Employee Relations & Mitigating Company Risks: Pro Tips for HR’s Great Balancing Act

One of the hardest parts of being in HR is navigating situations where the company’s interests conflict with the needs of individual employees.

Good employee relations is vital for several reasons, including keeping the company from getting sued. Jackie Plunkett, an HR consultant with Clear HR Solutions LLC, explored the nuances of employee relations in an episode of the HRMorning podcast “Voices of HR.”

“You want to build trust. You want to treat people with respect. … We’ve all had bad bosses. And then everyone’s had the good ones too, or a good co-worker, or some sort of mentor relationship. Would you ever sue that mentor that you had the great relationship with? You don’t want to. You don’t sue people that you respect and think are fair, [or] the people that would give you the time to help you understand [things]. [Or] the employer that [proactively] warns you [about improving] your performance [or] someone that tries to offer more training,” said Plunkett, a 25+ year HR veteran.

But as a representative of company leadership, HR also has a critical responsibility to safeguard the organization from legal and reputational harm. “The most valuable HR person is the one that minimizes risk. … At the end of the day, I’m an employee of the company too. I want to do what’s best for that company,” she said.

Prioritizing Employee Relations

Subpar employee relations is a correctable problem, according to Plunkett. In a previous HR role, she spearheaded an employee relations turnaround that focused on improving communication and performance management practices. It was so impactful that a plaintiff attorney who had successfully sued the company several times in the past publicly acknowledged Plunkett’s efforts at a SHRM conference.

This experience reinforced her belief that treating employees fairly and with respect is a key to minimizing legal risks and sustaining a positive workplace culture.

Pro tips for boosting employee relations include:

• Developing strategies that focus on building positive relationships with employees, which can help in reducing turnover and enhancing overall morale.
• Taking the lead in promoting an environment where employees feel comfortable voicing their concerns. Regular check-ins and open-door policies can facilitate this.
• Leading by example by demonstrating respect and integrity in all interactions. Your behavior sets the tone for the organization and influences how employees perceive HR.
• Proactively anticipating potential issues by regularly assessing employee satisfaction and engagement. Addressing concerns before they escalate can prevent larger problems down the line, and
• Being approachable and engaging with employees regularly to build trust. By doing so, HR can help bridge the gap between management and staff, making it easier to navigate challenging situations when they arise.

Protecting the Company

Unfortunately, fostering good employee relations and doing what’s best for the company can diverge — especially when it comes to difficult situations like terminations.

“I’ve never told [a manager], ‘No, you can’t terminate them.’ But I’m going to tell you everything that could happen if we do this incorrectly,” Plunkett said. “You want to make careful considerations in all scenarios as best you can.”

One example Plunkett shared from her career involved terminating a popular employee due to policy changes. It led to backlash from other employees, who could not be made aware of the reasons behind the termination decision because of privacy issues. In situations like that, it’s important to maintain the appropriate level of confidentiality and professionalism while also empathizing with affected colleagues, she said.

Pro tip: Always consider the need for discretion and the emotional impact of major decisions on both employees and the organization.

“When an employee asks me, ‘Why did the company make this change? Many of us are upset.’ Well, I can’t talk about the many that are upset, but I can talk to you. … What are your issues with it? … You can’t always discuss all of those decisions, but you should try to be as transparent as you possibly can — whether it’s based on business health or things that are coming down the road,” Plunkett said.

Pro tip: To align company policies with employee relations best practices, “make that policy for the employee you like the best, and then try to apply it to the employee that’s causing you the most problems. It has to work for both,” she said.

Don’t Forget to Protect Yourself

The discussion also touched on ethical dilemmas HR professionals can sometimes face. Plunkett encouraged HR leaders to act in accordance with ethical standards, even when pressured by executives to make moves that either don’t align with company values or are illegal.

“If you’re being asked to do something and it doesn’t pass the sniff test, try to cover yourself before you’re doing these things,” she said.