Importance of Human Relations in Business

Written by: Lea Serrato 

A happy worker is a productive worker. A business relies on the productivity of its employees and that is where human relations comes into play. Human relations according to Cambridge Dictionaries Online, is the relationships between groups of people, especially between different workers in an organization or business.

Workplace relations directly affect work performance. Employees must regularly work together to get things done. An unstable workplace culture will give rise to challenges in managing employees and in your company’s end product. Aside from that, problems will arise from miscommunication or bad interaction between co-workers. An employee who doesn’t get along with his co-workers is more likely to avoid going to work, produce less, and his work quality suffers. Businesses with appealing workplaces will acquire qualified employees, and encourage customer loyalty.

So what’s the importance of human relations in business? Establishing a good working environment is good for business since it will produce:

Motivated and Productive Workers

Money isn’t everything. The quality and character of human relations at a workplace impacts how an employee views his job and interacts with his co-workers. Employee motivation is important in maintaining and/or increasing productivity. An employee, who is interested in his work and is concerned about the well-being of his co-workers tend to be more productive. This productivity is good for business since more work is done in less time. Giving recognition to an employee’s hard work and showing concern for their needs goes a long way to motivating them more.


Improved Employee Retention

High employee retention is financially good for businesses. Turnover is costly. New employees require a considerable investment of time and effort in their recruitment and training. Aside from that, terminating employees can be difficult especially if the conditions are not amicable.

Keeping employees involved and interested in the business requires compassion, patience, and flexibility but keep in mind, that all of it is for the good of the business. Employees are more likely to stay in a company that offers opportunities to learn and advance, and bond with their co-workers. If they feel as though the management understands them, employees will feel comfortable addressing future problems.


Healthy Relationships

Managements’ attitude, the general feel at a company, and social groups formed – all of them directly affect employee performance. When co-workers can’t relate with one another, friction and uneasiness are formed which are not good for business since these affect how they communicate with one another. Creating a good environment between co-workers solves these problems; communication flows more freely, and everyone feels united and connected.

Mutual Support

Being able to connect with one another will build mutual support among co-workers. When they feel as though they are working together, they would be more likely to fix problems on their own. Rather than making mistakes, they would ask for help or advice from one another, promoting positive attitudes. Without good workplace relationships, employees would remain stagnant and business would not flourish.

If you’re a business owner who employ people who work with you, keep these things in mind. Invest on your people and never take them for granted.