Employee-Employer Relations

1. Running head: EMPLOYER / EMPLOYEE RELATIONS – HOW IMPORTANT IT IS 1

Employee / Employer Relations
How Important it is for a Successful Business
By: Gina Marie Haugh
Modesto Junior College
MBUSAD-274-6480

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Table of Contents
Abstract ........................................................................................................................................... 4
What is Employee – Employer Relations? ..................................................................................... 5
The Essentials of a Healthy Employee-Employer Relationship ..................................................... 5
Mutual Respect ........................................................................................................................... 5
Uncovering Strengths.................................................................................................................. 6
Openness and Communication ................................................................................................... 7
Support and Nurturing ................................................................................................................ 7
Gratitude...................................................................................................................................... 8
Benefits of Having Good Employer/employee Relations............................................................... 8
Productivity ................................................................................................................................. 8
Employee Loyalty ....................................................................................................................... 8
Conflict Resolution ..................................................................................................................... 9
Achieving Strong Employment Relations .................................................................................. 9
Prevention of Unions ................................................................................................................ 10
Common-Law Method vs. Employee/Employer Relationship ..................................................... 10
Best Companies to Work For........................................................................................................ 13
The Effect of Bad Employer/employee Relations ........................................................................ 13
Reasons People Quit Their Jobs ............................................................................................... 14
1. Employers overwork their employees ............................................................................ 14

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2. They Don’t Recognize Contributions and Reward Good Work .................................... 14
3. They Don’t Care About Their Employees ..................................................................... 14
4. They Don’t Honor Their Commitments......................................................................... 14
5. They Hire and Promote the Wrong People .................................................................... 14
6. They Don’t Let People Pursue Their Passions............................................................... 14
7. They Fail to Develop People’s Skills ............................................................................. 14
8. They Fail to Engage Their Creativity............................................................................. 14
9. They Fail to Challenge People Intellectually ................................................................. 14
Conclusion .................................................................................................................................... 15
References ..................................................................................................................................... 17

4. EMPLOYER / EMPLOYEE RELATIONS – HOW IMPORTANT IT IS 4
Abstract
In this report employer/employee relationship will discussed. What is definition of
employer/employee relationship? What does it entail? What are the benefits? How it can help
prevent unionization. It discusses Common-Law Method vs. Employee/Employer Relationship.
It lists best companies to work for surveyed by Glassdoor.com, and can tell what can happen if a
company doesn’t have a healthy employer/employee relationship. If you’re looking to help
improve employer/employee relations, you can find help here.

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How can you tell if a business is healthy and successful? By the way the business is
growing and its stocks are climbing? Does the business have a vision, nice advertising and
marketing? These are good questions, however, the important question is: How is the employer/
employee relations? Can a business really be healthy and successful if it does not have a good
employer/employee relation? What companies have good relations? What can happen if it does
not have a good and healthy employer/employee relationship? This report will be discussing
these questions.
What is Employee/Employer Relations?
For a business to really succeed, it needs to have good employee/employer relations.
Merriam-Websters.com defines relations as: 1. The way in which two or more people, groups,
countries, etc., talk to, behave toward, and deal with each other. 2. The way in which two or
more people or things are connected. (Merriam-Webster Dictionary)
The Essentials of a Healthy Employee/Employer Relationship
There are things that are needed to have a healthy relationship between employees and
employers. Employer/employee relationships begin when new employees are hired and start on
their first day. For the relationship to succeed, it needs to be nurtured and worked on. Like any
type of relationship, it takes time to grow. To make sure a company has a good relationship,
Adele Halsall and Team HRstop state in their articles, (Halsall, 2014) (HRStop, 2014), they must
have these characteristics.
Mutual Respect
Employees and employers must have mutual respect for each other, and close enough that
you do things that is not considered work. However, there should not be any romantic

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relationships between the employer and employee. It can affect the “work” relationship, and
affect the fairness to all the employees.
It is also important to keep the awareness of who is the boss and who is the employee so
the management is not walked on. The level of hierarchy has to be kept, yet in a respectful way.
Mutual Reliance
The reliance of the employer and the employee must be mutual. Employees rely on being
treated fairly, paid fairly, and having good management; employers rely on having reliable
employees who will come to work daily, get their work done correctly and on time so the
company makes a profit.
When the reliance is not there, things can start to go wrong. When an employee does not
feel like they are being treated fairly or does not like their job anymore, their productivity starts
lagging. That will hurt the business. When the employee does not feel like they are not being
treated right, they might start talking to other employees about it and start putting thoughts in
their minds and affecting them. It can cause a domino effect. It has to be stopped quickly by
either speaking to the employee, finding out the reason and fixing it or letting them go.
Uncovering Strengths
Once you have built trust and respect within both parties, you can then start knowing
their strengths, weaknesses, and lifestyle. When an employer knows their employee’s ins and
outs, they can know what areas to put them, what they can delegate to them and what they can
avoid giving them.

