Supporting Good Practice in Managing Employee Relations
SUPPORTING GOOD PRACTICE IN MANAGING EMPLOYMENT RELATIONS
GUIDANCE LEAFLET
1. The impact of employment law at the start of the employment relationship
1.1. 2 internal and 2 external factors that impact on the employment relationship
A number of factors can have an impact on the relationship between employees and employers which can be identified as internal and external factors.
• Internal factors include:
o Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but react positively to training and development to enhance their career progression.
o Organisation Culture – this concentrates on the behaviour and morals of employees within a company. The culture can have a huge effect on the employment relationship. For example, if there is the ethos of flexible working hours and employee involvement, then it stands to reason that the employees will be more likely to accede to any changes in the terms and conditions of their employment.
• External factors include:
o Pay and Rewards – the competition for better rewards can result in employees demanding extra pay and benefits. However, a decline in the current economic growth has diminished demands resulting in less conflict. In times of slow economic growth, many employees are simply grateful to have a job, although the need to still earn a certain level of income remains the same.
o Technology – new, and improvements to existing technology can result in redundancies and reduced hours. This can affect the remainder of the employees who may feel demotivated and left wondering if they will be next. However, employees can use this to their advantage by training and developing new skills in different areas meaning they can
GUIDANCE LEAFLET
1. The impact of employment law at the start of the employment relationship
1.1. 2 internal and 2 external factors that impact on the employment relationship
A number of factors can have an impact on the relationship between employees and employers which can be identified as internal and external factors.
• Internal factors include:
o Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but react positively to training and development to enhance their career progression.
o Organisation Culture – this concentrates on the behaviour and morals of employees within a company. The culture can have a huge effect on the employment relationship. For example, if there is the ethos of flexible working hours and employee involvement, then it stands to reason that the employees will be more likely to accede to any changes in the terms and conditions of their employment.
• External factors include:
o Pay and Rewards – the competition for better rewards can result in employees demanding extra pay and benefits. However, a decline in the current economic growth has diminished demands resulting in less conflict. In times of slow economic growth, many employees are simply grateful to have a job, although the need to still earn a certain level of income remains the same.
o Technology – new, and improvements to existing technology can result in redundancies and reduced hours. This can affect the remainder of the employees who may feel demotivated and left wondering if they will be next. However, employees can use this to their advantage by training and developing new skills in different areas meaning they can