The term 'Employees' is included in the Corporate Finance edition of the Financial Dictionary. Get your copy on Amazon in Kindle, Paperback or Audio edition. Choose your edition here...
Employees are individuals who work in the service of a business endeavor or trade. They do this by contributing their expertise, abilities, and labor to another individual’s small business, a corporation, for the government, or in their own self employed business. Employees are also a critical component of the factors of production that include land, capital, and labor. In this capacity, they contribute the labor to a business enterprise.
In particular, an employee proves to be an individual who is engaged by some employer in order to perform a specific job or task. Within the majority of advanced nations and their economies, this word pertains to a specifically spelled out relationship that is established between companies and individual persons. This relationship is markedly different from that of a client or customer.
Attaining the status of employee generally results from undergoing a job interview with a certain business or corporation. Assuming that the person in question matches up well with the organization and their position, then she or he is made a formal employment offer for a given initial salary and place in the company. Such a person then attains all of the privileges, responsibilities, and rights as other employees. These commonly include vacation days and medical insurance benefits. Human Resource departments typically manage the actual relationships between such employees and major companies. This department works with new employees’ coming on board and integrating into the organization, as well as handling the set up of their new benefits to which they are entitled. HR departments also commonly resolve any problems or grievances that employees experience.
Employees may group themselves into labor unions that can come to represent the positions and demands of the majority of an organization’s work force. These labor unions are then capable of bargaining as a whole on behalf of the employees with a company’s management. They do this to make demands for the members concerning payroll, benefits, and working conditions.
Employers are quick to point out that these offers of employment never assure employment for any future specified amount of time. Either the employer or the employee is capable of ending this particular relationship whenever it suits them. This capability is known as at will employment. Many professions expect a two week notice when an individual employee quits his or her job. This is a customary courtesy that the law does not require. It may be necessary in order to obtain a satisfactory job reference for future employment opportunities.