Goodwill Account

A colleague of mine once introduced me to a term that I've found very useful in terms of employment and other involvement. My colleague called it a "goodwill account."

As empyer and employee you don't owe each other anything over extended periods--after all, that's why employees are paid regularly (although of course one should not forget that if the company profits, then it is because its employees are not paid the full value of their work). It isn't only the salary that influences the choice of work place. It also the nature of the work, the work environment, treatment of the employees, etc. This is where the term "goodwill account" becomes useful.

Think of it as a bank account. When you start in a new position, presumably you chose the job for other reasons that salary alone. This means you have a certain amount of goodwill towards this work place. This amount of goodwill is a positive balance on your goodwill account.

The work place can withdraw from the goodwill account until the funds are depleted and other companies begin to seem more attractive. Alternatively, your employer may deposit funds on your goodwill account through work environment improvals, more reasonable treatment of his employees, etc.

In rare cases a goodwill account can be overdrawn without causing you to leave. This happens if in some way you're forced to stay in your position. Your children may have certain daycare requirements; you or your partner may have competences that prevent mobility; you may need to stabilize your resume after a number of job changes, etc.