Improving Employer-employee relations

Improving Employer-Employee Relations

When a business makes decisions, it will consider the extent to which employees will be involved in this process.

Influence of employees

• The expertise and skill set of the employees will influence their involvement in decision-making as this may affect how the business value’s the contributions of staff.

• The culture of the business will affect the extent to which employees are involved in the decision-making process.

• The size of the business will affect the extent to which employees are involved in the decision-making process, as smaller businesses may find it more manageable to involve their employees in decisions made.

Trade Unions

• Instead of active involvement, the views of employees can also be represented by trade unions and works councils:

  • A trade union will represent a group of employees and negotiate with the employer on behalf of the employees.

  • A works council is a committee or group of individuals, including employees and the employer, and regular meetings take place to discuss work-related issues on behalf of all employees.

Advantages and disadvantages of employee representation

• Employee representation offers managers and leaders to gain an understanding of their employees and issues affecting them.

• Unsuccessful employee representation can lead to strikes and industrial action which affects reputation and productivity.

Importance of communication

• To manage and improve employee representation processes, both employees and employers must, therefore, understand the importance of honest and open communication for the process to be successful.

Improving the employer representation process

• The employer representation process can improve the relationship between an employer and its employees. Good employer-employee relations are important:

  • Employees feel valued and will trust their employer, which supports retention and productivity.

  • Understanding the views of employees can improve the decision-making process which minimises mistakes.

• For example, a supermarket which maintains good employee relations will benefit from increased productivity which can increase profit and allow increase bonus payments to staff.