15 Employee Relations Examples HR Teams Must Handle (2025)

According to a 2024 Gallup report, only 23% of employees worldwide feel engaged at work, and unresolved workplace issues are a major contributor to that number. Poor communication, inconsistent policy enforcement, and a lack of trust in leadership can quickly escalate from minor frustrations to serious problems. For HR teams and business leaders, understanding and addressing employee relations issues isn’t just about compliance — it’s essential for retention, morale, and organisational health.

In this guide, we break down 15 real-world employee relations examples, covering everything from interpersonal conflict to policy violations and culture misalignment. Each example includes a clear scenario and practical solution to help HR teams take proactive, consistent action. Whether you’re handling a case of workplace bullying or a toxic leadership pattern, this article offers concrete approaches supported by best practices, internal feedback tools like HeartCount, and research-backed strategies.

What Are Employee Relations Issues and Why They Matter to HR and Business Leaders?

Employee relations issues are workplace challenges that affect the relationship between employees or between staff and management. These include conflict, misconduct, disengagement, or violations of company policy. Left unchecked, they can harm morale, reduce productivity, and increase legal and reputational risks.

For HR and leadership, addressing these issues early is key to maintaining a healthy work culture. According to SHRM, strong employee relations correlate with higher engagement and lower turnover.

In hybrid and remote environments, real-time visibility is harder to achieve. Tools like HeartCount use weekly pulse surveys to surface early warning signs, helping leaders act before problems escalate. For a full breakdown, HeartCount’s employee relations guide is a useful resource.

15 Employee Relations Examples with Solutions

Below are real-world employee relations examples, grouped by theme and explained through real scenarios and practical solutions. These employee relations issues often arise in organisations of all sizes and, if handled early, can strengthen culture, trust, and performance.

Interpersonal Conflict & Misconduct

Here you’ll find examples of employee relations having to do with interpersonal conflict and misconduct management.g

1. Harassment Between Employees

Harassment can quickly erode trust and safety in the workplace.

Example: A marketing associate reports that a colleague repeatedly makes inappropriate comments during calls.
Solution: HR should initiate a confidential investigation, reinforce anti-harassment policy, and ensure support for the affected employee. Tools like HeartCount can help surface these issues early through sentiment analysis and anonymous surveys.

2. Workplace Bullying

Unchecked bullying often leads to decreased morale and silent resignations.

Example: A team lead constantly belittles a junior employee in public Slack channels.
Solution: Conduct interviews with involved parties, document everything, and take action. Promote workplace transparency and respectful communication across teams.

3. Persistent Disrespect or Microaggressions

Repeated small slights — even if unintentional — can damage employee experience.

Example: A female engineer is routinely interrupted during meetings while her suggestions are dismissed until repeated by male colleagues.
Solution: Offer bias and DEI training to all staff and ensure managers are equipped to intervene early.

4. Favouritism or Unequal Treatment

Perceived favouritism can breed resentment and disengagement.

Example: One employee is regularly chosen for training and promotions, despite others performing at the same level.
Solution: Analyse trends through employee satisfaction surveys to identify perceived bias, and encourage transparent, performance-based recognition criteria.

5. Verbal Conflicts Between Team Members

Personality clashes can escalate without clear resolution channels.

Example: Two project managers repeatedly argue during cross-functional meetings, affecting team morale.
Solution: Facilitate a mediated conversation to reset communication norms. Set expectations for collaborative behaviour and involve HR if conflict continues.

Performance & Accountability Issues

Examples of employee relations issues and solutions don’t stop at performance and accountability issues. Let’s check them out.

6. Chronic Absenteeism

Ongoing absences without explanation can put pressure on other team members.

Example: An employee frequently calls in sick on Mondays and Fridays without medical documentation.
Solution: Address the issue in a private meeting to uncover root causes. Use our tool to track disengagement or burnout patterns over time.

7. Repeated Tardiness

Lateness, while often minor, can disrupt workflows if habitual.

Example: A support agent is consistently 20–30 minutes late to morning shifts.
Solution: Document incidents, discuss expectations, and explore flexible scheduling if personal constraints are contributing.

8. Unmet Performance Goals

When goals are repeatedly missed, it can signal unclear expectations or lack of support.

Example: A salesperson fails to hit quarterly targets three times in a row.
Solution: Revisit goal setting, offer skill-based coaching, and provide clear performance metrics. Use structured feedback frameworks to reinforce progress.

9. Failure to Respond to Feedback

Some employees resist coaching, which can frustrate teams and managers.

Example: A designer continues missing deadlines even after feedback sessions.
Solution: Escalate to a performance improvement plan and tie next steps to actionable outcomes with regular follow-ups.

10. Low Productivity or Work Avoidance

Disengaged employees may quietly withdraw from responsibilities.

Example: A content writer completes only the bare minimum and avoids collaboration.
Solution: Assess for burnout using tools like HeartCount’s burnout guide. Consider role clarity or re-engagement strategies.

