Employer and employee both terms sound similar but you should not make this mistake of thinking that both terms are same because in reality, the difference between the two is as striking as the difference between day and night or difference between a smartphone and normal phone. In short, one cannot put both employer and employee on the same ground as both are completely different from each other and that is the reason why one should look at the difference between employer and employee –
Employer and Employee Difference
Meaning
Employer refers to that person who is the owner of the company and employee refers to that person who works for the employer. In simple words, an employer is that person who employs the employee for working in the company.
Factors of Motivation
Factors of motivation as far employer is concerned are the desire for higher profits, being industry leader; ego satisfaction by leading team of employees and so on but as far as employee is concerned factors of motivation are getting enough remuneration so that he or she can make sure that his or her family can maintain a decent lifestyle. In simple words employers are self-motivated individuals and that is the reason why they never get tired as more work means more money and success for the employer but as far as employee are concerned they are not self-motivated and that is the reason why employers all over the world lay emphasis on motivating their employees as demotivated employee is similar to injured soldier in battlefield just like injured soldier cannot win battle for the country in the same way demotivated employees cannot make company successful.
Risk
The risk of employer is unlimited because if any loss happens to the company than it is the employer who has to bear the loss and if company closes than employer is ruined while as far as employee is concerned the risk of employee is very limited because even if company shuts down the only loss to the employee is that he or she will lose his or her job and if employee is talented than he or she can get job in any company.
Reward
Employees get fix salary and incentive as a reward for the roles performed by them in the company while the employer gets profits as a reward for the work done by the employees of the company. In simple words rewards as far as employees are concerned will be fixed no matter how much hard work they do but as far as the employer is concerned rewards can be huge if the company makes bumper profits due to the hard work done by the employees and employer of the company.
Options for Change
An employer after starting a company cannot back away because starting a company requires a lot of money and effort on the part of the employer but as far employees are concerned they can change the job whenever they like by giving proper notice to the employer. In simple words, an employer is like that fish in an aquarium that has to remain the aquarium even if that fish does not like the aquarium but employees are similar to fish in the ocean that has no constraints and can freely move from one place to another.
Scope of Work
The employer has to do all the work whether it’s starting a business or attending meetings or managing the employees or being answerable to outside parties like creditors, shareholders, government and so on while employees have to complete only the work assigned to them and after completing the work assigned they can relax. In simple words employees after leaving the office can relax and do whatever they like but as far as the employer is concerned he or she can never relax as his or her mind is preoccupied all the time with happenings of the company.
As one can see from the above that both employer and employee are different from each other and that is the reason why you see that once an individual either become employer or employee than it is very difficult to go to another side that is an employer cannot work like employee and an employee does not dare and think to become an employer.