Employment Relations

Employment Relations Problem (ERP)

An employee working 40 hours per week spends 35% of their waking hours at work.  Employment not only provides the necessary means for us to eat and keep a roof over our heads--we often use it to define our status in life hence the question what do you do does not require the added clarification of for a living. It further provides us with our largest form of social interaction outside of the family unit.  As such, it is a fundamental contributor to our confidence, self-esteem and overall satisfaction in life.  An employment relations problem (ERP) can shatter the lives of those involved as well as destroying health and decreasing workplace productivity.    It polarises employees, increases use of sick leave, creates division between management and workers and decreases morale.

Why do ERPs arise?

The sources of ERPs are almost limitless, but most frequently include:

• A management style that doesn't work and fails to change regardless of feedback;

• An employee's performance does not match that which is expected of them;

• Employee perceptions of unfair or unequal treatment;

• Personality conflicts;

• Issues of bullying or harrassment that are not addressed;

• Miscommunication between management and staff.

Whatever the cause, the longer they remain unchecked the more difficult the situation becomes to fix and the more likely the situation will escalate into a fully fledged dispute or personal grievance.  Once this occurs, one side usually calls in a lawyer which often forces the other side to do likewise.  The cost of resolving the dispute sharply increases from this point as do losses to the employer in decreased productivity and low morale.  Employers can not afford these losses at the best of economic times, let alone the worst. 

One solution is to deal with the matter internally.  Most commonly this involves the use of HR or the person fulfilling the role of HR in smaller companies.  Unfortunately, most HR staff are often perceived as the tool of the management, responsible for hiring and firing, so their neutrality in attempting to mediate an ERP between employer and employee is immediately called into question.  Even issues between employees are unlikely to be dealt with in a frank and open manner if the parties feel that what they say may disadvantage them in future evaluations or reflect badly on their reputations.

The Department of Labour (DOL) does offer a mediation service, which although neutral, can inadvertantly escalate the dispute.  The resources of the Department of Labour are limited as the number of ERPs increase and delays in scheduling mediations can often increase stress and anxiety.  Employees may also perceive the use of this mediation service outside the work place as increasing the level of seriousness to the point that they feel uncomfortable or disadvantaged in attending without a lawyer.  Attending a DOL mediation is also commonly viewed as the first step in filing a personal grievance with the Employment Relations Authority (ERA) and once on that path, an employee may be encouraged to believe that the logical next step is to do just that.

There is a solution...

By bringing a neutral third party or mediator into the work place, the matter remains confidential, internal and less formal.  The employer is also seen to be taking employee concerns seriously and displaying good faith in dealing with an issue that the employees view as important. The perception that the employer is willing to work with them, rather than against them elevates work place morale and increases job satisfaction.  When employees work in a positive environment, they are more likely to go the extra mile.  Conversely, a negative environment leads to an attitude that the employer gets exactly what they pay for--but no more. 

The use of internal mediation by a neutral outsider is efficient in both cost and time, and flexible enough to reach solutions that are work place-specific rather than one remedy fits all.    

The time to act is now...

If you have an employment relations problem, the time to act is now.  Don't wait till it escalates to a personal grievance or till productivity is so greatly affected that you no longer have a choice.  A happy work place increases productivity and in these economic times even a 5% increase can mean the difference between sink or swim for many companies.