Positive relationships in the workplace benefit everyone. Employee relations helps make it happen.
In July 2020, the director and chief curator of a Montreal museum was fired after employees reported psychological abuse that created a hostile work environment. The issues came to light after multiple employees quit in the span of a year and the workplace environment was studied by contracted employee relations experts.
Without intervention, the museum could have gained a reputation as an employer to avoid and employees could have suffered lasting emotional damage. Employee relations is an essential part of every workplace, but do you know what exactly it is?
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What is Employee Relations?
According to BambooHR, "employee relations (ER) refers to an organization’s efforts to create and maintain a positive relationship with its employees."
ER programs strive to:
- Establish trust, respect and appreciation between employees and managers/the employer
- Resolve issues between employees and managers/the employer
- Provide a work environment that is physically and emotionally healthy for employees
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What Do Employee Relations Professionals Do? Roles & Responsibilities
To achieve their goals, employee relations professionals must design a program that marries the needs of employees and their organization. But what does this mean, practically? In a typical week, an ER professional might:
- Encourage managers and employees to meet monthly one-on-one to foster open communication
- Develop and send a feedback form to employees regarding a proposed policy change
- Recognize an employee with a special achievement in a company-wide email (e.g. hit sales target, got great customer feedback)
- Think of ways to show employees that the organization cares about them (e.g. holiday party, on-site snacks, professional development budget, wellness budget)
- Conduct exit interviews
- Collect and analyze employee data
- Address employee complaints
- Create and manage employee benefits plans
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Employee Relations vs HR: What’s the Difference?
Employee relations is one part of HR's function in an organization. ER tasks might be completed by the HR team or have dedicated staff.
ER specialists usually focus on improving the employee experience. They do this by listening to feedback and applying it in tangible ways, providing professional and emotional support to employees and liaising between employees and management.
Human resources is responsible for these tasks as well as recruiting new employees, handling workplace safety, managing payroll and enforcing company policies.
Comparison Table: Employee Relations vs HR
| Category | Employee Relations (ER) | Human Resources (HR) |
| Primary Focus | Fostering healthy employee-manager relationships and resolving workplace conflicts | Managing the full employee lifecycle—from recruitment to exit |
| Key Responsibilities | Conflict resolution, investigations, coaching, workplace culture improvement | Hiring, onboarding, payroll, training, benefits, compliance |
| Objective | Promote fairness, trust, and positive work culture | Support business operations and employee management |
| Approach | Both proactive (culture building) and reactive (handling grievances or misconduct) | Strategic, policy-driven, and administrative |
| Who Performs It | Often a specialized subset within HR or a standalone function | Broad scope covering all HR-related functions |
| Tools Used | Employee case management systems, incident reporting software | HRIS platforms, payroll systems, benefits tools |
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HR and ER work hand-in-hand to ensure employees have a safe, enjoyable work experience. Both are essential to an effective program.
Why Is Employee Relations Important in the Workplace?
A strong employee relations (ER) function is more than a support system—it’s a strategic enabler of a healthy, compliant, and engaged workplace. While HR oversees the entire employment lifecycle, employee relations focuses specifically on fostering trust, resolving conflicts, and maintaining workplace harmony.
1. Builds Trust Between Employees and Management
At the heart of effective employee relations is proactive communication. When organizations prioritize openness and fairness, they create an environment where employees feel heard and valued. This fosters mutual trust, minimizes misunderstandings, and ensures that small conflicts don’t escalate into larger issues.
An effective ER team listens, facilitates dialogue, and resolves issues early—building confidence in leadership and reinforcing a culture of respect.
2. Prevents Legal and Compliance Issues
Poorly handled employee issues can quickly escalate into legal disputes. ER professionals reduce this risk by conducting fair, consistent, and well-documented investigations into complaints and grievances. By enforcing clear policies and aligning with local labor laws, ER helps protect the organization from lawsuits, regulatory penalties, or reputational damage.
This proactive risk management approach is not just about compliance—it’s about creating a culture of accountability.
3. Enhances Employee Retention and Morale
Employees who feel respected and fairly treated are far more likely to stay and perform. In fact, a Gallup poll reveals that organizations with high employee engagement experience a 24 percent reduction in turnover. Similarly, employees who report feeling valued at work are 63 percent less likely to search for a new job.
An effective ER strategy contributes to higher morale, lower turnover, and increased engagement. Whether it’s resolving interpersonal conflicts or providing an outlet for employee feedback, strong ER practices foster a workplace where people want to contribute and grow.
Key Components of an Effective Employee Relations Strategy
An effective employee relations strategy is structured, transparent, and continuously evolving. It goes beyond responding to issues—it builds an infrastructure that prevents them.
1. Clear Policies and Communication Channels
Transparency starts with documentation. Well-defined policies, codes of conduct, and employee handbooks set expectations around behavior, conflict resolution, and grievance procedures. But documentation alone isn't enough—organizations need clear communication channels that encourage open, two-way dialogue between employees and management.
