Positive employee relations requires ongoing investment, a longitudinal view and can be challenging at times. Yet it is beneficial for the employees and the company, as this is linked to business stability. It will enrich the company reputation and reduce staff turnover therefore decreasing the cost required to retrain old or get up to speed, the new staff. In addition, research confirms that as a species, our psychological systems are highly responsive to positive and healthy interactions which is also related to employee retention and staff turnover.
Here are three key advantages of having healthy relationships in the workplace.
- It increases productivity.
When colleagues share a healthy relationship, they are more likely to work effectively, talk openly and honestly about work concerns which will inherently encourage collaboration as they work together to sort out challenges and issues. According to a study by the American Institute for Corporate Productivity, companies with a strong culture of collaboration, are five times more likely to be high performing because co-workers understand each other better and therefore reach goals more effectively by working harder because they get on well. This creates camaraderie amongst employees, irrespective of hierarchy, giving them a collective goal of working towards a better future for the organisation and therefore again, increasing productivity.
In the research, Mas and Moretti (2009) found that productivity improved especially when they assigned employees to work alongside faster and more knowledgeable colleagues. See point 3.
- It encourages transfer of skills and knowledge
Every employee gains job skills and specialised knowledge. This is crucial for sustainability and the building of a stable business operation. It may take 6 months for a new employee to gain on job experience or specialised knowledge required for the job or work scope. When including junior and senior members in projects, they tend to deliver improved long team results if they have healthy, and positive engagement and relationships. Knowledge and skills are easily transferred between the more experienced and the less experienced staff. Knowledge transfer and preservation is beneficial when we focus on business stability and employee retention. This leads me to the next and final point;
- It improves employee retention and morale
According to a survey by LinkedIn, 46% of employees who had a strong relationship with their manager, reported feeling more loyal to their company. Staff who feel connected to their co-workers and leaders, and have career satisfaction, are less likely to leave their employers. Teams that have been together for longer, are more likely to achieve long term results as they’ve already become accustomed to each other’s working styles, attitudes and have moved through the various stages of team development.
When we look at employee morale, if there are healthy relationships in existence, colleagues are more likely to enjoy working together which too increases work output from individuals and teams.
There are many personal advantages to fostering healthy relationships within the work context. However, increasing productivity, encouraging the transfer of skills and knowledge, and improving employee retention and morale is advantageous for any business as it promotes sustainability and stability.
The Institute for Corporate Productivity (i4cp) – Future of Work & HR Research Firm. (n.d.). Institute for Corporate Productivity (I4cp). https://www.i4cp.com/
Mas, A & Moretti, E (2009). Peers at work. American Economic Review 2009, 99:1, 112–145 http://www.aeaweb.org/articles.php?doi= 10.1257/aer.99.1.112
