EMPLOYEE RELATIONS

 

EMPLOYEE RELATIONS

What is employee relations? 

Employee relations refers to an organisation's efforts to maintain positive relationships with employees. The goals of good employee relations include inspiring employee loyalty, increasing engagement, reducing turnover, and creating a positive company culture (coursera, 2023). 

Employee relations vs Human Resources

While employee relations and Human Resources do overlap, they have distinct purposes: 

• HR is the broader operation that directs all aspects of managing an organisations workforce and work environment, including recruiting, Training and development, Compensation and Benefits, health and safety.
• Employee relations is a specialised function that factors in the entire employee experience to maintain the organisation's relationship with the employees and their interactions with each other.

As an example of the difference between the two, let’s look at how both HR and ER would approach the concept of an organisation's work environment.

HR would be concerned with the logistics and ensuring that workspace are safe and well-equipped. ER’s focus would be on how engaged employees are with their work by understanding how they experience the environment.

 

Why is it important?

Employee relations are crucial in a company as they encourage a positive workplace atmosphere defined by transparent communication, reciprocal respect, and established methods for resolving conflicts. Strong employee relations can boost staff morale, motivation, and productivity, which in turn can decrease turnover rates.

It also encourages a feeling of fairness and equality among employees, fostering a more cohesive work culture. Moreover, proficient management of employee relations can improve an organisation's reputation, making it an attractive place for employment.

 

What role does it play in HR?

Employee relations plays a vital role in human resources management as it serves as the backbone of all interactions between an organisation and its employees. It’s the HR’s responsibility to establish and maintain clear lines of communication, manage conflicts, and facilitate a positive environment based on mutual respect and understanding.

This aspect of HR management directly influences employee morale, job satisfaction, retention rates, and overall productivity. Moreover, effective employee management is key to fostering a culture of fairness and transparency, which is essential for the organisation's growth and success.

Employee Relation in Commercial bank of Sri Lanka

Commercial Bank is dedicated to training and developing our employees to help them reach their full potential and effectively tackle future challenges. We offer a supportive work atmosphere that promotes learning and development, motivating our team to gain knowledge, skills, and attitudes that will enrich their work experience. Our Staff Development Centre (SDC) delivers important information, training opportunities, and resources to the Bank’s workforce, assisting them in improving their productivity and achieving new professional milestones. The SDC enables employees to realise their potential by connecting learning with practical application, promoting a continuous development cycle that broadens individual perspectives and enhances overall morale.

Commercial Bank aims to maintain an equitable and consistent reward structure to recognize employees' contributions to the business and encourage their efforts towards achieving strategic goals. The bank stays updated on wage practices in the banking industry and mercantile sector through collective bargaining, ongoing dialogue with employee organizations, and discussions with labor authorities and corporate peers. The bank's wage policy is based on collective agreements and market surveys.

The Bank's executive officers' salaries and perks are based on market rates for similar roles. The bank's culture is target-driven, with incentives and promotions based on performance. Performance evaluation aligns with the bank's business goals, and a reward mechanism recognises multiple performance levels through an incentive matrix.

Remuneration and incentives for non-executive grades are determined through a collective bargaining process between the Bank and the Ceylon Bank Employees Union. Promotions are awarded through examinations and individual performance evaluations. The Executive Association and Ceylon Bank Employees Union engage in regular dialogue with the Board and management to formulate policies and proposals (Bank, 2022).

 

Benefits Provided to Full-Time Employees

As a matter of policy, the Bank does not recruit part-time employees. Our permanent employees of Sri Lanka as well as Bangladesh operations receive the following benefits:

·         Bonuses reflective of performance or decided under the collective bargaining agreement.

·         Fuel allowance for executives and transportation allowance for nonexecutive roles.

·         Holiday bungalows.

·         Staff loans at below-market interest rates.

·         Medical benefits, including special health insurance coverage for critical illnesses.

·         A death gratuity scheme extending to the legitimate dependents of a confirmed employee.

·         A personal accident insurance scheme.

·         Provision of free accommodation and/or subsidized transportation, or house rent or other special allowances, for employees working at locations that pose logistical, housing and cost-of-living challenges.

·         Retirement benefits. The Bank also helps branches and departments to organise annual staff get together or excursions by providing an annual allowance for such events to every employee.

References

Bank, C. (2022). Annual Report.

coursera. (2023, 11 29). www.coursera.org. Retrieved from https://www.coursera.org/articles/employee-relations