Partnership, flexible workplace practices and the realisation of mutual gains: evidence from the British WERS 2004 dataset

Abstract

This paper examines the potential for workplace partnership to produce mutual gains through the implementation of high-performance, flexible-working initiatives. Using a large manager–employee matched dataset, originating in the British Workplace Employment Relations Survey (WERS 2004), it focuses upon a range of related workplace practices reported by manager and employees as available or in use in their establishment, to consider the extent to which their implementation is associated with mutual benefits (positive-sum), reported by both managers and employee respondents, or whether gains for one group occur at potential cost to another (zero-sum). Bivariate probit models allow measures of manager and employee-reported organisational outcomes to endogenously affect each other, first from a managerial perspective, second from an employee perspective and third from a combined managerial and employee perspective. The results highlight the significant potential for partnership agreements to deliver mutual gains, albeit within a narrower range of workplace practices than might be the case if the innovation package was designed with the primary interest of only one group in mind. Unsurprisingly, managers and employees were found to have different perspectives in relation to partnership arrangements, with the latter having the more realistic expectations of achievable outcomes. However, since partnership agreements, as defined by this paper, remain underdeveloped within UK workplaces, with only 8% of the sampled 23,000 employees benefiting from such workplace arrangements, the evidence advanced by this paper would indicate a potential scope for realisable gains deriving from well-designed, participatory forms of partnership.