Last Updated on September 5, 2022

The importance of employer-employee relationships


Having a vision is not enough without the people who’ll help you to achieve it. If no one supports your goals, your vision is as well as dead. That’s why companies hire like-minded people to push their vision forward. They’ve recognized that employees are one of the key players in the growth of every company. They’re the workforce that combines their skills, enthusiasm, motivation, knowledge, and passion for achieving organizational goals. Without them, nothing will be done, and there’ll be no results. That’s why employers should maintain a cordial employer-employee relationship with the people working for them.


There has to be a strong bond between employers and their workers.

This bond is often strengthened by the pursuit of common goals to drive the company forward.

Imagine what will happen if these parties are continually disagreeing.

The business operations will be a complete disaster.

While employers do their best to motivate the employees, the employees are expected to put more effort in moving the business towards growth.

What is an employer-employee relationship?

This is a relationship between a worker and the employer who hired him/her.

It is a binding contract between the employee who works and the employer who pays him.

It becomes effective when the employee enters into an agreement or contract to work part-time or full-time for the employer.

The employer will decide where the work will be, the working hours, and the way it should be done.

An employer-employee relationship is quite different from a business relationship or contract.

The latter is a situation where the worker in the contract is self-employed but agrees to render services to the employer for some time.

After the contract, the employer pays him/her for the job, and that’s it.

The employee in a business relationship is simply an independent contractor.

But in the case of an employer-employee agreement, the employer mostly has the right over the employee during the specified hours of work.

He also pays him every month and not per contract.

Characteristics of the employer-employee relationship


  • Controls the work processes and timing
  • Sets quantity and quality standards
  • Supplies all the tools necessary to execute the job
  • Set disciplinary measures and carry out disciplinary actions
  • Prepare job description, performance reports or performance evaluations
  • Control the payment processes


  • Abides by the guidelines of the employer
  • Executes the job personally without delegating it
  • Devote his/her time to the job during the agreed working hours

Advantages and disadvantages of the employer-employee relationship:

There are many reasons to develop a cordial employer-employee relationship in an organization.

According to our findings, when the employers and their employees see eye-to-eye, the company grows faster than expected.

Other advantages include:

Produces loyal employees

A cordial employer-employee relationship leads to loyalty.

When the employees are loyal to their employers, they tend to stick around for as long as the journey lasts.

Not only will they work hard for the success of the company, but they’ll also defend the company image whenever necessary.

We all know that employee turnover is not suitable for any company.

The cost is usually higher than the price of creating lasting relationships.

If a company keep losing their talented workers due to conflicts in the workplace, they’ll eventually fade away.

That’s why employers should do all it takes to make their employees comfortable and freer around them.

That way, their employees will be loyal and put in their best.

Increases overall productivity

When employers and their workers’ rapport in the workplace, the job becomes more interesting, simpler, and motivating.

Every employee will love to work with a boss who’s encouraging, cheerful, friendly, and understanding.

No one wants to work with a tyrant, slave driver, or unappreciative boss.

No matter the job description, people tend to give their best when they acknowledge their efforts.

That’s why a cordial employer-employee relationship is a must-have for every growth-oriented employer.

It boosts the morale of the workers and increases their happiness.

Instead of feeling sad when they remember that they need to go to work, they’ll leave their homes enthusiastically for the day’s challenge.

In such a work environment, employers achieve more results, boost revenue, and reduce costs.

Reduce workplace conflicts

Workplace conflict can be terrible.

It distracts the parties involved and affects the overall productivity of the organization.

That’s why it’s important to develop a cordial employer-employee relationship.

It helps to bring calm and peace in the workplace, thereby leading to more productivity.

Any employee who likes his/her boss will always want to put more effort into recognition.

If employees love to be around their employers, there’ll be no conflict in the workplace.

When there’s conflict, everybody forgets the main goals and objectives of the company and concentrate on conflict resolution.

That’s why employers need to get along with their employees to protect the interest of the company.

Increases the ease of work assignments

A cordial employer-employee relationship makes it easier to assign tasks easily and accurately.

What does this mean?

If an employer has a good relationship with the employees, he/she identifies their strengths and weaknesses.

That way, it will be easier for them to assign tasks to the right persons to execute them properly.

If the employers don’t understand their employees, they may not know the key areas where each person performs optimally.

When employees are doing what they know best in the workplace, they’ll be happy and work harder to achieve it.

Helps employers to Identify problems faster

Many employers sometimes discover lapses in their business later than expected because no one shared their concerns with them.

If the employees are not comfortable around their boss, they find it difficult to tell him/her about issues they’re experiencing in the workplace.

The employer may not know that something is wrong until it’s too late to do anything.

That’s why a company shouldn’t ignore the need for a cordial employer-employee relationship.

When it exists, the employee can boldly work up to the boss and share their concerns with him/her.

