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Employee Relationship Management – Definition, Meaning, Functions

January 24, 2021 By Hitesh Bhasin Filed Under: Human Resources

Employee relationship management is often known as ERM and is a system that encourages the relationship between an employee and the organization. This platform integrates the mutual interest of both the involved parties so as to foster better results.

Table of Contents

  • What is employee relationship management?
  • Activities necessary for healthy employee relationship management
    • 1. Encouraging group activities and intermingling
    • 2. Avoid blame games
    • 3. Transparent and open communication
    • 4. Discourage closed cabins
    • 5. Do not dominate other employees
    • 6. Do not play favoritism
  • Functions of employee relationship management
  • Advantages
  • Issues that gives rise to the need for employee relationship management

What is employee relationship management?

An organization is fully dependent on its workforce to reach a shared goal of efficiency and productivity. It is vital that the employees work as a team and accomplish set goals effectively. The employee relationship management helps to avoid conflicts and misunderstandings in a professional environment and facilitates reaching targets at a much faster pace.

Employee relationship management is all about handling, managing and monitoring the relationship between the employee and employer as well as all the employees in a company. This process is used by organizations to determine the needs of their employees so that they can work in a better environment.

Activities necessary for healthy employee relationship management

What is Employee Relationship Management

The following activities are considered necessary to develop healthy employee relationship management.

1. Encouraging group activities and intermingling

When individuals work together in groups there is an increased chance of better comfort levels. Intermingling and discussing the various issues helps the teams to gel and reach their set targets easily. An important way to encourage bonding via group activities is by ensuring the participation of every member during celebrations and company events.

2. Avoid blame games

Back-bitching and blaming others for your misfortunes or mistakes must be a strict no-no at a professional place. It spoils working relationships and leads to conflicts and controversies that are unproductive in the long term. Respect the other employees and treat them with deference because respect begets respect.

Also Read  What is Salary Grade? Definition, Working and Advantages

Do not take part in useless criticism of either your superiors or peers or co-workers as it can turn back to bite you.

3. Transparent and open communication

Problems, misunderstandings, issues, and conflicts are an integral part of every workplace. The remedy lies in creating a team or a point of contact that can handle the said issues effectively so that it does not have a lasting impact on the performance and efficiency of the members. When an employee knows who to get in touch in case of issues, it minimizes the waste in terms of time and effort.

It is important to set up regular meetings where everyone can bring out the issues that they are facing without fearing any repercussions. Transparent and open communication goes a long way in bringing about a healthy employee relationship management.

4. Discourage closed cabins

Times are changing and employers are encouraging the use of cubicles and workstations instead of closed cabins for better employee relationship management. When an employee is enclosed in a cabin he is shut away from others and seems distant and aloof to other members. Employees in workstations are in constant touch with other employees.

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Discussing things, observing others at work and sharing little titbits builds trust and this encourages better understanding and a happy work environment.

5. Do not dominate other employees

Even if you are the team leader it is important that you do not treat other members without respect. No one likes a dominating force. Yes, a leader should be a bit forceful but never cross the line otherwise the members will hesitate in coming to you to resolve work-related issues.

6. Do not play favoritism

The office is not the place to play your card of favouritism. When an employee starts believing that his boss is favoring another member over him he will start losing his poise. This will result in less efficiency, loss of self-confidence and ultimately minimum productivity.

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Make sure you are not part if you want to encourage activities necessary for healthy employee relationship management.

Functions of employee relationship management

Functions of employee relationship management

The important functions of employee relationship management are as follows-

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  1. Improving the morale and confidence of the employees
  2. Making employees proficient and skilled in their work
  3. Encourage the employees to participate in meetings, seminars, and events
  4. Helps to bring forth creative and innovative ideas by encouraging their potential levels
  5. Encouraging a dynamic and challenging work culture
  6. Stop the concept of favoritism and discrimination at the workplace by treating every employee fairly
  7. Develop coordination between members
  8. Make employees responsible so that they can take ownership of their actions
  9. Increase flexibility in the employees
  10. Make sure that the employees are given several basic amenities like free medical facilities and health check-ups on a regular basis
  11. Workplace evaluations and performance reviews

Advantages

The advantages of employee relationship management are as follows-

  1. Opens new ways of communication between employees as well as employer and employees
  2. Helps to deal with clients and customers in an effective manner
  3. An important advantage of employee relationship management is that it strengthens the culture in a company
  4. Employee relationship management tool leads to higher levels of productivity in the employees
  5. Effective employee relationship management has a direct impact on the growth, prosperity, and revenues of an organization
  6. The employees tend to take on more responsibilities as they gain confidence in their work
  7. Strong employee relationship management results in better morale and job satisfaction
  8. Increased enthusiasm results in lower levels of stress
  9. Encourages employee retention
  10. Reduces the cost of re-hiring and turnover
  11. Ensures harmonious and healthy workplace environment
  12. Fosters loyalty and trust towards the company
  13. Employees tend to be present in the office frequently
  14. Employees become well-versed in the policies, goals, mission, and vision of the company and serve as excellent resources
Also Read  How to Improve Collaboration In The Workplace?

Issues that gives rise to the need for employee relationship management

The common issues which give rise to the need for employee relationship management are as follows-

1. Annual leave

Most of the employees are not aware of the leave policies of their workplace. In order to avoid such issues, you need to adopt an effective employee relationship management process

2. Conflict management

Conflict, mismanagement, issues, and disagreements are found in most workplaces. In order to manage the overall wellbeing of its employees, it is vital to address the issues and take proper steps to implement an effective employee relationship management system.

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3. Attendance and hours worked

Generally, employees will question the number of hours they have worked. To solve this problem organizations are investing in new tools that offer a viable remedy. It helps to time in and out and thus the attendance of every individual is regularly clocked.

In case of discrepancy, the security camera helps to come at a viable decision.

4. Pay raise

One of the most common issues that an employee has is about his pay raise. When you have an effective employee relationship management tool in place you have a set and standard procedure that ensures pay raise on the same playing field for everyone

5. Safety measures

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Maintaining a safe environment is a necessity and it is this issue that encourages the need for employee relationship management system in place.

Liked this post? Check out these detailed articles on Topic of Human Resources

Alternatively, check out the Marketing91 Academy, which provides you access to 10+ marketing courses and 100s of Case studies.

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About Hitesh Bhasin

Hi, I am an MBA and the CEO of Marketing91. I am a Digital Marketer and an Entrepreneur with 12 Years of experience in Business and Marketing. Business is my passion and i have established myself in multiple industries with a focus on sustainable growth. You will generally find me online at the Marketing91 Academy.

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  4. What is Employee Burnout? Importance Of Employee Burnout
  5. What are Employee Benefits? Importance Of Employee Benefits
  6. What Is Employee Motivation? Importance Of Employee Motivation
  7. What Is Employee Onboarding? Importance Of Employee Onboarding
  8. What is Employee Performance and how to Measure Employee Performance?
  9. What is Employee Referral? Benefits of Employee Referral Programs
  10. What is Employee Retention? 13 Employee Retention strategies

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