Employee Relations: Examples + 10 Strategy Tips

Employee relations are about reinforcing the ties between the employer and employees and making the company a better place to work. Strong relationships within an organization contribute to a positive workplace climate. Let’s take a look at examples of employee relations and what it takes to do it well!

Contents
What is employee relations?
Employee relations examples
Importance of employee relations
10 tips for an effective employee relations strategy
How to handle employee relations issues: Best practices
Employee relations manager role
FAQ

What is employee relations?

Put simply, employee relations (ER) is the management of the relationship between employers and employees. It focuses on both individual and collective relationships in the workplace with an increasing emphasis on the connection between managers and their team members. 

Employee relations involves:

• Governing the employee-employer relationship to form mutual respect, trust, and appreciation.  
• Building a strong company culture and healthy work environment.
• Advocating for employees, supporting them, and addressing their concerns and conflicts.

In other words, employee relations cover the contractual, practical, as well as physical, and emotional dimensions of the employee-employer relationship. It’s a crucial factor when it comes to overall organizational performance because good employee relations management translates into increased employee wellbeing and productivity.

Employee relations can refer to either an organization’s program or policies or a team of people that nurture the employer-employee relationship.

Employee relations is typically a Human Resources department function. It can fall under the general duties of an HR professional, or there may be a manager or team dedicated to ER.

Employee relations vs Human Resources

While employee relations and Human Resources do overlap, they have distinct purposes: 

• HR is the broader operation that directs all aspects of managing an organization’s workforce and work environment, including recruiting, training and development, compensation and benefits, and health and safety.
• Employee relations is a specialized function that factors in the entire employee experience to maintain the organization’s relationship with the employees and their interactions with each other.

As an example of the difference between the two, let’s look at how both HR and ER would approach the concept of an organization’s work environment.

HR would be concerned with the logistics and ensuring that workspaces are safe and well-equipped. ER’s focus would be on how engaged employees are with their work by understanding how they experience the environment.

What is the difference between industrial relations and employee relations?

The concept of industrial relations (IR) was first coined following the Industrial Revolution. Focused on creating laws that govern workplace relations, its aim was to ensure that laws improve the lives of both employees and employers.

For example, for employees, this would include better wages, more attention to health and safety in the workplace, and training and development initiatives. For the employer, this would revolve around employment laws, how to address and resolve conflict in the workplace, and maximizing productivity. 

Employee relations (ER) is a newer term that is increasingly replacing industrial relations because it emphasizes how important the employer-employee relationship is, and how one directly affects the other. For example, where IR may look for ways that businesses can boost the productivity of their workers, ER would ask, how can we improve the overall productivity of the organization by boosting the engagement and motivation of employees?

People are the greatest asset in any organization, therefore, studying the relations between employees and employers is far more important than governing them, which is why employee relations is a preferred concept in the current business environment.

Employee relations examples

When organizations honor employees’ rights and meet their expectations, employee relations issues are less likely to turn into problems. Making ER a priority requires incorporating it throughout operations and the employee life cycle.

Following are eight examples of various types of employee relations matters:

Employee onboarding 

A new hire’s introduction to their job and the company is where the employer-employee relationship can get off to a good start. A thorough onboarding program offers a positive first impression and ensures that employees are welcome, informed, and equipped to hit the ground running. 

Workplace conflict management

Workplace conflict is a common employee relations issue. On average, managers spend more than 4 hours a week dealing with conflict, but nearly 1 in 4 people think their managers handle conflict poorly.

Tension and disagreements trigger discontent in the workplace. Having formal procedures in place and ER professionals to guide the process can keep conflict from escalating and breeding negativity.

Also, taking problems and employee complaints seriously by investigating allegations of misconduct or harassment demonstrates that an employer is committed to preserving a healthy work environment for everyone.

“Employee-employer conflict is no longer accepted as the norm,” notes Anjela Mangrum from a manufacturing recruiting agency and executive search firm Mangrum Career Solutions. “Instead, both management and staff are expected to actively build positive working relationships around common goals.”

Absenteeism 

Unplanned absences disrupt workflows when tasks aren’t done, or others have to pick up the slack. Excessive absenteeism can occur when employees feel unappreciated, are burned out, or are struggling with health issues or personal matters.

An ER approach searches out the reasons behind absenteeism and how to address them with support for employees or restructured work procedures.  

Insubordination 

Leaders must be able to direct their teams and the work they do. When employees demonstrate a lack of respect or refuse to follow an authority figure’s direction, it undermines a leader’s ability to lead.

Insubordination causes conflict among teams when people sense tension or choose sides. ER helps prevent these situations by setting behavior expectations, providing communication training for managers, having a conflict resolution framework in place, and promoting a culture of teamwork, listening, and mutual respect.

