The Effect of Employee Relations on Business

Employee relations has a profound effect on an organization's business reputation, profitability and employee engagement. The human resources discipline known as employee relations or employee and labor relations can actually effect an organization's bottom line and its ability to achieve overall business goals. The human resources field has several disciplines -- compensation and benefits, training and development, recruitment and selection, and workplace safety and risk management. However, employee relations is a discipline that requires a general knowledge of all the other disciplines because of the wide reach this discipline has in the overall business model.

Business Reputation

Many successful employee relations specialists are well-versed on the impact that their section of human resources has on an organization's reputation. The primary goal of employee relations is to strengthen the employer-employee relationship through activities such as obtaining employee feedback, developing and implementing performance management systems and providing guidance to supervisors, managers and upper-level management. Strengthening the employer-employee relationship means interacting with employees at all levels of the organization and paying conscientious attention to the organization's philosophy, mission and values. Business reputations are based on creating an image that illustrates the value of human capital. There exists a parallel between employee relations and improving your company's human capital. Although this goal seems rather broad and maybe even ambiguous, there are several employee relations activities that help human resources department and employee relations play an integral role in creating a solid business reputation for other companies and industries to emulate.

Employee Opinion Surveys

Conducting employee opinion surveys is a time-consuming and lengthy, yet rewarding endeavor for employee relations specialists. Obtaining confidential, anonymous information from employees about a wide variety of topics helps businesses understand the areas where they succeed and areas where they fail to meet workforce needs. For example, an employee opinion survey that focuses on employee engagement and the level of enthusiasm employees have about their jobs and how their responsibilities help the organization achieve its goals can give insight to matters which an employee relations specialist would have not otherwise discovered. The most important step in conducting employee opinion surveys is developing action plans that follow through on employee comments and suggestions. Action plans that outline the best approach to identifying employee concerns are essential if you want your employee relations activities to have a positive impact on the business.

Laws and Guidelines

Employee relations includes a commitment to fair employment practices. Absent knowledge of labor and employment laws and regulations governing the workplace, employee relations can be useless to a business. Employee relations specialists are the conduit between federal, state and local agencies that promote fair treatment of all employees. Employee relations practices based on sound knowledge of legal processes and legislative impact on the workplace are essential components of human resources. The effect of employee relations on business in this area is paramount to successful business operations. In addition, fair and equal application of labor and employment laws protect the organization's assets and convey the all-important message of equal opportunity for current and future employees.

Performance Management

Performance management and employee relations are inextricably intertwined when it comes to effects on business. Employee relations-driven strategy related to performance management improves the profitability of a business. Employee relations oversight of performance management ensures employee retention and professional development. The impact of retention and development is critical to productivity, job satisfaction and, consequently, the organization's bottom line. Employee relations strategy that includes employee motivation, compensation and rewards, recognition is vital to organizational goals, as well as to individual employment goals.

References

• The Princeton Review: Labor Relations Specialist
• National Aeronautic and Space Administration: What is Employee Relations?
• The University of Melbourne: Unions, Employee Relations and High Performance Work Practices; Dr. Carol Gill; Nov. 2008
• Society for Human Resource Management: Introduction to the Human Resources Discipline of Employee Relations
• U.S. Bureau of Labor Statistics: Occupational Outlook Handbook, 2010-11 Edition: Human Resources, Training, and Labor Relations Managers and Specialists

Resources

• HR.com
• Society for Human Resource Management
• National Human Resources Association
• U.S. Equal Employment Opportunity Commission
• Workforce Management
• Society for Industrial & Organizational Psychology, Inc.