Managing Relationships at Work: Best Practices

As most of us spend more waking hours at work than we do at home, the importance of maintaining positive working relationships, and minimising interpersonal conflict, cannot be underestimated. This is often the key to a happy, productive and collaborative workforce.

Managing relationships at work involves nurturing positive interactions among colleagues while addressing the challenges that personal and professional connections can bring to the workplace. Healthy relationships promote collaboration, productivity, and a supportive environment. However, when not managed effectively, they can lead to conflicts, disruptions, or even legal risks for employers.

Workplace relationships can take many forms, from friendships and mentorships to romantic or familial connections. Employers must ensure that personal relationships do not lead to favouritism, conflicts of interest, or breaches of company policies. Establishing clear guidelines on acceptable workplace behaviour and maintaining open communication channels is essential.

Key risks include allegations of bias or discrimination, particularly if decisions such as promotions or dismissals appear to be influenced by personal connections. Romantic relationships, especially those involving a power imbalance, can expose employers to claims of harassment or unfair treatment if the relationship deteriorates.

Below we provide some practical tips for managers and leaders on managing relationships at work, from effective dispute resolution to ways in which workplace conflict can be prevented in the first place —including advice on keeping employees engaged in their work and loyal to your business.

We also provide some guidance on managing close friendships and romantic relationships at work where, given how much time co-workers spend together, developing personal bonds is perfectly natural and commonplace, yet professionalism must still be maintained.

 

Benefits of positive workplace relationships

 

Positive relationship management in the workplace is central to organisational success. Building and maintaining healthy relationships among employees fosters collaboration, improves morale and enhances overall productivity. When individuals feel valued and supported in their interactions, they are more likely to engage fully with their work and contribute to a cohesive team environment.

Strong relationships in the workplace lead to better communication. Employees who trust and respect one another are more likely to share ideas, provide constructive feedback, and address challenges effectively. This open communication reduces misunderstandings and fosters innovation, as diverse perspectives are more readily shared and integrated into decision-making processes.

A workplace characterised by positive relationships is also more resilient. Teams that have established trust and mutual respect are better equipped to handle conflict, adapt to changes, and maintain focus during challenging periods. Such environments reduce stress and foster a sense of belonging, which in turn contributes to lower staff turnover and absenteeism.

 

How to build positive workplace relationships

 

Building positive relationships in the workplace requires intentional effort from both employees and employers. A culture of trust, respect, and open communication is essential for fostering strong connections that enhance collaboration and productivity.

One of the most effective ways to build positive relationships is through clear and consistent communication. Employees and managers should prioritise active listening, ensuring that everyone feels heard and valued. Encouraging open dialogue and providing constructive feedback in a respectful manner can help address misunderstandings and strengthen connections.

Empathy and understanding are key to fostering positive relationships. Taking the time to understand colleagues’ perspectives and recognising their contributions helps create a supportive work environment. Demonstrating kindness and offering help when colleagues face challenges can build rapport and mutual respect.

Creating opportunities for team-building and collaboration is another important strategy. Organising group projects, workshops, or informal activities can help colleagues connect on a personal level and improve teamwork. When employees understand one another’s strengths and working styles, they can collaborate more effectively.

Employers can support relationship-building by establishing a positive workplace culture. Encouraging inclusivity, recognising achievements, and providing training on interpersonal skills can reinforce the importance of healthy workplace relationships. Leaders who model positive behaviours set a strong example for their teams.

Finally, addressing conflicts promptly and fairly is crucial. When issues arise, fostering a solution-focused approach ensures that disagreements do not escalate and relationships remain intact. By investing in these practices, organisations can create an environment where positive relationships thrive, benefiting both employees and the business as a whole.

 

Managing disputes at work

 

Workplace relationships are a foundation for collaboration and productivity, but when they deteriorate, the consequences can be significant. Poorly managed conflicts or strained interactions can lead to misunderstandings, reduced morale, and a decline in team cohesion. In some cases, unresolved issues may escalate into formal disputes, creating a challenging environment for both employees and employers.

Workplace disputes can arise for a whole host of different reasons, from issues directly between the employer and employee, perhaps over pay or working conditions, to professional and/or personal conflict between staff and management, or as between co-workers.

Very often disputes at work can arise between certain individuals as a result of personality clashes, where people can have very different perspectives on how to approach certain tasks, or even how they interact and communicate with each other, depending on their age, sex, background and upbringing. Workplace disputes can also commonly arise from various forms of unfair treatment, including bullying, harassment, discrimination and victimisation.

