Industrial relations refers to the relationship between employer and employee. It involves taking into account all potential interactions within a company and implementing policies so that the relationship between an organization and its people is managed through fair and transparent practices.
An effective employee relations program should define:
- Policies to prevent and resolve disputes between employees and managers
- Working conditions
- Reasonable working hours
- Pay and benefits
- Measures to improve the balance between personal and work life
- Procedures for collecting and implementing employee feedback
- Reward and recognition schemes.
An organization with a good employee relations policy provides fair and consistent treatment to all employees. This helps team members to be committed to their work and increases loyalty. It also reduces the number of disputes between employees and creates an environment based on mutual respect and appreciation. This is important because employees who are treated fairly are more likely to be loyal and productive workers.
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Common Problems in Labor Relations
Employer relationship management covers a wide range of potential issues. The following employee relations examples should help you determine what policies and procedures you should implement. An HR risk management strategy can help you identify any other issues relevant to your business.
🔵 Conflict: This could include disputes between employees, leadership issues, and personality clashes. Unresolved conflict can lead to decreased productivity, communication problems, and poor company morale. At worst, it can impact turnover and profits.
🔵 Sexual harassment and bullying: Lack of clear policies regarding sexual harassment and bullying can result in an undesirable workplace. If left unaddressed, it can impact employee performance and team morale. It can also impact the company's reputation and increase absenteeism.
🔵 Wage and hour issues: Failing to clearly define working hours and compensation packages could lead to disputes with employees. It could also result in wage and hour non-compliance and violations. The same goes for disputes over annual leave and time and attendance issues.
🔵 Health and safety in the workplace: All workers have the right to work in an environment where risks to their health and safety are adequately controlled. Employers have a duty to consult with their employees on health and safety issues. If the working environment is not safe, it will have a direct effect on the employee experience.
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Why is the employment relationship important?
The most valuable asset of any company is its employees. They are the backbone of any organization and it is important not to take them for granted or treat them unfairly. The most successful organizations make employee engagement central to their business strategy. They also give employees the tools and support to do their best work.
If you take care of your staff and cultivate positive employer-employee relationships, you are much more likely to maintain a supportive work environment. When members of an organization share positive relationships, employee productivity, engagement, motivation, and morale tend to be much higher. People value their employer and are more inclined to be productive, hard-working employees.
The benefits of labor relations
1. Productivity:
By creating a happy work environment, you will increase employee motivation and morale. This, in turn, will increase confidence and productivity and generate more profits for your business.
2. Loyalty:
A pleasant work environment means a loyal workforce. Lower employee turnover means lower hiring and onboarding costs. This means more money can be spent on training and upskilling your current employees.
3. Reduced conflict:
Less conflict means your employees can focus on what's most important: doing their jobs to the best of their ability.
4. Legal compliance:
A clear policy for managing internal relationships can help you avoid federal wage and hour violations. It can also help you comply with workplace health and safety regulations.
Ultimately, if you don't protect the happiness and well-being of your workers, you risk losing your most important asset. A happy workforce is a productive workforce, after all.
Courses that may interest you
Do you want to learn more about Labor Relations and master this area like an expert ? We recommend our courses on Wellbeing and Positive Psychology, Time Management and Productivity and Effective Negotiation Harvard Model so that you can make the most of other skills.
