Dynamics and Benefits of Strong Employee/Employer Relationship to Success of a Business

By Soko Directory Team / June 8, 2017

By Amina Faki

When an employer hires a new employee, he is not just bringing a new member of the workforce aboard, he is also starting a new relationship. Because employers and employees often work in close quarters, they necessarily develop relationships. Managing these relationships is vital to business success, as strong relationships can lead to greater employee happiness and even increased productivity.

To reap these benefits, keep the following dynamics of your employer-employee relationship in mind;

Relationship Basics

Generally, employer and employee relationships should be mutually respectful. The degree of closeness in these relationships will depend on both the employer and the employee. Some employers opt to keep their employees at a distance and, in doing so, ensure that there is no confusion as to the hierarchy that exists between them. Others elect to become friendlier with their employees, seeing this as a way to ramp up employee happiness. While neither option is entirely right or wrong, it is wise to avoid getting too close to employees, as doing so can cause the line between employer and employee to become blurred.

Mutual Reliance

The employer-employee relationship should be one of mutual reliance. The employer is relying upon the employee to perform their job and, in doing so, keep the business running smoothly. Conversely, the employee is relying upon the employer to pay them and enable them to support their self, and potentially their family, financially.

Relationship Building

Just as with all relationships, the employer and employee relationship is one that must develop over time. Employers can promote the building of relationships by speaking candidly with their employees about their lives, asking them about their families and learning about their interests. Similarly, employees can promote the building of this relationship by being open with their employer and sharing information about themselves and their lives.


Though the type of employee and employer relationship that is considered appropriate varies from company to company, boundaries exist at almost all companies. Generally, it is unwise for employers to develop romantic relationships with their employees. Similarly, employers should exercise care to ensure that the relationship they develop with one employee isn’t notably closer than the relationships they develop with others, as this can lead to concerns regarding favoritism or similar issues of unfairness within the workplace.


Maintaining a strong employer and employee relationship can be the key to the ultimate success of an organization, the results are advantageous. It is known that if a strong relationship is in place employees will be more productive, more efficient, create less conflict and will be more loyal. Taking this into consideration, is your company operating at its peak performance? Is this because you lack a strong relationship with your employees?

An article by Paul O’Brien tells us that having strong employer and employee relations reaps a lot of benefits for your business. Below are some of the benefits of stronger employer employee relationship;

Strong employment relations create a pleasant atmosphere within the work environment; it increases the employee motivation and can also be increased through improved employee morale. Companies that have invested into employee relations programs have experienced increases in the productivity, and therefore the increased productivity leads to increases in profits for the business

Employee Loyalty                 

Creating productive and pleasant work environment has a drastic effect on an employee’s loyalty to the business, it encourages a loyal workforce. Having such a workforce improves employee retention, in doing so the cost of recruitment, hiring and training are cut drastically. For most businesses, the high cost of employee turnover outweighs the cost of the employee relations program that they have in place. Another benefit is that when the employee turnover is low it ensures that the employer has a trained and skilled set of employees.

Conflict Reduction

When a work environment is efficient and friendly the extent of conflict within the workplace is reduced. Fewer conflict results in the employees being able to concentrate on the tasks at hand and they are therefore more productive.
All the research and statistics lead to one conclusion, ‘A happy workforce is a productive workforce’. Creating a sound and efficient work environment with good management and a strong employer- employee relation can be the vital key to any businesses success or failure. Good luck.

Maintaining a happy healthy employer and employee relationship will enhance the working environment hence improving productivity which eventually leads to the success of a business.

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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