What is ‘employee relations’ really?

Does employee relations mean hosting occasional social gatherings and providing workplace entertainment?

Well not quiteEmployee relations is a broad term that encompasses all aspects of the relationship between an employer and its employees. Including everything from hiring and on-boarding to performance management, conflict resolution, and off-boarding.


This concept was defined by Western scholars in the 20th century to replace industrial relations. It is a study of the rights, responsibilities, and power dynamics between organisations and their employees, as well as the management and resolution of conflicts

Employee relations are typically overseen by a company’s human resources department and some organisations have a dedicated team for maintaining and improving employee relations.


Video 1: What is Employee Relations

Source: YouTube


Why it is so important?

Employee relations are key fundamental elements of organisational performance, prosperity and sustainability. They are results in highly committed, motivated and loyal employees in the organisations. Positive employer-employee relations are essential to an organisation's success because it motivates employees to perform at their best and produce more results (Burns, 2012). 

Ivancevich (2001) emphasised that employee empowerment improves employee relations by increasing employee skill sets and granting them the authority to make decisions that traditionally fell to managers, which directly contributes to organisational objectives.

Stallard (2009) studies have shown that employees in an organisation with strong positive employee relations are more engaged, efficient, and less likely to leave the organisation for another.

Negative employee relations impact business performance in several ways, Unhappy employees can lead to higher rates of absenteeism and turnover. This lowers the productivity. Poor employee relations practices also result in increased rates of theft and safety violations. Osborne and Hammoud (2017) succinctly added that lower employee engagement in an organisation can be a result of a negative work environment and such situations bring about low productivity.

Core characteristics & the goal

Great employee relations are the foundation of a thriving and successful organisation. They encompass the practices and policies that foster positive interactions, mutual respect, and a sense of belonging among employees. By nurturing a strong employee relations culture, organisations can reap significant benefits, including increased productivity, reduced turnover, and enhanced employee satisfaction. Core characteristics,

  • Effective Communication
  • Transparency
  • Employee commitment to core values
  • Diversity, inclusion, equity and belonging
  • Supportive managers and leadership
  • Employee training and development


The main goal of employee relations is to create a positive and productive work environment where employees feel valued and respected. (forbes.com, 2023). By cultivating these core characteristics, organisations can establish a foundation for great employee relations, leading to a more engaged, productive, and satisfied workforce. This,

  • Improve employee engagement and satisfaction
  • Reduce turnover and absenteeism
  • Boost productivity and performance
  • Promote a positive company culture
  • Resolve workplace conflicts and disputes
  • Ensure compliance with employment laws and regulations
  • Support employee well-being and development


Employee Relations is an important function for all organisations, regardless of size or industry. Investing in it, organisations can create a more positive and productive work environment for everyone.


References

Burns, A. (2012). Employee Relations. In Prescott RK, Roth well WJ (Eds.) Encyclopaedia of Human Resource Management, Key Topics and Issues, 1:186. John Wiley & Sons

Chauncey Crail (July 18, 2023) What Is Employee Relations. [Online] Available at: https://www.forbes.com/advisor/business/what-is-employee-relations/ [Accessed on  05.11.2023].

George, J.M. and Jones, G.R. (2008) Understanding and Managing Organizational Behavior. 5th Edition, Pearson Prentice-Hall, Upper Saddle River.

Kristina Martic (Janualy 10, 2023) What Are Employee Relations and Why They Are Important. [Online] Available at: https://haiilo.com/blog/what-are-employee-relations-and-why-are-they-important/ [Accessed on 04.11.2023].

Osborne, S., & Hammoud, M. S. (2017). Effective Employee Engagement in the Workplace. International Journal of Applied Management and Technology, 16(1). https://doi.org/10.5590/IJAMT.2017.16.1.04

Shonna Waters (August 3, 2022) Employee relations: An overview and best practices https://www.betterup.com/blog/employee-relations  [Accessed on  07.11.2023].

Stallard, M. L. (2009). Fired Up or Burned Out: How to Reignite Your Team’s Passion, Creativity, and Productivity. HarperCollins Leadership


Comments

  1. Maintaining a healthy relationship with employees is essential if employees want to stay with the organization for long, but how do we make it viable and healthy in this digital age and hybrid work environment?

