Question

Why do employers have a natural advantage in bargaining with employees?

Short answer

Employers have a natural advantage in bargaining with employees because employers have a large number of employees, therefore losing one will not put them out of business.

Step-by-step solution

Concept Introduction

Bargaining is crucial in business and in the workplace because it helps to ensure that the parties involved have a positive and long-term relationship. Furthermore, it makes a significant contribution to improved individual and total performance over time, ensuring the company's success.

Explanation

Employers have a natural advantage when it comes to bargaining with employees because employees only have one job and losing it would be devastating. As a result, they accept the employer's bargains. Employees are also aware that losing only one person will not result in a loss for the company. Even if one employee is absent, operations will continue. Furthermore, it is simpler for firms to hire fresh personnel. In general, if an employee gets fired from their former position, finding new work is tough. Furthermore, most employees will do what their bosses advise in order to keep their jobs. Therefore, most workers, on the other hand, have only one job, making job loss far more difficult for them.

Final answer

Employers have a natural edge in bargaining with employees because they have a big number of employees and will not go out of business if one of them leaves.