OpenAI saga highlights shift in employee power in the workplace: advice from Brighton law and HR business

The situation at OpenAI was unprecedented and the circumstances unique, but the end result stands as a cautionary tale and lesson in transparency for all business leaders who fail to take their employees' voices and power into consideration. Pam Loch, Solicitor and Managing Director at Sussex law and HR business Loch Associates Group, explains what employers need to consider.

The scenario of Sam Altman and OpenAI reflects a shift from the traditional top-down decision-making model, illustrating the increasing impact of collective employee voices in corporate governance and management. The shifting dynamic from servant to master does not only involve a change in the power balance, but also a shift in that employees feel they have a voice to influence their employer’s decisions.

In the past, businesses dictated the terms of employment. They called the shots about how, when, and where people worked, and still had candidates banging at the gates to be let in.

However, post the Covid pandemic the tight recruitment market, coupled with the increase in flexible working, has allowed the balance of power to shift in favour of employees, and with the war for talent ramping up, employers are having to rethink the way they manage people, ensuring a positive employee experience.

As the work landscape continues to adapt to accommodate flexible working arrangements, the #MeToo movement reinforces the ability for employees to drive change. The movement has played an important role in reshaping the employer-employee relationship, giving voices to individuals to hold organisations accountable for fostering safe and inclusive work environments. This movement has empowered employees to speak out against harassment and discrimination, compelling employers to reassess their internal policies and procedures, signalling a departure from the top-down approach to management.

It starts with rethinking hierarchy. Employers should not take a top-down approach to management; they should understand what’s happening on the ground and adjust their strategy accordingly. Employees have reaped the productivity benefits from increased flexibility in both their professional and personal lives during the pandemic and they won’t want to give these benefits up easily.

Despite fears amongst businesses, providing flexibility doesn’t lead to disengagement. Leaders should not rule with an iron fist; they need to listen to employee pain points and ensure they are managing flexibly in the right way.

The harsh truth for business leaders is that employees may leave or revolt if they don’t like the work environment or the way it’s governed. However, you can avoid that happening by taking some simple steps that we can help you with. 360 degree feedback and employee engagement surveys help to find out what staff want, whilst management and development training not only create a happy and stable workforce, but increased productivity too.