Why Employers Deserve a Fair Shake
In the world of business, the relationship between employers and employees is often portrayed as inherently unequal, with employers cast as powerful entities exploiting vulnerable workers. This narrative has deep historical roots, tied to the labor abuses of the early Industrial Revolution. However, in today’s economic landscape, this perception is increasingly out of touch, especially when considering the challenges small businesses face as they grow. The truth is, employers—particularly those who start with little more than a passion and an idea—are subject to risks, costs, and expectations that often go unacknowledged.
One of the clearest examples of this imbalance lies in the freedom customers enjoy versus the limitations placed on employers. While consumers can return defective products for a refund, employers are stuck with the consequences of a bad hire—with no opportunity to recover their investment.
The Customer Analogy: A Stark Double Standard
Imagine walking into a supermarket to buy a loaf of bread. You carefully select the freshest, softest loaf, avoiding the stale or moldy ones. If you accidentally pick a defective loaf, you have the right to return it and get your money back. This is the expectation in any fair transaction: customers pay for value, and if the product doesn’t meet expectations, they aren’t stuck with the loss.
Now, compare this to the experience of employers. When an employer hires someone, they are essentially purchasing a service—a promise of productivity and value in exchange for wages and benefits. However, if the “product” (the employee) doesn’t deliver—whether through poor performance, lack of effort, or disruptive behavior—the employer has no equivalent right to a refund. They can’t recover the time and money spent on recruiting, training, or onboarding. Even in cases where termination is justified, the process can be costly, time-consuming, and fraught with legal risks.
For small business owners, this dynamic can be particularly devastating. Every hire represents a significant investment, and a single bad hire can disrupt operations, drain resources, and harm morale. Unlike consumers, who have robust protections against defective products, employers must absorb the full cost of their hiring decisions—good or bad.
The Reality of Small Business Growth
The vilification of employers becomes even more baffling when you consider how most businesses begin. A typical story might involve someone with a passion for a craft—whether it’s baking, carpentry, or software development—who decides to turn their skill into a business. At first, they work alone, pouring their time and energy into building something sustainable. As the business grows, they hire their first employees, driven by necessity rather than ambition to dominate the market.
At some point, however, society’s perception shifts. A small business owner who hires a handful of employees may still be seen as an individual chasing a dream. But as the business grows—perhaps requiring dozens or even hundreds of employees—they are suddenly painted as part of a faceless “corporate” entity, subject to suspicion and criticism. This transformation ignores the reality that the owner is often the same person they were at the start: someone trying to make a living doing what they love, now managing a larger operation to meet growing demand.
The disconnect is stark. A business owner who takes on the responsibility of providing jobs and contributing to the economy is treated not as a partner in progress, but as an adversary. This narrative not only misrepresents the challenges of running a business but also undermines the mutual accountability that should define the employer-employee relationship.
The Onus on Employees
Another critical aspect often overlooked in these discussions is the responsibility of employees to provide value equivalent to or greater than their compensation. Just as a business must sell products or services that justify their price, employees must deliver performance that meets or exceeds the cost of their wages and benefits. This is a simple economic reality, yet it’s frequently ignored in favor of narratives that frame employment as a form of entitlement.
An underperforming employee doesn’t just fail to generate value—they actively cost the business money. Beyond wages, there are recruitment costs, training expenses, and the lost opportunity to hire someone better suited for the role. When union rules or labor laws make it difficult to address underperformance, the employer bears the brunt of these costs with little recourse. This lack of accountability does a disservice to everyone involved:
- Employers are forced to subsidize inefficiency.
- High-performing employees are demoralized by the lack of recognition for their excellence.
- Underperforming employees miss out on the feedback and consequences that could encourage them to improve.
A Call for Balance
The current labor system often operates as if employers are an unlimited resource, capable of absorbing any cost or burden imposed by unions, regulations, or market pressures. This perspective ignores the fact that employers are private citizens—just like their employees—who must navigate economic realities and take on significant risks to keep their businesses afloat.
To foster a fair and productive labor market, we need to:
- Recognize Employers as Partners, Not Adversaries:
- Employers and employees are part of the same economic ecosystem. Treating employers as villains discourages entrepreneurship and stifles job creation.
- Promote Merit-Based Systems:
- Rewarding high-performing employees and addressing underperformance benefits everyone. It fosters accountability, motivation, and mutual respect.
- Restore Employer Freedoms:
- Just as employees have the right to walk away from a job, employers should have the freedom to make staffing decisions that reflect performance and market conditions.
- Emphasize Personal Responsibility:
- Employees should take ownership of their contributions, just as employers take responsibility for running their businesses effectively.
Conclusion
Employment is a partnership, not a one-sided transaction. By acknowledging the risks employers face and the responsibilities employees have, we can create a labor system that respects the rights and contributions of both parties. It’s time to move beyond outdated narratives and foster a culture of mutual accountability and fairness.
Dave Soulia | FYIVT
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