The Importance of Employee Relations in Driving Organizational Succes

 

Good employee relations are the backbone of any organization in its quest for success. Healthy employee relations breed a healthy workplace culture characterized by respect, support, and motivation of workers. A good relationship that characterizes workers among their colleagues and superiors motivates them to become engaged, which in turn increases productivity, morale, and overall job satisfaction (Harter, Schmidt & Hayes, 2002). In fact, studies have shown that organizations with highly engaged employees are more bound to realize lower turnover rates, efficiency, and better performance outcomes accordingly (Bailey et al., 2017). Hence, positive employee relations would be considered less of a "nice-to-have" and more of an economic imperative that every organization ought to adopt in its quest for organizational longevity.

Communication is critical in employee relations because it forms the basis of trust and cooperation at work. "Informed" and "heard" employees tend to be more committed to their organization's objectives. Hence, open and clear communications from superiors to subordinates provide a steppingstone towards trust and minimizing misunderstandings, which in turn reinforce employees' commitment (Tourish & Robson, 2006). According to Men (2014), employees perceive communications to be very open and transparent, which in turn generates a higher level of trust and satisfaction with the employer. HR leaders may improve employee relationships by creating an environment in which communication goes both ways and where employees feel encouraged to give their opinions and raise concerns.

Additionally, employee relationships highly contribute to resolving conflicts within an organization. Since there are different personalities, opinions, and working styles in a workplace, conflict at work is unavoidable; however, an organization with good employee relations can handle such conflicts more constructively and avoid escalating them. Conflict resolution practices, which include mediation and open dialogue, help create a respectful and inclusive workplace where every worker feels valued and understood (Lipsky, Seeber & Fincher, 2003). Good employee relations by human resource professionals help bring about an environment where conflict can be amicably resolved to reduce stress, and a culture of cooperation can be built up.

Other main advantages of investing in employee relations involve increased organizational loyalty, which can retain employees working in organizations. That is, employees will have less tendency to leave their organizations if they get cared for and are recognized by the employers. According to Eisenberger et al. (1986), perceived organizational support directly influences employee commitment and loyalty. By developing favorable relationships, human resource leaders can reduce turnover by as much as possible, which in turn minimizes hiring and training costs too. Long-term employees eventually become more familiar with the inner workings of the company's processes and culture and, therefore ensure stability and continuity within the organization (Allen, Shore & Griffeth, 2003).

Employee relations consequently affect the general organizational reputation. In the current digital world, how organizations treat their employees is in the full view of their respective publics, and good employee relations add to an attractive employer brand. When organizations invest in their employees and relationships at work, they are perceived as employers of choice, hence attracting superior talent into the organization (Collins & Stevens, 2002). Hence, positive employee relations are of great importance to developing the company's reputation, both internally and externally, improving its competitive advantage in the market.

Strong employee relations are surely indispensable in achieving business success. They definitely improve employee engagement, help communicate effectively, avoid disputes, improve retention, and overall, good reputation of the organization. HR leaders and managers will therefore ensure the sustenance of their success with great advantage when they develop a workforce that is competent, loyal, and resilient. Investment in employee relations has salutary consequences not only on the level of individual employees but also on the growth, stability, and long-term viability of the organization itself.

References:

Allen, D.G., Shore, L.M. & Griffeth, R.W., 2003. The role of perceived organizational support and supportive human resource practices in the turnover process. Journal of Management, 29(1), pp.99-118.

Bailey, C., Madden, A., Alfes, K. & Fletcher, L., 2017. The meaning, antecedents and outcomes of employee engagement: A narrative synthesis. International Journal of Management Reviews, 19(1), pp.31-53.

Collins, C.J. & Stevens, C.K., 2002. The relationship between early recruitment-related activities and the application decisions of new labor-market entrants: A brand equity approach to recruitment. Journal of Applied Psychology, 87(6), pp.1121-1133.

Eisenberger, R., Huntington, R., Hutchison, S. & Sowa, D., 1986. Perceived organizational support. Journal of Applied Psychology, 71(3), pp.500-507.

Harter, J.K., Schmidt, F.L. & Hayes, T.L., 2002. Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), pp.268-279.

Lipsky, D.B., Seeber, R.L. & Fincher, R.D., 2003. Emerging Systems for Managing Workplace Conflict. San Francisco, CA: Jossey-Bass.

Men, L.R., 2014. Strategic internal communication: Transformational leadership, communication channels, and employee satisfaction. Management Communication Quarterly, 28(2), pp.264-284.

Tourish, D. & Robson, P., 2006. Sensemaking and the distortion of critical upward communication in organizations. Journal of Management Studies, 43(4), pp.711-730.