How Important Is the Employer-Employee Relationship?

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Building a strong relationship between employer and employee can go a long way in determining the success of an organization. Studies show that businesses without such a strong relationship are more dysfunctional. They are less successful and less resilient. So, what are the specific benefits that can flow from a good employer-employee relationship?


Good relations between staff and employer help to create a pleasing environment at work. Employees are therefore able to relax. The evidence shows clearly that companies that make the effort to invest time and resources into improving employee relations reap the benefits. Importantly, they enjoy increased productivity, with a resulting boost to profits for the business.

Employee Loyalty

High levels of staff turnover can be a major drain on a business and a drag on its profitability. When trained staff members leave an organization, the cost of hiring replacements can be considerable. And the investment in re-training can be high as well. Such cost and disruption can be kept to a minimum by working to create a pleasant work environment. That in turn is likely to increase employees’ loyalty to a company. This will boost staff retention. Therefore, the business will always have a strong base of fully trained, experienced employees.


Conflict Reduction and Resolution

Conflict within the workplace can contribute to lost working time, inefficiency, and increased staff turnover. All of these lead ultimately to financial loss. But if the employee-employer relationship is strong, the potential for conflict is drastically reduced. Therefore, any problems that do arise are easier to resolve. That’s because there is a reserve of good will on both sides. Less time dealing with the fall-out of workplace conflict makes employers and employees happier and more productive.

Improving the Relationship

So how should you go about creating a strong employer-employee relationship? The starting point for employers is to ask themselves why their employees are there. Often the answer is not purely financial. That’s because employees are more than one-dimensional beings. Once you understand what drives your staff, you can better understand the incentives and encouragement they need.

Set Clear Goals

Setting clear goals for yourself and your employees is an important part of creating a strong relationship. When employees set goals that are both clear and achievable, they can focus their daily activities. What’s more, they can feel that they are useful contributors to the overall goals of the organization. Setting realistic and defined aims as an employer is also good for your reputation as a leader. This in turn increases employees’ confidence that they are working in an organization that is well run and effective.


Some employers are reluctant to delegate. However, this is a vital part of the employer-employee relationship. By delegating some tasks, you can help your employees to learn new skills. You will help them to develop as individuals and see the bigger picture. All of these outcomes are likely to encourage them to feel increased loyalty and job satisfaction.

Provide for Effective Communication and Equality

In any work environment, communication is key. Moreover, the secret of good communication is accessibility. Employers who make themselves available to listen to concerns, inquiries, or personal issues are making a valuable investment in the employer-employee relationship. What’s more, they are giving themselves the opportunity to spot potential problems or issues in the workplace at an early stage. And by embracing equality within the business, employers can ensure that all employees feel equally valued and able to communicate their concerns.

Include the Social Dimension

It is also important to remember that any workplace has a social element. Humans are social animals, and you can’t expect them to function like androids in the office. Arranging days out or team meals can encourage employees to feel as though their workplace is more than just the place where they have to work. Such activities can encourage social interaction between employees, helping them to bond as a unit. You can also check out the upcoming Singapore public holiday 2023 so you can plan the activities accordingly.

Your business can also benefit from this tendency of humans to be sociable by allowing employees to engage in the little activities that can help build relationships. For instance, consider such things as occasional impromptu buffets. You might also allow employees to take time out from work to check out the recent results of the lotto for their workplace syndicate. Of course, if the lotto results go your team’s way, you might have to look for new employees. But that’s a different problem!


There is no doubt about it. The research in this area is conclusive. If your workforce is happy, they are more productive. By focusing on the quality of the employer-employee relationship, businesses can unlock the door to greater success, profitability, and job satisfaction for all.