Good employer - employee relationship

S R Balachandran

Manpower is an important resource for business. A good employer-employee relationship is essential for maximizing contribution towards success. I admit that Human Resources Management is well recognized in many organizations now. The correct way to maximize employer-employee contribution is to:

a. Select suitable person for suitable post.

b. Offer suitable training

c. Issue proper instructions for due compliance

d. Support or defend the employee when a problem is faced due to compliance. Responsibility should not be avoided by the management.

I quote below fifteen golden rules to maintain a good employer-employer relationship:

a. Avoidance of favouritism

It is common in organizations to show favourism in -

(i) Selection

(ii) Training

(iii) Promotion

(iv) Compliance of rules and regulation

I am aware when employees are selected preferences are given to children or close relatives of directors, major shareholders, senior executives. Persons who have material transaction with the business, bankers and even State officials and politicians (this is common in India, Pakistan and Sri Lanka).

Further training procedure is also relaxed for preferred recruits.

Rules and regulations are also relaxed for them. The worst part is where promotions are offered to these people ignoring qualified, efficient and demoted employees. This results in frustration.

b. Policy definition

It is also better to explain the policy of management to the new recruits (a formal letter of appointment is not sufficient).

This policy will help employees to assess what is expected of them and also help the management to take action against violators who cannot claim innocence now.

c. Corrective action

When a violation or deviation is observed corrective action should be taken. If the matter is not material and also not intentionally done a verbal advice would be sufficient. In other cases a letter of warning should be given. The intention of the management is not to harass employees. You could be strict and not rude. (better be a watch dog than being a blood hound).

d. Evaluation

This is very important. It should be done on observation and from progressive report.

Confirmation and promotion should be based on evaluation reports which should be prepared professionally without bias.

e. Appreciation and criticism

When an employee or a group of employees has done a good job of work congratulate them in the presence of others so that they also could adopt this attitude. On the contrary they should be criticized in private for their mistakes. You should not keep them in an embarrassing situation.

f. Etiquette

This is very important. Employees should not be humiliated in the presence of customers and junior officers.

Professional etiquette is very important. This improves quality of work and also ensures that due respect is given to their profession.

g. Statutory payment

All statutory payments such as salaries, EPF contribution and ETF contribution should be settled on time. Due leave facilities should be granted. Terminal benefits should be settled within one month.

h. Incentive payments

This improves the performance of the employees and creates enthusiasm. Incentive payment could be made on reaching targets (turnover, profit, cost reduction, good attendance, proper compliance of rules and regulations). When employees obtain high qualification in connection with their work (accounts, law, costing and Information Technology) reimbursement of examination fee subscription should be made in addition to a promotion.

Payment of bonus based fairly on profits instead of fixed rate (one month salary only) is a better practice.

a. Staff welfare

I am aware in 1970s in several organizations even tea was not served to employees. Now the situation has changed and free or subsidized meals are offered. Medical insurance, reimbursement expenses at the time of demise of employees or their close relatives are good policies.

b. Concession

It is better to offer concessions to employees such as discounts on purchases made by them of course within the authorized limit. I am aware in some chocolate companies employees are permitted to eat chocolates within the premises. Some restaurants permit the employees to purchase the food items (short eats) at even 50 percent discount after a particular time.

c. Staff get-together

I am aware several organization arrange for an annual staff get-together trip etc. where the family members of the staff are also allowed to participate. This improves the cordial relationship with the management.

i. Employment opportunities

Some companies give preference to the children of the past employees. This method is very popular in Japan and has been proved to be successful. They are proud to mention that family wise, they are attached to particular group of companies. This practice was in Government service in 1950s.

j. Union co-operation

Some managements are allergic to union formation and action. Efforts are being taken to suppress same. This attitude is not correct. Feeling dissatisfaction and fear of the employees should be intimated to the management by a group of people. Regrettably some union leaders create problems to the management due to ignorance and personal prejudice.

Activities of management and report should be studied by union leaders with the assistance of experts before taking action. They should obtain clarification from management and represent union views accordingly.

They should not support the wrong attitude and the activities of their employees. I have never seen an incident where the union had refused to support employees who have committed fraud, engaged in looting and arson.

The duty of a union is to ensure smooth working with the management whilst employee’s rights are properly secured. They should not put forward impossible demands and commence strikes. Further they should assist the employees after cessation of employment to obtain terminal benefits.

Statutory contribution such as EPF and ETF should be settled on time by the management. The union should not use this as a trump card to commence strikes to strengthen their demand.

k. Labour turnover

When there is increasing labour turnover it is better to obtain confidential reports from employees who are leaving and take proper action.

l. Female employees

It is very important to look after the interests of female employees. There are labour laws to secure female employees interest (maternity leave, Working after office hours). Management should study and offer better terms to female employees. It is better to employ a female caretaker.

Any type of harassments either sexually or otherwise should be investigated and corrective action should be taken. Respecting women is in our culture. We have to maintain same not only in our homes but in the working place as well.