Employee Relationship Management (ERM) through Information System


Employee relationship management is management of relationship between employees and employers. It is made up of initiatives which improve employee morale and loyalty towards the company. Employee relationship management approach looks to maintain effective relationship through three way approach of continuous communication, conflict resolution and employee development.

Importance of Employee Relationship Management

Employee is crucial and critical for overall progress of an organization. Employer-employee is very complicated association and at times strenuous to manage.

Employee relationship management is much difficult compared to customer relationship management. For example, if the customer is not satisfied with the association with a given company, they can move on to another company. However, if the employee is unhappy with an employer, there are possibilities that he will continue his association with company. However, this employee-employer relationship will not be fruitful and convenient for both the parties.

If employee and employer are in cordial relationship and then overall efficiency and competitiveness of the company will improve.

An improvement in relation can result in employee with high morale, which will increase his/her or her loyalty towards the company. If there is an increase in the loyalty employee turnaround is possible and corresponding communication can be established.

Information System and Employee Relationship Management

In the last decade or so information systems have changed the face how business gets conducted. Information systems are actively used to improve productivity of organization. In employee relationship management also information systems are actively used.

Following is example information system’s usage in employee relationship management:

  • The current payroll systems are linked with an information system which ensures that employee are getting timely as well as accurate salary.

  • Online learning and development tools can easily be managed by employees.

  • Information systems facilitate leave, tax, and insurance management of employees.

  • Performance appraisal and individual development management are done online with help information systems.

  • Employees are aware of the latest development within the organization through access to Company’s blog and news board.

  • Executive management of the company can communicate directly to staff through email.

  • Online staff meeting brings together employees from all parts of the world.

Employee Relation Life Cycle

Employee relation life cycle starts as soon as talent is shortlisted for an interview. Post hiring process employee undergoes training to become a full time contributing team member. Over time with involvement in projects and various other association employees is considered as a family member. Finally, employee reaches the stage of the brand.

Factors Influencing Employee-Employer Relation

There are several factors, which drive employee employer relation. The correct management of this factor creates long-term and fruitful association for an employee as well as the employer. For example; compensation, work culture and environment, rewards-recognition, etc.

Every organization has its own work culture and environment. Any job within organization requires a certain skill-set. Human resource team along with hiring manager scout for talent and hire an employee. Companies invest time and resources for training employee. This training in turn enables an employee to excel and help the company meet its business objective. For this whole process to reach the desired end, it is essential healthy employee-employer relationship is maintained. Information systems contribute a lot to this success.

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Management Information System