Follow us on LinkedInToxic workplaces. Legal disasters. Mass resignation. These are all examples of employee relations nightmares – the kind of scenarios that can send shivers down the spine of any HR professional or Chief People Officer.
Thankfully, you can prevent each of these things from happening. It all starts with building a strong foundation of trust, respect, and open communication.
So, let’s talk about it.
Here are five common employee relations nightmares that can plague even the most well-intentioned organizations, and more importantly, what to do to prevent them from ever becoming a reality.
1. Toxic workplace culture
Nobody wants to work in a toxic workplace. However, nearly one in three employees (31%) have faced microaggressions or discrimination from their manager in the past six months.
Worse still, 48% of employees, which is almost half, have experienced a form of discrimination or exclusionary acts from their manager in the past six months.
Toxicity in the workplace often stems from poor leadership, dysfunctional communication, and a lack of respect among colleagues. It's a culture where negative behaviors are prevalent and often tolerated, and they can negatively impact employees' well-being, productivity, and overall experience.
In other words, it’s a huge problem. You know you have an issue rising when you notice:
- Persistent bullying or harassment
- Discrimination or lack of inclusion
- Poor communication or lack of transparency
- Micromanagement and lack of autonomy
- Unfair treatment and favoritism
- High-pressure and unsustainable workloads
- Lack of recognition and appreciation
- Retaliation for employees who speak up about issues
A toxic workplace culture cuts right to the heart of employee relations: the human connection and the well-being of our people. When the environment feels unsafe, disrespectful, or downright harmful, it damages that connection.
Imagine feeling dread every morning before work, or constantly being on edge because of how you might be treated. That's the reality for people in toxic workplaces, and it understandably shatters their trust in the organization and their sense of value.
Prevention is always better than cure when it comes to toxic workplace culture. Here are key strategies to implement:
- Lead by example: Leaders must champion a positive culture.
- Clear values & rules: Define and communicate expected respectful behavior.
- Value-aligned hiring: Recruit those who fit a positive culture.
- Open communication: Encourage honest feedback and listening.
- Respectful training: Educate on communication, inclusion, and reporting.
- Fair policies: Ensure consistent and transparent HR procedures.
- Safe reporting: Provide confidential channels to raise concerns.
- Regular feedback: Monitor culture with surveys and act on results.
- Promote safety: Create an environment where speaking up is encouraged.
- Recognize positivity: Acknowledge those who uphold a good culture.
- Zero tolerance: Address toxic behavior swiftly and consistently.
- Develop managers: Equip them to lead inclusively and handle conflict.
While prevention is key, if you find yourself in an organization with a toxic culture, the single best tip is to prioritize the safety and well-being of your employees and take swift, decisive action to address the root causes.
Rodimiro Coronado
2. Unresolved conflict
When disagreements or tensions between employees or between employees and management aren't addressed, they don't just disappear. They can quickly grow and create a climate of unease and resentment.
According to the CIPD Good Work Index, 2024, a quarter (25%) of UK employees have experienced workplace conflict in the past year. And, when this happens, those who experience the conflict end up with “lower job satisfaction and are more likely to experience poorer mental and physical health.”
Preventing unresolved conflict starts with fostering a culture where open communication and healthy disagreement are encouraged. This means encouraging your team to voice concerns early, preferably before conflicts escalate. It’s also important to define a formal conflict resolution process that all employees understand. Not only that but make sure this process is enforced properly.
The goal is to foster a workplace where conflict is viewed not as a threat but as a natural part of collaboration—one that, when handled constructively, strengthens relationships and drives better outcomes.
3. Mass resignation
Have you ever had multiple employees leave a company within a short period?
This is often referred to as a mass resignation and it can create a lot of chaos for a company. It’s a serious problem for employee relations because it disrupts operations, damages morale, hurts the employer’s brand, increases hiring and training costs, and could signal deeper issues (such as cultural or leadership issues).
A famous example of this (on a greater scale) was the ‘Great Resignation of 2021’. This is when over 47 million Americans quit their jobs in 2021, spurred on by Covid-19. Anthony Klotz, associate professor of management at Texas A&M University, was the one who coined the term and he predicted the great resignation before it even happened. As he put it:
“When there's uncertainty, people tend to stay put, so there are pent-up resignations that didn't happen over the past year."
This event offers a powerful illustration of what can happen on a smaller, yet equally impactful, scale within a single company. Just as the pandemic prompted many to reassess their priorities and seek better work-life balance and more fulfilling roles, significant negative experiences within a company can push a large number of employees to simultaneously seek new opportunities. This isn't just about a few isolated incidents; it signals a deeper systemic problem within the employee experience.
