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In 1919, the United States was engulfed by two seemingly unrelated trends: a global pandemic (influenza) and a wave of labor unrest. Four million workers, or one-fifth of the workforce, He went on strike that year.
A century later, history seems to be repeating itself. In the wake of the COVID-19 pandemic and other multi-layered economic drivers, labor struggles have rocked a variety of economic sectors: auto workers, nurses in… several Stateswriters, Hollywood actors, and Journalists Everyone went on strike. Union movements within the technology sector and other non-traditional sectors emerged all at once. Could this all just be a coincidence, or is there something else going on here?
Any broad shift in the dynamics between labor and management has implications for the present and future of employment in the United States. A deeper understanding of the workforce can be valuable to a variety of companies.
In analyzing the commonalities and trends from these recent examples, three lessons emerge:
1. Rewarding workers for the success of companies
When a business thrives, executives who own a stake in the company are rewarded. Workers lower down the food chain usually don’t see anything similar An increase in their salaries. This phenomenon is not new. However, many workers were hit disproportionately hard in the 2008-2009 financial crisis and again during the 2008-2009 financial crisis. Recession caused by the Covid-19 pandemic. Now that the economy is improving in many sectors, employees are looking to regain lost earnings and get what they feel is their fair share.
Questions like these galvanized the United Auto Workers (UAW), Which accepted a lower wage For new workers after the Great Recession. Auto companies’ business results had improved significantly, and the United Auto Workers (UAW) sought to restore lost benefits and raise wages for all levels of workers. Motivated by rising inflation and leveraging their collective power, its members passed major compensation changes and massive benefits increases. Likewise, Hollywood writers and actors have recently struck major deals to address changing business models and protect livelihoods. The question is: Was it that difficult?
Bottom line: Today’s workforce is increasingly aware of how their companies are performing, and has greater transparency into what their peers and bosses earn. They also have more ways to pack. Work diligently and proactively to understand and design systems where business success can deliver increased rewards for your workers to avoid the need for lengthy negotiations.
RELATED: 75,000 Kaiser Permanente workers strike, demand better wages
2. Disadvantaged employees
When HBO’s streaming unit was renamed “MAX” in 2023, it stopped crediting writers, directors and producers individually. That struck a nerve Within the guild that represents each faction. Concerns about the adoption of artificial intelligence in the final solution to the writers’ strike were addressed.
The feeling of disenfranchisement among workers dissatisfied with the direction of their companies or industries was not unique to labor strikes in the entertainment industry. Although the money at stake in Hollywood may be greater, many areas of work are at risk of AI intrusion in a way that threatens workers’ livelihoods.
Takeaway: Open communication from management about changes in company policies, practices, and trends is essential. Businesses must evolve to stay afloat; The more transparent management is regarding this development, the less likely workers are to feel disenfranchised. Engage with them directly in the process to think about how changing technology can help, what concerns exist and how to address them together to retain key talent and maintain high levels of engagement. With AI in particular, think about what skills are needed as business models evolve and how you can properly support and train workers along the way so they can leverage these new tools to help your business grow.
RELATED: A massive UPS strike could devastate the US economy and benefit Amazon
3. Investors and owners can be disconnected from the daily reality of workers
The increase in venture capital and hedge fund investments in health care And Print press — but not limited to — drove efforts toward increased efficiency and profits. This has caused a number of employees, many of whom entered these professions with an altruistic or public service-oriented mindset, to feel that their companies have become increasingly disconnected from their day-to-day work and, in some cases, from their values/causes. To work in the field. A number have left their careers or become disillusioned, feeling that incentives have changed the alignment between the purpose of their jobs and the processes they are now required to follow.
Bottom line: The more disconnected management is from its workforce, the more likely there are misaligned incentives between the two parties. Closing the gap is essential as industries consolidate and continue the push for efficiency. Narrow the knowledge gap between C-suite executives and on-the-ground workers. Understand what motivates employees to do their jobs well and involve them directly in designing more effective and efficient processes – this will lead to improved results, engagement and better change management as the business evolves.
Related: How your company can stay ahead of the curve by looking back and thinking forward
In summary
How can managers anticipate sources of labor unrest before it rises to the level of concern? The following practical considerations can help achieve one or more of the goals described above.
- Structure incentives and compensation models so that everyone wins while business results improve.
- Keep your employees informed about business model shifts (e.g. live streaming, AI, etc.), and proactively think about potential employee concerns and how to address them.
- Directly involve employees in designing more effective and efficient processes and share your goals more transparently. Listen to their concerns and find a way to improve business results, but employee engagement and alignment is a strong part of the equation.
- Demonstrate the value of “walking a mile in an employee’s shoes” – Ask leaders to spend time doing day-to-day work better to understand their ideas, areas of opportunity, etc.
- Establish a system of regular pulse checks with the entire organization to detect problems before they become serious.
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