7 Steps for Effectively Managing Industrial Relations (Plus Benefits)

Industrial relations is a comprehensive term used to refer to the relationship between employers and their employees. In a broad sense, it encompasses the interaction between management and labor, and includes areas such as collective bargaining, labor law, labor-management relations, and labor-management cooperation. Industrial relations is not only about the relationship between employers and employees, but also about the relationship between workers and unions, and between management and unions. It is a crucial aspect of the workplace and can heavily influence the success or failure of any organization. By understanding what industrial relations is and how it works, employers can implement strategies to ensure a healthy, productive and efficient work environment for all stakeholders. This blog post will provide a comprehensive overview of what industrial relations is, its key components, and how it can be used to the benefit of both employers and employees.

What is Industrial Relations?

Why is industrial relations important?

Industrial relations are crucial for businesses for a variety of reasons, including:

Employee development

Industrial relations are crucial for employee growth because they give them the tools they need to succeed in their roles. These resources could be individual meetings, administrative assistance, or training materials. Because they can look for opportunities to learn new skills or volunteer for new responsibilities, giving employees the chance to continuously develop within your company may also help boost productivity levels.

Higher engagement levels

After establishing productive labor relations, your business might see an increase in employee engagement because motivated workers are those who feel their employer is investing in them. Team members who are engaged may be less likely to look for work elsewhere, which could help lower your company’s turnover rates. Positive labor relations lead to higher engagement levels, which are advantageous for boosting business output and potentially enabling your company to expand into new markets.

Reduced workplace conflict

Furthermore, it’s crucial for employers and employees to have open lines of communication because this reduces the likelihood of conflict at work. Clear communication of your company’s policies, rules, and values may result in fewer instances of misunderstanding. Furthermore, if everyone in a company cooperates and communicates respectfully, there may be less conflict if a difficulty arises.

What is industrial relations in human resources?

Employer-employee relations are referred to as “industrial relations” in human resources. Any interactions between businesses and their employees, such as those that take place during performance reviews or business meetings, may fall under this category of relationships. The majority of the time, HR professionals keep records of all of these interactions in case they need to refer to them or share them for any reason.

How to manage industrial relations

Here are some steps you can use as a guide if you want to learn more about how to manage labor relations within your business:

1. Meet all team members

If you work in HR, getting to know every team member is crucial because it can be simpler to manage internal relationships when you are familiar with the workers. For instance, after getting to know your coworkers and getting to know them, you may be better able to communicate with them when a problem arises.

Having an individual meeting with each new internal employee when they start their position is one tactic you can use to get to know them better. You can give them background information about the business or their team during these conversations and invite them to ask you any questions. This can also help them recognize you as a person they can get in touch with if they have any questions about their job or the company.

2. Promote constant communication

Encouraging constant communication among internal team members and HR ensures that workers have access to the tools they need to do their jobs well. They can specifically use this to ask technical questions about company policies and rules. For instance, a worker may have a query regarding the company’s paid time off policy. In this case, the employee may ask you a question using the communication channel you’ve provided.

Since employees can ask questions whenever they arise without needing to arrange a formal meeting, open communication is advantageous. This kind of ongoing communication can occasionally take place via email or other digital tools. If you’re interested in using technology for instant messaging, think about comparing your options and choosing the one that will work best for your business.

3. Encourage feedback

Encourage internal team members to provide feedback so that employees have a chance to openly express their ideas and experiences. This might entail requesting feedback from staff members on the business and their work experience on a weekly, monthly, or quarterly basis. For instance, you might inquire of staff members whether they feel supported in their roles or whether they believe their responsibilities are clear. These steps can assist your business in identifying areas where it is effectively supporting teams and those that may need adjustment.

Brief surveys are one tool you can use to gather feedback, and you can sometimes administer them through management technology systems. You can automate the feedback messaging by sending them through management systems. Additionally, you can choose whether you want the criticism you receive to be anonymous. If you’re interested in doing this, think about looking at the management system features to see if you can automate the feedback you want employees to give.

4. Emphasize employees value

Making sure your internal team members feel valued is crucial because they might be more inclined to offer insightful feedback if they feel that their company is actively interested in hearing from them. For instance, if most staff members report a dearth of useful training materials, they might feel more inclined to value their feedback if their employer offers them these materials.

5. Establish boundaries

Establishing boundaries to make sure protocols are put in place for handling specific situations is beneficial when managing labor relations. These protocols typically concentrate on dealing with difficult situations and offer a framework for how leaders can handle them. For instance, your business might create a policy governing labor relations that prohibits employees from speaking negatively about coworkers and specifies what constitutes hate speech in the eyes of the organization. When attempting to resolve potential conflicts between employees, boundaries can also serve as a guide.

6. Incorporate values

Referring to company values when managing labor relations is advantageous because it enables you to uphold solid bonds with employees who share your vision for the company. For instance, if teamwork is one of your company’s core values, you might make sure that all staff members have the tools they need to work together efficiently. Because not every company has the same mission or goals, your unique company values may have an impact on how you manage your labor relations.

7. Remain present

Effective industrial relations management includes being available to your internal team members because it gives them ongoing support and may increase engagement. This assistance may be technical, such as responding to inquiries or resolving disputes. By giving your staff interactive opportunities to get to know one another, you can be there for them as well. You could, for instance, host company events like trivia contests, holiday parties, or team-building exercises. Giving workers chances to interact with one another could also improve company morale.


What is meant by industrial relation?

Employee relations’ goal is to improve the relationship between employers and employees by resolving workplace issues and supporting the organization’s performance management system.

What was the role of industrial relations?

Employee relations’ goal is to improve the working relationship between employers and employees by identifying and resolving workplace problems, monitoring employee morale and satisfaction, and contributing to the company’s performance management system.

What is industrial relations and its characteristics?

What are the Different Types of Employee Relations?
  • Vertical Employee Relations. …
  • Horizontal Employee Relations. …
  • Organizational Culture. …
  • Employee Engagement. …
  • Conflict Resolution. …
  • Workplace Investigations. …
  • Disciplinary Actions. …
  • Improved Employee Loyalty.

Why is it important to study industrial relations?

Employee Relations Specialist Requirements:
  • Degree in human resources.
  • Demonstrated knowledge of employment law.
  • Outstanding interpersonal skills.
  • Exceptional written and verbal communication.
  • Excellent organizational skills and attention to detail.
  • Good problem-solving ability.

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