UK businesses are losing 69 million a year by failing to tackle workplace disputes. 
According to Right Corecare, the employee well-being specialists, the 172 million UK businesses spend on industrial tribunals each year could be drastically reduced if employers were to take more effective action before disputes reach a tribunal.
The research also reveals that the average business can save 180 hours of management time by implementing a mediation service.Such a service helps employees resolve difficult or entrenched conflict situations at work via the help of an independent and impartial third party.
According to Right Corecare data, the public sector is the most likely to settle a dispute outside of the courtroom. Health authorities, local councils and higher education institutions lead the way in finding effective ways of settling disputes through informal rather than formal means. More than a third of UK organisations now use external mediation to resolve individual disputes and this is set to increase.
Breakdowns in interpersonal relations represent the top reason that companies call in the mediation experts. As pressure mounts in the world of work so does the incidence of conflict. Heavy workloads, unclear objectives, poor communication, infrequent support and a lack of praise are all common catalysts for friction. Bullying and harassment is the next most likely reason that organisations turn to external help.
Marilyn Appleton, mediation practice leader at Right Corecare, comments: With a litigation culture arriving in the UK, employers need to act now in order to reduce the risks to their business in terms of high legal costs and damage to overall morale. The benefits of mediation services can be measured, and include improved working relationships and increased productivity, in addition to a reduction in stress-related absence and employment tribunals.
There is a positive and significant impact on both the bottom line and the happiness and wellbeing of employees if employers ensure they have a resource on hand to deal with problems before they end up in the courtroom.
Top tips for resolving disputes:
1. Tackle disputes and breakdowns in relationships as soon as they arise
2. Train managers in conflict resolution skills
3. Have good policies on conduct and behaviour in the workplace and communicate them well to all staff
4. Ensure employees understand the support available and the lines of communication if they are unhappy about a situation
5. Have clear and specific job descriptions
6. Practice good induction processes for new staff
7. Provide stress awareness training for all staff
8. Develop a good business management system with clear operating procedures and work instructions
To coincide with the one-year anniversary of the Dispute Resolution Regulations 2004 - which sets out a clear requirement for employees and employers to sit down and discuss the grievance issues prior to tribunal - Right Corecare is today launching a dedicated mediation service for employers.
The service is delivered by a team of qualified mediators with a wealth of counselling and psychology experience. These professionals offer employers an independent forum for those in conflict to talk together and reach an agreement for moving forward.
(Average cost of tribunal - average cost of mediation services) x number of tribunals 2004-2005. **CIPD Managing conflict at work 2004 Number of days spent managing dispute - number of days spent in mediation CIPD Managing conflict at work 2004
UK businesses are losing 69 million a year by failing to tackle workplace disputes
According to Right Corecare, the employee well-being specialists, the 172 million UK businesses spend on industrial tribunals each year could be drastically reduced
