Definition of employee relations

Employee relations (ER) defines relationships both individually and collectively between employers and their employees. ER covers contractual relationships, as well as physical and emotional connections between the employer and the employee.

Commonly, an organisation’s Human Resources department will manage employee relations. This is often as a formal strategy or a set of practices put in place by the business to ensure that employment relations are maintained in good health.

Background: industrial relations

Employee relations was formerly referred to as industrial relations, which still exists as a term sometimes used to describe the relationship between the employee and employer through their trade union. On the other hand, employee relations refers to the management of work and the relationship at work between the employees and employer.

However, since the decline of trade unions in the last 25 years, the term ‘industrial relations’ has become less common. Although there was a slow in the decline in membership in the late 1990s, the downward trend has been relatively steady since the 1980s. Industrial relations is a term that first came into common use in the 20th century as the industrial sector grew and trade unions became prevalent. Workers became more organised, and the phrase was used to describe the relationship between the workplace, management and workforce.

As the industrial sector shrunk and other industries grew, membership of trade unions declined. As a result, employee relations became the phrase more commonly used to describe relationships between employees and employers in both unionised and non-unionised workforces.

How can employee relations help businesses?

Employees are central to a business’s success, positive employment relationships are crucial to the positive well-being of a company. Without a happy or motivated workforce, businesses will struggle to function. Healthy employee relations are the key to a motivated workforce, and below we take a look at the benefits that this can bring.

• Increased employee retention

With positive ER, employees are less inclined to leave their jobs – or their bosses. Of course, it’s been said before that employees leave their bosses, not their jobs, so improved employment relationships can lead to improved employee retention.

• Increased motivation

A positive relationship between the workforce and employer can motivate employees to work harder and become more creative. If employees feel valued and their relations with management are actively looked after, motivation levels are likely to increase along with productivity.

• Fewer workplace conflicts

With workplace conflicts often resulting from poor employee relations management, a strong HR strategy around ER can lead to fewer workplace conflicts. It is, of course, possible to resolve workplace conflicts, but the best form of resolution is prevention in the form of positive employee relations.

• Improved culture and workplace experience

In a world where workplace culture is one of the biggest appeals for employees looking for a new role, improving the existing workplace culture is a high priority. A strong relationship with the workforce is one of the key drivers for a good workplace culture, as employees will feel more comfortable at work and with their management.

• Improved employee engagement

Employee engagement is the emotional commitment that the employee has to a business and its goals. A well-nurtured relationship between workers and employers can only improve the team’s engagement levels.

How can you manage employee relations?

Although more laws protect employers and employees in the present day, and workplace disputes are less frequent than in past decades, conflicts still arise. Many organisations explore different approaches to maintaining positive workplace relationships. A few effective ways to maintain positive employee relations are:

• Set clear company goals and visions

If the business has clearly defined goals, employees will know what they are working towards and how they fit into the company’s overall vision.

• Have a transparent ER policy

This should include company mottos, ethos, values, guidelines and rules. Having this kind of policy helps to set clear boundaries from the beginning and the policy itself should be included in the employee handbook.

• Be honest and upfront with the workforce

This should be done when any changes to job status, roles or responsibilities occur. It should be supplemented by regular communication and team updates.

• Management training in employee relations

Line managers play a significant role in managing employment relations, as they are on the front line of communications with the workforce. Therefore, they should be fully trained in how to deal with employees’ concerns on a day-to-day basis and in mediating conflicts.

Employee relations and the law

Relations between the workforce and the employer are governed by employment law in the UK. Employment law in the UK outlines various rules and protections that shape relationships between employers and workers. Government resources provide full details on these requirements. Statutory rights protect employees at work and provide benefits such as maternity leave, sick pay, the minimum wage and holiday pay.

Individual relationships

Within the workplace, employees are protected by employment contract laws. Most workers receive a written statement or contract that sets out key terms of their employment. Employment contracts typically describe key terms of a working relationship. Official guidance explains the different elements commonly included.

The UK’s contract laws are central to employee relations, as they govern what can and can’t be reasonably asked of an employee. Without these laws in place, an employee would not be protected in the workplace, which is crucial to an employee’s safety and happiness at work.

Although not required by law, employee handbooks are a quick and effective way to share company policies. Employers are generally expected to provide essential information about policies when someone starts, which many organisations choose to do through a handbook.

UK statutes such as the Employment Rights Act 1996 and the Equality Act 2010 set out various worker protections. Readers can refer to government sources for full details on what these laws cover. The Employment Rights Act protects employees from unfair dismissal, offers redundancy payments, protection of wages, zero-hours contracts, Sunday working and flexible working. In addition, the Equality Act of 2010 ensures that the workforce is not discriminated against and protects equal pay.

The Equality Act covers age discrimination, disability, marriage and civil partnership, pregnancy and maternity, religion or belief, gender and sexual orientation. These acts are crucial to employee relations as they create trust in the workplace and safety for the workforce. In addition, the laws prevent disputes and conflict, which helps to maintain positive employment relationships.

Collective relationships

Collective relationships refer to ER involving trade unions and negotiations around workforce disputes, such as pay negotiations, collective bargaining and industrial action. Employers often work with trade unions to negotiate pay, working conditions and consult on workplace policy changes such as redundancy. Collective relationships are governed by the Trade Union and Labour Relations Act 1992.

The Trade Union and Labour Relations Act 1992 provides the legal framework for trade unions and collective bargaining. Government resources describe how these rules operate in practice. In addition, the Trade Unions Act of 2016 further protects workers and defines how trade unions can act. The Trade Unions Act introduced new restrictions on trade unions and when they could take action, conduct their duties, as well as fund political parties.

Collective relationships in employee relations are essential for both employees and employers. Despite trade union membership declining, it is critical that there is a formal process and framework for resolving disputes and negotiating changes in the workplace. With workplace culture being a key draw for new recruits in the 21st century, it’s clear to see that good employee relations are a driving factor in workplace satisfaction.

Furthermore, the laws protecting both employers and employees ensure that disputes and conflict are kept to a minimum and that, when they do arise, a framework is in place for resolving them. This is key to positive employee relations, and therefore important to remember in every aspect of the running of your organisation.