How Companies Develop and Maintain Strong Employee Relations [With Examples]

November 14, 2021
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Many companies believe developing strong employee relations is wasted time that could be spent elsewhere. However, in order for companies to operate efficiently and effectively, the workplace culture of the company needs to be healthy.

Successful companies encourage open communication between managers and their subordinates so problems can be solved before they become more serious. Companies that develop strong employee relations create stronger teams by encouraging them to communicate with one another. 

Companies that develop strong employee relations also have healthier company cultures, leading to positive customer experiences and higher sales. Team members working toward a common goal are happier than if they were just doing what needs to be done in order to meet minimum requirements or expectations. 

Employees at companies that develop strong employee relations trust upper management, meaning they're more likely to share what's on their mind because upper management doesn't create an environment where subordinates feel like they can't discuss anything about the company without fear of punishment for speaking up.

Why is it important to develop and maintain strong employee relations?

It's very valuable for companies to develop and maintain strong employee relationships. This allows the company to benefit in several ways, including increased productivity of employees, lower employee turnover, and improved employee morale, among other benefits.

Good employee relations are extremely important for companies that want to maintain a positive company culture, positive company brand voice, and productive employees. Investors take the relationship with employees into account before deciding whether or not they want to invest in a company.

5 benefits of developing and maintaining strong employee relations

The benefits of developing and maintaining strong employee relations are made up of the positive effects upon the company's workforce, which in turn affects the product/service they provide. This can be done by actively listening to employees to find out what they need, holding regular one-to-ones with staff to make sure their working lives are satisfactory, and allowing employees to handle complaints or grievances to resolve issues within an open channel.

Benefits include:

  1. Improved productivity - Employees who feel valued will actively look for ways to improve themselves and perform better at work because it will boost their self-esteem. The more productive that employees are at work, the more profitable companies become, resulting in increased profits or a larger salary budget for bonuses!
  2. Reduced turnover - When employees are happy in their places of work, they will be less inclined to leave. Instead of looking for other opportunities outside the company, loyal employees who feel comfortable within their position have no objections to staying at the same company or business for an extended period of time.
  3. Improved employee relationships - People feel happier when they are given the opportunity to voice their opinions and matters concerning them. Understanding how to effectively communicate with colleagues without raising voices or shouting helps people resolve problems together before it becomes a larger issue.
  4. Talent acquisition - Companies that maintain great employee relations are often seen as desirable places to work because staff can enjoy working there not being entirely motivated by money. They are given the freedom to work the way they want, without being told what to do or how to do it. Having a great rapport with employees also increases the chances of people wanting to work at your company, which in turn contributes positively to recruitment.
  5. Acknowledgment of achievements - Terrific employers will recognize when staff goes that extra mile for their company or business by publicly acknowledging them via meetings or emails. This makes working for your company easier and more enjoyable because everyone gets involved in recognizing each other's efforts and achievements within the organization.

These benefits can be achieved by formal policies in place at an early stage in development. By communicating openly with workers, allowing them involvement in decisions, their roles, and providing efficient means of handling complaints or grievances, workers will feel included in the company's culture.

Remote teams and companies that have strong employee relations

As more and more companies see the benefits of remote work, we've seen the development of a new type of company culture, one built around employees who work from home.

Employee relations are key in maintaining company culture, and it can be tricky to develop when employees are not in physical proximity to each other. Strong relationships between employers and employees don't have to be undermined because of widespread remote work.

A few considerations for good employee relations in remote teams include:

  • Establishing company values and ethics
  • Hold regular video chats or meetings with open communication
  • Use collaboration tools (like real-time programming environments)
  • Have quarterly meetings that allow employees to meet face to face

4 company examples with strong employee relations

The job industry is competitive. Many people are looking for jobs, and it is difficult to find good ones, especially in today's economy. It can be even more difficult for employers to find trustworthy employees who want to work hard and stay employed.