Employee misconduct 

When an employee’s behavior harms the work environment, it must be addressed. This includes lesser infractions, such as being consistently late to work or meetings, as well as serious misconduct, such as harassment.

Effective employee relations sets the tone for what behavior will not be tolerated with clear policies, a confidential method for reporting it, and procedures for investigating and putting an end to it. 

Employee wellbeing 

A visible way to place value on the employee-employer relationship is to invest in employees’ wellbeing. Employee assistance programs, flexible work arrangements, paid mental health days, gym memberships, and other such initiatives demonstrate that employees’ health and happiness matter to the organization.

Encouraging strong connections among employees also supports their wellbeing because they can socialize to relieve stress and rely on each other for emotional support.

Workplace health and safety

Ensuring the physical and mental safety of your employees is critical to any organization’s success. Prioritizing health and safety includes implementing industry safety standards but also fostering a supportive and stress-free work environment.

Additionally, educating employees about safety protocols and health precautions reinforces an atmosphere of respect and care, creating a foundation of trust between the employer and the employees.

Labor and industrial relations

The relationship between employers and unions is a cornerstone of employee relations. These relations are centered around negotiations, collective bargaining, and dispute resolution, all in the pursuit of fair treatment and improved working conditions.

Keeping the communication channels open between employers and unions is key to avoiding misunderstandings.

Constructive dialogues and transparency strengthen labor relations, which, in turn, contributes to a harmonious work environment.

Of course, these examples don’t even begin to cover the wide variety of ER issues companies have to handle. What they do illustrate, however, is that each issue concerns either the contractual, emotional, physical, or practical aspects of the employee-employer relationship – or several of these dimensions at the same time.

Importance of employee relations

Since employees are the engine of any organization, you want to make sure that both employee-employer and cross-employee relations are well maintained.

Effective employee relationship management translates into the following advantages: 

• More effective workplace communication – Fostering the relationship between employers and employees encourages open communication throughout the organization on a wide scale basis and at a personal level. This allows employees to better understand expectations, goals, and objectives and how their contributions make a difference.
• Less workplace conflict – Stronger relations between management and teams creates an atmosphere that encourages dialogue and honest conversations that can resolve issues before they turn into a controversy. When disputes do occur, having a platform for addressing them ensures that employees are heard and makes conflict resolution swift and effective.
• Higher employee morale and loyalty – Viewing employees as partners in a relationship shows them respect and appreciation. When employees feel a positive connection to their employer, they are empowered to be more satisfied and productive in their jobs. A work environment with high morale keeps people more content and dedicated to their employer.
• Better reputation as an employer – Employees who feel valued at work will speak highly of their employer to others. Companies with strong employee relations often have a better reputation among potential employees, customers, investors, and other stakeholders. That can lead to increased business opportunities for the organization.
• Lower employee turnover – Employees who have a good relationship with their employer will tend to focus more on the positive aspects of their job, making them less restless and prone to searching out other opportunities. This allows the organization to retain valuable, productive employees longer and reduce turnover.
• Improved organizational performance – Keeping employees content and motivated is a crucial factor in overall organizational performance. When workers feel connected to their employer and are thriving in their roles, they become more productive and inspired to contribute toward the long-term success of the business. 

Analysis from the Fortune 100 Best Companies to Work For® 2023 survey shows that revenue per employee increased by 7% for the companies that made this list.

10 tips for an effective employee relations strategy

Every organization should have a strategy for managing employee relations with the underlying philosophy that employees are valuable stakeholders in the company’s mission. 

Let’s take a look at ten ways to optimize employee relations:

1. Understand the psychological contract

At the foundation of the employee-employer relationship lies a social and psychological contract. This contract consists of beliefs about reciprocal obligations between the two parties. Too often, employees perceive that their organization has failed to adequately fulfill that contract.

These perceptions, whether accurate or not, have been found to reduce employees’:

• Trust
• Job satisfaction
• Intention to remain with the organization
• Sense of obligation
• In-role and extra-role performance

Since these perceptions of breaches of the psychological contract can potentially be catastrophic for employee relations, it’s important to understand when they arise.

According to a study by Morrison and Robinson, the two root causes of perceived psychological contract breaches are reneging and incongruence.

Reneging is when an agent of the organization recognizes that an obligation exists but knowingly fails to meet that obligation. For example, when a recruiter makes an explicit promise to a new hire that they will be promoted within three years and then fails to uphold that promise.

Incongruence, on the other hand, is when the employee and organizational agent(s) have different understandings about whether a given obligation exists or about the nature of a given obligation. An example would be when a recruiter vaguely states that people tend to get promoted quickly, often within three years, and the new hire interprets this as a promise.

