An employer-employee relationship is both a financial and a social contract. All employers rely on the skills and endeavour of their employees, who are prepared to give up their time and energy in order that they can earn a living. Effective employer/employee relationships are those which are based upon both the spirit as well as the letter of the employment contract.
Successful businesses understand that being a good employer does not cost any money, which means that you can be a good employer during difficult economic times as well as in a boom. In fact, being a good employer saves money because it reduces ‘churn’ and avoids the need to replace people, which wastes time and money.