Regardless of the nature of the workplace dispute, if the matter goes unchecked or is ineptly handled, this can create serious problems for your business, including:

 

• poor employee engagement
• low individual and team morale
• a lack of collaborative and team working
• reduced performance and lost productivity
• poor employee health and wellbeing
• a damaged employer brand
• high rates of absenteeism and staff turnover

 

The aim is therefore to resolve any workplace dispute as quickly and effectively as possible, to minimise the risk of any or all of these problems arising, and to prevent the matter escalating into something much more serious. In some cases, unresolved conflict can lead to the loss of valuable employees. This can also result in costly and time-consuming legal proceedings where, even if an employer is not directly responsible for the root problem, in the eyes of the law they may still be liable if all reasonable steps haven’t been taken to resolve the matter.

For example, if you fail to address allegations of workplace bullying or harassment, and this form of unacceptable conduct continues, this could be classed as a breach of your statutory duty as an employer to ensure the health and wellbeing of your staff. An employee may even feel forced to resign in cases where you’ve failed to resolve serious conflict at work, potentially resulting in a claim for constructive dismissal for breach of the duty of mutual trust and confidence implied into all contracts of employment.

 

What is the best way of dealing with workplace disputes?

 

There is no single or set strategy for dealing with workplace disputes, as much will depend on the nature of the issues, how this has been brought to your attention and the parties involved. More often than not, differences of opinion and minor disagreements will be sorted out without the need for intervention on your part. However, once you’ve been made aware of any ongoing conflict, as the employer, steps must be taken to resolve this.

In some cases, if the matter is relatively minor, you may be able to resolve the issue on an informal basis. However, if this isn’t effective, or where the allegations involved are especially serious in the first instance, you may need to address the matter more formally. Below we briefly examine both options for dealing with workplace disputes:

 

Informal dispute resolution

 

In many instances, conflict and confrontation at work can be dealt with informally. Provided employees feel able to approach their line manager or someone from HR, minor concerns or issues can usually be raised and resolved through a verbal discussion with those involved, without the need for further or more formal intervention. If the matter relates to someone’s line manager, they should be able to discuss their concerns with another member of the management team or an appropriate person within your organisation.

However, even where a problem or complaint is raised informally, this should always be treated seriously to avoid the matter escalating into a formal grievance or tribunal claim. Your staff should feel able to raise any issues without fear of reprisals, or concerns over whether or not any action will be taken. By dealing with all such matters promptly, fairly, objectively and confidentially, this can help to settle differences at an early stage for all affected parties.

You should keep a clear written record of the matters raised and steps taken, including any action plan moving forward. Even where an amicable resolution has been reached, the matter should also be reviewed after a set period of time to ensure the problem is not ongoing.

 

Formal dispute resolution

 

Serious or recurring workplace disputes that cannot be resolved informally may require the use of either a grievance or disciplinary procedure, or both, for example, where a grievance results in a finding of misconduct on the part of another employee. In some cases, you may need to first deal with an employee’s grievance surrounding the source of conflict, taking disciplinary action against anyone responsible for this where there’s a case to answer.

A grievance procedure is a formal way for an employee to raise a problem or complaint to their employer about an issue at work, including problematic relationships with a line manager or co-worker, whilst a disciplinary procedure allows an employer to formally address issues over an individual’s conduct or performance.

As a matter of best practice, your grievance and disciplinary procedures should be set out clearly and comprehensively in writing, making these easily accessible to all members of staff. Typically, these will be located in either an employee handbook or on the staff intranet.

What constitutes a fair procedure will depend on all the circumstances involved, as well as the size of your business and the resources available to you when investigating a grievance or disciplinary issue. The statutory Code of Practice provided by ACAS on disciplinary and grievance procedures sets out the basic requirements of fairness, providing the standard of reasonable behaviour to be applied in most cases.

As a minimum, this means there should always be:

 

• a prompt and thorough investigation into the matters alleged
• a written invitation to a hearing, setting out the individual’s right to be accompanied
• an opportunity for the individual to put their case
• a written explanation of the outcome, without unreasonable delay
• an opportunity to appeal against the outcome
• a record kept of the grievance or disciplinary process, and the decision-making applied

 

 

What is the best way of preventing workplace disputes?

 

When bringing together a number of different people, some with opposing views or just different ways of doing things, workplace disputes are inevitable. However, there are ways in which the potential for conflict, either between management and staff, or as between co-workers, can be reduced. By putting in place some or all of the following practical tips on managing relationships at work, this can help to keep any conflict to a minimum:

 

Foster a positive working environment

 

Where there is trust and mutual respect between management and staff, and as between co-workers, this is likely to minimise the chances of any conflict arising in the first place. A supportive working environment can greatly enhance a person’s experience of work and their overall wellbeing.

 

Implement clear and comprehensive workplace policies

 

These should include policies on equality and diversity, as well as harassment, bullying, discrimination and victimisation. It’s in every employer’s interests to promote a safe, healthy, inclusive and fair environment in which their staff can work and professional relationships can thrive.

