Employee Activism: A Brief Guide

Numerous instances from the past confirm the importance of employee satisfaction. If employees are not happy or if they do not agree with any act or upcoming policy of the organization, they will not sit quietly.

What happened at Wayfair is probably the most widely known example of the same. 

Source: Duke University

When Wayfair’s employees asked the company to stop supplying furniture to an inhumane immigrant holding facility, they received no response from the management of the company. This resulted in well-publicized employee walk-outs that brought a lot more negative attention to the company.

This very incident is an example of Employee Activism.

Underlying Meaning of Employee Activism

Employee Activism, therefore, is any action taken by employees to stand for or against their employers on any such issue that is controversial and impacts society at large. Employees strive to bring a change in their company’s policies to bring a social change together with it.

What Is Good About Employee Activism?

• Employee activism has led organizations to a realization that internal stakeholders are equally important as external stakeholders.
• The work environment has also seen a change. Employers now opt for an open communication culture where there is an exchange of ideas and feedback.
• What do our employees think about the company and the management, how happy are they with what we are doing with the company and for the society - these thoughts have become common among the employers. To take action on these thoughts, surveys like employee engagement survey organizational culture surveys are conducted.
• Actions are then taken on based on the employee feedback received. These actions are undertaken to bring about a positive change in the policies and functioning of the company.
• This change brought by one company then creates a chain reaction. Observing this one company, other companies in the same industry bring about a change in their functioning and policies on similar lines.
• Employers at large have now understood the potential of employee activism in increasing their reputation and improving their relationships with stakeholders. They have started to realize their accountability towards society and business.
• Therefore, employee activism can bring a change not just within one organization but the entire corporate ecosystem and the society at large.

However, just like any other thing in this universe - even employee activism has a flip side.

What Can Go Wrong With Employee Activism?

If a company does not have a culture of open communication and does not provide its employees with a medium to vent out and mention their concerns about the company and its work, there are high chances that the employees will end up not trusting their employer.

There have been a few scams in the history of business that have already created a notion in the minds of the people that leaders of the business world work for their own selfish motives and are greedy.

This notion about the leaders along with the distrust due to poor communication between employees and the employers lead to employees taking steps that could prove to be disastrous for the company.

Source: GreenBiz

Whenever employees feel the need to speak against any upcoming policy of the company or any action that the company is about to take with which employees do not agree, employees will have no choice but to look outside the company for a medium to raise their voices. In such cases, they might join hands with the media, stage protests, use social media, etc.

Such acts can ultimately turn out to be destructive for the employer company.

A notable example of how employee activism can negatively impact the image of a  company could be what happened with Coinbase.

Coinbase CEO, Brian Armstrong, wrote a controversial blog in 2020. He wrote that his company would not participate in social activism and the employees should focus on the mission of the company. He further asked employees to stop engaging in broader societal matters not related to the company’s core mission. All those who did not agree with the company’s pledge were offered a severance package to help them move elsewhere. Over 60 employees took the severance package offer and walked out of the company.

Closing Thoughts

Employee activism has the potential to bring about a change in the world of business and society. It is something that is on the rise and employers should beware of underestimating its potential. Employers should ensure that they are receiving continuous feedback from their employees and work for continuous improvement.