Keeping the engine running - Role of Employee Relations

         

Employee Relations

Employee relations (ER) is the term that defines the relationship between employers and employees. ER focuses both on individual and collective relationships in the workplace with an increasing emphasis on the relationship between managers and their team members.

‘Employee relations’ covers the contractual, practical, as well as the physical and emotional dimensions of the employee-employer relationship. (Verlinden, 2023)

Policies and procedures of a company that establish transparency and fairness for employees plays a vital role in setting the culture that drive the maintenance of such relations.

Nestle, further employs corporate labor priorities, compliance, collective dialog, collective negotiations and external social dialogues in their ER policy. They state that this helps them ensure that the policy is practiced in the real sense and equally at all business locations across the world. It also encourages liaison with regulatory bodies and employee associations that bring in the outside in approach to practices, challenges and trends that help the company amend their practices accordingly.

At the foundation of the employee – organization relationship lies a social and psychological contract. This contract consists of beliefs about reciprocal obligations between the two parties (Rousseau, 1989, Schein,1965).

There are two root causes of perceived psychological contract breach: reneging and incongruence. Reneging is to back back-out from an agreement or from a promise. For an example when a recruiter made an promise to a new hire that he or she will be promoted within two years but fail to uphold that promise. Incongruence is when two parties such as the recruiter and the employee have different understanding of something that has been said by a recruiter.

There are two key principles organizations should learn from this. If you are to maintain the psychological contract with employees: 1) keep your promises and 2) be both clear and honest in your communication.

Why is Employee Relations Important?

Employee relations remains important for a very simple reason that without employees, a company could not function. Companies want to keep experienced, productive and valuable employees for as long as possible. To do this, employees must be happy enough that they will not or will remain less likely to leave the organization. 

Strategies to Improve employee relations

1. Promote an Open Dialogue

It is an environment where employees aren’t hesitant to give honest feedback to managers. Open dialog is constructive and transparent. It focuses on problem-solving.

Encourage open communication helps to prevent employee confusion and unnecessary stress.

Provide a way for employees to express grievances and to resolve conflicts. Human Resource Management systems with an anonymous feedback feature works well for hybrid workforces

Employees should also be able to ask questions and clarify ideas in a safe space. New policies, procedures, or expectations, including project expectations, should be communicated both verbally and in a written format.

2. Focus on Company Mission and Values

The employee experience at a values-driven organization can create strong relationships and employee loyalty. Align corporate values with the way you treat employees.

Make sure leadership and management walk the walk. Core values such as honesty, empathy, and quality work help employees to feel like they are part of something important.

3. Increase the Ratio of Positive vs. Negative Feedback

Regardless of their actual performance, most employees feel proud of their accomplishments. For this reason, appreciation for a job well-done does more to motivate than does criticism. Managers and Human Resources should try to focus on the 9 things done right, instead of the 1 thing done wrong.

4. Inspire and Reward

Consider creating employee goals with employees instead of simply handing them down. Encourage employees to set stretch goals: goals that are difficult but achievable. When performance management is a two-way rather than one-way process, employees are more invested. Seek employee feedback throughout the process.

5. Offer Career Development

Even lower-level employees can benefit from development. Most employees are happier when they have a goal or a dream to work toward.

Whenever possible, take advantage of employee skills by adjusting their roles.

Other ideas include offering a mentorship program which pairs employees to higher-skilled counterparts. Rotational training can cross-train team members to fill multiple roles. Tuition reimbursement or certification programs can also help employees to advance in their career.

6. Promote Healthy Work-Life Balance

Employees who feel supported at home develop a greater sense of loyalty and strong employee engagement. Include flexible work schedules, paid time off and health benefits that support family wellness.

Although employees often value the chance to work from home, this doesn’t mean you should ask them to take work home. Instead, work from home should mean work done during a normal work day.

7. Use Software to Eliminate Redundancy and Reduce Mistakes

Implementing systems and software can make a big difference. With the right software, you can eliminate redundant tasks and tap into employee creativity instead.

Streamline as many HR tasks as possible.

Make sure you document and automate workflows company-wide. Good software lessens your reliance on institutional knowledge.

Lastly, software helps your Human Resources department stay compliant.

Benefits of great Employee Relations

1. Growth and Development

When employees have a positive relationship with their managers, they will work more efficiently. They will put their best efforts towards successful completion of projects. Organizations that have harmonious relationships will be able to ensure sustainability. Employees will be motivated to work hard, and this will help the organization grow.

2. Reduction in Turnover

Organizations that have good employee relations provide higher wages and other attractive benefits, making it in the best interest of the employee to stay. Even if the employee is not 100% satisfied with their company, they are less keen to suddenly abandon a company for another when they are happy with their work environment. A pleasant work environment improves employee morale and motivation.

3. Employees have extensive knowledge of Company Practices

The reduction in turnover ensures that employees stay with a company for longer, which enables them to gain extensive knowledge of company policies, practices, and processes. Employees with substantial institutional knowledge are an excellent resource. They are highly skilled, very efficient, and can provide training for new employees. Most companies find it hard to replace experienced employees, and this is especially true in industries that rely on employees with highly specialized skills.

4. Enhanced Motivation

Companies that have engaged workers experience higher productivity. Organizations need to ensure that their workers feel empowered and appreciated to increase morale and motivation.

5. Increase in Revenue

The benefits of a happier, healthier work environment are not only felt within the business but by the customer or end-user, too. It results in greater customer satisfaction and better products and services, which also tends to point to an increase in sales.

6. Conflict Reduction

Conflicts at the workplace will have an adverse impact on the productivity of a company and are likely to contribute to an environment of distrust between employees and employers, which can affect efficiency.

Conflict reduction will help employees concentrate on their work and will increase productivity. Resolving conflicts becomes easier when managers work on fostering relationships with employees so that they are on the same page.

7. Employee Loyalty

A pleasant and productive work environment will have an effect on the loyalty of the employee, encouraging a loyal workforce. Companies that have such a workforce will be able to improve employee retention.

The most valuable asset of a company is its employees. The success of the company will depend on how they work. If they are engaged and motivated, they will strive to meet the expectations of the company. A strong employee and employer relationship will benefit the employee and the organization as a whole.

Today's blog post examined the concept "Employee Relations" and discussed it's importance for the organizations. We were also able to identify some strategies that can be used to build employee relations, doing into reasons for such suggestions. 

References

Verlinden, N. (2023) All you need to know about employee relations, AIHR. Available at: https://www.aihr.com/blog/employee-relations/ (Accessed: April 14, 2023).

Strikwerda, L. (2022) Improve employee relations with these 7 strategies, WorkforceHub. Available at: https://www.workforcehub.com/blog/7-strategies-to-improve-employee-relations-for-a-phenomenal-workplace/ (Accessed: April 14, 2023).

Solutions, S.M. (2019) The 7 top benefits of great employee relations, Influencive. Available at: https://www.influencive.com/the-7-top-benefits-of-great-employee-relations/ (Accessed: April 14, 2023).