For many businesses, Employee Relations (ER) may often be misunderstood or unfairly labelled as being something an organisation has to do operationally.
However, it shouldn’t be gathering dust and hidden away in a company’s guidelines or be last on the list when it comes budget allocation. In fact, it must be viewed as the overall interaction with an employee – and therefore one of the most important elements of a business’s success.
What ER doesn’t mean is that its only concern is the contractual relationship between a firm’s leader and their team member – it’s much greater. ER is about the bond of a manager and employee’s relationship, and how that impacts on the workforce’s productivity and the entire company culture.
But why should organisations care about ER? And why should senior leadership even try to grapple with understanding exactly what it entails when, as a business leader, a huge focus on theirs is maintaining a healthy bottom line?
It’s time for firms to take ER seriously and acknowledge it for the strategic, advisory support it delivers throughout an organisation – and the significant impact it can have. ER shouldn’t be a merely tactical, operational fire-fighting unit that’s ignored and not invested in. Neither should it be a necessary evil that’s tasked with only ‘turning the same operational handle’ that little bit faster so it reduces spiralling employment tribunal costs.
ER is so much more – and business’s futures depend on getting it absolutely right.
The positive effects of strong ER can be exponential
So, what are the benefits to ER? Firstly, it encourages motivation and instils a sense of value – and employees’ voices are heard. In return, an employer can enjoy higher levels of engagement, greater productivity, booming morale and a healthy, competitive environment which ultimately leads to more results, and better performance.
When employees are engaged in their work – and happy in the surroundings – their customer service should improve and a positive relationship with the end-user can ultimately bring in more revenue. ER can also be the starting point towards enabling businesses to grow even further, if it’s handled correctly and regularly reviewed.
Organisations that don’t see it as a priority may lead to damaging the brand’s reputation, strength and position in the market. Why? Because when the bond between a staff member and their employer is fragile and – if a colleague isn’t happy – there can be resentment, demotivation and a deteriorating morale which won’t slow down when filtering throughout the entire workforce.
It goes even further too. Without strategic ER, employees who don’t feel valued are less likely to want to be at work or be productive. Think about it, why would someone want to represent an employer who doesn’t respect what they bring to the table?
Demotivation and unhappiness running through a business’s core will also have another price to pay – that being the cost of unauthorised absence alongside retraining or trying to find the skills lost following the departure of a colleague who didn’t want to work for their boss anymore.
For an employer, the business-threatening elements and admin headaches – coupled with the loss of time and money – all equates towards a rising staff turnover which can prove to be critical for the brand’s future and reputation.
Additionally, not only does the company culture suffer but so will customers – and that leaves a gaping hole in that all-important bottom line.
So, there’s a real need for organisations to start taking ER seriously – and that means placing it at the top of the strategic agenda.
How do organisations introduce ER into its everyday operations?
A great starting point for any company is to change the established culture and thinking – from the top down. That means acknowledging ER as a key business priority and putting it up there alongside other critical, commercially driven agenda items including financial performance, customer satisfaction, sales, production and marketing.
At this stage, it’s important for employers to remember that their behaviour matters too, in order to get their ER in check. For example, they should never show favouritism towards employees, be vague, over-complicate or micromanage staff. They should take the time to celebrate success, be honest and transparent and show humility – everyone is human after all.
Business leaders must be constantly monitoring key metrics centred around how people feel about the organisation through regular reviews, team away days and evaluation surveys – and be willing to action any failings or key areas of improvement. Scheduling regular, informal catch-ups – where employees feel they’re in a safe space to be able to say how they’re feeling – can help towards enhancing the overall culture. Managers should also be willing to spot opportunities to reward staff for a job well done with a benefits package that’s focused on their wellbeing.
Above all else, for ER to truly make its mark on the workplace environment – and to drive it forward on the strategic agenda – they must communicate with employees throughout. Those able to focus on their teams, more than themselves, should soon start to reap the benefits.
It’s now a priority for modern-day leadership teams and boardrooms to begin to appreciate the power of highly-valued and effective ER management possesses, and why a more strategic focus and thinking to the subject is now a pre-requisite for the business winners of tomorrow.
