Idiosyncratic deals (i-deals)

Idiosyncratic deals (i-deals)

Idiosyncratic deals, or i-deals, refer to voluntary, personalized agreements of a nonstandard nature negotiated between individual employees and their employers regarding terms benefiting each party. These individualized employment arrangements differ to some extent from those received by coworkers.

Several distinct features characterize i-deals and differentiate them from other forms of person-specific employment arrangements (e.g., cronyism or favoritism) as described below. The principal characteristics of i-deals are as follows:

"Individually negotiated": An i-deal exists when an individual worker negotiates arrangements with an employer or prospective employer that differ from the corresponding arrangements of his or her coworkers.

"Heterogeneous": At least some of the specific terms included in an i-deal are specially provided to that individual, differing from conditions created for other employees in similar positions or in the same work group.

"Benefiting both employer and employee": I-deals serve the interests of both employers and employees. I-deals are distinct from other forms of person-specific employment arrangements in that the negotiation is based on the value of the individual worker to the employer (Rousseau, 2005). An organization attracts, motivates, and retains the services of a valued contributor at the same time he or she receives desired resources from that organization.

"Varied in scope or proportion": The i-deals individual workers enjoy may vary in scope from a single idiosyncratic element in a larger standardized employment package to a complete, entirely idiosyncratic employment arrangement. For example, one worker with an i-deal might have distinctly more flexible hours than peers but otherwise share with them the same pay, job duties, and other conditions of employment. In contrast, another worker might have a more novel, customized arrangement in which almost all employment terms are specially negotiated, from pay and hours, to duties and title. Although both these individuals may be said to have idiosyncratic features in their employment arrangements, the relative proportion of idiosyncratic to standardized conditions is greater for the second worker.

A central feature of i-deals is that the employee has had a hand in creating or negotiating some aspect of his or her employment. Idiosyncratic arrangements can make jobs more valuable to workers, especially when they involve features not easily obtained from other employers. Special opportunities for training and development in particular lead employees to believe their psychological contract with the employer as relational.

References

D.M. Rousseau 2005. "I-deals: Idiosyncratic deals workers bargain for themselves." New York: M.E. Sharpe.


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