hiring employees for explicit “tours of duty,” (2) encouraging, even subsidizing, employees’ efforts to build networks outside the organization, and (3) establishing active alumni networks that will enable career-long relationships with employees after they’ve moved on.
Hoffman (a cofounder of LinkedIn), Casnocha (a technology entrepreneur), and Yeh (an entrepreneur and angel investor) outline three simple, straightforward ways in which companies can make the new compact tangible and workable. Employees invest in the company’s adaptability the company invests in employees’ employability. Under the new compact, both employer and employee seek to add value to each other. The high-tech start-up community of Silicon Valley is pointing the way-and companies that wish to be similarly agile and entrepreneurial can learn valuable lessons from its example. That has recently changed, giving way to a transactional, laissez-faire approach that serves neither party well.Ī new arrangement is needed, the authors argue-one built on alliance (usually temporary) and reciprocity. For most of the 20th century, the relationship between employers and employees in the developed world was all about stability and lifetime loyalty.
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