Employee Relations at Present.

 

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Definitions and Interpretations

Employee relations can be simply defined as the relationship that exists between employers and employees (CIPD, 2022). The rise of individual workplace rights has led to individualisation of the employment relationship so to speak (CIPD, 2022).

Employee relations essentially deals with the management of the employment relationship and the psychological contract, which include a mix of collective and individual approaches (Armstrong and Taylor, 1977). Armstrong recognises that at present, there is a tendency to move away from collectivism (e.g. collective agreements, collective bargaining etc.) and move towards individualistic ways to address the employment relationship and associated concerns, instead. 

Two main hierarchies can be identified in the employment relationship structure (Crail, 2022). They are;

1. Vertical Employee Relations - this includes the relationships between employees and  superiors

2. Horizontal Employee Relations - these are same level employee relationships

Employment relations aim to foster a positive relationship between employers and employees, resulting in higher employee retention, happiness, and workplace productivity (Crail, 2022). Ensuring good practices in both these hierarchies will be instrumental in fostering a conducive working environment and contribute to the success of the organisation. 

The Psychological Contract is a term used when discussing employee relations. It is used to describe the expectations, beliefs and obligations of an employee pertaining to their job role. While the contract of employment supplies the building blocks of the employment relationship, the psychological contract brings in the 'human side' of the same relationship (CIPD, 2022). A psychological contract may be said to span across aspects such as job security, fair treatment in the workplace, pay and benefits, training and development, career prospects, involvement in CSR projects etc (CIPD, 2022). It is right to assume that having due regard for this, as much as the contract of employment is important, given that its quality can influence the way an organisation's employees behave day to day. It is key to performance and engagement at work.

It is also significant in the evolving world of work, as a dynamic concept that can be applied to understand it and the employment relationships within it, as and when it changes. 

Status Quo

Research shows employers have a positive outlook regarding the employment relations climate within their organisations, with over 85% categorising relations between managers and employees as 'very good' and 'good,' and a small percentage of 3% recording 'poor' or 'very poor' (CIPD, 2022). 

While the latter 3% is not cause for alarm, it certainly rings a bell for these organisations to rethink their approach to human resource management entirely. This is because employees no longer remain in work environments where they feel undervalued, stressed, unheard, and as if they were a replaceable cog in the wheel. 

It may be suggested that the pandemic pushed organisations to place employee relations on a higher pedestal. Think about it. Companies had to implement new health and safety measures, adapt new working models such as remote and hybrid working, invest in new technologies, and recalibrate company policies pertaining to leave etc. 

New and emerging dialogues in the rights space such as paternity and parental leave (E.g. Sri Lanka), and menstruation leave (E.g. Spain) are providing a fresh perspective on employee relations. 

These demonstrate how employee relations are tested during these changing times, and the role of employers in light of them.

Views on Employee Relations

There are two distinct opinions on this matter - the unitary and pluralist viewpoints (Armstrong and Taylor, 1977). 

• Unitary viewpoint - expressed by Walton as the principle of mutuality in 1985. This is the belief that employees and management have the same concerns and that collaboration between employees and managers is essential for tackling these shared concerns (Armstrong and Taylor, 1977).

• Pluralist viewpoint - does not see an overlap between the concerns of management and employees and believes that the unitary view is naive, unrealistic and is not in the employee's best interests (Armstrong and Taylor, 1977). 

Based on my reading, I subscribe to the pluralist viewpoint. 

This is because as much as the employer expects to pay the employee for the work done and the employee waits to receive such payment, employers and employees have interests that are intrinsic to each. These mutually exclusive interests or concerns result in conflicts of interest often, which necessitates a contract of employment containing grievance escalating mechanisms and dispute resolution clauses. It would not be so, if employee relations were unitary. As such, they need to be handled with care, having due regard to all interests at play, communicated policies and strategies. 

Armstrong and Taylor (1977) further list down four approaches to employee relations. 

They are as follows;

1 Adversarial: This approach encapsulates an organisation which decides its plan of action, and expects the employees to conform to it. Employees are able to exercise their power by way of refusal to abide by the plan of action set by the organisation. 

2 Traditional: Encompasses an everyday working relationship where the management proposes a course of action and the employees react to it through their elected representatives. Where they are in disagreement, they may quit. 

3 Partnership: Envisages a situation where the employees work together with the organisation in drafting and execution of policies. However, the management does not forego its right to manage. 

4 Power sharing: Envisages a setup where employees have the best of both worlds. Here they are involved in the day-to-day and are also strategic decision-makers.

- (Armstrong and Taylor (1977))

How are employee relations relevant at present?

The recent conversations surrounding the topic of work-life balance in an exceedingly digital world, show the detrimental impact that an 'always on' work culture has on employee engagement (Bye, 2021). It has even resulted in numerous cases of 'quiet quitting' which I will deal with in a separate article on this blog. Employee relations as a concept plays a key role in providing flexibility which in turn will contribute to better productivity levels and less absenteeism in the workplace. It could also contribute to retaining talent in the long run, which is vital to an organisation's survival. 

Having comprehensive employee relations policies in place could aid dispute resolution of workplace conflicts with ease, without seeking expensive legal advice or taking legal action which ties up money, time, energy, output and the reputation of the organisation for a long period of time. 

HR professionals who take the existence of the psychological contract into account, can support employees by directing resources where they are stretched (Bye, 2021). As such, it could assist in pre-empting employee needs, and having them in place before the lack of such a thing escalates into a problem. This would also create a conducive work space for both parties, increased motivation, increased loyalty, improved trust and confidence and better overall engagement. 

I conclude by saying that, having the concept of employee relations at the heart of organisational decisions will provide such an organisation with a competitive edge over all others who do not. 

Reference List

Armstrong, M. and Taylor, S. (1977) Armstrong’s Handbook of Human Resource Management Practice. 13th ed. United Kingdom.

CIPD (2022) Employee Relations: an introduction. [online] Available from https://www.cipd.co.uk/knowledge/fundamentals/relations/employees/factsheet#gref [Accessed 18 March 2023]

Crail, C. (2022) What Is Employee Relations? [online] www.forbes.com. Available from https://www.forbes.com/advisor/business/what-is-employee-relations/ [Accessed 18 March 2023]

CIPD (2022) Psychological Contract. [online] CIPD. Available from https://www.cipd.co.uk/knowledge/fundamentals/relations/employees/psychological-factsheet#gref [Access 18 March 2023]

Bye, S. (2021) The role of employee relations in human resources. [online] University of Lincoln. Available from https://online.lincoln.ac.uk/the-role-of-employee-relations-in-human-resources/ [Accessed 19 March 2023]