Thinking Ethically: Who Gains From Employee Development

Thinking Ethically Who Gains From Employee Developmentwhen Derek Chr

Thinking Ethically Who Gains From Employee Developmentwhen Derek Chr

THINKING ETHICALLY: WHO GAINS FROM EMPLOYEE DEVELOPMENT? When Derek Christian wanted to run his own business, he bought a cleaning company called My Maid Service. The company had decent revenues but little growth, and Christian figure out why: employees were constantly quitting. With a turnover rate of 300%, Christian was filling the same job three times every year. The reason was simple.

No one wanted a career cleaning houses, so people worked for the service only until they could find something closer to their real goals. Higher pay didn’t address the problem, so Christian accepted that no one would stay forever. He opted for an unusual kind of employee development: if an employee agreed to stay with My Maid Service for two years, the company would pay for training and development (including stretch assignments at the company) to help the employee toward the next step of his or her career plan. Christian determined that the costs of this program are far less than he was spending to constantly hire and train entry-level employees. Customers, too, are more satisfied and loyal because they prefer having the same people clean their homes each time.

Derek Christian’s plan for employee development is clever, and because he is the business’s owner, he didn’t have to convince anyone but himself to try it. But imagine trying a similar program at a corporation that is owned by many stockholders. They might conclude that the cost is not in their best interests as investors in the business. Some employers even insist that employees pay for any training they receive because the employees are the ones who get the greatest benefit from what they learn. One person who might not see a conflict is Wendy S. Becker, associate professor of management at John L. Grove College of Business. Becker advocates the idea that human resource practices should be sustainable. By acquiring, developing, and managing employees in a way that is socially responsible—concerned for their welfare and the welfare of their communities—organizations can, over the long term, be the places where the best people want to work. One way to do this, Becker says, is to hire people not just for their experience and accomplishments but also for their potential, even though these employees will reach their full value after the company has invested in their development.

There is a risk that employees will take their newly learned skills elsewhere for better pay, but there is also a perhaps greater likelihood that employees will be more committed and loyal after the company invests in them. Perhaps if employers treat development programs as an investment in employees’ future value to the company, rather than as an expense to minimize, employees, too, will focus more on their value to the company.

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Employee development is a vital aspect of organizational growth and sustainability, directly impacting various stakeholders, including employees, investors, and customers. Ethically, organizations should distribute the benefits of employee development fairly, ensuring that employees receive support and opportunities while balancing the interests of investors and customers. The most ethical approach involves viewing employee development as a strategic investment rather than merely an expense, fostering a mutually beneficial environment where employees grow alongside organizational success.

When companies invest in employee development, benefits can accrue to multiple parties. Employees gain new skills, increased job satisfaction, and a sense of loyalty and commitment. Investors benefit from a more competent and committed workforce, leading to enhanced organizational performance, innovation, and long-term profitability. Customers also benefit from consistent, higher-quality service provided by well-trained employees, which increases satisfaction and loyalty. Therefore, an ethical distribution of benefits should recognize the intrinsic value each stakeholder receives, with organizations striving for a win-win scenario where all parties are accounted for.

From an ethical standpoint, employees should not be obligated to remain with an employer after completing their development program. However, companies that invest significantly in employee training and development often expect a reasonable period of service in return, aligning with concepts of fairness and reciprocity. Such expectations should be transparent, reasonable, and voluntary, avoiding coercive conditions that hinder employees' freedom to seek better opportunities. Ethically, organizations should respect employees' autonomy while emphasizing the shared benefits of long-term engagement, fostering trust and mutual respect.

Traditional training methods that foster ethical behavior include role-playing exercises and case study analyses. Role-playing allows employees to simulate ethical dilemmas and practice appropriate responses, enhancing their moral judgment and empathy. For example, a retail employee might role-play scenarios involving customer disputes, learning to manage conflicts ethically. The effectiveness of this method lies in its experiential nature, allowing participants to internalize ethical standards through practice and feedback. However, it may sometimes oversimplify complex ethical issues, requiring supplementary discussions to deepen understanding.

Case study analyses involve examining real-world situations where ethical principles are challenged. These exercises encourage critical thinking and moral reasoning by engaging employees in evaluating the actions of stakeholders in various scenarios. For instance, analyzing a case of corporate misconduct enables employees to identify ethical failures and consider corrective actions. This method promotes ethical awareness and decision-making skills, fostering an organizational culture committed to integrity.

Both methods have demonstrated usefulness in promoting ethical awareness, but their success depends on effective facilitation and integration into broader ethics training programs. Role-playing is particularly useful for developing interpersonal skills and empathy, essential for ethical leadership. Case studies enhance analytical and reasoning skills, preparing employees to handle ethical challenges proactively. Combining these methods creates a comprehensive approach that nurtures moral sensitivity, judgment, and behavior within organizational settings.

In summary, ethical training strategies such as role-playing and case study analysis serve as valuable tools in cultivating an organizational culture rooted in integrity and responsibility. Their application supports the development of ethical leaders who can navigate complex moral landscapes, ultimately fostering sustainable and socially responsible organizations.

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