Importance of employee relations in HRM decision making

What is the definition of Employee Relations?


Figure 1

The definition of employee relations refers to an organization’s efforts to create and maintain a positive relationship with its employees. By maintaining positive, constructive employee relations, organizations hope to keep employees loyal and more engaged in their work.

Typically, an organization’s human resources department manages employee relations efforts; however, some organizations may have a dedicated employee relations manager role. Typical responsibilities of an employee relations manager include acting as a liaison or intermediary between employees and managers, and either creating or advising on the creation of policies around employee issues like fair compensation, useful benefits, proper work-life balance, reasonable working hours, and others.

Why is an employee relation important?

By maintaining positive, constructive employee relations, organizations hope to keep employees loyal and more engaged in their work.

To maintain positive employee relations, an organization must first view employees as stakeholders and contributors in the company rather than simply as paid laborers. This perspective encourages those in management and executive roles to seek employee feedback, to value their input more highly, and to consider the employee experience when making decisions that affect the entire company.

What are examples of Employee Relations?

Examples of employee relations issues are

  • Workplace Conflicts - Disagreements and disputes between employees happen all the time. Often, these are the results of ineffective communication. An HR department or employee relations manager will never please everyone, but if frequent conflicts come up, low morale is building and the issues will only get worse unless resolved.
  • Workplace Bullying - When a simple conflict escalates into bullying, you’ve got a big problem. The consequences of letting this take place on the job are low employee performance, increased absenteeism, and bad brand reputation (not to mention legal action). Take bullying reports seriously and launch investigations when necessary.
  • Workplace Safety - If accidents are happening in the workplace, an employer may be held responsible for any injuries, medical leave, and lost wages. On top of that, the company will suffer from the high cost of lowered production. Promoting and immediately addressing workplace safety issues is a top employee relations concern. (Skinner, 2003)

How do you handle Employee Relations Issues?

There are many types of employee relations issues, and the way to handle them can vary depending on the particular issue. However, there are some general guidelines to follow. One of them is to listen. Give your full attention and try to focus on what is being said both vocally and physically

Finally, document everything. Keeping accurate legal and employee records is vital when it comes to employee relations issues. You will find yourself needing to refer back to them again and again. They will be especially useful if there is ever an employee lawsuit brought against the company. (Gartner, 2018)

What is an Employee Relations strategy?

An employee relations strategy is a way to create balance between employers and employees by creating an environment conducive to each’s needs. Employers want productivity and performance employees want acknowledgment and appreciation. A good employee relations strategy will help both get what they want.

Strategy should include at least the following KPIs

  • Number of recognitions
  • Number of complaints
  • Complaint response time
  • Quarterly benefits and compensation data compared to competitors
  • Employee satisfaction
  • Employer performance

References

Gartner, 2018. Employee Relations. Human Resources Glossary, 4(1), pp.42-44. Skinner, W., 2003. Managing Human Resources. Human Resource Management, 1(13), pp.74-77.




Comments

  1. Chamila Thilakaratne (LMU, ESOFT MBA Batch #24)30 April 2022 at 19:27

    As u mentioned above involving your team members in decision-making, you demonstrate that you trust and value their input, which increases employee engagement.well written article. Good luck

    ReplyDelete
  2. Dharshana MBA241 May 2022 at 23:38

    This employee relations strategy is a way to create balance between employers and employees. This will be directly effect to the productivity. Good article Prasad.

    ReplyDelete
  3. Asiri Samarakoon (MBA 2022 BATCH)2 May 2022 at 06:29

    Employee relations are critical in the decision-making process, and you have clearly defined all of the key criteria.

    ReplyDelete
  4. Niluke Sirimanna5 May 2022 at 01:53

    It is easier for an employer to engage and motivate employees if they have good employee relations. Proper communication is essential for maintaining strong employee engagement, and as a result, employee relations will naturally improve, resulting in increased productivity and profitability. good article

    ReplyDelete
  5. Hasitha7 May 2022 at 11:33

    This is a really perfect article. Similer to Transformational Leadership concept. Engaging all employees for decision making.
    All the best !!!

    ReplyDelete

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