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Openness and Communication
There has to be communication between the employees and management. The employees
can not feel intimidated about speaking to management, because they feel they might lose their
job if they do. Management needs to have an open door policy where employees can come and
talk to them about anything and everything, including family matters or situations outside of
work.
Likewise, employers should keep the employees up to date about information about the
business. The employer feels the employee should look up the history and information about the
company before being hired, then the employer should keep them up to date about the company
while they are working there. Employees want to know if the company is doing well or is
starting to fall.
Support and Nurturing
To support and nurture each other is important in establishing a healthy
employer/employee relationship. Employers should want their employees to improve their skills
and move up in the company. They should support them, and move them up when possible.
When someone does a good job, encourage them. When an employer knows the employee’s
strengths, they can motivate them more in those areas.
Likewise, the employees need to support and nurture management. Let them know they
are doing a good job. Encourage them when they can. Management has feelings also. If an
employee feels something could be improved, let them feel free to express it and discuss it
together. The employee should support the company’s success, and that might mean sacrificing
some extra work hours, like staying late or coming in on a Saturday to finish a project.
Employees should want to see the company do well.

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Gratitude
Everyone should show gratitude with a healthy relationship. If an employee or employer
accomplished something, show appreciation, especially with employees. Employers should show
gratitude and acknowledge employees that go over and above their duties. When people work
hard and no one seems to notice it, that person starts to feel left out and unappreciated. They
might start slacking off or looking somewhere else where they can get someone who cares about
them. Kids aren’t the only ones who like to be praised. Everyone likes to be acknowledged for
the work they do. Employees know they are valued and appreciated when recognition is shown
to them and they will continue to work hard, if not even harder.
Benefits of Having Good Employer/employee Relations
By having a healthy employer/employee relation, Paul O’Brien writes in his article that
these benefits can happen. (O'Brien, 2014)
Productivity
A business will have better productivity when they have good strong employer/employee
relations. When the employees are happy, the business is happy. Good relations motivate
employees and improve employee morale. The more employers invest in their employees; the
better productivity the business gets. When there aren’t good relations between the
employer/employee, the employees have little to no desire to do their best on the job.
Employee Loyalty
It’s important to have mutual trust between employers/employees. When employees are
treated properly and there is mutual trust, employees will be more loyal to their employer. When
there is employee loyalty, the business will save because they will not have to spend the time or

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money on hiring and training new employees, less paperwork, and less employee turnover. When
there is less turnover, the business keeps constant trained and skilled employees.
Conflict Resolution
When employees are happy and there are great employer/employee relations, there is
likely less conflict on the job. When there is less conflict, the employees can be more productive
and healthier.
Achieving Strong Employment Relations
When a business has good management, the employees enjoy their job and will work to
do their best. There is mutual trust, respect, and relations between the employer/employee. How
does one become a good manager? The following are ways to become a good/better manager:
Motivate your employees. Ask the employees why they work there and what keeps
them loyal? After discussing this, keep them motivated with encouragement and
incentives.
Set Goals. Provide ambition and success by setting reasonable goals so the employees
feel like they accomplish something.
Delegate. Managers should give challenging jobs to the employees so they improve
skills. They should not take credit for the employees work, and take responsibility for
their own personal mistakes.
Communicate effectively. Managers are to have “open doors” so employees can come
talk to them anytime. There needs to be effective communication between employers and
employees.

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Embracing equality. When employees are treated equal and feel important, they tend to
work harder and more effective. There should not have any favoritism with the
employees.
Prevention of Unions
Another benefit of having a good employer/employee relation is having the best chance
of avoiding unionization. The reason a union comes to a company is because there are employees
who are not satisfied. When employees are happy, the business and the employees succeed.
On the website HeliosHR.com website, Sharon Harper (Harper, 2013) lists the
ways to keep your business union free. These are pretty much what is listed under the “Essentials
of Having a Healthy Employer/Employee Relationship.” They are:
1. Communicate a non-union environment
2. Be pro-employee
3. Have an open door policy
4. Be accountable
5. Have a fair workplace
6. Have communication
7. Be transparent
8. Hear employee’s feedback and concerns
Common-Law Method vs. Employee/Employer Relationship
This article is mostly discussing who is responsible for covering workman’s
compensation and taxes on employees who are either: temp, independent contractors, or from a
Professional Employer Organization (POE); however, it discusses what they feel
employer/employee relationships are and how they are affected.

