Employee Relations – Definition, Types, and Importance

 

(Waters, 2022)

 

Employee relations refers to the relationship between employers and employees. The term has both practical and theoretical applications, depending on the context. Certain companies have a dedicated team for improving and maintaining employee relations, and this term may refer to this team. In other circumstances, the term may refer to theories, plans, and policies undertaken by organizations to support employees and their interests. No matter the approach, employee relations are generally overseen by an organization’s human resource management team (Crail, 2023).

Employee relations focuses on both the individual as well as collective relationships in the workplace and covers the contractual, practical and physical, and emotional aspects of employer-employee relationships (Verlinden, 2023). It is concerned with the building of positive relationships and interactions among employers and employees that leads to an increase in employee retention, motivation, and productivity. At a broader level, it also helps foster a sense of community within the organization (Crail, 2023).

Even though employee relations staff and policies are generally intended to be unbiased and neutral, especially when addressing employer-employee conflicts, they are ultimately responsible for protecting the interest and well-being of the organization as a whole. Thus, employees should keep in mind that employee relations are not typically intended to protect employee interests (Crail, 2023).

 

Types of Employee Relations

There are two main types of employee relations: vertical employee relations and horizontal employee relations (Attendance Blog, 2021). All employee relations issues and strategies will involve either one or both of these groups (Crail, 2023).

• Vertical employee relations – This refers to the relationships between an employee and their superiors, such as management, executives, and administration (Crail, 2023).
• Horizontal employee relations – This refers to the relationships between employees at the same level of an organization, including those who are working together on a project or employees who are having a lighthearted chat during a break (Attendance Blog, 2021).

 

Importance of Employee Relations

 

(Edureka HigherEd, 2022)

 

Organizations with good employee relations enjoy many benefits. Some of such benefits include:

• Employee engagement – According to research, about 90% of employers understand the importance of employee engagement, but only 50% know how to address this issue (IMPOFF, 2021). Good employee relations can play a crucial role in engaging employees. It has been found that organizations with better employee communications have higher rates of employee engagement (Martic, 2023).
• Employee satisfaction – Positive employee relations can also lead to increased employee satisfaction (IMPOFF, 2021). About 65% of employees report that communications by their employer impact their job satisfaction (Martic, 2023).
• Employee productivity – Organizations with exceptional employee relations enjoy higher productivity, revenues, and profits. Furthermore, organizations with highly engaged employees have an average three-year revenue growth, which is 2.3 times greater than organizations with less engaged employees (Martic, 2023).
• Employee retention – Good employee relations can improve employee retention. Employees who feel engaged, motivated, and satisfied in their jobs rarely look for other opportunities (Martic, 2023).
• Employee advocacy – Employee advocacy refers to the promotion of the company brand by its employees and is a benefit many organizations are trying to achieve (Martic, 2023). Organizations can improve employee advocacy by keeping employees in the loop through good employee relations.
• Employee empowerment – Employees want to have a certain degree of autonomy and control in their everyday activities. This is called employee empowerment and can be achieved through good employee relations (IMPOFF, 2021).

 

Conclusion

Employee relations are paramount to the success of any organization because it ensures healthy work environments. Hence, all organizations should focus on promoting and improving employee relations within the organization, both vertically and horizontally. Similarly, they should also refrain from doing things that can adversely affect employee relations.

 

References

Attendance Blog, 2021. The comprehensive guide to employee relations. [Online]
Available at: https://www.attendancebot.com/blog/employee-relations/
[Accessed 20 April 2023].

Crail, C., 2023. What is employee relations? [Online]
Available at: https://www.forbes.com/advisor/business/what-is-employee-relations/
[Accessed 20 April 2023].

Edureka HigherEd, 2022. Better employee relations can lead to a rapid business expansion: know 11 tips. [Online]
Available at: https://www.edureka.co/blog/better-employee-relation-can-lead-to/
[Accessed 20 April 2023].

IMPOFF, 2021. Importance of employee relations and how employee relation plan can be implemented in an organization. [Online]
Available at: https://impoff.com/importance-of-employee-relation/
[Accessed 20 April 2023].

Martic, K., 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 20 April 2023].

Verlinden, N., 2023. All you need to know about employee relations. [Online]
Available at: https://www.aihr.com/blog/employee-relations/
[Accessed 20 April 2023].

Waters, S., 2022. Employee relations: an overview and best practices. [Online]
Available at: https://www.betterup.com/blog/employee-relations
[Accessed 20 April 2023].