Employee relations refers to the relationship between an employer and their employees. In many cases this refers to the individual relationship between a manager and their team member/s, as they will be responsible for monitoring performance, resolving conflict, and supporting them on a daily basis. How this is handled will form the basis of the relationship. Building and maintaining positive employee relations is key to running a successful business. Where the relationship between staff members and managers/owners is strong, employees will be more inclined to work hard and be loyal, and this will ultimately create more productive employees.