What is employee relations? Definition and best practices

Employee relations is a key consideration for today’s business operations, as it can greatly influence an organization’s success. Healthy employee relations contribute to a more harmonious work environment, resulting in better job satisfaction and productivity. Therefore, it’s important for companies to invest time, effort and resources into strengthening the employee-manager connection. 

A survey by the American Psychological Association shows that 79% of people feel their workplace prioritizes positive interactions between employees and the management team. The following guide provides further insight into what employee relations means, why it matters and how business leaders can build rapport with staff members.

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What is employee relations?

Employee relations is a human resource function that focuses on developing and maintaining constructive working relationships among company management and employees. The goal of this specialized field is to cultivate an organizational culture where employees are motivated and can thrive. 

It aims to promote respectful workplace behaviors while encouraging a collaborative environment. It also takes preventive measures against conflict and helps resolve any problems that may arise between employees and managers. Some businesses have their HR department oversee employee relations activities, whereas others hire an employee relations specialist. 

Why is employee relations important?

Improving employee relations helps establish a foundation of trust between an organization’s leadership and its employees. This connection often nurtures higher employee engagement and retention. Many involved employees are inspired to perform their best and are more likely to remain loyal to their company. 

Good employee relations is also vital to a company’s reputation because it can increase its ability to attract top talent, often a vital component of the company’s competitive edge. Additionally, it allows disputes to be handled more efficiently and effectively so as to maintain a calm and positive work environment.

Examples of employee relations issues

Employee relations covers a wide range of human resource matters. Generally, it covers everything involved in the employee experience, from onboarding new hires to addressing any areas of job dissatisfaction or workplace violations. 

Here are some of the most common issues that employee relations manages: 

Performance

One of the primary purposes of employee relations is to create the type of work environment that fosters a desire in employees to put forth their best efforts. When a person is regularly failing to meet their job expectations, it can negatively affect team members who have to make up for it and take on extra work.

If underperforming employees aren’t properly managed, other employees who were once enthusiastic and committed to their work may become disengaged and less productive. Employee relations helps to bring that employee up to speed through feedback, training and goal management. 

Attendance

Employees who are consistently absent, late for work or taking unauthorized long lunches can disrupt the organization’s workflow and make it difficult to complete tasks on time. This will not only begin to impact the company’s bottom line but also cause a decrease in morale among the rest of the team. 

As such, employee relations managers must put attendance policies into place and follow through with disciplinary action if these policies aren’t followed. They may also work with employees who are struggling with attendance or promptness to resolve any personal issues that may contribute to such behavior.

Workplace safety

Employee safety is a top concern for businesses. There’s potential for incidents to occur in any situation regardless of a company’s risk level. Employees need access to safe working conditions at all times. Otherwise, they may lose trust and confidence in the organization.

In addition, businesses can be held liable if a worker gets hurt on the job due to employer negligence. The organization may have to pay penalties, higher workers’ compensation premiums or legal fines. Companies should periodically perform safety audits and provide safety training for new hires and seasoned employees to ensure everyone is up-to-date on and implementing the latest safety protocols.

Conflict management

Conflict is a routine part of any work environment. Personality differences and misunderstandings can lead to tension and discord between employees or an employee and leadership. When this happens, action must be taken quickly to keep workplace disagreements from escalating into conflicts that could start to interrupt company operations. 

Strong employee relations help encourage open communication with staff so they feel comfortable enough to discuss what’s troubling them and are able to work towards a resolution in a collaborative and constructive manner. Employee relations managers put tools, processes and events in place that help to foster open communication as a cultural norm. 

Conducting employee relations investigations

Investigations are another significant component of employee relations. Unfortunately, employee and management misconduct can occur at any organization despite efforts to prevent it. This can lead to a hostile and unsafe workplace. Some of the more common issues that require investigation include:

• Policy violations.
• Theft.
• Fraud.
• Allegations of harassment, discrimination or bullying.

Under these and similar circumstances, employee relations managers must conduct an internal investigation and enforce a zero-tolerance policy when necessary. Knowing that issues of misconduct will be handled appropriately and swiftly helps employees feel more at ease about voicing their concerns without fearing retaliation. 

Employee relations best practices

There are many strategies a business can use to enhance the employee experience and support mutually beneficial employee-manager relationships. A few effective employee relations practices including encouraging communication and feedback, implementing employee appreciation programs, providing regular leadership training, regularly monitoring policy compliance and compiling and disseminating a formal employee relations policy.

Encourage communication and feedback

Maintaining open and honest dialogue between employees and management helps alleviate frustrations and prevent a buildup of resentment so problems can be resolved faster. Also, engaging in meaningful conversations about an employee’s everyday life and asking for their feedback about company operations makes them feel important, more connected to the organization and so more willing to work to resolve disputes instead of simply leaving.

Implement employee appreciation programs

Recognizing employees for all of their hard work and showing that they’re appreciated goes a long way toward boosting productivity, engagement and retention rates. Companies may acknowledge employee achievements by, for example, implementing an employee recognition program, celebrating personal and professional milestones as a team, giving informal praise and offering bonuses. 

Provide regular leadership training

A crucial part of employee relations is ensuring company managers have the skills and knowledge to be successful leaders. Providing training allows them to develop leadership skills they lack and gives them practical tools and techniques to improve employee interactions.

Regularly monitor compliance

Being consistent with compliance monitoring helps to ensure that all company policies and procedures are properly followed by everyone in the organization. This reduces the chances of future disputes and creates a culture that favors ethical behavior and integrity.

Compile and disseminate an employee relations policy

Every business should have an employee relations policy that’s clearly outlined within the employee handbook. To reduce confusion and ambiguity, it should explain what behaviors are expected of team members and those in leadership positions. This document should include the organization’s mission and values, wage and benefits details and company procedures and code of conduct. 

It should also outline clear consequences for not adhering to the concepts within the document and ways employees can safely report noncompliance.

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Starting at $40 plus $6 per month per employee

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