Firing employees at will is so last century

“Teamwork is the ability to work together towards a common vision. The ability to direct individual accomplishments towards organisational objectives. It is the fuel that allows common people to attain uncommon results.” – Thomas Edison

Adrian Beecroft’s recently published report on employment law has drawn a dividing line in Westminster. The ability of employers to dismiss employees without cause is not going to help UK’s economic grow.

Not only is it repugnant, disloyal, uncaring – it is bad for business. We do not need gung-ho employers frightening the daylights of employees at a drop of a P45. Beecroft fails to grasp the fundamental value of good employer-employees relationship – show them respect, fairness and care – you will be rewarded loyalty, diligence, honesty in abundance.

In East Asia, successful companies value their employees to an extent of caring for their families. Some companies go as far as providing child care, accommodation to key employees.  In return, employers expect total dedication, loyalty and hard work.

East Asians have a predominantly strict attitude to life, marked by clear authority structures and distinct social status lines. Many traditional businesses practice group-centeredness, that is, the traditional value of co-operation amongst group members to maintain group harmony. In a workplace, teamwork and co-operation are seen as the main means of achieving company goals. This collectivist culture has a preference to work together and share rewards more than to strive for individual recognition; sharing responsibilities, helping each other and learning from each other.

Understanding work attitudes instead of focussing on dismissal processes would be a good start to responsible corporatism. CEOs have often communicated that employees are the company’s most important asset, therefore mass redundancies and salary freezes are a poor way to show it. It is time for corporate leaders to show some leadership instead of worrying about their remuneration packages.

As the gap on pay and pensions widens between directors and employees, UK businesses should disclose the ratio between their highest and lowest paid employees, to promote greater workplace equality and economic efficiency

Inequality in the workplace, as well as being inefficient, drives inequality in society more broadly, carrying high costs. Research also shows how high pay worsens performance of top executives rather than being an effective incentive.

“Guanxi” a Chinese concept, literally means “relationships”, it stands for any type of relationship – employers and employees, customers and suppliers. In the Chinese business world, there is an implied network of relationships among various parties that co-operate together and support one another. In essence, this boils down to mutual respect and understanding, which are expected to be done regularly and voluntarily.

First of all, it does not have to be based on money. Treating someone with decency while others treat him/her unfairly could result in a good relationship. Second, it starts with and builds on the trustworthiness of the individual or the company. If a company promised certain things and delivered as promised, the company is showing trustworthiness and the Chinese would be more inclined to deal with them again. Third, being dependable and reliable definitely strengthens the relationship. It is like being friends, and friends can count on each other in good and tough times.

Indeed, the economic road ahead is tough, challenging and bumpy. The time is now for all good employers to work with their employees as a team to face whatever comes their way.

Beecroft’s report is divisive, antagonistic and self-serving – it should be consigned to the dark ages.

Sonny Leong is a publisher and Chair of Chinese for Labour