The new employment relationship versus the mutual investment approach: Implications for human resource management

Abstract

Abstract With increasing globalization and hypercompetitive markets, most employers have resorted to headcount management to gain flexibility, remain competitive, and ensure survival. A new employment relationship has emerged. The bond between employer and employee no longer is a long‐term relationship involving loyalty and commitment, but a contractlike economic exchange. The authors take a closer look at this new employee relationship in the context of the more traditional employer‐employee relationship still found in many organizations. The economic value of the new employee relationship may be less attractive than previously perceived. © 2005 Wiley Periodicals, Inc.