The cost of mishandling grievances
A poorly handled grievance can be a costly mistake for any business.
Beyond the immediate disruption, unresolved grievances can lead to significant financial, operational, and reputational damage. Some of the biggest risks include:
- Reduced productivity.
- A negative work environment.
- Lower employee morale.
- Wellbeing issues, such as stress or anxiety.
- Higher absenteeism and turnover.
- Legal risks – Mishandling grievances can lead to costly Employment Tribunal claims, draining resources and harming your company’s reputation.
A proactive, well-structured approach to grievance handling can save your business time, money, and stress. Here’s how to get it right.
Address small issues informally and as quickly as possible
Line managers will address grievances informally almost on the daily. Grievances are queries, concerns, issues or complaints that an employee raises, and most can be simple to respond to or resolve informally.
But it’s important that these minor issues are addressed and nipped in the bud as quickly as possible in order to prevent them becoming bigger issues. If the issue snowballs, it will require the formal grievance procedure to be invoked, or become a matter considered externally at an Employment Tribunal.
Encouraging open conversations and addressing concerns quickly and effectively can prevent small problems from becoming major disputes. This not only strengthens workplace relationships but also reduces the likelihood of formal procedures being needed.
Ensure your grievance procedure is clear and accessible
Employers are legally required to set out a grievance procedure in writing, usually in an Employee Handbook or contract. A formal grievance procedure allows an employee to express a complaint or identify a matter of concern that remains unresolved. It provides an opportunity for an employer to consider issues that can’t be resolved informally or where the informal approach would be inappropriate.
Take a proactive approach to preventing workplace harassment
With the introduction of the Worker Protection (Amendment of Equality Act 2010) Act 2023, employers now have a legal duty to take reasonable steps to prevent sexual harassment in the workplace.
This means all reports of harassment, whether formal or informal, must be taken seriously, documented appropriately, investigated thoroughly and resolved with appropriate action.
A robust grievance procedure is a key mechanism for addressing workplace harassment, but it’s not enough on its own. Employers must actively promote a culture where employees feel safe to report concerns without fear of retaliation.
Follow your grievance procedure and carry out a fair investigation
A grievance procedure is only effective if it’s applied fairly and consistently. Managers should adopt a supportive and open communication culture, so employees are comfortable to raise any concerns. Early intervention, following your policies fairly and consistently, and using mediation where appropriate, can assist with resolving conflicts before they escalate. If you need a refresher on how to handle grievances, check out our handy guide!
Train your managers
Managers are on the front lines. Without the right training, they may unintentionally mishandle complaints, leading to bigger legal and operational risks.
Managers should be equipped with the skills to:
- Recognise early warning signs of conflict.
- Manage difficult conversations professionally.
- Follow grievance procedures correctly.
- Handle complaints with fairness and discretion.
This not only protects your business but also helps to build a more engaged and trusting workforce.
Need support? Moorepay’s employment law and HR training courses are designed to give managers the knowledge and confidence to handle grievances effectively. Contact us on 0345 073 0240 (option 3) or email: policy.team@moorepay.co.uk to learn more.
