At ProMediate, we have mediators for civil and commercial litigation disputes and also for workplace disputes. The majority of people have probably experienced conflict at some stage in their working lives, but what can you do when conflict arises?
There are many forms of workplace conflict, including grievances, disputes between managers and employees or simply a personality clash or communication breakdown between work colleagues.
With people still working from home or with hybrid working, this can also be a source of tension and misunderstandings. Conflict is distracting, stressful and unpleasant for everyone involved and if left unresolved, workplace conflict can also be expensive for a business. It can stop people concentrating on their day-to-day work, can lead to employees leaving, (which can be costly) or can even result in an employment tribunal claim being brought..
A report was published by the CIPD ‘Estimating the costs of workplace conflict‘ which estimates that the cost of conflict to the UK is £28.5 billion a year”.
It is estimated in the report that the cost of workplace conflict to UK organisations is about £28.5 billion, which is equivalent to more than £1,000 for each employee.
Approximately 10 million people experience conflict at work each year, with more than half reporting stress, anxiety or depression as a result. It is also estimated just under 900,000 took time off work, nearly half a million resigned and over 300,000 employees were dismissed.
It can be seen that costs in the early stages of conflict are relatively low but start to increase if employees continue to work while ill and/or take time off work through sickness absence. The use of formal processes provides an important way of resolving conflict inside the organisation, although inevitably increases costs. The largest proportion of the costs are connected to the ending of the employment relationship, either through resignation or dismissal. This is what mediation seeks to avoid.
Analysis also shows the average costs of conflict where employees did not engage with their managers, HR or union representatives were higher than where such discussions took place. Where conflict resulted in formal procedures, costs were more than 3 times those associated with informal resolution.
Acknowledging conflict and taking early steps to tackle it including mediation can save time, money and stress, and also avoid potentially costly disputes developing.
While businesses often have formal policies and procedures in place to deal with workplace disputes (such as a grievance procedure), some situations may be better suited to a less formal approach to resolving matters. For example, personality clashes and communication problems are often difficult to sort out using traditional grievance procedures.
Workplace mediation
This is where workplace mediation using the services of an independent mediator comes in. Many employers, dor xanple in the NHS, and public sector, have in house mediation. Workplace mediation is seen as an increasingly effective approach adopted by many organisations as an alternative way of resolving disputes in the workplace.
Common situations in which mediation might be used include:
- Pay or contractual disputes
- Providing an alternative to formal disciplinary/grievance procedures
- Where there is bullying or harassment (although sexual harassment is generally difficult to resolve through mediation)
- Rebuilding a working relationship after a formal disciplinary/grievance process
- Helping colleagues to form effective working relationships where a personality clash or communication problems have arisen
What is workplace mediation?
Workplace mediation is a quick, confidential and voluntary process that can be used to attempt to resolve workplace conflict. The mediation is usually carried out by a trained, neutral mediator who works with all parties to try to reach an agreed solution that is satisfactory to everyone involved. It normally takes place over one or two days.
As mediation is not a legal process, the mediator’s role is not to make a judgement on who is in the right and who is in the wrong. The mediator does not make any decisions during mediation. Their role is instead to help all parties understand the issues involved and help clarify the options available, with a view to reaching an agreement that suits both parties and resolves the conflict.
The overriding aim of workplace mediation is to restore and maintain good and productive working relationships wherever possible.
What process do you follow for mediation?
When a mediator is appointed, they are usually provided with an overview of the issues involved in the workplace dispute and any relevant papers that either party wishes to rely upon or discuss during the mediation process. This assists the mediator to understand the background to the case and helps ensure that discussions will be efficient as possible on the day of mediation.
The mediator then contacts all the parties involved to request that they sign up to a mediation agreement. This agreement outlines the mediation process, as well as setting out that all discussions that form part of the mediation are to be treated as without prejudice and are in a genuine attempt to settle the dispute. This essentially means that anything discussed during the mediation cannot then be used as evidence in any future legal proceedings, should the mediation fail to reach an agreed solution to the dispute. Also, it cannot be discussed with anyone not taking part in the mediation.
While mediation doesn’t always have to be conducted in person (for example, it can take place over the telephone or by zoom/Teams), it is often arranged to take place off-site at a neutral venue or at work in a private meeting room and with the mediator and all the parties present.
During the mediation process, each party should be given their own private room to allow them the space and privacy to discuss their issues with the mediator confidentially. The mediator will begin by speaking to each of the parties separately, seeking to gain an understanding of the key issues important to them in relation to the dispute and finding out what they each hope to achieve as an acceptable outcome/solution to resolve the conflict. All information given to the mediator during the mediator’s separate discussions will be kept confidential, unless expressly agreed.
The mediation process will often see the mediator going to and fro between the parties to seek an agreement between both sides, and, depending upon the case, may also involve the mediator bringing both parties together, if it is felt this will help to resolve the dispute.
What outcomes can you expect from workplace mediation?
The best-case scenario in mediation is that all parties come to a mutually agreed solution to resolve the conflict, which will allow a good working relationship to be restored. Everyone will have had a chance to be heard, which can help to improve the understanding of both sides going forward. This can be recorded in an agreement at the end of the process.
However, mediation is dependent on the willingness and openness of the parties involved to reach a solution.
Why use mediation?
- Mediation can be a cost effective way to resolve what could turn into a costly legal dispute
- Mediation offers a way for employment disputes to be settled confidentially
- Mediation potentially offers a faster and more flexible approach to resolving workplace disputes than a formal grievance process or employment tribunal litigation
Disputes in the workplace are often difficult to deal with but early intervention and use of a professional independent mediator can offer a practical and cost effective way to minimise the disruption to your business. You will be surprised at the transformation in working relationships that mediation can bring.
Footnote
Research by the CIPD (https://www.cipd.org/en/) has shown that 26% of employees and 20% of employers believe that conflict at work is a ‘common occurrence.’ With this in mind, it’s probably no surprise that research conducted by CPP Inc. in the United States revealed that US employees spent almost 3 hours per week on average dealing with conflict at work. Due to this the annual financial cost of conflict to US organisations is $ 359 billion.
Over in the UK, a 2021 report by Acas (https://www.acas.org.uk/) estimates workplace conflict costs UK employers £28.5 billion every year, which is just over £1,000 on average for every employee. Within this, £11.9 billion in costs arose from resignations, £10.5 billion from disciplin
ary dismissals and £2.2 billion from sickness absence.