When you think of networking, you probably think about industry events, LinkedIn connections, or coffee meetings, right? But what about the bonds we form in the workplace? Internal networking, or employee relationship management (ERM), is just as important for professional success as external networking. Many individuals underestimate the value of developing outstanding connections with their coworkers, managers, and leaders, which means they’re missing out on significant mentorship, collaboration, and career growth opportunities.
A well-connected workforce is beneficial to both employees and the company as a whole. Internal networking fosters a supportive atmosphere where employees can thrive, which also means increased engagement, productivity, and retention! Let’s take a look at the necessity of employee relationship management, the benefits, and some practical approaches to improve internal connections.
What is employee relationship management (ERM)?
Employee relationship management means cultivating positive relationships among employees, managers, and teams in a business. This includes strategies and practices to improve workplace collaboration, communication, and overall employee satisfaction. ERM is critical for building a positive workplace culture, ensuring that employees feel appreciated and supported in their tasks, and subsequently lowering turnover.
Why employee relationship management matters
ERM directly affects an organization's culture, productivity, and overall success. If you can foster strong, positive relationships between employees and management, you’ll end up with a workplace environment in which people feel appreciated, heard, and supported. This, in turn, increases morale, engagement, and job happiness, which enhances productivity and innovation.
1. Boost morale
A healthy workplace culture begins with strong internal relationships — something that works directly with strategies like strong onboarding and upskilling opportunities. Employees who feel linked to their coworkers and leadership express increased job satisfaction and motivation. For example, a company that routinely honors employee achievements (while working with their team’s communication styles) and offers opportunities for feedback (such as Google's "TGIF" meetings) will find increased employee happiness and motivation.
2. Increase engagement
Facts are facts: employees who are engaged at work are more productive and committed to their tasks. When your team is able to establish meaningful relationships within their company, they acquire a deeper sense of belonging and purpose. For a great example, look at Salesforce's emphasis on open communication and employee well-being. Programs such as mindfulness zones and regular check-ins have resulted in a highly engaged workforce, which consistently sees Salesforce named as one of the greatest places to work.
3. Encourage internal growth
A workplace that encourages internal networking and mentorship lays the road for employee growth and advancement. IBM's internal talent marketplace is an excellent example, as it allows employees to explore various positions and initiatives within the company, promoting growth and lowering turnover.
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4. Strengthen collaboration & cross-departmental workflows
Effective departmental collaboration also promotes problem-solving and innovation! When employees form strong relationships across teams, they can interact more effectively and share knowledge, resulting in smoother procedures and better outputs. Companies like Slack, for example, use ERM techniques to promote cross-departmental initiatives and open communication, leading to more efficient processes and innovative solutions across the entire company.
5. Help employees find mentorship & support
Mentorship is essential for career growth, and ERM helps employees gain the direction they require to thrive. Whether through structured mentorship programs or spontaneous relationships, having access to experienced colleagues gives employees advice, support, and career insights that help them improve professionally. Deloitte's mentorship programs consciously connect junior employees with senior leaders, who can offer guidance, career advice, and a sense of belonging that benefits both personal and professional development.
6. Boost retention
Strong internal relationships encourage employee retention by instilling a sense of belonging and community. Employees who feel connected to their coworkers and workplace are more likely to stay with the company for the long term. Companies like Netflix that value employee autonomy, recognition, and work-life balance have much lower turnover rates than the industry average.
Read this next: 5 reasons why employee retention is important
How to build stronger internal relationships
By now you’re probably thinking that employee relationship management is pretty great, but how do you go about building that into your work culture? It’s simpler than you think; establishing stronger internal relationships begins with encouraging open communication and generating opportunities for collaboration.
1. Schedule regular 1:1 meetings between employees and their managers
Regular one-on-one meetings provide a dedicated area for employees to address, among other things, their challenges and career goals with their managers which in turn builds trust and alignment. To make these meetings more effective, try adopting tools like CultureAmp to frame discussions and help employees manage their agendas, ensuring that the chat remains focused and productive. Regularly exchanging feedback at these meetings ensures that employees feel acknowledged and encouraged, while also giving management some actionable insights. Most importantly, create a comfortable environment in which employees may express their problems, ideas, or comments without fear of being judged. This strategy not only improves the manager-employee relationship, but it additionally facilitates engagement and growth.