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According to IMRI, Jim Pocius wrote, “Business has to be more flexible in our global
economy and, as a result, the traditional employer/employee relationship is being eroded. This
relationship, in the past, had a very simple definition. In the traditional employer/employee
relationship, an employer hired, supervised, and paid the employee. In today's business world,
this traditional relationship is being replaced to meet flexible labor needs. Employers are
beginning to use temporary agency workers, independent contractors, and leased employees to
enhance their competitive advantage.” (Pocius, 2000) This article states that 35 states use the
common-law method to determine employer/employee relationships, and some courts use some
of the following factors to determine relationship:
1. The person in the general employ of another can be transferred to another employer and
become the employee of the second employer.
2. Whether or not the transferred employee becomes the employee of the second employer
depends on whether the first employer passes to the second employer not only the right to
control the employee's work, but also their manner of performing it.
3. It is enough to establish the employer/employee relationship if the employer has the right
to control the employee's manner of performance of work regardless of whether the right
is ever exercised.
4. Facts which indicate that an employee remains in the original employer's service include
the following:
5. The original employer's right to select the employee to be loaned and to discharge that
person at any time and send another person in his place.

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6. The loaned employee's possession of a skill or special training required by the work for
the second employer and employment at a daily or hourly rate for no definite period.
(Pocius, 2000)
The IRS defines common-law method as, “Under common-law rules, anyone who
performs services for you is your employee if you can control what will be done and
how it will be done. This is so even when you give the employee freedom of action.
What matters is that you have the right to control the details of how the services are
performed.” (IRS, 2015)
Now I understand a business wanting to be clear on who is responsible for
employees, and those wanting to put out as little money as they can; and yet maybe I’m
not interpreting it in the same way, because it can depend on which of the two definitions
Webster’s Dictionary they are using for “relationship” (1. The way in which two or more
people, groups, countries, etc., talk to, behave toward, and deal with each other. 2. The
way in which two or more people or things are connected.).
From my study of employer/employee relationships and using the first definition,
the essentials of an employer/employee relationship include: mutual respect, mutual
reliance, openness and communication, support and nurturing, and gratitude. It seems no
matter if the employee is a temp, independent contractor, or whoever; both sides should
be treating each other with these qualities. If I’m a temporary employee, I’m still going to
have respect for the business I’m working for. I will hope the manager will have
communication with me and let me feel free to speak also and will be supportive and
encouraging. They will still expect me to be reliable and I will expect them to be also. By
treating ALL employees this way no matter if they are permanent employees or not, they

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can still benefit from the benefits of having a healthy relationship. If they are considering
the definition of employer/employee relationship more according to the second
definition, then I can understand their idea of “relationship” better.
Best Companies to Work For
Glassdoor.com listed these companies as the best companies to work for in 2016. If you
read why they are the best to work for, you will notice they have good, if not great,
employee/employer relations. (Glassdoor, 2016) The companies they list are:
1. Airbnb
2. Bain & Company
3. Guidewire
4. HubSpot
5. Facebook
6. LinkedIn
7. Boston Consulting Group
8. Google
9. Nestle Purina Petcare
10. Zillow
The Effect of Bad Employer/employee Relations
The effects of having bad employer/employee relations can be detrimental on both the
employees and the employers. Having bad relations can cause:
1. Stress which can cause health issues
2. Distrust between the employees and management

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3. Loss of production because the of lack of interest
4. More money to the company because of higher turnover
Reasons People Quit Their Jobs
If one asks managers the main reasons why their employees leave their jobs, a lot of
times, they either wont’ know why they are losing employees or don’t want to admit it. They
might be frustrated at the amount of turnover, however, if they changed a few things they could
hold on to their employees longer. An article on HuffingtonPost.com lists some of the main
reasons people leave their jobs; and they are because of:
1. Employers overwork their employees
2. They Don’t Recognize Contributions and Reward Good Work
3. They Don’t Care About Their Employees
4. They Don’t Honor Their Commitments
5. They Hire and Promote the Wrong People
6. They Don’t Let People Pursue Their Passions
7. They Fail to Develop People’s Skills
8. They Fail to Engage Their Creativity
9. They Fail to Challenge People Intellectually
Managers need to look at these areas and see where they are at. Even the toughest
employee has feelings and wants respect, appreciation and thanks. There are books that were
wrote to help in these areas.