Policy & Compliance Violations

These labour relations examples highlight common policy and compliance violations that can compromise trust, data security, and team equity if not addressed with clear protocols and consistent enforcement.

11. Inappropriate Use of Company Resources

Personal misuse of tools or time can signal deeper disengagement or entitlement.

Example: An employee is caught streaming TV shows at their desk during work hours.
Solution: Reiterate tech and conduct policies. Apply proportionate disciplinary action if behaviour continues.

12. Unauthorized Overtime or Time Theft

Time tracking violations can affect budgets and team equity.

Example: An employee logs overtime without approval or inflates timesheets.
Solution: Use clear systems for time logging. Managers should communicate expectations about hours and overtime explicitly.

13. Misuse of Confidential Information

Sharing sensitive information — intentionally or not — can lead to serious consequences.

Example: A staff member forwards client data to a personal email for “work from home convenience.”
Solution: Review compliance protocols, reinforce confidentiality during training, and escalate to IT or legal if needed.

Organisational Tensions & Culture Misalignment

These employee relations scenarios show how cultural misalignment and toxic leadership can erode engagement and retention if left unaddressed by HR.

14. Resistance to Company Values

Cultural misalignment can undermine broader engagement efforts.

Example: An employee openly criticises DEI initiatives, discouraging team participation.
Solution: Revisit onboarding around core values and offer coaching or alignment support. If the issue persists, consider whether continued employment fits the company culture.

15. Toxic Leadership or Management Style

Poor management is one of the most cited reasons for employee turnover.

Example: A manager uses sarcasm and public criticism as motivational tactics, leading to two resignations.
Solution: Use tools like HeartCount’s engagement and retention analytics to identify problem areas. Offer leadership coaching, or replace management where necessary.

How to Handle Employee Relations Issues Proactively

Proactive handling of employee relations issues is what separates responsive HR teams from reactive ones. Instead of waiting for problems to escalate, companies can adopt preventive strategies, foster open communication, and implement tools that surface concerns early. This section breaks down how to build a system that catches and resolves issues before they affect morale or productivity.

Why Early Detection Beats Escalation

Many employee relations scenarios—from burnout to interpersonal conflict—start small. A passive-aggressive comment, missed deadline, or skipped one-on-one might seem insignificant on its own. But when left unchecked, these micro-signals often snowball into formal complaints, team breakdowns, or even resignations.

Studies from the CIPD show that addressing issues informally and early not only prevents escalation but also maintains trust between employees and HR. By identifying red flags before they harden into patterns, leaders can respond with coaching, support, or clarification—not just discipline.

How HR Can Build a Culture of Openness

Openness doesn’t happen by accident. HR must deliberately create psychological safety where employees feel encouraged to share feedback without fear of retaliation. This means:

Training managers to respond constructively to concerns
Creating confidential feedback channels
Leading by example with transparent communication
Acting on feedback visibly and promptly

One powerful tactic is follow-up. When employees raise an issue and never hear back, they’re less likely to speak up again. Closing the loop builds credibility and demonstrates that employee voices matter.

Tools That Support Real-Time Sentiment Tracking

Technology plays a critical role in surfacing issues early—especially in hybrid or distributed workplaces. Platforms like HeartCount offer automated weekly surveys that measure how employees feel, what’s blocking them, and what needs attention.

Using HeartCount’s tools, HR teams can:

Track sentiment trends across departments
Identify signs of disengagement or burnout
Compare leadership impact through real-time feedback
Respond to concerns before they become formal complaints

To see how these tools fit into broader engagement strategies, explore HeartCount’s insights on driving employee engagement.

Framework: Classifying and Prioritising Employee Relations Issues

A structured framework helps HR teams handle employee relations issues with consistency and confidence. According to a 2023 report by Gartner, 59% of HR leaders say their organisations struggle with prioritising employee relations cases effectively—often overreacting to minor issues or underestimating systemic risks.

To avoid reactive, inconsistent responses, HR professionals need a clear method for classifying concerns based on impact and recurrence. Whether you’re dealing with interpersonal conflict or a compliance breach, having a scalable decision-making model supports fairer outcomes and reduces legal exposure.

This section outlines a Severity vs Frequency matrix, escalation tiers, and how to tie feedback directly to policy — offering a practical lens through which to approach real-world employee relations scenarios.

Severity vs Frequency Matrix

One of the most effective ways to assess an issue is to map it using a Severity vs Frequency Matrix. This visual tool helps determine priority based on two questions:

How severe is the impact? (Legal risk, emotional harm, operational disruption)
How frequently does it occur? (One-time, recurring, systemic)

	Low Frequency	High Frequency
Low Severity	Track informally or coach	Address patterns via manager coaching
High Severity	Investigate immediately	Escalate to formal intervention or legal review

For example:

A one-time passive-aggressive email = low severity, low frequency → manager coaching
Repeated harassment = high severity, high frequency → escalate to HR leadership

This model empowers HR to respond proportionately, avoiding both under- and overreaction.