 

Organise regular team-building activities and social events

 

In this way you can help to build positive professional relationships and encourage collaborative working. When staff work well together and like each other, conflict is far less likely to arise. This, in turn, often equates to increased performance and productivity.

 

Promote good communication and active listening

 

This applies to all levels of your business, from management through to junior members of staff. Everyone should be encouraged to openly communicate and be transparent. They should also feel confident that their concerns will be heard, treated seriously and appropriate action taken.

 

Demonstrate your appreciation

 

Managing relationships at work is not just about reacting or responding to problems, but proactively showing how much you value your staff. By ensuring that your employees feel recognised for the work that they do, even through just verbal recognition, this can help to create a positive employer-employee relationship.

 

Be open to flexible working arrangements

 

By ensuring that your staff have a healthy work-life balance, where they’re able to fit in personal and family commitments around their working arrangements, this will minimise their individual stress levels. This should not only help to promote a positive employer-employee relationship, but positive working relationships in general, as everyone will feel happier and committed to their work.

 

Provide line managers with training on dealing with workplace conflict

 

As differences of opinion, disagreements and disputes are a fact of everyday working life, having trained managers to address any conflict at the earliest possible opportunity will prevent any issues from escalating into a formal grievance or tribunal claim.

 

Managing and Developing Relationships in Virtual and Remote Teams

 

Fostering strong workplace relationships in virtual and remote teams requires intentional effort and strategies tailored to the unique challenges of distance working. Building trust, promoting collaboration, and maintaining a sense of team cohesion are vital to ensuring remote teams operate effectively and employees feel connected.

 

Establish Clear Communication Channels

 

Effective communication is the foundation of strong remote team relationships. Employers should provide multiple platforms for communication, such as video calls, instant messaging, and project management tools. Establishing norms for regular check-ins, updates, and availability ensures team members remain informed and engaged. Encouraging open and transparent communication helps address misunderstandings and promotes collaboration.

 

Leverage Technology for Connection

 

The right technology can bridge the gap between remote workers. Video conferencing fosters face-to-face interaction, while collaborative tools like shared documents and task boards facilitate teamwork. Employers should provide training on these tools to ensure employees use them effectively. Technology should enhance connection rather than create barriers or overwhelm.

 

Promote Team Building and Social Interaction

 

Remote teams often miss out on organic relationship-building opportunities, such as casual chats or shared lunches. Virtual team-building activities, such as online games, quizzes, or coffee breaks, can help create a sense of camaraderie. Scheduled “social time” can encourage employees to connect on a personal level, strengthening team bonds.

 

Encourage Empathy and Active Listening

 

Remote working can sometimes lead to feelings of isolation or misunderstandings due to lack of physical presence. Encouraging employees to practise empathy and active listening ensures that team members feel heard and supported. Leaders should model these behaviours by actively engaging with their teams and addressing concerns promptly.

 

Set Clear Expectations and Roles

 

Ambiguity in roles and responsibilities can strain relationships in remote teams. Employers should ensure that every team member understands their responsibilities and how their work contributes to shared goals. Clearly defined expectations help prevent miscommunication and build mutual respect.

 

Provide Opportunities for Growth and Recognition

 

Remote employees may feel overlooked if their contributions are not acknowledged. Regular recognition of achievements and offering opportunities for professional development show appreciation and support for team members. Celebrating milestones and successes can foster a sense of inclusion and motivation.

 

Address Conflicts Promptly

 

Conflicts in remote teams can escalate if left unaddressed. Employers should create a safe environment where team members feel comfortable raising issues. When conflicts arise, leaders should mediate promptly and impartially, ensuring all parties are heard and solutions are fair.

 

Support Wellbeing and Work-Life Balance

 

Remote work often blurs the lines between professional and personal life, potentially leading to burnout. Employers should encourage boundaries, such as taking regular breaks and disconnecting after hours. Offering mental health support and promoting a culture of wellbeing can strengthen relationships by showing care for employees’ holistic health.

 

Build a Culture of Trust

 

Trust is essential for remote teams to thrive. Employers should demonstrate trust in their employees by focusing on outcomes rather than micromanaging tasks. Providing autonomy and empowering employees to make decisions fosters mutual respect and strengthens relationships.

 

Lead by Example

 

Leaders play a crucial role in shaping team dynamics. By maintaining open communication, showing empathy, and actively participating in team activities, leaders set the tone for positive relationships. Their approach influences how team members interact and collaborate.

 

What is the best way of managing personal relationships?

 

Having examined the potential for problems arising out of professional relationships at work, we now turn to the more sensitive matter of managing personal relationships, where romantic relationships in particular are often frowned upon by employers and kept secret by staff.