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Conclusion
It really isn’t that hard to have good healthy employer/employee relations: Respect each
and appreciate each other, and don’t take advantage of each other. Managers give credit where
credit is due to the employees; and treat your employees as you would have them treat you.
There are books that managers (and employees) can read to help improve the working
environment and improve the employer/employee relationship. One is written by Gary Chapman
and Paul White, and is called The 5 Languages of Appreciation in the Workplace: Empowering
Organizations by Encouraging People. (Chapman & White, 2012) This is similar to the book he
wrote called, The Five Love Languages. Because not everyone responds to the same style. Some
of the ways to show appreciate in this book are: words of affirmation, quality time, acts of
service, tangible gifts (don’t have to cost must), physical touch (like pat on the back or
handshake).
Gary Chapman, Paul White, and Harold Myra also wrote, Rising Above a Toxic
Workplace: Taking Care of Yourself in an Unhealthy Environment. (Chapman, White, & Myra,
2014) The website describes the book as, “Brutal Bosses. Poisonous People. Soul-Crushing
Cultures.
This book will give you the confidence to rise above them all.
Do you work in a toxic environment or have a toxic boss? You’re not alone! Today, unattainable
expectations, emotional harassment, and demands to do more with less often leave employees
overworked, underpaid, insecure, and out of options. Must you continue to put up with poisonous
people in a morale-crushing environment?

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You can rise above. You do have options.
Insightfully illustrating from these accounts, authors Gary Chapman, Paul White, and Harold
Myra blend their combined experiences in ministry and business to deliver hope and practical
guidance to those who find themselves in an unhealthy work environment.
Includes a Survival Guide and Toolkit full of strategies and realistic insights”
Another book in this area is written by Bob Nelson, PhD and is called, 1501 Ways to
Reward Employees. (Nelson, 2012) The book’s website describes the book as “Adapted to meet
the needs of an evolving workplace—especially to deal creatively with virtual employees,
freelancers and permalancers, international colleagues, and the rule-bending expectations of
millennials—its 1,501 low-and no-cost rewards and strategies are drawn from thousands of
companies across the globe. Ideas range from the informal (Wells Fargo’s thank-you e-cards)
and the offbeat (JS Communications two free “I Don’t Want to Get Out of Bed” Days) to the
formal (J. C. Penney “affirms” new managers in a moving ceremony) to the totally nutty (the
legendary honor of having your office “sodded”—literally, grassed over—at Microsoft). For
bosses, managers, entrepreneurs, small-business owners, consultants—anyone who’s responsible
for working successfully in an ever-tougher economy—this is the rewards bible.” (Nelson, 2012)
If a business has a high turnover with employees, the management should look at the
employer/employee relations; better yet, start fresh with improving the relations, see the change
in attitudes, and reaping the benefits.

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References
Chapman, G., & White, P. (2012). The 5 Languages of Appreciation in the Workplace:
Empowering Organizations by Encouraging People. Northfield Publishing; Reprint
edition.
Chapman, G., White, P., & Myra, H. (2014). Rising Above a Toxic Workplace: Taking Care of
Yourself in an Unhealthy Environment. Northfield Publishing; New Edition edition.
Dacri, R. (2011, Sept 1). 5 Strategies to Prevent Unions. Retrieved April 17, 2016, from
Uncomplicating Management: https://rickdacri.wordpress.com/2011/09/01/5-strategies-
to-prevent-unions/
Glassdoor. (2016). Retrieved from Best Places to Work: https://www.glassdoor.com/Best-
Places-to-Work-LST_KQ0,19.htm
Halsall, A. (2014, May 23). The Essentials of a Healthy Employer/employee Relationship .
Retrieved from TLNT - Talent Management and HR: http://www.eremedia.com/tlnt/the-
essentials-of-a-healthy-employer/employee-relationship/
Harper, S. (2013, December 28). The Best Strategies to Prevent Unionizing in Your
Organization. Retrieved from HeliosHR: http://www.helioshr.com/2013/12/the-best-
strategies-to-prevent-unionizing-in-your-organization/
HRStop, T. (2014, June 26). Importance of Employer/employee Relationship. Retrieved from
HRStop.com: http://blog.hrstop.com/importance-of-employer/employee-relationship/

18. EMPLOYER / EMPLOYEE RELATIONS – HOW IMPORTANT IT IS 18
IRS. (2015, November 2). Retrieved from Employee (Common-Law Employee):
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Employee-
Common-Law-Employee
Merriam-Webster Dictionary. (n.d.). Retrieved from Merriam-Webster Dictionary:
http://www.merriam-webster.com/dictionary/relations
Nelson, B. (2012). 1501 Ways to Reward Employees. Workman.
O'Brien, P. (2014, May 9). Business2Community. Retrieved from Why Strong
Employee/Employer Relationship is Important and How to Achieve This?:
http://www.business2community.com/strategy/strong-employeeemployer-relationship-
important-achieve-0876781#FZLTZYhM0XTVdQWZ.97
Pocius, J. (2000, November). The Employer/Employee Relationship in Workers Compensation .
Retrieved from IRMI: https://www.irmi.com/articles/expert-commentary/the-
employer/employee-relationship-in-workers-compensation