A productive workplace doesn't just happen; it’s cultivated. For any company, this harmony is critical, as strong employee relations are the foundation of long-term successfor both the client and the employees. In the UK, poor employee relations and unresolved workplace conflict come with a significant financial burden for businesses, costing approximately £28.5 billion annually. This figure equates to around £1,000 per employee each year*.
So how can businesses create an environment that fosters trust, communication, and collaboration amongst their teams? Let’s explore some proven techniques for improving employee relations.
Open and Transparent Communication
This can include:
Regular one-on-one meetings with employees to discuss their performance, career goals, and concerns.
Team discussions where all voices can be heard.
Anonymous suggestion boxes or digital platforms for sharing feedback without fear of repercussions.
When employees know their thoughts matter, trust is built, and workplace morale improves.
The first step toward improving employee relations is encouraging open and transparent communication. Employees need to feel heard and understood. By establishing clear channels for feedback, managers and team leaders can stay informed about the concerns, ideas, and aspirations of their staff.
Recognising and Rewarding Employee Contributions
People want to feel valued. Recognition of employee contributions both big and small plays a significant role in boosting morale and maintaining good employee relations.
Employees are 56% less likely to look for new roles if they feel consistently appreciated, and recognition alone can reduce voluntary turnover by up to 31%**.
Companies that offer tangible and public recognition, such as employee of the month programmes, bonuses, or rewards and positive feedback, will see their teams become more motivated and engaged.
Offer Professional Development Opportunities
Encouraging career growth and offering opportunities for development are key factors in employee relations. Employees want to know that their company is invested in their future.
Recognising and Rewarding Employee Contributions
People want to feel valued. Recognition of employee contributions both big and small plays a significant role in boosting morale and maintaining good employee relations.
Employees are 56% less likely to look for new roles if they feel consistently appreciated, and recognition alone can reduce voluntary turnover by up to 31%**.
Companies that offer tangible and public recognition, such as employee of the month programmes, bonuses, or rewards and positive feedback, will see their teams become more motivated and engaged.
Offer Professional Development Opportunities
Encouraging career growth and offering opportunities for development are key factors in employee relations. Employees want to know that their company is invested in their future.
This can be through:
Mentorship.
Workshops and training sessions.
Assistance with certifications and further education.
Offering these growth opportunities fosters loyalty between the company and its employees, which boosts employee relations.
Fostering a Positive Work-Life Balance
One of the most critical aspects of employee relations is ensuring a healthy work-life balance. Burnout leads to disengagement, high turnover, and strained relationships.
From a HR standpoint, companies can support this balance by offering flexible working hours, remote working options, and promoting a culture where taking time off for mental health and family needs is normalised. Those in senior positions should model this behaviour and “lead from the front”. Examples of this include leaving the work day on time, not answering emails out of hours, not being contactable over the weekend, and taking days off.
Encouraging Collaboration Over Competition
While some competition can be healthy, a culture that over emphasises individual competition can harm employee relations. Instead, fostering a culture of collaboration and teamwork can create a more supportive environment. This can be achieved by:
Celebrating group achievements.
Creating a mentorship or “buddy” system for new hires.
Organising regular team-building activities and social events that encourage collaboration and camaraderie.
According to HR News, 28% of companies said the best approach to tackling the current labour shortage crisis is to focus on improving company culture.
Effective Conflict Resolution
Conflict in the workplace is inevitable, but how it is managed can make or break employee relations. Effective conflict resolution strategies should focus on finding solutions that are fair and satisfactory for all parties involved. To foster a conflict-resilient environment:
Train managers in conflict mediation techniques.
Encourage open discussions to resolve issues before they escalate.
Establish clear policies and procedures for addressing grievances.
Outsource a mediator to ensure both parties are involved in a fair discussion with a qualified individual.
Over 9 million employees experience workplace conflict yearly, with more than half reporting stress-related conditions as a result***.
By addressing conflicts head-on in a fair, professional manner, companies can maintain harmony and ensure that tensions don’t affect the broader workplace culture.
Equally, this can be outsourced to a third party, where a HR professional, who specialises in mediation and conflict, can resolve the issue.
Ensuring Diversity, Equity, and Inclusion (DEI)
A commitment to diversity, equity, and inclusion is essential for creating a respectful and harmonious workplace. Employees who feel marginalised or excluded are less likely to engage positively with their colleagues and the company.
Companies should actively promote:
Inclusive hiring practices.
DEI training for managers and staff.
Equal opportunities for career advancement.
Building a diverse workforce where everyone feels respected and included will strengthen employee relations and contribute to overall company success.
Putting together an inclusive DEI strategy from the ground up can be a daunting task, which is why it can be beneficial to hire a HR professional to lead the project, teach those involved in cultivating best practice, and future-proof the company.
Lead by Example
Leadership sets the tone for workplace culture. Managers and team leaders must model the behaviour they wish to see in their employees. By leading with integrity, showing respect, and being approachable, leaders can establish a strong foundation for positive employee relations. Companies should encourage leaders to:
Listen actively to their teams.
Show empathy in decision-making.
Maintain a consistent, transparent approach to leadership.
When employees see their leaders embracing these qualities, they are more likely to follow suit. They will also feel more comfortable, secure, and confident in their abilities to raise a problem, thus improving employee relations.
How can our HR Services help with Employee Relations?
For all companies concerned with retention, fostering strong employee relations is more important than ever. By promoting open communication, recognising employee contributions, fostering a positive work-life balance, and ensuring diversity and inclusion, companies can cultivate an environment where employees feel engaged, valued, and motivated to contribute their best work.
A harmonious workplace isn’t just good for morale; it’s good for business.
If you’d like to talk to our HR Servicesteam to help your company reach its full potential, get in touch here.
* hrmagazine
** nectarhr
*** acas