The plebeians rehearse the uprising

Abstract

Purpose – The purpose of this paper is to explore the impact of rising concerns about income inequality on the reputation of large global employers. In an era in which middle class incomes have stagnated for several decades, the continuing decline of labor unions seems paradoxical. The paper suggests that the impassivity of the workforces of the developed countries may be coming to an end and that thoughtful employers can and should be doing more to address the needs of their employees from both a benefits and job satisfaction perspective. Otherwise, they may face renewed repetitional threats that could translate into regulatory penalties. Design/methodology/approach – The paper cites evidence of an increasing concern about income inequality in the developed economies and examines best practices in employee relations from a number of leading corporations to suggest ways in which companies can manage new repetitional threats relating to the way they manage their employees. Findings – The paper provides insights into three strategies that well-managed companies can adopt with respect to their employee relations: they can become leader brands, consistently pursuing employee benefits strategies at the cutting edge; they can develop a distinctive employee investment strategy; or they can create workplaces focused from innovation from the bottom up. Research limitations/implications – Due to the anecdotal nature of the evidence adduced to suggest best practices in employee relations, further research needs to be done to examine the question presented in a more empirical fashion. Practical implications – The employee relations strategies described can be deployed by any corporation seeking to create a new employee compact with its employees to safeguard its reputation and be perceived as a builder, rather than despoiler, of communities. Social implications – Concerns about income inequality and its negative impact on the social fabric are being voiced by leading voices in the business community. If the strategies recommended in the paper are adopted broadly, this could have a significant impact on the regeneration of struggling communities. Originality/value – Although substantial attention has been devoted to the subject of income inequality from an economic perspective, there is very little in the literature that addresses income inequality from the viewpoint of its impact on corporate reputation and the threat of future anti-business government action.