Having good employee relations means providing fair and consistent treatment to all employees so that they will be committed to the organization.2 Companies with good employee relations are likely to have an HR strategy that places a high value on employees as stakeholders in the business. Employees who are treated as stakeholders have certain rights within the organization and can expect to be treated with dignity and respect. For example, Johnson & Johnson, a company known for its excellent employee relations, is committed to a philosophy of respect for the individual. To foster good employee relations, managers must listen to and understand what employees are saying and experiencing, keep them informed about what management plans to do with the business, and tell them how those plans may affect their jobs. They should also give employees the freedom to air grievances about management decisions. There may be good reasons for not changing the decision, but management should at least listen to the grievances.

Effective employee relations require cooperation between managers and employee relations representatives . These specialists are members of the HR department who act as internal consultants to the business. They try to ensure that company policies and procedures are followed and they advise both supervisors and employees on specific employee relations problems. Employee relations policies provide channels to resolve such problems before they become serious.

For example, an employee whose supervisor has denied her request for two weeks’ vacation (to which she is entitled according to the employee handbook) may ask the employee relations representative to speak to her supervisor and clarify why she is being denied her preferred vacation time. Or, a supervisor may request assistance because he suspects that one of his subordinates has an alcohol abuse problem that is affecting job performance. In both these cases, the employee relations representative will try to resolve the problem within the letter and spirit of the appropriate employment policy, while carefully balancing the interests of the supervisor, the employee, and the company.

Employee relations representatives may also develop new policies that help maintain fairness and efficiency in the workplace. The client in this situation may be a top manager who needs assistance in drafting a new policy on smoking in the workplace or the hiring of employees’ spouses and other relatives.