07 December 2020

What Is The Difference Between Employer And Employee

by Sneha
Difference Between Employer And Employee

Who Is An “Employee”?

An employee can be defined as a person hired after an application and interview process by a person/employer for a specific job. He or she works under the employer either full time or part time and in return gets paid for their services.

A person doesn't need to work full time to be considered an employee, the only thing necessary for a person to classify as an employee is if he/she is working for their employer and are getting paid to do so.

Employees should not exceed their relationship with employers beyond their established relationship. Both the employer and employee depend on each other to achieve a target. But the employee depends on the employer to support them financially, and they can end the deal anytime they want when they feel that they are not getting paid enough.

Employees can have a healthy relationship with their employer by being open and being more confident. This will help them build a better rapport with the employer, which will further trigger their growth in the organization. Studies indicate that employees who have respectful and healthy relationships with their employers are more likely to be happy, loyal, and productive in the long-run.

Who Is An “Employer”?

An employer can be defined as a person or sometimes a business that employs one or more people in exchange for a specific amount of money known as salary or CTC. An employer may belong to a government, private, nonprofit, or business sector. The employer has many responsibilities for their position, such as:

1. Defining the terms of employment for its employees.

2. Establishing the culture within the organization that they are working in.

Their behavior towards the employees or their job is a clear indication of how employees should behave towards their co-workers and work. It’s solely based on how they want their work environment to be. They can control the work done by the employees.

The employers depend on employees to achieve specific goals for their company, and they can fire the employees if they feel that the person cannot provide the desired results.

It’s the job of the employer to develop a healthy work environment, and they can do so by being familiar with their employees by trying to know about the employee’s interests and any other concerns they might be having regarding any work, office environment, etc. This will help the employer to gain the employee’s respect and trust, which is important while doing business.

Difference between Employee and Employer

Now let’s dive into the major differences between an employer and an employee.

FACTORS EMPLOYEE EMPLOYER
Role Works for an organization, company, or person and receives a specific payment in return. Hires employees to work for their company or organization and give them a salary in return for their services.
Goal The employee's main goal is to grow professionally and support themselves and their family financially. The employer's main goal is to maximize the productivity and efficiency of the organization with the help of their employees.
Cash Flow The employees receive a specific amount of salary in return for their services to the organization. Employers give out salaries to the employees, and it is seen as a form of deduction. He/ She receives compensation from the profit earned by the business.
Responsibility The employee's leading responsibility is to do their job honestly by following all the rules, abide by the contract of employment that they signed at the beginning of their career, be loyal to their employer, and most importantly is to do their work with dignity and faith. The employer's leading responsibility is to look after the safety, health, and welfare of the employees and to ensure that they are working in a healthy environment and that their needs are being met so that they can give a productive result.
Authority The level of authority of the employees is that they can only control the employees that work under them. The level of authority of the employees is that they have full control over all their employees.

Check out this awesome infographic by Spherion which shows how the relationship between Employees & Employers has changed over the past 15 years.

Difference Between Employer And Employee

How Can Employees & Employer Maintain a Healthy Relationship


1. Mutual Dependency

Both the employers and employees must have balanced and mutual dependency on each other so that they can grow and flourish together.

The employer depends on the employee to do his or her job well and with dedication for the success of the company whereas the employee relies on the employer to treat them respectfully, and pay them fairly. The company or organization can do wonders when both parties ensure their part.

2. Mutual Support

Employers should support their employees to reach their full potential and acknowledge when their potential exceeds their current position. This will in turn help the employers to instill trust, higher skill levels, more productivity and motivation in the employees.

In the same way, the employees should also be willing to support the company’s vision and work towards its success, which means they will have to make sacrifices from time to time.

Be it working late to fix an unexpected issue or doing someone else’s work in their absence for a short time, employees need to be always ready to show their willingness to work towards the success of the company.

3. Openness & communication

To create a healthy work environment needs openness and transparency in matters from both the employer’s and employee’s side.

Employers can achieve this by asking employees about their lives, families, and interests. Employees can, in return, be forthcoming about their lives outside of work.

Employees should feel free and should not hesitate to inform their employer of any issues that could hinder their work performance, or a desire to find a new job.

As for the employers, they shouldn’t discourage their employees from leaving if they get better opportunities somewhere else where they have a better scope of growth. They should be understanding and supportive of their employee’s natural want to progress.

4. Appreciation or Gratitude

Both the employer and the employee should show a sense of gratitude towards each other. The employers should make sure that they appreciate the employees from time to time for their hard work and dedication towards the company’s growth.

Conducting monthly or annual award function, where outstanding employees are awarded for their hard work and contributions can go a long way in motivating the employees to bring out the best in what they do. This will make them feel more valued and happy to work for you.

Hope you got a detailed idea on the roles and differences between both an employer and an employee.