The Great Resignation is waning — good news statistically, but little consolation for businesses still fighting tooth and nail to attract and keep talent on today’s cutthroat hiring landscape.
Maybe you’re one of them. Maybe you’ve taken employee benefits as far as they can go (most businesses have expanded non-traditional benefits since 2020 to include the likes of summer Fridays and remote work), but still struggle to recruit top candidates and keep the ones you have from leaving.
If so, it might be time to consider a common denominator among businesses coming out ahead in the red-hot hiring game: Outsourced employee relations.
What is employee relations exactly?
A sub-function of human resources, employee relations is the professional function responsible for maintaining a positive relationship between an employer and employees (and, by extension, between employees and each other).
Forbes describes its benefits best: “Companies want to keep experienced, productive and valuable employees for as long as possible…To do this, employees must be happy enough that they will not – or at least will remain less likely to – leave the organization. Enter employee relations.”
Employee relations implements strategies and policies touching on everything from career development discussions to interpersonal conflicts among coworkers and managers to emotional matters. A trained HR professional can help your company implement best practices for improving workplace communication, morale, goal-setting, performance management, and more.
The goal is to maximize employee satisfaction while protecting your business and advancing its larger objectives and goals. The best outsourced HR providers will do this by blending into your culture, getting to know your people and goals, and putting their expertise to work as a pillar of your enterprise.
How is employee relations helpful?
Employee relations’ positive impact can generally be boiled down to proactivity.
Businesses without employee relations expertise — ie. without a designated, confidential, and neutral source where employees can bring concerns or questions — often don’t hear about workplace issues until an employee resigns (or some other point of no return).
Meanwhile, employees who work for companies with employee relations know that they can share an issue confidentially when needed. In workplaces with designated HR processes and policies, issues are less likely to escalate, and employees are less likely to disengage or give notice.
Beyond fielding employee issues, employee relations work on a rolling basis to proactively foster an engaged and healthy working environment — the true key to increased retention, among other wins. When employees can focus on core business activities rather than interpersonal issues, everyone wins.
Who needs employee relations?
Every business or organization, without exception, can benefit from practices that support its people. But there are a few common scenarios where employee relations are especially beneficial, if not crucial:
Businesses without an in-house HR team
Leaders of companies that don't have an in-house HR team are often bogged down with employee-related issues, as well as other HR administrative tasks that they’re perhaps unqualified and/or uninterested in managing.
Family-owned businesses where HR tasks are handled by a member of said family
For obvious reasons, this can impede neutrality and employee trust.
Businesses that handle HR functions in-house, but don’t have the bandwidth or expertise for employee relations
A lot of business owners entrust HR tasks to internal team members who aren’t necessarily formally educated in human resources. Or they have an in-house human resources professional, but that professional doesn’t have time for managing employee relations or lacks experience with it as a specialty. At myHR Partner, our skilled HR professionals work hand-in-hand with your existing HR managers on an ongoing basis to design and execute a right-fit employee relations plan that we work alongside them to manage moving forward.
What are the benefits of outsourcing employee relations?
Many companies don’t even realize they can outsource employee relations to a third party, yet doing so has a proven track record of success for many business leaders. Arguably more than any other HR function, there are many benefits of outsourcing employee relations instead of handling it internally. Here are a few reasons why you should consider outsourcing HR services:
- Neutrality and confidentiality are central to successful employee relations. Your team is more likely to trust a third party than an in-house alternative, which is why working with an outsourced HR provider can enhance employee satisfaction.
- Outsourcing human resources functions offers your company access to expertise, objectivity, and an outside perspective that most business owners find incredibly helpful in navigating delicate interpersonal scenarios.
- There are employee relations professionals, like those at myHR Partner. Human resources is all we do – so your people are in the hands of the best with bona fide experts.
One word of caution: If you’re deciding between HR outsourcing options, make sure to consider a full-service HR outsourcing company like myHR Partner, rather than a PEO (professional employer organization). Many PEOs will advise you on employee relations but won’t engage with your people, so you still need to handle these HR operations yourself.
It’s worth noting that companies who outsource employee relations also often outsource HR functions related to:
- Management support: guidance and recommendations to company leaders for successfully engaging with their employees.
- Performance management: frameworks and processes for tracking and managing employee performance and output, i.e. the review process.
Especially when bundled, these functions have the power to make your people your greatest asset.
Of course, the benefits of outsourcing HR administration tasks related to employee relations are contingent on choosing the right partner. Vet prospective HR outsourcing providers carefully. Reputable HR outsourcing companies such as myHR Partner will work carefully to understand your business goals and the specifics of your company culture, processes, and people, and then will customize a plan specific to you – a far cry from a one-size-fits-all “experts” or call centers far less likely to benefit your business.
Ready to rethink employee relations – and reap the rewards?
Are you considering outsourced employee relations — or other outsourced HR functions like payroll administration, employee benefits management, or regulatory compliance? Download our Complete Guide to HR Outsourcing to learn more about how outsourcing HR functions can free up your leadership to focus on core business activities and position you for greater success. Contact us today for a free consultation!
