Labor Relations - Unions

Guide

Labor relations in an organization can affect productivity. When there is an excellent employer-employee relationship, the organization will be productive. However, it is your duty as a hr manager to ensure the organization’s labor relations are in the right place. So, what is labor relations in human resources?

Labor relations is the process by which an organization and a trade union make informed decisions concerning the employees. The decisions revolve around collective bargaining, changes in employment law, among others. It is essential for an organization to make decisions favoring both parties to have a healthy, effective, and committed working relationship.

Hr role in labor relations is essential to every organization. This is because the hr department is majorly responsible for employee relations. They ensure employees are on their best behavior while understanding and finding out the right talent. To ensure a good labor relation, hr managers need to relate well with each other first. Good hr relationship makes it easier for the employees and labor unions to follow the trend hence minimize disputes.

The labor unions protect and represent employees’ interests. They bargain with employers regarding employees’ payments, working conditions, and security. Reaching an agreement with labor unions can sometimes be challenging for hr managers. This is because organizations and labor unions have different rules and regulations. The labor union rules and regulations should favor the organization and vice versa.

Hr managers must be attentive to the management of labor relations. Ensure employees receive fair treatment and offer a favorable working environment where they can fully utilize their skills. Management of labor relations benefits the organization in many ways, including;

  • Growth and development: When employees are motivated, work efficiency in the organization also increases. Increased efficiency leads to higher productivity.
  • Reduces employee turnover: Employees need to feel valued and appreciated for you to see progress. Without that, they are likely to leave and seek work elsewhere.
  • Improved organizational knowledge: A reduction in employee turnover leads to employees’ improved understanding of the organization. If an employee works in your organization for a long time, they will learn lots of the company information and be more skillful. These employees become an asset and can be used to train recruits.
  • Employees are motivated: Good labor relations encourage employees if they feel appreciated and valued. They will put in more effort to deliver good results hence higher productivity.
  • Increase in revenue: When employees are satisfied, you will see the results in the way customers are treated. Satisfied customers mean they are likely to return hence an increase in sales.
  • Reduced conflicts: Being neutral to employees and solving any arising dispute without being biased reduces organizational conflicts. Employees will be comfortable in the organization hence reduce turnover while increasing productivity.
  • Loyalty: When you have loyal employees, the organization will be stronger. It will also be difficult for your competitors to get information about the company, making you stay ahead of the competition.

Leaders in the human resource department should note that the organization is bound to go down the drain without a good labor relation. Get close to your employees and learn what interests and does not interest them. This way, you will encourage and build a friendly working environment.

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