So, how do you prevent your company from experiencing its own "mini Great Resignation"?
Here’s some tips:
- Improve employee engagement by offering meaningful work, clear career paths, and professional growth opportunities.
- Regularly seek feedback through surveys, one-on-ones, and open forums to understand how employees are truly feeling.
- Support their well-being through initiatives that promote work-life balance, mental health resources, and a supportive work environment.
- Make sure employees feel valued for their contributions.
- Provide opportunities for training, skill development, mentorship, and internal mobility.
- Ensure that your compensation and benefits packages are competitive and reflect the value your employees bring to the organization.
- Equip managers with the skills to lead with empathy, communicate clearly, address conflict constructively, and build strong, supportive teams.
Rachel Ernst
4. Burnout or mental health crisis
When someone is consistently pushed beyond their limits, facing relentless pressure, and lacking the support they need, it can lead to burnout. Burnout is a state of emotional, physical, and mental exhaustion caused by prolonged or excessive stress. It's characterized by feelings of depletion, cynicism towards work, and a reduced sense of professional accomplishment.
When employees are struggling with their mental health, their engagement plummets. From there, you’ll soon see more issues transpire such as declined productivity, more absences, and a greater risk of errors or accidents.
HR plays a very important role in creating a mentally healthy workplace and mitigating burnout. You can do this by implementing proactive strategies such as:
- Promoting open conversations about mental health.
- Providing access to confidential employee assistance programs (EAPs) and mental health resources.
- Training managers to recognize signs of distress and offer support.
- Encouraging healthy work-life balance through flexible work arrangements and reasonable workloads.
- Cultivating a supportive and inclusive culture that reduces stigma around mental health and prioritizes employee well-being as a core business value.
Ultimately, addressing burnout and supporting employee mental health isn't just a matter of individual well-being; it's a fundamental aspect of positive employee relations, fostering a workforce that is healthy, engaged, and resilient, directly contributing to the overall success and sustainability of the organization.
5. Legal complications
Another example of an employee relations nightmare is legal complications. These can lead to matters like financial costs, damage to the company’s reputation, and erode employee trust.
When a company mishandles employee issues—whether it's unfair firings, discrimination, unpaid wages, or broken contracts—it risks more than just legal trouble. Lawsuits can drag on for months, cost a fortune, and pull leadership away from running the business. But the damage goes beyond the courtroom. Even the perception of unfair treatment can ruin a company’s reputation, making it harder to hire great people and keep the ones they have.
The best way to avoid legal trouble and workplace conflicts is to be proactive. Companies need to create a culture of fairness, transparency, and accountability. Here’s how:
Set clear, consistently applied HR policies
Establish fair rules and procedures for hiring, promotions, discipline, and terminations, ensuring they are applied consistently across the organization.
Keep thorough documentation
Maintain accurate records of performance reviews, complaints, disciplinary actions, and any major workplace decisions to protect both employees and the company.
Train managers & employees regularly
Provide ongoing education on legal obligations, workplace rights, and best practices for handling conflicts, discrimination, and harassment.
Create accessible grievance procedures
Make it easy for employees to report concerns and ensure they feel heard and protected from retaliation.
When dealing with complex or sensitive situations, seeking legal guidance early can help ensure decisions are fair and legally sound, reducing the risk of costly disputes. By weaving legal awareness and ethical leadership into everyday practices, companies not only protect themselves but also create a more respectful and trustworthy workplace.
FAQs
What is employee relations in human resource management?
Employee relations (ER) is the aspect of HR that focuses on building and maintaining positive relationships between employers and employees. It involves addressing workplace concerns, resolving conflicts, ensuring fair treatment, and fostering a healthy work environment to improve job satisfaction and productivity.
What does employee relations do?
Employee relations helps create a positive workplace by handling issues like conflicts, grievances, performance concerns, and workplace culture. It ensures employees feel heard and valued while also protecting the company from legal risks by enforcing fair policies and practices.
Is employee relations the same as HR?
Not exactly. Employee relations is a specialized area within HR that focuses on workplace relationships, conflict resolution, and employee well-being, whereas HR covers broader functions like hiring, payroll, benefits, and compliance.
What is an example of employee relations?
A common example is when an HR team mediates a conflict between a manager and an employee, ensuring both sides are heard and helping find a fair resolution that improves workplace harmony.
Is employee relations a skill?
Yes, employee relations requires skills like communication, conflict resolution, emotional intelligence, problem-solving, and knowledge of labor laws to effectively manage workplace dynamics.
How does HR improve employee relations?
HR improves employee relations by fostering open communication, resolving conflicts fairly, ensuring clear workplace policies, promoting employee engagement, and creating a culture of trust, respect, and inclusion.