That way, employers can be on top of their games when it comes to solving problems that may hamper the growth of the organization.

Increases employee retention

It is best to retain talented hands than to lose them to competitors.

When the employees love the environment of their jobs and the relationship they have with their boss, they tend to stick to the company no matter what.

Business organizations can channel the money they spend on recruitment and training towards growth and expansion activities.


Building a cordial employer-employee relationship in the workplace is a great idea.

But there may be some downside to it unless there are formal structures on the ground.

Some of the disadvantages include:

It may lead to poor conduct

Many people find it difficult to maintain their boundaries when given free rein.

That’s why there must be some official boundaries when developing employer-employee relationships in a business organization.

If not, employers and employees may forget the acceptable workplace conduct and develop loose attitudes that may put the business at risk of failure.

Lack of discipline

If the employer-employee relationship is not balanced correctly, it may lead to indiscipline.

More so, if management and employees become too personally involved with one another, it will be difficult for the employees to adhere strictly to instructions.

Also, it may become difficult for employers to carry out disciplinary actions against their employees.

Issues of favoritisms

If there must be a cordial employer-employee relationship in a business environment, it should be a culture that involves everybody.

If there’s an indication that some people are left out, the issue of favoritism may arise.

Some workers may be bitter and biased against the organization.

Ethical responsibilities in the employer-employee relationship:

In an employer-employee relationship, each party has responsibilities towards the other party.

It doesn’t end in making the workplace friendlier or giving room for open communication.

Both the employers and the employees are expected to protect the interest of one another in the relationship. “

As such, an employer is:

Watch out for the employees’ welfare.

Employers are morally obligated to make sure that the well-being of their employees is in their plans.

We know that good working conditions and fair salary structure is part of it, but it doesn’t cut it.

Employee welfare cuts across, benefits, insurance, holidays, bonuses, healthcare, protection against workplace hazards, etc. it also involves termination processes and layoff packages.

Employers should treat their employees fairly and respectfully.

In a cordial relation between employers and employees, there should be respect and fairness.

Employers shouldn’t abuse their powers when dealing with their subordinates.

It’s not right to maltreat a worker because you’re paying him/her.

Also, employers should know the importance of recognition and promotion to the employees.

It is unfair to deny the employees of such opportunities due to personal feelings or opinions.

Also, employers should recognize that their workers are not zombies without opinions and feelings.

They owe it to them to respect them as human beings who are there to help push the business forward.

The employees are also expected to carry out their responsibilities towards their employers.

It doesn’t end in executing their day’s job or completing their tasks every day.

Some employees sometimes do not care about the business.

All they do is to focus on their task alone and wait for their paycheck.

But in a cordial employer-employee relationship, the workers have other moral obligations towards the employers.

They are expected to:

Be trustworthy.

Some employees are not trustworthy.

They pretend to support the organization but do everything to sabotage it.

It is not right for an employee to disclose company secrets to competitors no matter the price.

Employees are morally obligated to protect the interest of their employees even when no one is looking.

Use their time efficiently.

Employees are expected to use official hours efficiently and not wastefully.

It is also unethical for employees to pursue their interests during working hours.

Many workers do this, and it’s not right.

Be reliable.

Companies spend a lot of money recruiting and training their workers.

It’s therefore important for the employees to recognize that dumping their duties without proper notice can cause losses to their employers.

So, it is expected that they give adequate notice to their employers when they want to leave the organization instead of running away as most people do.

How to prove an employer-employee relationship?

No one expects trouble in the workplace.

But it sometimes arises because a trust relationship broken between employer and employee may necessitate the intervention of the law to settle.

That’s why before you can prove the existence of an employer-employee relationship, you’ll need to present the following to the intervening authorities.

Employment letter/agreement

This is a document that states the terms of the relationship when it comes to hours of work, salary structure, benefits, etc.

It is proof that an employer and employee relationship exists between the parties involved.

Service contract

This document has to do with contract agreements for a specific project.

It states the work scope, the level of the employer’s control, and the time duration of the relationship.

Compensation package

In some countries, employees pay unemployment taxes and insurance from their salary or commission to prove that an employer-employee relationship exists.

Such cases arise when there’s no service contract or employment agreement.

Final Words

The importance of a cordial employer-employee relationship cannot be overemphasized.

It contributes to the growth of business organizations because if the employees are happy at work, the organization grows.

They put in their best to move to achieve organizational goals and make their bosses proud.

The employer-employee relationship is mutually beneficial to both parties.

The employer benefits from this relationship because he/she will feel a sense of fulfillment when the organization grows.

Also, the business saves money from low employee turnover.

On the other hand, the employees enjoy a peaceful and harmonious work environment that allows them to grow.

Also, they can be sure of their fair pay, bonuses, promotions, and other welfare packages.

Since all the parties in this relationship have more to gain and little to lose, it’s therefore important for every organization to ensure that it exists.

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