Understand the meaning of employee relations and various formulas used in measuring it.

Employee relations definition, formula and examples

Employee relations influence the performance of any organization. There is an employee relations definition pdf. However, it is defined as the communication between the employees and the management pertaining to workplace issues. The agenda can range from decision-making to workplace grievances. On a regular basis, you should evaluate the relationship between you and your employees.


How to measure employer-employee relationship

To measure employee relations, several metrics are used. Let’s discuss a few metrics you should utilize in your business. They include grievance rate, root-cause analysis, the cost of grievance, ROI of employee relations, and average close time. The grievance rate refers to the number of complaints, which are lodged by the employees. If the rate is high, it means that the employer-employee relationship is poor. You should also determine the costs of handling the grievances. Both the funds and the money injected in managing grievances should be analyzed and reported.

Additionally, you should track the cause of the complaints. This will help the organization to develop measures appropriate for reducing the incidence of grievances. By evaluating common requests and complaints from employees, you can find an average root cause of the issues. Depending on the results, you can find a pro-active approach to the grievances before they escalate.

Another way of evaluating employee relations is by calculating the ROI. This looks at the productivity of having or not having an effective relationship with the employees. This can be assessed using other common metrics such as employee engagement and/or turnover. Usually, engaged employees are likely to have good relationships with their employers. In addition, employees who have good relations with the company owners are loyal to the organization. You should also examine the amount of money that employee relations programs, has saved the company within a particular period. Focus on the revenue, which is earned when the ER issues are reduced.

By using ER metrics, you can encourage a culture of consistent improvement. It also increases the productivity of the employees. When the company invests in an employer-employee relationship, the workforce recognizes their efforts and gives back through improving their performance. It also helps managers to uncover issues, which might cost the business in the future. While it is difficult to predict the real causes of all the complaints in the organization, by using the right tools such as surveys, meetings, and other forums, you can find the source of the issues. Lastly, it improves the accountability of you as manager in ensuring work relations are healthy.