As an executive recruiter, I have found that the Employee-Company model is outdated and inaccurate. Any employee, or manager, needs to look at thier situation from an empowered position of Supplier-Customer. Trust me, you will go to work everyday looking up at the organization, instead of down. Your options will increase.
Below is an except from a white paper I published a couple years ago.
The Reality Model
Unless you are self-employed, you are selling your services to your Company. The Company is your customer. It is buying your services at what is considered to be a fair price, and it will continue to buy your services right up to the point when they are no longer needed. Then, it is going to stop buying from you, and you are going to be laid-off, terminated or replaced by someone with different skills. The bonds that were forged with mangers and coworkers will not be able to withstand the force of competition and the reality of management?s bonus-driven strategies.
You need to approach your employment relationship the same as any other supplier that sells services to your company. Study your Company, their business, their industry and their purchasing power. Could they easily change their business strategy, requiring different services and suppliers? What is your value proposition within the Company? Is what you do core to the business? Is this a customer with long-term needs for your services, and potentially more services? There is nothing wrong with loosing a customer. If your job is eliminated, it is not your fault. However, being caught by surprise would be your fault.
From time to time, the Company may refocus and no longer want to pay, or can afford to pay what you are charging for your services. The Company goes through a reorganization, re-banding or re-grading process. It benchmarks and reassesses what it is paying for the employee services. This is similar to what a purchasing analyst might do to bring the cost of goods and services in line with the true market value.
To strengthen your value, you need to continually improve the services that you have to sell. You need to expand your product line, so to speak. Your skills and knowledge need to be constantly updated and upgraded. You want to be the innovative employee selling the next-generation, higher-value products and services. This is protection not just for keeping your current customer, the Company, but making your services marketable to other potential customers, should anything happen to your present customer?s purchasing power.
Wal-Mart.
As part of continued efficiency measures the Company may expect to pay less for the same services. All companies ask suppliers for cost reductions when nothing in the product or service has changed. Just ask anyone who has ever sold to Wal-Mart. All things considered, it?s ironic that many employees expect an annual ?merit? increase for doing the job they were hired to do, when nothing has changed.
Now, if the Company wants to pay less for the same services, and the supplier drops their price, what are the chances of getting a higher price later? None. Only if inflation drives up the cost of services will a supplier be able to increase their price for the same services. A supplier will always need new or better services to justify a higher price - or, an increase in the ?cost of living? to justify a higher wage.
But, I?m already under paid.
Chances are, that is not the case. You are probably getting paid exactly what you are worth. However, you may be under-employed.
You may be in a job that does not require you to use all of your specialized knowledge and skills. Companies ? customers - only pay for the resources they use. It is unreasonable to expect them to pay for what they do not use.
Consequently, if the Company cannot use or afford to buy your improved skills or knowledge, then you need to look for a new customer, one that needs and is willing to pay for the services you have to offer.
The Take-Away.
Most companies will offer a preference to their good suppliers. However, if the economics of the relationship between the Company and a supplier are no longer in the Company?s best interest, or the Company requires different services, management has the fiduciary responsibility to make a change. Suppliers have the same responsibility to their organization, be it a company or a family. It?s not personal; it?s business ? plain and simple.