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The Effects Of Poor Employee Relations On Corporate Image And Cost Of Recruitment

What are employee relations?

Simply put, the relationship between a company or business owner and the professionals that are employed is what comprises employee relations.

Employee relations are important for a number of reasons. Good employee relations boost morale and hence workplace efficiency. They encourage employees to perform and excel, raising both productivity and profits as a result. In short, good employee relations keep things running smooth. This is probably why human resource management consulting firms and workforce advisory services place so much stress on effective strategies to improve the same.

How can one tell?

What exactly does one classify as poor employee relations? What factors contribute to the worsening of them? Some factors that deteriorate employee relations include but are not restricted to:

  • Overworking
  • Underpaying
  • Workplace bullying
  • Consistent failure to appreciate
  • Consistently making employees feel like their efforts are meaningless
  • Making employees feel useless
  • Failing to provide adequate benefits or incentive
  • Favoritism and singling out
  • Too much rigidity
  • Narrowing Down

    Though poor employee relations can affect various areas of business adversely, we’re going to focus on two in particular. The two focal areas are corporate image and cost of recruitment.

    Corporate Image

    There are two ways in which poor employee relations affect the corporate image of an organization. The first works as follows. Employees not happy at their workspace due to poor compensation, working conditions and overburdening among others tend to become disgruntled.

    The efficiency of a disgruntled employee as well as their levels of enthusiasm and engagement tends to deteriorate. This means that the quality of work will go down drastically.

    Further, for employees working in positions where they need to interact with clients and fellow organizational professionals, will likely be halfhearted which result in poor communication and coordination, adversely affecting company productivity.

    If as a company you fall short on the work you do, it takes away from your market and corporate reputation.

    The second way that corporate image is tarnished due to poor relations is that when these employees leave, they are likely not going to speak of your organization well!

    Recruitment Cost

    Bad employee relations mean increased hire costs. Why would an unhappy employee stick around?
    Poor work relations will ensure that most of your top professionals will likely look for opportunities elsewhere.

    They may seek better pay, a better work environment or a more understanding and less rigid management team. Regardless, what this means for your company is that you will lose a productive member. Further, this process of becoming disgruntled and leaving often takes a while. The likelihood is by the time your disgruntled individual decides to leave, you will have already spent company resources training them and bringing them up to par. Them leaving means spending the same resources on an entirely new person.
    If, however, your employee relations do not improve, the likelihood is that this will keep happening. More hiring means more training. More training means more money and time spent. It also means a longer wait before your employee can be considered an asset!


    These are just two of many ways that poor employee relations adversely affect one’s business. There are many others that we will likely address in future blogs.

    For now, the upshot is; you are better off retaining individuals who are already working with you by providing them with incentive monetary and otherwise. Also, praise and encouragement goes a long way!
    If you feel employee relations at your organization could use a little improvement, don’t panic! That is just the kind of situation our expert HR personnel are equipped to deal with. Take a look at the services we offer or get in touch for more details!

    Remember; good employee relations means employee satisfaction, employee satisfaction means a highly productive workspace and as we all know, a highly productive workspace means better business!
    Develop for Results International is a boutique Employee Relations and Human Resources Advisory firm dedicated to providing resolution to all manner of employee problems in the workplace, specializing in handling conflicts so managers can focus on core tasks.