The two key principles of successful employee relations management are:

1. Keep your promises: Don’t oversell the opportunities the company has to offer to candidates or employees. This will lead to disappointment and all of the other negative effects mentioned above.
2. Be both clear and honest in your communication: Poor communication can lead to conflict. If, for some reason, you realize that you won’t be able to fulfill a certain obligation, be honest about it and inform people sooner rather than later.

2. Ensure honest communication 

As we’ve already alluded to, honest and timely communication is the foundation of employee relations. It should always be straightforward, on message, and sensitive to how it affects employees. 

Managers should share organizational updates with teams, inform them as soon as possible about people leaving, and build an environment in which no one is afraid to speak up or ask questions.

Effective workplace communication is two-way, and giving employees opportunities to share their feedback is essential to managing employee relations.

“Employee voice and empowerment are gaining importance, with employees wanting to have a say in decision-making and expecting their feedback to be taken seriously,” notes Angela Hood, Founder & CEO of the talent acquisition platform ThisWay Global.

“Building transparency and open communication channels, like pulse surveys and feedback systems, can help companies address employee concerns and foster trust.”

3. Promote the company’s vision

Frequently share the organization’s mission and vision and explain how everything employees do relates to them.

“It’s extremely important to clearly inform employees about the goals, values, plans, and challenges of the organization. Employees, especially those who are well-educated, as well as Gen Z, are very concerned about the values of a company’s leadership and their alignment with those values. They expect transparency and to be asked for input in ways that make a difference,” says Diane Gayeski, leader in workplace communication and learning from Ithaca College.

When everyone understands what the company is trying to accomplish and represent, they will feel motivated and get behind the mission. People will feel like they’re part of something bigger and play an active role in achieving this common goal.   

4. Trust people

Don’t micro-manage employees. They want to be empowered to manage their work and make decisions. 

Research done by Paul J. Zak of the Center for Neuroeconomics Studies found that building a culture of trust impacts how employees feel about their employer. The sentiments of employees from high-trust companies compared to those of low-trust companies showed that they liked their jobs 60% more, had a 70% higher connection to the company’s purpose, and felt 66% closer to their coworkers.

Once you’ve made sure that people know what they need to do, what’s expected of them, and the support available to them, trust them and let them be. Train managers to convey expectations clearly and balance when they offer guidance and feedback.

5. Improve recognition and appreciation 

According to surveyed employees, recognition is the most important driver in producing great work. Acknowledging employees’ efforts and showing them you care is key to building strong employee relations within performance management. 

One way to do this is by incorporating public praise into your workplace:

• Encourage regular, team-wide meetings across the organization. These informal moments to share appreciation for work well done and to recognize goals reached will show team members how valued they are. 
• Hold company-wide meetings to recognize and celebrate achievements across departments. These events tune everyone into how their contributions are part of a bigger picture and working towards a common goal. 
• Create opportunities for coworkers to praise each other. For instance, have people share the little things that impacted their weeks in a “cheers for peers” format. These can be put forward at a quick celebration every week.

6. Invest in your people

One of the most worthwhile employee relations best practices is to provide resources that benefit people personally. Opportunities such as learning and development (L&D), peer mentoring or peer coaching programs, or an employee wellness program show employees that the company is mindful of their individual growth and wellbeing.

Offer time for people to work on their development and look after themselves. Giving them a certain flexibility to manage their own days and workload will allow them to fit in learning and self-care.  

7. Foster DEIB

Strong employee relations means that there is no preferential treatment for certain groups. Prioritizing Diversity, Equity, Inclusion and Belonging (DEIB) and providing equitable opportunities to career development enables you to create a respectful and supportive environment that truly enables everyone to participate, thrive, and be heard.

“DEIB has become a crucial consideration as organizations work towards creating inclusive cultures and addressing biases,” says Angela Hood from ThisWay Global.

“This includes implementing inclusive hiring practices, bias training, and creating opportunities for underrepresented groups. By being proactive and flexible, companies can navigate the evolving landscape of employee relations and create a positive and inclusive workplace,” highlights Hood.

In other words, an inclusive workplace goes a long way in forming positive dynamics and making employees feel at home and esteemed.

8. Consider legal aspects of employee relations

All stages of the employment relationship have legal considerations, such as laws and regulations pertaining to:

• Wages and overtime
• Discrimination
• Workplace safety
• Wrongful termination

Employers must understand and adhere to the regulations, as well as ensure employees are aware of and receive the rights and benefits they’re entitled to.

