Employee and Labor Relations in HRM: Benefits of Labor Relations

Published On
Feb 1, 2021
Read Time
4.5 minutes
OnBlick Inc.

Employee and Labor Relations in HRM: Benefits of Labor Relations

Employee and labor relations play a pivotal role in strengthening the employer-employee relationship. It is important that the employees be provided an environment where they can improve their skills and constructively use them. When the office management and the employees are both focused on the objective of creating an effective organization, they build a healthy work environment.

In this blog, we will look at the benefits of labor relations, and how one can apply labor relations in the workplace.

What are Employee and Labor Relations?

Employee and Labour Relations describe the relationship between employees, and between the employer and the employees. They include the contractual, practical, and emotional connection between the managers and their workforce.

According to organizational psychology, there are certain unwritten ‘psychological contracts’ that are derived from the relations between an organization and its members. These contracts are purely individual beliefs in a reciprocal obligation between the employees and the organization. When these contracts are breached on the part of the company, they can be fatal for the employee and labor relations.

Benefits of Employee and Labor Relations

1. Commitment to the Organization

A pleasant work environment is a good incentive for an employee to be loyal to their work. When the employees feel connected to their employers and have a good understanding of them, they make efforts to do their tasks well. An individual that is committed to their organization would spread a good word about it among their community that brings in experienced and skilled workers to the company. It improves the brand image that is profitable in terms of the customer experiences as well.

2. Improvement in Employee Motivation

Good relations within the company motivate the employees to work hard. If they feel satisfied with their environment and achievements, they are inclined to make efforts to improve themselves. Motivated employees turn out to be great team members, encouraging their peers to do better. Appreciations from their leaders and colleagues also make the employees feel motivated towards their tasks.

3. Employee Retention

The employees must be made to feel valued about their skills and their work. Even if they are not satisfied with their work, a healthy work environment is a great incentive for employees to stay in the company. Additional employee benefits such as bonuses, regular appraisals, and upskilling offered by a firm may urge the employees to stay loyal to the company. The cost of recruitment and training can be reduced if companies invest in the retention of employees.

4. A Healthy Office Culture

Healthy workplace culture is highly dependent on how the employees are treated in the company. If the employees feel that are not treated equally by their leaders, it may lead to workplace conflicts. Discrimination, harassment, or biased treatment of the employees makes them feel unvalued and insecure about their work. The employees must have a good relationship with their employers concerning their personal and professional lives. Employers can solve workplace conflicts by investigating into conflicts and resolving them in time, fostering their relationships.

5. Increased Revenue

Enhanced labor relations result in improved work productivity, and work profits. It also plays an important role in customer retention. When the employees feel satisfied with their work, they pay attention to the needs of the clients, resulting in a positive customer experience. Engaged employees are more committed to their tasks and this growth can bring better outputs and revenues for the company.

6. Enhanced Focus on Organization Goals

Employee relations promote their need to achieve the goals of their organization with more vigor. Workers who are familiar with the long-term goals of their company, are more efficient in their tasks and focused on how they need to achieve those goals. Having a sense of purpose motivates them to enhance their skills to accommodate in accordance to the goals.

Practices that Promote Labor Relations

The best practices that HR professionals can follow to improve their employee and labor relations include:

i. Present the Employees with the Company Goals

Make sure that the workers are aware of what is expected of them, and that they share the company’s vision for the future. Being a part of a larger goal provides them with a sense of importance attached to their work.

ii. Have Honest Conversation with the Workers

Communication is the key to having a positive employer-employee relationship. When the employers accommodate the tasks of the employees based on their skills and are present for them in times of crisis, it makes them feel safe and confident about their work in the company.

iii. Place your Trust in the Employees

Instead of being aware of every move of your workers, trust them with their work and provide them the liberty to make their decisions. Guide them about what their work is and what is expected of them, to make sure they meet their work objectives.

iv. Invest in Your Workforce

One can express their care for their employees by providing them with the right tools and guidance about their work tasks. The companies can invest in their learning and development departments, employee wellness programs, and mentoring programs to improve the skills of their workers.

Nurturing positive relationships among the employers and employees leads to well-developed employee and labor relations in a company. It highly influences the productivity and performance of the employees, especially during critical times in the company. Strengthening the employee and labor relations not only improves employee engagement in the company but also leads to a successful business as well.

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