As a renowned labour economist and pioneer of the industrial relations theory, J.T. Dunlop defines industrial relations as “the complex interrelations among managers, workers and agencies of the governments”. Ultimately, it means the relationship between an employer and an employee matters. Employee and employer relations are essential to any business foundation, big or small. Get this right, and you will often find your business succeeding.
Industrial relations are meant to ensure mutual trust and good relationships between the employers and their employees and other associated bodies. These are meant for the betterment of the employers and the employees. It is also beneficial for the growth of the industry and the broader economy.
Industrial relations is also the term for all the complex interactions between employers and employees. The International Organization of Employers factors in components such as how much workers are paid, their hours, and their benefits and responsibilities. Mastering the principles of good industrial relations can keep your workplace running smoothly and efficiently.
“Without a vision and a mission, your company can be termed as a ‘Bull’ set free in the busy streets of the corporate world.”
― Henrietta Newton Martin Author Industrial Relations Today
This article explores why industrial relations matter, the advantages of this business component and how you can leverage industrial relations for your company.
You can also connect with MASA if you want to learn more about industrial relations and how to take care of your employee, employer and external relationships to advance your company. MASA is an expert labour broker with over 40 years of experience managing human resources and industrial relations for companies worldwide.
Why Industrial Relations Matter
When workers and management are satisfied with how the workplace runs, everyone wins. The principles of good industrial relations are all about getting buy-in from management, investors and employees. If industrial ties are good, everyone ends the workday happy.
However, that’s often not the case, WorkForce Hub explains. Only 42 per cent of employees look forward to coming to work, while almost 60 per cent feel unpleasantly stressed most of the workday. Although it is terrible for the workers to feel so unsatisfied, this is undoubtedly not a good statistic for employers either. A lack of employee satisfaction leads to higher staff turnover rates, and it is costly to recruit and retrain employees regularly.
In the wake of the COVID pandemic, CNN reported that many employees are quitting even before they find new jobs to fall back on. Many people in today’s working-class feel unsatisfied and even hopeless with the economy’s condition. It is up to employers and all relevant stakeholders to find a solution for retaining employees.
What are the advantages of having Expert Industrial Relations?
Industrial relations are meant to achieve specific goals that are incredibly eminent for the success of any industry; so here are four advantages of implementing and sustaining Industrial relations:
1. IR provides a platform for the employees
It aims to provide a platform to the employees via which they can have a say in the management’s decision-making that directly or indirectly affects them. It advances the modern employer-employee relationship by promoting a sense of empowerment and inclusivity that goes beyond the traditional workplace hierarchy.
2. Reduces disputes
Good industrial relations reduce the number of disputes that happen both internally and with external parties. It provides a system by which mutual negotiations could resolve disputes. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace and understanding.
3. More consistent workflow
Ensuring consistent and continuous work is also an advantage of industrial relations. It is necessary to enhance productivity and maintain consistent growth in the industry, which ultimately can lead to higher revenue and benefit both employers and employees.
4. Prevents strikes, lockouts, and protests
Industrial relations hamper strikes and all sorts of strike activity by employees or labour unions from happening. This prevention is done by providing an interactive platform to the employees to negotiate and settle any disputes with the employers quickly and effectively, long before conflicts get out of hand.
5. Better Employee Engagement
Employee Engagement is the term used to define the efforts of an employer to engage their employees on the job. It involves everything from ensuring better workplace communication to showing genuine appreciation and rewarding top performers.
An engaged workforce exhibits better results and efficient workflow in their organisations. Moreover, all the practices for better employee engagement ultimately pave the way for healthier employee and employer relations.
Manage your IR with the help of industry veterans
Ask any leading industry, “What is the secret of your success?” They are most likely to say, “Our employees.” As mentioned earlier in this article, satisfying your workforce equals a prosperous and growth-driven organisation.
Maintaining mutual trust and goodwill between employers and the employees is the key to any industry’s success. Organisations can maintain this dynamic of employee-employer relations with the assistance of expert industrial relations.
So, all in all, if you want to optimise employee engagement, employee motivation, and employee performance along with top-notch organisational frameworks beyond destructive disputes, incorporating the right strategies of industrial relations is the key.
When it comes to managing your labour workforce, it pays to have expert industrial relations support. That’s where MASA comes in. We are specialists in industrial relations, and we bring a wealth of experience and knowledge to every client engagement.
There are many advantages to working with MASA, including:
Our deep understanding of industrial relations law and practice
This deeper understanding means we can advise you on the best course of action in any IR situation, ensuring that your interests are always protected.
Our extensive network of contacts in the IR world
We know the key players in the industry, and we can use our connections to help you resolve any disputes or issues that may arise.
Our commitment to providing honest, impartial advice
We will always give you our honest opinion on any matter, and we will never try to sell you anything that you don’t need.
If you’re looking for expert industrial relations support, MASA is the perfect partner for your business. Contact us today to find out more about what we can do for you.
Also, check out our article discussing three questions your company should answer before outsourcing HR and industrial relations.