“Employees are not only more empowered than before, but they’re also more knowledgeable about employment laws that have tilted in their favor during the past two decades. Employers, thus, have to tread more carefully than ever before,” remarks Anjela Mangrum from Mangrum Career Solutions.

Proper compliance and enforcement also help prevent legal disputes and uphold the integrity of the employee relations investigation process. However, only 45% of companies have a required, structured process in place for investigations.

9. Monitor employee relations

Measuring the impact of your employee relations efforts shows you where the strengths and weaknesses are. By conducting surveys, tracking data, and soliciting and analyzing feedback, you can identify areas of improvement and plan how to tackle them.

Employee relations metrics to take into consideration include:

• Employee engagement scores
• Absenteeism rate
• Turnover rate
• Retention rate of top performers
• Diversity and inclusion index
• Employee satisfaction rates
• Number of complaints and response times
• Percentage of positive/negative comments on internal and external sites

Using technology also helps track the state of employee relations at your organization. For example, 91% of businesses use a tool for employees to anonymously report issues or concerns.

10. Have an employee relations policy in place

Anticipating and having a plan to address employee relations issues sets the foundation for an organization’s ER efforts. Policies that promote fairness and well-being help prevent and resolve conflict to create positive workplace interactions.

Employee relations policies are unique to every company, but there are several common elements to draw from, including:

• An introduction about the company and its purpose for the employee relations policy.
• The company’s guiding principles (core values, mission statement) behind its employee relations. 
• A section on legal compliance.
• A section on collective negotiations/industrial relations.
• Policies and procedures regarding misconduct and disciplinary action. 

Here are examples of employee relations policies from three organizations:

• County of San Mateo, California
• Brown University
• Telekom

How to handle employee relations issues: Best practices

There are many ways to address employee relations issues. Here are some best practices to implement in your organization:

• Ask for feedback: Practicing active listening by regularly asking for individual and collective feedback from your employees helps them feel like their opinions matter and gives you valuable insight on how to improve employee relations.
• Ensure employees understand company policies: Employees should have access to all policy documents and understand them to reduce confusion.
• Be transparent: Keep an open line of communication when it comes to policy and organizational changes, and answer employee questions as honestly as possible. This builds trust and helps employees feel comfortable raising and discussing issues. 
• Apply conflict resolution strategies: During conflict, strategies like raising and addressing issues as early as possible, speaking openly, showing empathy, compromising, and collaborating to reach a solution that meets everyone’s needs help maintain a positive relationship between employees, and employees and management.
• Respond swiftly: When employee relations issues arise, be sure to act in a timely manner and address them to demonstrate that you take action.
• Follow your processes: Company policies and processes exist to ensure that every person involved in managing employee relations has the appropriate tools and guidance to perform their tasks. Follow processes on every occasion to ensure that every issue is dealt with in a professional manner, and every employee and concern is treated equally.  

Employee relations manager role

The employee relations manager role makes a crucial contribution to organizations in every industry. ER managers are either part of the HR department or work within a designated Employee Relations team in larger businesses.

Their responsibilities include oversight or collaboration within many areas of HR, including the following:

• Employment policies and procedures.
• Legal and regulatory compliance.
• Complaint and conflict resolution.
• Workplace investigations.
• Employee engagement/satisfaction.
• Recruitment/onboarding/exit interviews.
• Safe and healthy working conditions.
• Compensation and benefits policies.
• Employee and labor relations communication and negotiation.
• Reward and recognition programs.
• Wellness and work-life balance strategies and programs.

The main skills and qualifications required to fulfill an ER manager role include:

• Active listening and interpersonal skills to interpret attitudes and feelings.
• Experience with conflict resolution.
• Working knowledge of employment law.
• Negotiation and problem-solving abilities. 
• Experience with HR software and data analysis.
• Program design and implementation experience.
• Desire for improving the work environment and employee wellbeing.

Employee relations manager salary

According to Glassdoor and Payscale, the average base salary for an employee relations manager in the US is currently about $83,000 per year. There is the opportunity for additional pay of roughly $22,000 per year in the form of commission, bonuses, profit sharing, etc.

To wrap up

Employee relations can make or break the workplace climate – and your organizational performance. The best practices we shared in this article can be a big help in building strong ER in your organization for long-term success.

The first step toward an effective employee relations strategy is actively encouraging transparent communication and trust within your organization. Start building your employee relations strategy today, so you can reap the benefits for many years to come!

FAQ

Neelie Verlinden

Neelie Verlinden is a digital content creator at AIHR. She’s an expert on all things digital in HR and has written hundreds of articles on innovative HR practices. In addition to her writing, Neelie is also a speaker and an instructor on several popular HR certificate programs.

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