Understanding Employee Relations: Definition and Importance

Employee relations is one of the most important elements in human resource management as well as corporate culture that refer to an alignment of relationship between employers and employees within a company. This include various principles, practices, policies and strategies to foster or promote a good work culture that enables effective communication within organization for performances among them employees in achieving their organizational objectives.

Figure 1 - (Jamaledine, 2017)

What is Employee Relations?

There is no specific definition of employee relations, but in general, it can be expressed as the systematic method for enhancing and managing relationships between an employer and his employees. This requires creating and maintaining respectful management-staff interactions, while making sure that all parties know what they are entitled to do, required to do – expected from the other party. According to DeCenzo and Robbins (2016), employee relations is “the process of establishing and maintaining positive relationships between employees and management.”

Importance of Employee Relations

1. Enhancing Workplace Culture

Good employee relations form the foundation of a healthy work environment. This builds job satisfaction and morale in the workplace because employees know they are valued, heard. It helps in better symptoms of employee engagement along-with collaboration & team-oriented environment. As highlighted by Kahn (1990), a supportive workplace environment can significantly enhance employees' emotional and psychological well-being, leading to improved organizational performance.

Figure 2 - https://www.linkedin.com/pulse/developing-desired-workplace-culture-arnold-rodriguez/

2. Conflict Resolution

Employee relations in dealing with conflict have a lot to do with the fairytales we are told. Conflict manifests differently and is caused by many things from conflicting opinions work styles to differing expectations. Employers use effective employee relations strategies as tools to prevent problems before they arise and address those that have already become obstacles. According to Miller (2016), organizations that prioritize employee relations often implement conflict resolution mechanisms that foster open communication and mediation, thereby minimizing disruptions to productivity.

Figure 3 - https://www.roadtoresolution.com/post/10-tips-for-conflict-resolution-in-marriage-and-divorce

3. Improving Communication

It is the basis for good employee relations — effective communication. Clear lines of communication between management and employees allow misgivings, complaints or suggestions to be expressed by one side on the other. Well, this transparency helps in building trust and a much stronger relationship. As noted by Eisenberger et al. (2001), when employees feel that their input is valued and considered, it leads to higher levels of engagement and commitment to the organization.

Figure 4 - https://casatraining.id/tag/training-effective-communication-skills-webinar-murah/

4. Legal Compliance and Employee Rights

It may include proper compliance with the applicable labor laws that protect employees rights having an understanding and being in compliance with each of these laws is crucial to remaining out of hot water, literally walking step for step on the real thing. According to the Society for Human Resource Management (2020), effective employee relations practices help organizations navigate complex legal landscapes, ensuring that employees are treated fairly and equitably.

Figure 5 - https://snk.ae/labour-law-compliance/

5. Enhancing Organizational Performance

In the end, good employee relations can mean better performance for an organization. In comparison to disengaged employees, those who are engaged perform at higher levels and contribute more energy, creativity and passion in their jobs. Research by Gallup (2021) indicates that organizations with strong employee engagement outperform their peers in terms of profitability and productivity. Therefore, investing in employee relations is not only beneficial for employees but also for the overall success of the organization.

Figure 6 - https://www.plecto.com/blog/motivation/improve-your-organizations-performance/

Conclusion

In human resource management, employee relations is a critical component of maintaining positive relationships between employers and employees. Effective employee relations strategies help to make a more engaged and productive workforce, through improving workplace culture, resolving conflicts positively & effectively, ensuring legal compliance and ultimately driving organizational performance. In today's business environment, fostering positive employee relations has never been more critical for long-term success as work reality continues to shift.

References

• DeCenzo, D. A., & Robbins, S. P. (2016). Fundamentals of Human Resource Management. Wiley.

·       Jamaledine, R. (2017, March 31). potential. Retrieved from Potential.com: https://www.potential.com/articles/5-ways-manage-employee-relations/

• Eisenberger, R., Fasolo, P., & Davis-LaMastro, V. (2001). Instrumental support from supervisors and peers: Time to be specific. Journal of Applied Psychology, 86(3), 556-561.
• Gallup. (2021). State of the Global Workplace: 2021 Report. Retrieved from https://www.gallup.com
• Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692-724.
• Miller, J. (2016). The role of human resource management in conflict resolution. Human Resource Management Review, 26(3), 275-284.
• Society for Human Resource Management. (2020). Managing Employee Relations: A Guide for HR Professionals. Retrieved from https://www.shrm.org