The relationship between organizations and their employees has changed from the concept of life-time employment to that of labor barterism. Putting it in another way, the relationship is based on the overlap of organizational and employees' personal goals. That way both parties are upfront about their expectations from each other with the option of dissolving their relationship once it fails to fulfil the interests of both parties. Instead of a long term marriage in which the couple over the years forget the promises made at the wedding, it is more like one where the couple renew their vows everyday so as to keep their love, respect and mutual goals for each other fresh in their minds. Such a relationship only keep getting stronger with passage of time.

Raj Bose
Faculty - University of Phoenix

Dear Sir,
Employee’s self interest are all about generating the “Sense of Belonging” ref to Hawthorne Experiment by Elton Mayo. Now the firm faces the challenge of talent retention, the other way to put it is how to enhance the “Sense of Belonging”.
This phenomenon has climbed up the value chain, ESOPs; sweat equity, all these are been given apart from the salary and perks especially for the cerebral workers.
Again as you rightly said you may have brilliant professionals working for you, and they very quickly realize that they have got more potential that can leverage their potentials as an entrepreneur or join some other organization for a better growth path, you have to set them free so that they can move for new greener pasture.
As you rightly said fast bucks are the order of the day, every one wants to make money fast there is no tomorrow.
“ GREED IS GOOD” the stakeholders are greedy too.

Spot on with the article. Good read. I am certain many a free agent can relate. But what segment of the workforce considers itself a free agent, and what percentage an employee? Many "employees" just wholesale their time for a paycheck. Are we over-generalizing the free-agents? Orare they less than 1% of the work population? Then again, many work just for the benefits, being just one paycheck away from not making their next mortgage payment.

Thanks for the post Marshall.

I thought there was something wrong with me :-)
I am a free agent.

I have been interviewing for a role in an organization that is full of "organization men"... the whole process was unsettling and i couldn't put my finger on why.

thanks again!

Raj - Thank you! I agree with your thoughtful post. Well said!
Debashish - I am not sure that I agree that all of the changes are good - on the other hand, I agree that they are all REAL.
Calle - You raise an excellent question. I am not sure what percent of the workforce would define themselves as 'free agents'. I do know: it is more than one percent - and it is rising rapidly!
Michael - It sounds like the 'organization man' world is not for you!

Perhaps an example of a free agent would be I as an employee of the University of Phoenix. I select the classes I want to teach and for every class I have to sign a separate contract with the university in which I agree to meet (or exceed) all of their teaching standards. If the university feels that I am not meeting those standards they can either stop giving me classes until I take remedial in-house training or even take me off their faculty list. At the same time, I am free to accept or refuse teaching any or all future classes at any time because of scheduling conflicts with my professional or personal life. When I am not teaching I do not have to indulge in abstract research or spew out boring academic papers merely to justify or extend my tenureship since there is no such long term employment contract. It is a win-win situation for both parties and is based strictly on mutual respect and expectations, professionalism and free market economics. Perhaps the concept of 'free agent' is the only rational way employees and employers can survive in any economic situation.

This is a great article. As someone who works closely with Generation Y, I come into contact with many free agents. The young worker of today was born and raised in a free agent world, and they are bringing a fresh, entrepreneurial spirit to our organizations. If we embrace this spirit, I believe that we can enhance our creative thinking and can expand our social networks (free agents usually have large global networks). The key is certainly the mutual respect piece. Generation Y careerists are saying that they feel like their employers don't respect them OR they make life difficult for them. When they feel they are not being respected or that they have no other choice, they will leave the company and then turn around and sell their services on a contracting or consulting basis to employers at double or triple the price. So...embrace the free agent and build the respect that you both need to be successful.

Raj - This is a great example of a new-world, free-agent contract. Like you, all of my work is done as a free agent. While you (and I) like this approach, others may not. I am not sure that it is 'better', but am sure that it is 'different'. People with higher needs for stability may hate it.
In either case, the trend is going to be for more and more 'free agent' thinking.

Thoughtful post, as always.

General Electric's former CEO, Jack Welch dealt with his star performers in a very innovative way.

Years prior to the advent of "free agency", Mr. Welch implemented a human resource appraisal system based upon differentiation. Your top 20% employees were your stars. The next 70% of your workforce was the core of your organization, and the bottom 10% were given an opportunity to improve, with coaching. If a bottom 10% performer did not improve, he/she was shown the door with dignity and a fair severance package. Your stars were showered with public praise, rewarded with pay increases, bonuses and stock, with the goal of retention. Your core workforce was given honest feedback, and coaching in an effort to help them move upwards and become top 20% performers.

If people are the most important assets of an organization, management should take the initiative to identify the stars and make sure they are rewarded for superior performance. Help them grow as leaders. These type of energized people will work harder to move the organization ahead.

A good example of a system of differentiation is sports franchises. Identify the stars and make sure they stay with the team. What would the Yankees be without Derek Jeter and Mariano Riviera, or The Laker's without Koby Bryant? No one on either team works harder than these players.

Lawrence - Your idea works very well when the 'stars' are also team players. The Yankees have been defeated for several years by teams that don't pay as much money.

Dear Marshall,

Thank you for your reply to my comment. You are very generous with your time.

Is the success of a sport's franchise only measured by winning a championship? If Kobe Bryant left the Lakers, how would the Lakers fare with attendance, merchandise sales, vendor revenue, won-loss record, and interest in the team? Likewise with Jeter and Riviera. Winning a championship is only one measure of a successful team.

You do not have to pay your stars the most money to stay with the team or business. It is critical to identify your stars and keep them on the team. Alex Rodriguez could have made more money leaving the Yankees and signing with another team as a "free agent". He chose to stay for reasons more important than money. The Yankees chose to sign him because he is one of their star players, who made the team better.

A leader is someone who works relentlessly to make the people on his team successful. Joe Torre exemplified these qualities. It is a leader's role to make sure his players are team players. Bryant, Jeter, Riviera and Rodriguez demonstrate that you can lead from anywhere in an organization.

I agree with you about the necessity of your star players being team players. If your stars are not leaders, then maybe you picked the wrong stars.

Lawrence - Thank you for this very thoughtful clarification!