The term 'employee relations' refers to a company's efforts to manage relationships between employers and employees. An organization with a good employee relations program provides fair and consistent treatment to all employees so they will be committed to their jobs and loyal to the company. Such programs also aim to prevent and resolve problems arising from situations at work.
Employee relations programs are typically part of a human resource strategy designed to ensure the most effective use of people to accomplish the organization's mission. Human resource strategies are deliberate plans companies use to help them gain and maintain a competitive edge in the marketplace. Employee relations programs focus on issues affecting employees, such as pay and benefits, supporting work-life balance, and safe working conditions.
One of the most effective ways for a company to ensure good employee relations is to adopt a human resource strategy that places a high value on employees as stakeholders in the business. Stakeholders are people who are committed, financially or otherwise, to a company and are affected by its success or failure. When employees are treated as more than just paid laborers, but as actual stakeholders with the power to affect outcomes, they feel more valued for the job they do.
Think about the last job you truly loved. Was it because you were treated like an important part of the team? You probably had an interest in seeing the business succeed, like a stakeholder.