Thirty years ago, employees sought jobs that would offer stability, a competitive salary and good benefits. These life careers would allow the employee to identify with their employers and establish a great sense of trust between the two. Thirty years later, the typical worker has seen over nine jobs. The promise of lifetime employment has been replaced with the opportunity for professional growth, the recognition of accomplishments, and open and honest communication. This change represents an evolution of expectations between employee and employer described as the New Social Contract. This contract is characterized by individualistic motives that place more responsibility on employees for their own success and prosperity in the employment relationship.
The question asks itself, why has this change occurred? Studies have been done that indicate factors like global competition, technological advances and deregulation are the primary drivers. I would like to point to an underlying issue that is often ignored, but is perhaps the most important factor in business and arguably the most important in life: TRUST. Trust in employers has eroded considerably in the past 30 years. In 2003, a survey conducted by the Centre for Ethical Orientation (CEO) indicated that “nine out of ten Canadians view trust as declining worldwide, and most feel that they are losing trust in private businesses and government institutions.” The director of CEO, Mr. Jim Allen, commented “Generally, in today’s society it takes more to earn people’s trust than it used to. The thing that is most troubling is Canada appears to be moving from a high-trust society to a low-trust society.” He also speculated that much of this lowered sense of trust is do to a feeling of being mistreated and ignored by their employer. This is nothing new, in fact, about three years ago in an Entrepreneurial Culture competition at the Telfer School of Management, Dr. Bruce Firestone spoke to myself and fellow classmates in a workshop about this very issue. The following quote from his website (www.dramatispersonae.org) accurately reflects those words spoken that day, “I believe that the number one thing in life is not love but trust. If you can’t trust the people you love, you have to wonder if they deserve it. Certainly in business and the professions, trust is everything. Did you ever buy anything from someone you didn’t like or trust? Probably not. Do you think you would ever want to hire an architect or an engineer or a doctor that you don’t trust? I don’t think so.”
I have a great example of how this relates to the new social contract, and what it means for employees and employers today. Two weeks ago, I quit my job. I had been working for nearly seven years in the public service. I was making a very competitive salary, I had some of the best benefits in the nation, and my pension was gaining some ground. My management was doing their job, and some of my co-workers were the kindest people I had ever met. So why did I leave? The main reason of course, lies in the new social contract, and what happens when it is not honoured. In my situation, the people were not the problem, the issue however; lied between myself and the institution. The enticements of old no longer appealed to me, and how could they? A lifelong position at the early age of 27, or competitive pay in a world of opportunity seem to lose their appeal very easily. The deal breaker lies in the underpinnings of the new social contract, and to the extent that each side has met their obligations. Were the pay and benefits proportionate to contribution to company success, or was security tied to my ability to perform? Were respect, recognition, and participation complimented with opportunities for growth and development? Perhaps not as much as I would have liked.
Enter potential employer number two. This employer builds a trust based relationship years before the very mention of possible employment. This employer extends themselves to provide opportunity, education and mentoring, all during the course of their work, which ironically enough, coincides with their true passion in life and hardly seems like work at times. This employer places the ball in my court, and places me in an environment in which I can make something for myself, and though hard work, diligence, team work, and TRUST, success will become an inevitable by-product. This employer does have a new set of expectations however, and they are perfectly in line with the new social contract. These expectations include: performance to the best of one’s ability, commitment to the objectives of the firm, participation, a willingness to constantly improve, and a strict adherence to ethical and honest behaviour. Such is the makeup of Partners Advantage GMAC Real Estate, and the opportunity provided for me by Dr. Bruce Firestone.
I have traded in my job security, my cash-for-life government pay and pension, my paid holidays, four weeks vacation time, and all the little perks of being pampered in the public service for a chance to see what I can do in the private sector (not to mention in a time of ‘economic crisis’). Concerns of holiday and compressed day scheduling have been replaced with a concern for whether or not any income will be made in the future, or whether or not I will be sharp enough to make the most out of opportunities all around me. I have chosen a career in an industry that I love, and want nothing more than to perform in it to the best of my abilities. I have surrounded myself with people that are doing what they love to do as well, people that respect each other and the industry in which they operate, and most importantly, good people that I can TRUST. This is where I want to be, and this is what I want to be doing.
What are your thoughts on the New Social Contract? Is it playing a role in your life as well?
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