The Advantages of Good Employee Relations

  Reviewed by: Jayne Thompson, LLB, LLM
  Written by: Andra Picincu      Updated October 25, 2018
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Employee relations can make or break your business. Happy employees are more productive and put more effort into their work. They do their best to meet your expectations and help the company grow, which translates into more revenue and satisfied customers. Evidence shows that improving your employee relations should result in higher retention rates and reduced turnover, so it's definitely worth the effort.

Increased Productivity

Employees who have a positive relationship with their colleagues and managers work smarter and more efficiently. They are more likely to put forth their best efforts and get involved in the company's projects. This leads to higher productivity and performance, which helps your organization grow.

Higher Retention Rates

More than one-quarter of employees are in a high flight-risk category, which means it won't take much for them to up sticks and leave. Many of these employees possess critical skills that could be really valuable to your company. The cost of replacing a skilled employee can reach 400 percent of their annual salary. A key departure can be so costly to the business, the best thing you can do is to avoid losing them in the first place. People are less likely to leave a company that recognizes and rewards their skills. As a business owner or manager, it's your responsibility to create an engaging work environment where employees feel valued.

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Enhanced Motivation

Increased morale and motivation is one of the primary benefits of good employee relations. Disengaged employees cost organizations a whopping $300 billion in lost productivity each year. Companies with engaged workers, on the other hand, experience up to 43-percent higher productivity. Basically, it pays to make sure your staff feels appreciated and empowered. Let them know that their opinion is valued. Provide personalized feedback and express interest in their work. You also need to provide your employees with the technology they need to work better and faster.

Less Absenteeism

Workplace stress and conflicts are often the driving factors behind employee absenteeism. Up to 48 percent of Americans experience abusive behavior at work. Over 25 percent of bullying cases are not investigated. If your employees are constantly missing work, try to determine the cause. Ask about their relationship with other team members. Investigate any harassment charges and encourage your staff to report such cases. Assure your employees that you care about their safety and well-being.

Increased Revenue

Strong employee relations have a positive impact on the company's growth and revenue. People who feel motivated and engaged in the workplace do an excellent job in their assigned roles, resulting in better products, greater customer satisfaction and increased sales. Employees are a company's most valuable asset. The success of your business depends on their work. If your staff is motivated and engaged, they will stay with your company longer and strive to meet your expectations. The advantages of good employee relations cannot be overstated so take the steps needed to reward and motivate your team.

About the Author

Andra Picincu is a digital marketing consultant with over 10 years of experience. She works closely with small businesses and large organizations alike to help them grow and increase brand awareness. She holds a BA in Marketing and International Business and a BA in Psychology. Over the past decade, she has turned her passion for marketing and writing into a successful business with an international audience. Current and former clients include The HOTH, Bisnode Sverige, Nutracelle, CLICK - The Coffee Lover's Protein Drink, InstaCuppa, Marketgoo, GoHarvey, Internet Brands, and more. In her daily life, Ms. Picincu provides digital marketing consulting and copywriting services. Her goal is to help businesses understand and reach their target audience in new, creative ways.

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