2. Fair Disciplinary and Grievance Procedures
Employees are more likely to trust the system when they know issues will be handled fairly. That’s why it's critical to establish and follow unbiased investigation protocols and disciplinary processes. Every complaint should be addressed consistently, with appropriate documentation and a focus on resolution—not retaliation.
3. Manager Training and Employee Feedback Systems
Managers are often the first line of defense in identifying and addressing ER issues. Equipping them with training on conflict resolution, communication, and documentation is essential. Equally important are employee feedback systems—such as pulse surveys or exit interviews—that give early warning signs of disengagement or dissatisfaction.
How Employee Relations and HR Collaborate
Employee relations and human resources (HR) share the same ultimate goal: supporting the workforce. However, their methods and focus areas often differ—making their collaboration essential.
Shared Goals but Distinct Focus Areas
While HR oversees recruitment, benefits, performance, and compliance, employee relations zeroes in on interpersonal issues and workplace behavior. ER is deeply involved in investigations, conflict resolution, and policy enforcement, while HR provides broader support across the employee lifecycle.
When these functions work together, organizations benefit from holistic workforce management and reduced legal exposure.
Real-World Example: Handling a Workplace Dispute
In a notable case involving Akita Systems, an IT director named Ben Wicken requested to attend a meeting remotely via Microsoft Teams due to personal reasons—specifically, supervising garden work at his home. The meeting in question pertained to an ongoing dispute between Wicken and the company's founder, Christophe Boudet. Despite initial mediation efforts, Wicken was later informed that the company's directors had lost trust in him, leading to his resignation. He subsequently claimed unfair dismissal and criticized the internal grievance process, particularly the impartiality of an investigator who was a known associate of Boudet.
An employment tribunal in South London upheld Wicken's claim, stating that while prioritizing garden work over an office meeting might have been a poor decision, it did not amount to blameworthy conduct. The ruling emphasized that employers should not discipline staff for requesting to work from home, even for personal reasons, and highlighted the importance of impartial grievance procedures.
Key Takeaway: This case underscores the critical role of ER in conducting fair and unbiased investigations into workplace disputes. It also highlights the importance of HR's responsibility to ensure that company policies are applied consistently and that grievance procedures are free from conflicts of interest. Together, ER and HR must collaborate to uphold employee rights and maintain trust within the organization.
Employee Relations Best Practices for HR Teams
Strong employee relations don’t happen by accident—they’re built through consistent practices, leadership accountability, and a commitment to fairness. HR teams play a vital role in setting the tone and infrastructure for successful ER outcomes. By following established best practices, organizations can reduce legal risk, boost employee engagement, and strengthen workplace culture.
To strengthen ER effectiveness within your HR framework, adopt these proven practices:
- Conduct regular employee relations training for managers
- Document all employee complaints and investigation steps
- Maintain confidentiality throughout the investigation process
- Use data to track metrics like turnover, absenteeism, and resolution time
- Regularly review and update policies and procedures
- Create anonymous feedback options to surface hidden issues
Frequently Asked Questions
1. What does employee relations mean in HR?
In HR, employee relations focuses on maintaining healthy communication and resolving conflicts between employees and employers. It’s a core part of human resources that ensures fair treatment, legal compliance, and improved workplace morale.
2. What does employee relations do?
Employee relations professionals handle workplace issues such as conflict resolution, policy enforcement, internal investigations, and employee engagement. They help ensure employees feel supported while minimizing legal and reputational risks for the organization.
3. What is the core role of employee relations?
The core role of employee relations is to manage the relationship between employees and the organization. This includes resolving workplace conflicts, ensuring fair treatment, conducting investigations, promoting clear communication, and fostering a respectful, compliant work environment.
4. Why is employee relations important?
Employee relations is important because it helps build trust, improve morale, prevent legal issues, and create a respectful, inclusive work environment. It also boosts employee retention and engagement by ensuring fair treatment and open communication.
5. What are common responsibilities in employee relations roles?
Common responsibilities include managing employee complaints, conducting investigations, mediating disputes, ensuring compliance with company policies, and advising managers on best practices to maintain a positive workplace culture.
6. Who handles employee relations in a company?
Employee relations may be managed by dedicated ER professionals or HR generalists trained in conflict resolution and compliance. Larger organizations often have specialized ER teams, while smaller companies integrate ER tasks into HR roles.
7. What tools are used in employee relations?
Common tools include employee case management software, policy tracking systems, and communication platforms for documenting and resolving workplace issues efficiently and securely.
8. Can small businesses benefit from employee relations strategies?
Yes, even small businesses benefit from strong employee relations. By addressing issues early, documenting interactions, and promoting open communication, small teams can reduce conflict and improve employee satisfaction.
9. Is employee relations higher than HR?
No, employee relations is not higher than HR—it is typically a specialized function within the human resources department. While HR oversees the entire employee lifecycle, employee relations focuses specifically on workplace behavior, conflict resolution, and employee engagement.
10. What is an example of an employee relations situation?
A common example of an employee relations situation is when an employee files a complaint about unfair treatment by a manager. The employee relations team would investigate the issue, mediate the situation, and ensure that company policies are fairly applied to resolve the conflict.