HR Escalation Tiers: When to Document, When to Act

To keep consistency across the organisation, it’s helpful to define escalation tiers:

Tier 1 – Informal Coaching: First-time behaviour, low risk. Action: manager-led feedback.
Tier 2 – Document and Monitor: Recurring issues or moderate policy breaches. Action: written warnings, performance plans.
Tier 3 – Formal HR Involvement: High-risk or high-impact behaviour. Action: investigation, formal action.
Tier 4 – Legal/Compliance Escalation: Potential violations of law, discrimination, harassment. Action: legal counsel, regulatory documentation.

This approach ensures that every employee relations example—from low productivity to toxic leadership—is treated with the right level of urgency.

Integrating Feedback with Policy Enforcement

To manage employee relations fairly, feedback must be tied directly to policy. Vague responses create confusion and weaken credibility. HR should:

Align all actions with clearly communicated policies
Reference handbooks or codes of conduct when providing feedback
Use employee satisfaction surveys and burnout diagnostics to gather evidence before taking formal steps

Most importantly, policy enforcement should feel consistent, not punitive. When employees understand the “why” behind decisions, trust and cooperation improve—even in difficult conversations.

Best Practices for Managing Employee Relations in 2025

As workplace dynamics shift—with hybrid teams, increased transparency, and rising expectations around well-being—HR must evolve its approach to managing employee relations issues. According to the Chartered Institute of Personnel and Development (CIPD), modern employee relations strategies must focus on fairness, communication, and trust-building—not just compliance.

These best practices reflect what forward-thinking HR teams are doing in 2025 to handle both emerging and persistent employee relations scenarios.

Training Frontline Managers

Many examples of employee relations issues and solutions start—and end—with managers. But without proper training, even well-meaning leaders can mishandle conflicts, miss early signs of disengagement, or apply policies inconsistently.

Equip managers with:

Training on emotional intelligence and conflict resolution
Practical guides for documentation and early intervention
Access to real-time employee insights via platforms like HeartCount

Empowered managers act faster and with more clarity, reducing the need for formal escalation.

Confidential Reporting Systems

Employees are far more likely to report concerns when there’s a safe and anonymous channel to do so. Implementing confidential reporting—whether digital or physical—can surface hidden issues before they grow.

Make sure these systems are:

Easy to access and use
Actively monitored and followed up
Communicated clearly during onboarding and team meetings

You can further support this with sentiment-tracking tools like HeartCount’s pulse surveys to capture concerns that employees might hesitate to share aloud.

Closing the Loop After Resolution

One of the most common complaints employees have about HR is the lack of follow-up after raising a concern. Whether the issue is minor or serious, closure matters.

Best-in-class HR teams:

Communicate outcomes (within confidentiality limits)
Share what’s changing as a result
Thank employees for their feedback and courage

Even when the resolution isn’t perfect, showing responsiveness improves trust.

FAQ: Employee Relations Explained

What is an example of employee relations?

A common employee relations example is a conflict between two team members that disrupts collaboration. For instance, if repeated disagreements in meetings begin to affect morale or project timelines, HR may need to intervene with mediation or conflict resolution support. Other examples include absenteeism, harassment, or policy violations that require clear procedures and follow-up.

What do you mean by employee relations?

Employee relations refers to the ongoing relationship between employees and their employers, including how companies handle conflicts, communication, performance issues, and employee engagement. It encompasses both day-to-day interactions and formal HR processes designed to ensure fairness, accountability, and alignment with company culture.

What are the four pillars of employee relations?

The four widely recognised pillars of employee relations are trust and communication, fair treatment, conflict resolution, and employee engagement. Trust and communication involve fostering openness and honesty across teams, ensuring that employees feel heard and respected. Fair treatment means applying rules and expectations consistently, regardless of role or tenure. Conflict resolution refers to the prompt and constructive handling of disputes before they escalate, while employee engagement focuses on keeping individuals aligned with company goals and values.

What is the HR activity of employee relations?

HR’s role in employee relations includes managing workplace concerns, enforcing policies, coaching managers, documenting incidents, and proactively engaging employees. Activities range from handling labour relations examples—such as compliance disputes or unfair treatment—to promoting transparency and trust through surveys, feedback tools, and culture initiatives.

How should HR handle common employee relations issues?

HR should respond to employee relations issues by first assessing severity and frequency, documenting incidents, and choosing the appropriate resolution path—whether informal coaching or formal investigation. Using tools like HeartCount can help detect early signs of disengagement or dissatisfaction through real-time feedback, enabling faster, more informed responses.

Can feedback tools help prevent employee relations problems?

Yes, regular feedback tools are essential for preventing problems from escalating. Platforms like HeartCount enable organisations to track employee sentiment, address frustrations early, and improve communication between employees and leadership. This proactive approach helps resolve potential employee relations scenarios before they become formal HR cases.