Luckily there are companies that not only understand this struggle but also take steps towards making the hiring process easier for everyone involved. Here are a few examples of companies with strong employee relations:

  1. Google - The massive search engine company prides themselves on their progressive employment policies like proper maternity/paternity leave policies (to accommodate new families) as well as transparent promotion criteria (so workers know how they can improve). These policies help ensure Google will continue attracting top talent year after year.
  2. Patagonia - This company recently underwent a major restructuring, reevaluating their roles within the business and what they were looking for in new employees. They now have various departments that are focused on recruiting, developing, retaining, engaging, and caring for their workers. These efforts have paid off as worker turnover has dropped 30%.
  3. New Belgium Brewing - As is common with many companies that promote strong employee relations programs, New Belgium saw positive changes after implementing their program. Their yearly turnover rate dropped from 41% to 14%, saving eighty million dollars over five years. Employee satisfaction increased 12%- which positively impacted productivity by 4%- all while increasing revenue by 16%.
  4. Southwest Airlines - Southwest's commitment to positive employee relations is seen not only in their reasonable wages (no one starts off at the bottom or middle) but also in the quality of their service. According to Glassdoor, employees say that they would recommend working at Southwest to friends and family.

8 strategies of companies that develop and maintain strong employee relations

If you are looking to develop and maintain strong employee relations, there are several strategies you can employ. Here are some suggestions of things that companies can do:

  1. Offer competitive salary options: One of the first things companies should do is offer competitive salaries. If employees feel like they are receiving appropriate pay for the work they’re doing, they will be more satisfied with their jobs.
  2. Provide stability in your workforce: Company turnover rate affects productivity levels because new hires need to be trained. If you can provide employees with stability in your workforce, they may feel more secure about the future of their jobs and have higher job satisfaction.
  3. Offer opportunities for career advancement: If employees are able to see a clear path towards moving up in the company, it may encourage them to stay.
  4. Provide ample time off: If you give out paid sick days and vacation days as part of your job benefits, chances are high that your employees will appreciate you even more for providing this option. In addition, giving people breaks from work periodically is a good way to make sure they’re refreshed when returning back to their responsibilities.
  5. Conduct regular performance reviews: Employees at companies who conduct regular performance reviews are generally more satisfied with their jobs.
  6. Encourage employee participation in decision-making processes: When employees feel like they have influence over what goes on at their job, chances are high that they will be happier about their work environment. It also makes them more likely to go beyond what is required of them by giving them an increased sense of responsibility and ownership over their work.
  7. Involve workers in committees: By involving employees in different departments, you engage them more with everyday business operations, which allows for better communication between all levels within your company. This also helps establish trust and understanding between different groups of people who may be affected by certain company policies.
  8. Help them deal with work-related stress. As already mentioned, people tend to take out frustrations on co-workers when they’re overworked so the better you can help address this issue, the healthier your company environment will be.

Company employee relations statistics and software

The modern workforce has a number of new and complex challenges to face, and the traditional employee-employer relationship is one that continues to evolve as we progress into the 21st century. The following statistics help illustrate some of the challenges facing companies today:

  • One in five employees consider themselves underemployed, as they desire more challenging work than their current job provides (CareerBuilder).
  • One in three full-time employed adults would like to change jobs now or within the next year, though most employers believe this number is closer to just one in seven (ADP).
  • As many as 70% of employees plan on looking for a new job after receiving their employer's holiday gift.
  • Only 36% of millennials say they can trust their leaders; for baby boomers, this number is as high as 55% (Deloitte).
  • Fewer than half of employees feel like their voice is truly heard by senior leadership, even though most workers believe that actively listening to them would foster greater engagement and satisfaction in the workplace.

All these statistics show that most employees want more out of their jobs. Whether it's a greater opportunity or more respect from leadership, the traditional employer-employee relationship is changing into one where both sides are more in tune with each other's needs. With this in mind, it becomes even more important for companies to keep their workers happy and productive. Employee experience software can be an integral part of keeping productivity high - allowing employers to track time, monitor project completion, and more.

Software developers are constantly coming up with new ways for companies to increase efficiency. Organizations can either use existing platforms or find a solution completely customized to their needs. Whatever the case may be, software is key in helping employees stay productive and maximizing profits.

Matter's app is the perfect example of software that can increase employee satisfaction. This free Slack app can help employers recognize team members with praise and constructive feedback. Employees thrive in environments where they are given both and you will begin to see the company profits increase.

Make employee recognition & rewards fun with Matter!
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