To facilitate a safe space, you can ask a few questions, like:
- What skills do you want to acquire during the next six months?
- How can I better assist you?
- What challenges are you currently encountering, and how can we work them out together?
- What are your long-term career goals, and how can we connect them with your current role?
According to our What Talent Wants report, 91% of professionals want additional upskilling options, indicating a growing need for career development chances. Managers who prioritize career development can help employees figure out the skills they need to grow. Engaging in regular goal-setting discussions and providing the resources to upskill enables staff to improve both professionally and emotionally. This not only boosts employee happiness and retention, but it also means that the organization's personnel is skilled and future-ready! Investing in upskilling shows a commitment to staff development, establishing a culture of learning and innovation that benefits everyone.
2. Create opportunities for organic networking
Providing opportunities for organic (internal!) networking is critical to building true connections and collaboration inside a company. Hosting virtual and in-person events can help employees form contacts in a calm and/or fun and engaging setting. Employees can talk and meet with several colleagues during speed networking meetings, and team lunches or coffee discussions can promote more relaxed, meaningful connections. Cross-functional meetings, in which staff from many departments collaborate to exchange ideas, drive innovation and break down silos. By giving these planned (yet informal) opportunities, companies may foster a culture of connection and collaboration that benefits both employees and the company as a whole.
Read this next: 15 employee engagement ideas for 2025
3. Encourage employees to expand their internal network
Employees should also feel empowered to take the initiative to grow their internal network by actively participating in various teams and initiatives within the company. This not only enables them to form important relationships, but it also promotes collaboration, ingenuity, and a feeling of belonging. Attending company-wide meetings or interest groups is one approach to foster this initiative, since they allow the opportunity to network with colleagues outside of their immediate team and learn about initiatives or ideas happening around the organization. Another useful strategy is to join Employee Resource Groups (ERGs) where available so employees can meet individuals with similar backgrounds, hobbies, or goals — forming a supportive community in the workplace.
Furthermore, participating in Slack/Microsoft Teams/etc. discussions outside of their department can help employees connect with a larger network of coworkers, exchange ideas, and remain up to date on cross-functional activities. For example, contributing to an industry trends channel or volunteering for a company-wide project can lead to new connections and opportunities. By adopting these proactive attempts, employees can increase their impact, obtain new perspectives, and add to a more connected and constructive workplace culture. Finally, developing a strong internal network facilitates not only individual career development, but also helps grow the organization as a whole by breaking down silos and cultivating knowledge exchange.
4. Implement an internal buddy or mentorship program
As we mentioned earlier, an internal mentorship program is an effective tool for assisting new and existing employees in seeking guidance, career support, and professional development opportunities. Organizations can promote information exchange, skill development, and deeper professional connections by assigning employees to mentors or office colleagues. Mentors offer vital insights, counsel, and encouragement to mentees as they manage challenges and achieve their professional goals. This structured support system not only stimulates professional development, but it also promotes a sense of belonging and engagement.
Mentorship programs can also encourage cross-generational and cross-departmental collaboration, breaking down barriers and nurturing a culture of learning and mutual support. Mentors benefit from the experience as well! Programs like these improve leadership skills and strengthen knowledge. Finally, an internal mentorship program results in a win-win situation for both individuals and the company by developing a better-connected, skilled, and motivated workforce. The mentor doesn’t need to be a senior-level employee, either! Sometimes just a buddy who’s been at the company longer is plenty of experience to get the process started.
Ready to start fostering internal networking?
Employee relationship management is a critical component of employee retention and business success. Employees who feel connected to their coworkers and bosses are more engaged, productive, and satisfied with their jobs. Companies can create a workplace culture that values connection and growth by encouraging internal networking, organizing regular one-on-one meetings, providing mentorship opportunities, and encouraging cross-departmental collaboration.
A well-executed ERM plan benefits both employees and the organization as a whole, which means higher retention, increased productivity, and a greater cohesive work environment. Investing in employee relationships is more than simply a benefit; it’s essential for developing a vibrant, engaged workforce!
