It was reported in July 2009 that there has been a 22% increase in unfair dismissal claims to 55,000 in the last year; with blame for the increase landing squarely at the feet of the Statutory Dispute Resolution Procedures and the much publicised recession. The new ACAS Code of Practice which replaced the Statutory Dispute Resolution Procedures, places less emphasis on the mechanics of how to manage disciplinary and grievance issues and offers more flexibility to resolve problems at an earlier stage.

One of the recommended steps in handling a grievance is exploring the possible benefits of resolving the issue through mediation either before a full fledged grievance lands on the desk, or as an alternative to following the grievance procedure. Whilst it is not a compulsory element to the grievance procedure, it can help to resolve disputes in the workplace. But what is “mediation”? We’ve had many calls from clients querying whether they should include mediation in their policies, and what it involves in practice, so we’ve put together the following information to guide you through the concept of mediation in the workplace.

What is mediation?
Mediation is a tool for resolving disputes by bringing employees together to reach agreement on how they can work together in the future. In order for mediation to work, the parties need to enter into it voluntarily and with an open mind, in the spirit of aiming to agree on actions for both parties to undertake in order to resolve any future conflict. Many grievances and workplace differences are caused by poor communication, and mediation can bring out into the open the issues faced by both parties in a controlled environment with a mediator ensuring both parties are heard.

When is mediation a good solution?
Mediation can be a tool to resolve many issues in the workplace, specifically in instances where someone feels bullied, harassed or there is a breakdown in communication. The key to its success is whether the two parties have the skills and willingness to change their own behaviour. Many disputes in the workplace come down to personality clashes; and mediation can deconstruct the problem and uncover actions that remove the personal element of the problem so both sides can focus on moving forward.

Who should be the mediator?
Ideally, the services of a trained, external mediator should be retained to ensure that all parties are comfortable with the independence of the mediator. However, this is not always possible for various reasons including lack of budget and lack of well known providers of this type of service. Many companies nominate a mid management level, sensible, discrete employee for this type of role, and this can work well if that person is respected, diplomatic, has excellent communication skills and can take a legitimately impartial view of the situation.

What is the process?
The first step is to invite them to a mediation meeting, explaining the purpose, confidential nature and structure of the meeting. Both parties should be advised to prepare for the meeting, that they will be a given a certain period of time each to air their concerns about their working relationship and hear any constructive proposals.
The mediator plays a key role in the process during the meeting; keeping the employees to their respective timeslots and facilitating discussion around topics in dispute. It can be helpful to take a break and for each party to reflect on what has been said, and to reconvene in order to structure a way of working together that is acceptable to both sides. The mediator should draw up a written set of actions for both parties to sign and agree to and both employees should be given a copy.

Advantages of mediation
Effective mediations allow issues to be resolved quickly and with minimal disruption to the workplace. It can prevent absence due to stress and lost productivity for everyone involved in a lengthy grievance procedure. But of most value, it can prevent issues spiralling into a heat of the moment resignation, and a constructive dismissal/discrimination claim landing on your desk, and, of course, the cost of the resulting Tribunal.

Disadvantages of mediation
Not all grievances concern disputes where mediation can be used as a tool for resolution. Due to its voluntary nature, it is also limited to cases where resolution and compromise are within the capability of employee’s; can they put their differences aside and work together? It also requires both employees to want to maintain their working relationship, and by the time a grievance is raised, their relationship may have gone past the point of no-return.

If you have a topic that you’d like us to cover in a future update, please let us know by emailing us at Adviceline@vizualhr.com.

The information contained above is for guidance only and represents our understanding of employment law and employee relations issues as at 14th December 2009. VizualHR cannot be held responsible for any action or inaction taken in reliance upon the contents. Specific advice should be sought on any individual matter.