Summary: Founders must recognize that while their business represents their identity, for employees it's an activity—understanding this fundamental difference is crucial for building realistic expectations and maintaining healthy workplace dynamics.
The conversation usually starts the same way. A founder, frustrated and bewildered, vents about their employees' apparent lack of dedication. "They won't network after hours," they complain. "They resist last-minute business trips. They're not willing to do whatever it takes to hit our targets." Meanwhile, the founder points to their own sacrifices—endless hours, constant travel, and complete immersion in the business.
What these founders fail to grasp is a fundamental truth about the relationship between identity and activity. For founders, their business isn't just what they do—it's who they are. It's their identity, their creation, their legacy. Every success feels personal, and every setback cuts deep. But for employees, even the most senior executives, the job is primarily an activity—an important one, certainly, but still just one part of their life's tapestry. If the business shut down tomorrow, they'd be concerned with loss of income, not loss of identity.
This distinction isn't about commitment or work ethic; it's about the core nature of the relationship. When something is your identity, it naturally becomes the lens through which you view every decision. Founders willingly work those 60-hour weeks because the business's success is intrinsically tied to their sense of self. But those extra hours come with hidden costs: exhaustion, strained relationships, missed life moments, and often, a narrowing of perspective that can actually harm the business in the long run.
Employees, viewing their job as an activity, make different calculations. They weigh the "additional investment" against personal costs. While founders might protest that everyone benefits from the company's success through stock options or bonuses, two realities remain unaddressed: First, success isn't guaranteed, and second, the scale of potential rewards is dramatically different. No matter how generous the compensation package, employees will never reap rewards comparable to the founder's potential exit.
Here are five realities founders should consider:
- Identity-based motivation can't be transferred or replicated through incentives alone. Your deep personal connection to the business is unique to your position as founder.
- Expecting identity-level commitment from activity-level participants creates resentment and burnout, ultimately harming both productivity and retention.
- Different levels of emotional investment don't necessarily correlate with performance quality. Some of your best performers might be those who maintain healthy boundaries.
- The modern workforce increasingly values work-life integration over traditional all-in mentalities, making old-school expectations increasingly counterproductive.
- Your business benefits from having employees who maintain perspective and bring insights from well-rounded lives outside work.
However, founders can still cultivate strong employee engagement and drive success through these approaches:
- Create clear paths to meaningful rewards that don't require identity-level sacrifice, focusing on achievable goals with tangible benefits.
- Foster a culture that celebrates efficiency and smart work over sheer hours invested, making it possible to succeed while maintaining work-life boundaries.
- Build structured opportunities for growth and advancement that align with employees' professional goals while serving the company's needs.
- Develop recognition systems that acknowledge and reward exceptional contribution without requiring personal sacrifice.
- Design flexible work arrangements that allow employees to integrate work commitments with personal lives, reducing the friction between professional success and personal wellbeing.
The key lies in accepting that while your business is your identity, expecting others to share that same level of emotional investment isn't just unrealistic—it's counterproductive. Instead, focus on creating an environment where employees can thrive professionally while maintaining their personal identities and boundaries. This approach not only leads to better retention and performance but also creates a more sustainable and healthy organization in the long run.
Need help with your go-to-market strategy? Schedule a meeting with Seth!