However, contrary to popular belief, those who have a personal relationship at work, whether this be a close friendship or romantic involvement, are actually more likely to be satisfied with their jobs and be much more engaged in their work. Some employers may have concerns that personal relationships can negatively impact an individual’s performance or productivity, but this is often quite the opposite, provided of course the relationship remains amicable. Having a friend or partner at work can make an individual feel supported by someone who understands their working environment and the office dynamics.

The key to effectively managing any personal relationship within the workplace is often not to ban or even frown upon these types of relationships, but simply to encourage staff to maintain a professional front. For example, public displays of affection, or even excluding co-workers because two team workers are best friends, should be discouraged. Given the importance of clear communication, it can often be a good idea to set out your rules and expectations within a workplace policy or employee handbook. In this way, the personal choices your staff make can be treated with respect, whilst setting appropriate boundaries within the workplace.

 

Need assistance?

 

DavidsonMorris’ specialist HR consultants can help with all aspects of workforce management engagement. We provide expert guidance including training and coaching on best practice management approaches to help with handling workplace disputes, maximise performance and minimise legal risk. For help and advice, speak to our experts.

 

Managing relationships at work FAQs

 

Why are workplace relationships important?

Healthy workplace relationships foster collaboration, improve communication, and contribute to a positive and productive work environment.

 

What are common causes of workplace relationship breakdowns?

Breakdowns often occur due to poor communication, unresolved conflicts, perceptions of unfair treatment, or personal issues affecting professional interactions.

 

Can personal relationships at work lead to disputes?

Personal relationships, such as friendships or romantic connections, can create conflicts of interest or perceptions of bias, which may lead to disputes if not managed appropriately.

 

What can employers do to prevent workplace relationship issues?

Employers can establish clear policies on workplace behaviour, provide training on conflict resolution, and encourage open communication to address concerns early.

 

How should conflicts between employees be handled?

Conflicts should be addressed promptly and fairly, with both parties given the opportunity to share their perspectives. Mediation or HR involvement may be necessary in some cases.

 

Are there legal risks associated with relationship breakdowns at work?

Employers may face claims of discrimination, harassment, or unfair treatment if relationship issues are mishandled or perceived as unjust.

 

How can employees improve workplace relationships?

Employees can focus on clear communication, showing empathy, and addressing conflicts constructively to build stronger connections with colleagues.

 

Should employers intervene in personal relationships at work?

Employers should only intervene when personal relationships impact the workplace, such as causing conflicts of interest, breaches of policy, or affecting team dynamics.

 

What role does leadership play in managing workplace relationships?

Leaders set the tone for workplace culture. By modelling respectful behaviour and addressing issues proactively, they can help maintain positive relationships.

 

Can workplace disputes be resolved effectively?

With the right approach, such as mediation, active listening, and a focus on solutions, most workplace disputes can be resolved constructively.

 

Glossary

 

Term	Definition
Workplace Relationships	Interactions and connections between colleagues, including professional, personal, and team-based dynamics.
Conflict Resolution	The process of addressing and resolving disputes or disagreements between employees in a constructive manner.
Mediation	A neutral and voluntary process where a third party helps employees resolve conflicts and improve communication.
Team Cohesion	The degree to which team members work effectively together, sharing trust and common goals.
Workplace Culture	The shared values, behaviours, and practices that define the environment and relationships within an organisation.
Communication Breakdown	A situation where poor communication leads to misunderstandings or conflicts between employees.
Bias	Unfair treatment or favouritism towards certain individuals or groups, often based on personal relationships or prejudice.
Conflict of Interest	A situation where personal or professional relationships compromise an employee’s ability to act impartially.
Harassment	Unwelcome behaviour that creates a hostile or intimidating work environment, which can arise from relationship issues.
Inclusivity	Creating a workplace where everyone feels respected, valued, and able to contribute, regardless of their background or relationships.
Professional Boundaries	The limits that define appropriate interactions and behaviour in the workplace, ensuring respect and focus on work-related matters.
Discrimination	Unfair treatment of individuals based on protected characteristics, such as age, gender, race, or disability, often tied to workplace disputes.
Workplace Policy	Guidelines set by employers to outline acceptable behaviour and processes for managing relationships and disputes.
Leadership Role	The responsibilities of managers and supervisors in setting examples and addressing workplace relationship issues.
Toxic Work Environment	A workplace characterised by negative behaviours, poor communication, and unresolved conflicts that harm employee wellbeing.
Employee Wellbeing	The overall mental, physical, and emotional health of employees, influenced by workplace relationships and culture.
Favouritism	Giving preferential treatment to certain employees based on personal relationships rather than merit.
Open Communication	Encouraging honest and transparent dialogue between employees to build trust and resolve issues effectively.
Protected Characteristics	Attributes safeguarded under the Equality Act 2010, such as race, gender, age, and disability, relevant to managing disputes fairly.
Dispute Escalation	The process by which unresolved conflicts are referred to higher authorities, such as HR or external mediators, for resolution.