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Why Employee Relations Matter

Why Employee Relations Matter
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2 minute read

Why Employee Relations Matter

Happy, engaged employees are proven to make better decisions, be more innovative, work better together, and they’re more likely to stay with the company for longer.

Not only that, recent research has shown that happy employees are 12% more productive, while unhappy employees are 10% less productive.

Positive employee relations drive higher levels of commitment, which in turn raises productivity. Commitment is what makes people spend the extra time getting something right, rather than sending something that’s just OK.

When employees are more committed they’re less likely to violate health and safety, and ethical policies. Meanwhile, disengaged workers have 49% more accidents and 60% more errors and defects.

Commitment also leads to higher rates of employee retention. This has a real impact on the bottom line as happy employees save you the time and money to replace them, costing between 16% and 213% of their salary. And, that retention will help with recruitment. As people hear how great it is to work with you, they’re more and more likely to want to join.

There are also proven links between health, wellbeing and productivity. Happy people tend to be healthier, meaning they’ll take less sick leave, and be in a better state of mind for work.

Better employee relations create better customer experiences. When morale is high, customer interactions will reflect that. A Gallup report in 2013 showed that employees who are engaged are more likely to improve customer relationships, with a resulting 20% increase in sales.

In his book “The Happiness Advantage” Shawn Achor argues that a happy, engaged workforce is the greatest modern economic advantage. A decade of his research proves that happiness raises nearly every business and educational outcome. His studies show happy, engaged workforces raising sales by 37%, productivity by 31%, and accuracy on tasks by 19%. So, not only will you make more sales, and get more done, but the quality of your work will be higher too.

Finally, happy employees are good news for your share price too. The stock prices of Fortune’s “100 Best Companies to Work for” rose 14% per year from 1998 - 2005, compared to a 6% increase from those not on the list.

In short, improving employee relations has a positive impact on everything from customer services to sales, decision making, and even your stock price. Meanwhile, ignoring negative employee relations can lead to ethical violations, health and safety issues, and high rates of employee turnover.

Not everything that works for one organisation will work with another. There is no one size fits all answer. Only people within the business know what’s really making the difference.

That’s why we work closely alongside client teams to create and deliver our bespoke solutions. First, we’ll talk to as many people as possible, digging into the route cause of any unhappiness. By involving as many people as possible at this stage you give everyone a chance to have their say and start to build advocacy throughout your business.

Then, we’ll work with you to design and implement a programme to improve your employee relations. Our specialists will create strategic plans for quick wins, as well as a roadmap to reach your medium and long-term goals. We’ll also help set up real time feedback so you can track progress on specific metrics and for employee relations as a whole.

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