    ReplyDelete
    Replies
    1. Yes Shri, Maintaining a healthy relationship with employees in the digital age and hybrid work environment can be challenging, but it is required for long-term employee retention and engagement This can be achieved mainly by,
      - using technology to facilitate communication and collaboration
      - Providing opportunities for employee recognition and development
      - Encourage work-life balance
      - Be flexible and understanding
      - use video conferencing for regular check-ins and meetings
      - Be mindful of employee burnout (Hybrid work can make it difficult for employees to disconnect from work. Encourage employees to take breaks, set boundaries, and use their vacation time)

      Delete
  2. Yes, Further on this, (M Mcnamara 2023) employee relations refers to an organization’s efforts to sustain positive, constructive relationship with its employees. Negative employee relationship effect to long term sustainability of any organization. Therefore, maintaining of positive relationship with the employee is essential for any organization. Employers intention is to increase retention and reduce turnover by implementing a strong employee relation strategy which ultimately help to increase the organization performance.

    ReplyDelete
  3. Employee relations are critical for business success. It involves studying the balance between organizations and workers. It encompasses relationships between employers and employees. The goal is to foster good morale, trust, and productivity. The field manages and resolves conflicts. Typically, human resources oversee this function. The emphasis is on creating a positive and collaborative atmosphere for success and well-being (Bajaj et al., 2013).

    ReplyDelete
    Replies
    1. Agreed Pandula, and Thanks for your valuable comments

      Delete
  4. Well said Chamila. Agree with your points. These days most of the medium scaled companies tries Competition Among Employees instead of building the relationship among them. But you explained in a nice way how strong employee relationship improves and maintains healthy organization.

    ReplyDelete
  5. Yes absolutely correct, employee relationship will improve the employee engagement and retention. However according to (economynexT, 2023) 311,269 people has migrated in year 2022, do you believe lack of employee relationship is part of this crisis.

    ReplyDelete
  6. Adding more to the contents of the article, I would like to state that In Today's world Employee relations can be influenced by unforeseen events like global crises. This will become vulnerable to third-world countries like Sri Lanka. In most industries in Sri Lanka, Employee retention has become a major issue. So HR Management has to play a vital role in eliminating lots of issues arising in this aspect.

    ReplyDelete
  7. It's important to note that the specific practices and emphasis on certain aspects of employee relations may vary across industries and individual organizations. Additionally, changes in laws and regulations, as well as unforeseen events like global crises, can influence the landscape of employee relations. This will badly affect to third-world countries like Sri Lanka.

    ReplyDelete
  8. Are there any statistics on negative employee relations? Any research that has been conducted on higher rates of absenteeism and turnover being high with negative employee relations?

    ReplyDelete
    Replies
    1. Yes, there are many. If you are concerned about negative employee relations in your workplace, you should take steps to address the issue. Talk to the employees, identify the root causes of the problem, and develop a plan to improve the situation.

      Delete
  9. Employee relations concerns creating positive associations and interactions among employers and employees at a broader level. This helps for a transparent workplace communication while supporting the emotional, physical and psychological health of employees. Finally, the aim of employee relations is to create a positive relationship between employers and employees that leads to an increase in employee retention, happiness and productivity (Forbes, 2023).

    ReplyDelete
  10. Employee relations refer to the dynamic interaction between employers and employees within an organization, encompassing the strategies, policies, and practices aimed at fostering a positive work environment. This vital aspect directly influences organizational performance by cultivating a cohesive workforce, enhancing productivity, and boosting employee morale. Effective employee relations promote open communication, mutual respect, and fair treatment, leading to higher job satisfaction and lower turnover rates. Moreover, when employees feel valued, supported, and engaged, they are more inclined to contribute their best efforts, ultimately driving the company towards its goals. Therefore, understanding and nurturing healthy employee relations isn't just a matter of policy—it's a cornerstone for achieving sustained organizational success and competitiveness in today's dynamic business landscape.

    ReplyDelete

Post a Comment

Popular posts from this blog

Trade Unions and their Impact on Organisational Performance

Maintaining Positive Employee relations in Hybrid Work Environments

Tactical & Strategic HRM skills for effective Employee Relations