What conflict of interest typically arises between employees and owners/managers?

The conflict of interest that arises between employees and owners or managers often centers around compensation. Employees generally aim for higher wages or pay rises, which directly increase operational costs for the business. When employees advocate for pay increases, they do so to improve their financial well-being, leading to a potential clash with owners or managers who are focused on keeping costs as low as possible to maximize profits. This difference in priorities creates a tension between both parties; while employees want a financial incentive in the form of higher pay, owners or managers are concerned with maintaining or increasing the organization’s profitability, often through cost control.

In contrast, the other options do not accurately reflect a core conflict of interest. The desire to reduce costs may align with the interests of both employees and managers in some contexts, while the aim of maximizing employee satisfaction is typically a shared objective for both parties aimed at improving productivity and retention. High staff turnover is usually undesirable for owners and managers as it leads to increased hiring and training costs, making it less likely to be a priority for them. Thus, the desire of employees for raises, which increases operational expenses, captures a fundamental conflict of interest between the two groups.